Dec 24 (Reuters) – South Korea has indicted the chief executive officer and local subsidiary of Uber Technologies Inc for violating a law governing public transport, becoming the latest jurisdiction to challenge the U.S. taxi service provider. 
 
 The Seoul Central District Prosecutors’ Office issued the indictment against CEO Travis Kalanick and the firm’s Korean unit for violating a law prohibiting individuals or firms without appropriate licenses from providing or facilitating transportation services, an Uber spokeswoman said. 
 
 The prosecutors’ office declined to comment. 
 
 “Uber Technologies respects the Korean legal system and will provide its full cooperation,” the company said in a statement without detailing the charges brought against it. 
 
 Uber, through its apps, charges fees to play matchmaker for passengers and drivers – some registered as taxi drivers. But a lack of regulation for the relatively new business model has brought Uber to the attention of authorities worldwide. 
 
 Taiwan and the Chinese mainland city of Chongqing on Monday separately said they were investigating Uber over concerns it and its drivers were not appropriately licensed. 
 
 Seoul challenge 
 
 Last week, Seoul’s city legislature passed a measure to fine Uber drivers not registered as taxi drivers, and offer financial reward for those reporting such individuals. 
 
 The decision came after the city government repeatedly said Uber was engaged in illegal business activities, an accusation the company denied. 
 
 “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,” Uber said in its statement on Wednesday. 
 
 Prosecutors will not make any arrests under the indictment, South Korea’s Yonhap News Agency reported earlier on Wednesday. The penalty for breaking the law in question is a prison sentence of up to two years or a maximum fine of 20 million won ($18,121). 
 
 Uber’s spokeswoman said Uber services are functioning as normal. 
 
 (Reporting by Se Young Lee; Editing by Christopher Cushing) 

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 SEOUL, South Korea — South Korea has indicted the chief executive officer and local subsidiary of Uber for violating a law governing public transport, becoming the latest jurisdiction to challenge the U.S. taxi-service provider. The Seoul Central District Prosecutors' Office issued the indictment against Chief Executive Travis Kalanick and the firm's Korean unit for violating a law prohibiting individuals or firms without appropriate licenses from providing or facilitating transportation services, an Uber spokeswoman said. 
 
 Prosecutors will not make any arrests under the indictment, South Korea's Yonhap News Agency reported earlier on Wednesday. The penalty for breaking the law in question is a prison sentence of up to two years or a maximum fine of 20 million won ($18,121). The prosecutors' office declined to comment."Uber Technologies respects the Korean legal system and will provide its full cooperation," the company said in a statement. Last week, Seoul's city legislature passed a measure to fine Uber drivers not registered as taxi drivers, and offer financial reward for those reporting such individuals. The city's government had repeatedly said Uber was engaged in illegal business activities, an accusation the company denied. 
 
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 Uber is moving into transportation markets that have been dominated by taxis and limousine drivers. 
 
 Uber is moving into transportation markets that have been dominated by taxis and limousine drivers. 
 
 Uber is moving into transportation markets that have been dominated by taxis and limousine drivers. Close 
 
 Uber Technologies Inc. Chief Executive Officer Travis Kalanick was indicted in South Korea and China’s largest municipality pledged to crack down on its service in the latest instances of government scrutiny of the company. 
 
 Kalanick, Uber’s Korean unit and car-rental partner MK Korea were charged yesterday by the Seoul Central District Prosecutors’ Office for flouting a local transportation law prohibiting rental cars from operating as cabs, according to an official at the department, who asked not to be named citing internal policy. The official declined to comment on whether prosecutors expect Kalanick to appear for questioning. 
 
 Uber will cooperate fully and is confident the courts in South Korea will uphold a “fair and sensible judgment,” it said through public relations representative Insight Communications. The maximum penalty for the alleged legal violation is a two-year prison sentence or a fine of as much as 20 million won ($18,000), Yonhap News reported today. 
 
 The San Francisco-based company became the most highly valued U.S. technology startup after a fundraising round this month valued it at $40 billion. Uber is coming under increased scrutiny worldwide as governments step up regulation of its car-sharing service, which licensed taxi operators call unfair competition. 
 
 Photographer: Victor J. Blue/Bloomberg Th Uber Technologies Inc. car service application is demonstrated for a photograph on an iPhone in New York. Uber became the most highly valued U.S. technology startup after a fundraising round this month valued it at $40 billion. Close Th Uber Technologies Inc. car service application is demonstrated for a photograph on... Read More Close Open Photographer: Victor J. Blue/Bloomberg Th Uber Technologies Inc. car service application is demonstrated for a photograph on an iPhone in New York. Uber became the most highly valued U.S. technology startup after a fundraising round this month valued it at $40 billion. 
 
 In China, the southwestern city of Chongqing will “strike harder” at those who operate illegal transportation services using car-booking software such as Uber, according to a statement posted on the website of the transportation commission. 
 
 China Raid 
 
 The declaration follows a report by the official China News Service last week that law enforcement officials had raided a site used by the company to train new drivers. Uber is “actively communicating and seeking clarification” from the municipal government, it said in an e-mailed statement. 
 
 Uber’s screening practice was criticized after allegations that one of its drivers raped a woman in New Delhi, while Vietnam and Taiwan have declared its services to be illegal. 
 
 The company said in August it had sought a legal opinion and that its Seoul service obeys the law. Paid transportation with unregistered vehicles is “clearly illegal activity,” South Korea’s Ministry of Land, Infrastructure and Transport said later that month. 
 
 To contact Bloomberg News staff for this story: Tian Ying in Beijing at ytian@bloomberg.net; Sam Kim in Seoul at skim609@bloomberg.net 
 
 Photographer: Brent Lewin/Bloomberg Travis Kalanick, Chief Executive Officer of Uber Technologies Inc. Close Travis Kalanick, Chief Executive Officer of Uber Technologies Inc. Close Open Photographer: Brent Lewin/Bloomberg Travis Kalanick, Chief Executive Officer of Uber Technologies Inc. 
 
 To contact the editors responsible for this story: Chua Kong Ho at kchua6@bloomberg.net Gregory Turk
– Uber's legal troubles continue, and this time, the CEO himself is in hot water, Engadget reports. South Korea has indicted Travis Kalanick for allegedly running an illegal taxi service, Yonhap reports, and his charge could lead to a two-year jail sentence or an $18,000 fine. Along with the head of a partner car service, Kalanick has been charged with illegally using rental cars as taxis, Bloomberg reports. Uber says it will cooperate with the investigation, but it will continue operating. "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," the company says. South Korea won't make arrests in the case, NBC News notes. The indictment follows a complaint by Seoul city officials last year. The city last week voted to fine drivers who aren't licensed to drive taxis and to reward people who report illegal Uber activity with almost $1,000. Meanwhile, Chongqing, the biggest municipality in China, has vowed to "strike harder" against transportation services like Uber, Bloomberg notes; Taiwan is also investigating the company, Fortune reports.