Uber suspends UberX service in South Korea

Anyone with a car can act like a taxi driver through uberX. No commercial license is required. It's Uber's least expensive service.

Government officials in South Korea's capital of Seoul ruled this type of arrangement illegal back in January, according to a Reuters report. The city is offering people monetary rewards up to 1 million won, or $910, for turning in non-commerical drivers. Many cities abroad and in the U.S. have also banned uberX because the service allows non-commercially licensed drivers to transport passengers.

"We are suspending uberX, our ridesharing platform, and operate UberBLACK as prescribed by current law. This decision was made as part of a proposal to the Taxi Industry," Uber posted on its blog. "We stay committed to cooperate to reach a compromise with the City and Taxi Industry, and look forward to working together to bring regulated options to Seoul."

Uber's other services — Black and Taxi -— will continue to operate, according to the statement.

Uber Black is its luxury car service operated by commercial drivers. Uber Taxi is the company's free platform that lets people hail regular taxi cabs through its app.

Related: Uber looks to raise another $1 billion

Related: Uber is developing self-driving car technology

CNNMoney (New York) March 6, 2015: 7:25 PM ET

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