Controversy Over Illegal 'Tada' Second Trial... Dispute Resumes Again

[Asia Economy Reporter Baek Kyunghwan] The prosecution has expressed the position that the management of the ride-sharing platform 'Tada' should be punished. The 'Tada' management was acquitted in the first trial on charges of illegal business operations.

On the 19th, the Seoul Central District Court Criminal Appeal Division 1-1 (Presiding Judges Kim Jaeyoung, Song Hyeyoung, Jo Jungrae) held the first appeal trial for former and current SoCar CEOs Lee Jae-woong and Park Jae-wook, who were indicted on charges of violating the Passenger Transport Service Act.

On that day, the prosecution pointed out regarding the first trial ruling, "Although the original court ruled it as a lease contract, in reality, Tada users have no intention of operation or control, and it is the same business method as a call taxi."

On the other hand, the former CEO's side argued for acquittal, stating, "Tada corresponds to car rental including driver mediation permitted under the Passenger Transport Service Act, and the original court made its judgment after sufficient deliberation." They claimed that Tada was a legal rental car service including driver mediation, and since the law changed after the original ruling and the service has already been discontinued, there is nothing to change now.

Meanwhile, the former CEO and others were brought to trial on charges including operating a passenger car transport business without a license using an 11-seater van and driver in October 2019. The first trial acquitted them, stating that Tada is a vehicle rental service based on a mobile application, and users are renters of rental cars, not passengers, so they cannot be punished under the Passenger Transport Service Act.

After the first trial ruling, CEO Lee resigned from his position in March last year following the passage of the 'Tada Prohibition Act' in the National Assembly. Tada's core service, 'Tada Basic,' was discontinued.