Tesla faces South Korea consumer complaint over FSD marketing practices

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Tesla Korea FSD complaint

Highlights

Citizens United for Consumer Sovereignty will file a complaint to Korea Fair Trade Commission alleging Tesla marketed FSD to buyers whose vehicles—about 99% of new Tesla sales in 2023—cannot legally use FSD.
Tesla collected 9.043 million won lump-sum payments and now charges a 150,000 won monthly FSD subscription, generating substantial revenue from ineligible South Korea consumers despite only 20% vehicle compatibility.
South Korea's transport ministry states FSD doesn't meet local safety rules, and consumer groups seek KFTC action including a marketing ban, administrative fines, and state investigation against Tesla.

Complaint centers on certification gap

As first reported by Reuters, an advocacy group plans to file a complaint with the Korea Fair Trade Commission on Thursday alleging that Tesla marketed FSD to South Korean customers for years even though the software can be used on only a limited share of vehicles in the country.

The complaint says FSD is compatible with about 20% of Tesla vehicles registered in South Korea, mainly those built in the U.S. that meet vehicle-safety standards recognized under the bilateral free trade agreement. Most Teslas sold in South Korea, however, are made in China, where that regulatory recognition does not apply, and Tesla only recently started the certification process for those vehicles after charging customers for more than three years.

Tesla has often collected lump-sum payments of 9.043 million won for the software, and in August shifted to a monthly subscription priced at 150,000 won. The consumer group, Citizens United for Consumer Sovereignty, says Tesla generated significant revenue from mass-market buyers who could not use the system even once on ineligible vehicles.

Tesla did not respond to requests for comment. A KFTC official says 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 did not provide further details.

Regulatory and market fallout in South Korea

Tesla's local exposure has grown as its sales of China-made vehicles surge in South Korea. According to data Tesla submitted to the National Assembly, the company has sold more than 170,000 Shanghai-produced vehicles in the country since 2023, and 99% of new Teslas sold in South Korea last year could not legally use FSD.

The complaint also alleges that Tesla promoted FSD last year as "coming soon" and published a demonstration video filmed in South Korea without clearly disclosing that the technology could only be used in a small fraction of vehicles being sold. During an October 8 parliamentary hearing, Tesla Korea country manager Seo Young-deuk testified that the company had not formally requested FSD testing from the transport ministry, and Tesla applied for certification two weeks later.

The transport ministry says FSD does not comply with local safety rules, including requirements for drivers to keep their hands on the wheel, according to a statement reviewed by Reuters. The consumer group is asking the KFTC to order Tesla to stop marketing FSD for ineligible vehicles, impose administrative fines and refer the case to state investigators.

The dispute emerges as Tesla overtakes BMW this year to become South Korea's top imported-car brand. It also highlights broader pressure on the automaker's strategy to expand FSD beyond North America, while the software still requires active human supervision and remains short of full autonomous driving.

In our earlier article on Menara Asia’s Menarabena platform in Malaysia, we covered how the construction sector is moving toward digitalisation to streamline procurement while strengthening certification and compliance checks for building materials. The piece highlighted the platform’s role in consolidating documentation (such as approvals, product certifications, and technical records) to help industry players verify whether products meet regulatory requirements before purchase and use.

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