Tesla marketed "Full Self-Driving" to South Korean customers and charged them $6,726 for activation despite knowing the majority of its vehicles in the country could not legally use the system, according to a complaint an advocacy group plans to file with the Korean Fair Trade Commission.
Only 20 percent of Teslas registered in South Korea can legally use FSD because they were built in the U.S. and meet American vehicle-safety standards that South Korea recognizes under a free trade agreement, Tesla Korea country manager Seo Young-deuk testified last month. Most Teslas on South Korean roads are manufactured in China, which has no such agreement with South Korea. Tesla sold over 170,000 China-made vehicles in the country since 2023. Last year, 99 percent of new Teslas sold in South Korea could not legally use FSD.
Tesla began seeking FSD certification for China-made vehicles only recently, even though it had charged customers for the software for over three years. Last year, the company promoted FSD as "coming soon" and posted a demonstration video filmed in South Korea without clearly disclosing that only a tiny fraction of its vehicles could use the technology.
The advocacy group asked the KFTC to issue a temporary cease-and-desist order on FSD marketing for ineligible vehicles, impose fines, and refer the case to state investigators. A Seoul court dismissed a lawsuit from Tesla owners seeking refunds for FSD last month, rejecting claims that Tesla failed to deliver the system and instead attributing the issue to regulatory and legal restrictions.