Tesla Faces Complaint Over FSD Marketing to Korean Buyers
A consumer group plans to file a complaint Thursday alleging Tesla marketed Full Self-Driving software to South Korean buyers whose cars cannot legally use it.
Tesla faces a complaint alleging it marketed Full Self-Driving (Supervised) software to tens of thousands of South Korean buyers whose vehicles cannot legally use the feature, according to an advocacy group that plans to file the complaint Thursday with the Korea Fair Trade Commission (KFTC).
The group, Citizens United for Consumer Sovereignty, said Tesla collected lump-sum payments of 9.043 million won ($6,726) for the software while knowing most of the cars it sold in the country could not run it. Choi Young-suk, who leads automotive issues at the group, said Tesla generated substantial revenue by selling an expensive driver-assistance system to mass-market buyers who cannot use it for even a single day.
FSD can be used on about 20% of Tesla vehicles registered in South Korea, those manufactured in the US, Tesla Korea country manager Seo Young-deuk said in parliamentary testimony last month. Those cars meet US vehicle-safety standards that South Korea recognizes under a free trade agreement. Most Teslas sold in the country are built in China, where no such agreement exists, and Tesla only recently started the process for obtaining FSD certification for China-made vehicles, despite charging customers for the software for more than three years.
Tesla has sold more than 170,000 Shanghai-produced vehicles in South Korea since 2023, according to data the company sent to South Korea's National Assembly. Sales of FSD-incompatible China-made Teslas grew more than fivefold from 2023 through last year, when 99% of new Teslas sold in South Korea could not legally use FSD.
A KFTC official said the agency launched a probe earlier this year into Tesla's advertising of its FSD system and has received written responses from the company, but declined to provide further details. Tesla did not respond to requests for comment.
The complaint alleges Tesla promoted FSD last year as "coming soon" and posted a demonstration video filmed in South Korea without clearly disclosing that the technology could only be used in a small fraction of the Teslas being sold. Tesla knew those limitations but continued to market the software to all customers, the complaint said.
Tesla Korea manager Seo testified during an October 8 parliamentary hearing that the company had not formally requested FSD testing from the transport ministry. Two weeks later, Tesla applied for certification. The ministry said FSD does not comply with local safety rules, including requirements for drivers to keep their hands on the wheel, according to a statement it sent to a lawmaker, reviewed by Reuters. The transport ministry could not be reached for comment.
The group asked the KFTC to issue a temporary cease-and-desist order on marketing FSD for ineligible vehicles, impose administrative fines and refer the case to state investigators. FSD is not autonomous and requires active human supervision, despite years of promises from CEO Elon Musk that all Teslas would soon become fully driverless. Tesla sold FSD for one-time payments for years before shifting to a monthly subscription of 150,000 won ($112) in August.
A Seoul court last month dismissed a lawsuit filed by Tesla owners seeking refunds for its FSD option, which was not activated in South Korea until late last year. The court rejected their claim that Tesla had failed to deliver the driver-assistance system, saying regulatory and legal restrictions had limited the company's ability to roll out further functions.
Tesla surpassed BMW this year as South Korea's top imported-car brand, according to South Korean import data. The company has sought to expand FSD beyond North America, particularly in Europe. Tesla shares were down 2.4% in delayed trading.