Uber CEO Travis Kalanick.
Uber CEO Travis Kalanick.

Another day, another legal problem for Uber.

South Korean prosecutors indicted Uber CEO Travis Kalanick and an exec from Uber’s Korean business partner on Wednesday for operating “an illegal taxi service,” Yonhap news reported.

Uber, which was already operating its uberTAXI and UberBlack service in Seoul, recently began charging customers for uberX, which was previously in a “free test mode” and allows drivers to use their personal vehicles to shuttle people around town in exchange for salary.

Now, officials say Uber’s business is illegal based on a law that prohibits rental car businesses from operating as taxi companies.

Yonhap noted that prosecutors won’t make arrests, but Kalanick could face up to two years in jail. City officials are offering nearly $1,000 to those that can provide information on Uber.

We’ve reached out to Uber for comment and we’ll update when we receive a response.

This is yet another battle with lawmakers for Uber, and particularly in Asia, where the company is trying to expand. Uber was deemed illegal in Taiwan last week, and officials in Thailand ordered Uber to cease operations earlier this month.

Update: Here’s Uber’s response:

Uber Technologies respects the Korean legal system and will provide its full cooperation.

We firmly believe that our service, which connects drivers and riders via an application, is not only legal in Korea, but that it is being welcomed and supported by consumers.

At the same time, Uber does not believe it is appropriate for authorities to seek to punish drivers who are trying to make a living through this service.

We are confident that the Korean court will uphold a fair and sensible judgement on this case.

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