Brett Molina

USA TODAY

Uber is facing yet another challenge to its startup ride-sharing service.

Prosecutors in South Korea indicted Uber CEO Travis Kalanick and local business partner MK Korea Co. for violating a transportation law, reports Bloomberg.

Prosecutors claim the company illegally used rental cars as Uber vehicles. Uber tells Bloomberg it will fully cooperate with South Korea's investigation.

The indictment is the latest roadblock for Uber as it attempts a significant expansion in Asia. Earlier this month, Kalanick revealed Uber closed a new financing round of $1.2 billion to help fund Uber's move into Asia.

Several states in the U.S. and countries have either banned or halted service as they sort out how the ride-sharing service fits with local taxi services. Last week, the city of Portland, Ore., reached a deal with Uber to halt its service for three months while it updates taxi rules.

Follow Brett Molina on Twitter: @brettmolina23.