Uber Korea announced Friday that it will begin testing its expanded ride-sharing service in the city of Seoul.
However, the South Korean government quickly ruled that it is illegal for the U.S.-based cab-booking service to run the tests, which continues the on-going conflicts between Uber and the country, according to GlobalPost. The government made the service illegal last month, and is considering banning it completely.
Uber has gained popularity for letting passengers use mobile devices to connect quickly to its drivers. Passengers are able to call drivers for rides with the company's app, which comes with geo-tracking systems and texting messaging.
While the service is provided around the world and has received a great deal of support from investors, it has been battling with several authorities, including the Seoul municipal government, that have accused it of engaging in illegal taxi operations, as well as violating the Passenger Transport Service Act. The ministry of transportation warned that drivers could be fined up to 20 million won ($19,700) or serve up to two years in jail for getting involved in such operations, GlobalPost reported.
Uber, on the other hand, says that its service abides by the law and can help drivers generate more earnings. It also says that cities that allow the service have been experiencing more consumer spending and growth, along with a decline in traffic congestion.
A spokeswoman for Uber in Seoul said sharing rides is not only legal in Seoul, but that the Korean government promotes it as an example of a "sharing economy," The Wall Street Journal reported. To make sure the system is accurately tested, the company is making the service available for free.
A ministry official said that Uber may be able to avoid punishment by providing the service for free, but the company will face "stern punishment" once it begins charging for it.
