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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.