The taxi business in Seoul is saturated as cabs are readily available and several apps for calling cabs have existed for a while. Local tech companies such as Daum Kakao are also catching up by offering mobile-based taxi-hailing services like those of Uber. More than 30 million South Koreans are registered on Kakao Talk mobile messenger app, which could help "Kakao Taxi" when it is launched at the end of this month. To avoid legal issues, the service will only work with the existing taxi operators.
The authorities have claimed that Uber threatened the safety and security of Seoul passengers as its drivers did not have to go through official background checks as other taxi drivers, and the riders were not insured in the case of road accidents.
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