South Korean taxi drivers have angrily protested against the car-pooling service created by KakaoTalk, saying it would threaten their jobs and livelihoods.

US giant Uber has only a minimal presence in the country, offering only taxi- and licensed-hire vehicle hailing after closing its main ride-sharing service in 2015 in the face of an extensive backlash from drivers.

But Kakao is used by more than 80 percent of South Koreans, and in recent months tens of thousands of taxi drivers have held mass rallies in Seoul to condemn its upcoming car-pooling service, which is due to launch next week. 

The 57-year-old driver, surnamed Choi, set himself alight in front of the national parliament in Seoul after complaining about the carpooling service, according to the police and Yonhap news agency.

Choi had told another taxi driver he wanted to set himself on fire "because of the Kakao carpool", Yonhap news agency quoted the man as saying.

He poured fuel over himself while sitting in his vehicle and set himself alight, police said. He was taken to hospital but died hours later.

Choi was a leader of the union branch at his firm in Seoul. (AFP)