Skype always seems to be embroiled in some controversy or the other. Earlier it faced a RICO lawsuit from Streamcast Corporation and then it was accused of bowing to Chinese pressure by filtering text messages. Now Skype is facing accusations in South Korea for illegally drawing subscribers without registering with the government.

Skype and its korean partner Auction are being accused of violating domestic regulations by going ahead with their internet phone business without approval of the South Korean Government. These companies cannot sign up customers as they do not have the approval to conduct internet phone

It was only in February that the company has entered into an alliance with Auction for launching VoIP services in Korea. Auction has admitted that it still has to get the nod from the Ministry of Information and Communication for VoIP but negated any allegations of wrongdoings.

Cho Kyeong-sik, Director, Information Ministry stated:

This is a complicated problem. We are checking whether or not Skype and Auction breached regulations by failing to register their business with us.

If the companies are found guilty they could face a maximum of 150 million won in fines or three years in prison