Korea's Constitutional Court has upheld law that bans ride-hailing services like the company Tada which offers services that are similar to taxis while not officially being a taxi service.
The court said the so-called Tada Prohibition Act passed earlier this year banning such services is indeed constitutional because it seeks to prevent inequality between businesses like Tada and actual taxis, which are highly regulated.
Tada's parent company, VCNC, which challenged the law in court, had argued that the law infringes on the rights of consumers to hire drivers for themselves.
Tada's business was to rent vans seating 10 to 15 people that came with a driver.
It suspended its services last month indefinitely.