Tada, Not Guilty... "Legal Service" in First Trial (Comprehensive)

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 Reporters Seongpil Cho, Seungyoon Song] 'Innovation or illegality,' the first judicial ruling on the vehicle call service 'Tada' was 'not guilty.'

On the morning of the 19th, Judge Park Sang-gu of the Seoul Central District Court Criminal Division 18 held a sentencing hearing in this case and acquitted Lee Jae-woong, CEO of Socar, and Park Jae-woong, CEO of its subsidiary VCNC, who were charged with violating the Passenger Transport Service Act. This came one year and five months after the service launched in October 2018.

The prosecution's main allegation in this case was that the CEOs violated the Passenger Transport Service Act. The Act prohibits car rental businesses from arranging drivers for lessees of business-use vehicles. It bans illegal taxi operations using rental cars. However, the prosecution argued that the CEOs operated illegal call taxis without licenses by arranging drivers for 11-passenger vehicles through the Tada smartphone application.

However, the court did not accept the prosecution's claims. Judge Park stated, "Tada's operations involve valid contractual relationships among multiple parties such as leasing, so it cannot be considered taxi operations," and added, "Including van leases like Tada's service under the Passenger Transport Service Act, which the prosecution cited as grounds for guilt, excessively expands the scope of criminal law."

Immediately after the not guilty verdict, Tada stated, "The court has chosen the path toward the future," and expressed their intention to "become a platform that creates shared value for more people through technology and data." CEO Park also said after leaving the courtroom, "This has created a good opportunity for society to move forward into the future."

That day's court ruling is expected to influence the handling of the so-called 'Tada Ban Act' currently under discussion in the National Assembly. The Tada Ban Act is pending in the National Assembly's Legislation and Judiciary Committee, and with the temporary session starting on the 17th, its passage was anticipated. It is known that the ruling party and the Ministry of Land, Infrastructure and Transport were also closely watching the verdict regarding the direction of the Tada Ban Act. However, with the not guilty verdict from the court, the possibility of the bill's passage has likely been hindered.