The National Assembly on Friday passed a revision to the passenger transport service act, more commonly known as the bill that outlaws the ride-hailing service Tada.

A Seoul court ruled in favor of the ride-offering service last month, saying that it does not violate current law. But with the latest revision, Tada faces a suspended operation regardless of the judiciary decision. 

The revised act calls for institutionalizing passenger transport platform services as legitimate businesses if companies operating rental vehicles obtain licenses, pay due fees and abide by the taxi quota system.

However, the revision includes the provision that a transport platform operator can only use eleven to 15 seat rental vans for the purpose of tourism and for a duration of at least six hours. 

In addition, outsourcing a driver is permitted only when vehicles are rented or returned at an airport or seaport. 

These conditions essentially outlaw the Tada service in its current form, which has been used more for shorter distances than for longer travel.  

Taxi drivers have been fiercely protesting Tada, arguing that the company threatens their livelihood. This has raised some criticism that lawmakers could be aware of the amount of votes to be cast by taxi drivers on the April 15 general elections.  

There will be an 18-month grace period before the law takes effect.