The CEO of Socar, the parent company of ride-hailing app TADA, resigned on March 13, a week after the National Assembly approved a law effectively banning the service.

Lee Jae-woong's resignation means that Park Jae-wook, the head of TADA operator VCNC now serves as the company's sole chief.

Socar in a board meeting on the same day gave up plans to pursue a corporate split that had been planned for next month.

A Socar staffer said, "In spite of the Seoul Central District Court ruling" that acknowledged TADA's legality, "the National Assembly passed a law prohibiting our service, making it impossible to expand our business."

TADA said it will stop its van-hailing service next month. The company was given a one-and-a-half-year grace period despite the new law, but losses had already ballooned to the tune of W30 billion until last year (US$1=W1,219).

Lawmakers caved in to pressure from the established taxi lobby and conventional taxi drivers, a couple of whom self-immolated in protest against the more convenient, app-based competition.

Lee wrote on his Facebook page, "At any rate, I lost. I failed to fully convince the public. Vested interests will have to step down one day. I believe the next generation will be able to come up with sustainable innovations."

