Venture Industry Submits Petition to Court Claiming "Tada Is Not Illegal"

Lee Jae-woong (right), CEO of Socar, and Park Jae-wook, CEO of VCNC, are entering the courtroom on the 10th at the Seoul Central District Court in Seocho-gu, Seoul, to attend the first trial sentencing hearing disputing the illegality of 'Tada.' Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Buaeri] Venture business organizations submitted a petition to the Seoul Central District Court on the 18th, stating that the van-hailing service 'Tada' should not be judged as illegal.

Sixteen organizations belonging to the Innovative Venture Organizations Council stated in the petition, "We request the judiciary to adopt a flexible and promotive perspective on new business models so that innovative venture companies can continue their challenges."

They added, "Tada has struggled to seek legal operations based on current laws and regulations," and argued, "If services of innovative companies like Tada are judged illegal, starting new industries under the current positive regulatory environment will be almost impossible."

They expressed serious concern that "seeing the prosecution's indictment and sentencing request against the Tada service may extinguish the spark of future new industry creation and innovation momentum," emphasizing that "Tada should continue its challenge for innovation through this ruling, and opportunities should be given for innovative platforms to provide benefits to the public."

The organizations participating in the petition include the Korea Venture Business Association, Inno-Biz Association, Korea Startup Forum, KOSDAQ Association, Korea Venture Capital Association, Korea Angel Investment Association, among others, totaling 16 organizations.

On the 10th, the prosecution requested a one-year prison sentence for Lee Jae-woong, CEO of Socar, and Park Jae-wook, CEO of VCNC, who were indicted on charges including violation of the Passenger Transport Service Act related to 'Tada.' The sentencing trial for this case is scheduled for the 19th.