The Ministry of SMEs and Startups has criticized the prosecution for indicting the heads of the ride-hailing platform Tada on charges of running an illegal transportation service. 

Minister Park Young-sun chided the move as a failure to catch up with technological developments. She told reporters during a visit to the Dongdaemun Market in Seoul on Wednesday that the situation reminds her of the “Red Flag Act” in the U.K. in the late 19th century.

The red flag act was enacted by the British parliament in 1865 to protect horses on the roads and prevented cars from driving faster than wagons. It is symbolic of anachronistically heavy regulation on new industry. 

Labeling the prosecution's views on TaDa as "too traditional," Park said she thinks the company is an innovative business platform based on the sharing economy, and will deliver this stance to the prosecution if possible. 

The minister also urged the National Assembly to play its part in solving the confrontation between Tada and the taxi industry, stressing that failure to change laws in a timely manner can lead to social conflicts.