Tesla Misled South Korean Buyers Over FSD, Consumer Group Alleges in Planned Complaint

A South Korean consumer advocacy group plans to file a complaint with the Korea Fair Trade Commission (KFTC) on Thursday alleging that Tesla misled tens of thousands of customers by marketing driver-assistance software that cannot legally be used in most of its cars in the country, Reuters reported.

According to the complaint, which Reuters has seen, Tesla has for years marketed Full Self-Driving (Supervised) to buyers in South Korea, often collecting lump-sum payments of 9.043 million won (about $6,726). Tesla Korea country manager Seo Young-deuk told lawmakers last month that FSD can be used on only about 20% of Teslas registered in South Korea: those built in the US, which meet American safety standards that South Korea recognizes under a free trade agreement.

Most Teslas sold in the country are made in China, where no such agreement applies. Tesla has sold more than 170,000 Shanghai-built vehicles in South Korea since 2023, and 99% of the new Teslas sold there last year could not legally use FSD, according to company data submitted to the National Assembly. It is unclear how many owners of ineligible cars paid for the software.

"Tesla generated substantial revenue by selling an expensive driver-assistance system to mass-market buyers who cannot use it for even a single day," said Choi Young-suk, who leads automotive issues at Citizens United for Consumer Sovereignty.

The complaint alleges Tesla promoted FSD last year as "coming soon" and posted a demonstration video filmed in South Korea without clearly disclosing that only a small fraction of the cars it sold could use the feature. The group is asking the KFTC for a temporary cease-and-desist order on marketing FSD for ineligible vehicles, administrative fines, and a referral to state investigators.

Tesla switched from one-time FSD sales to a 150,000 won ($112) monthly subscription in August. Seo testified at an October 8 hearing that Tesla had not formally requested FSD testing from the transport ministry; the company applied for certification two weeks later. The ministry has said FSD does not comply with local safety rules, Reuters reported.

A KFTC official said the agency opened a probe into Tesla's FSD advertising earlier this year and has received written responses from the company. Tesla did not respond to Reuters' requests for comment.