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Korean group asks regulator to halt Tesla FSD marketing, as 80% of cars sold since 2023 cannot use it

A consumer group says Tesla kept taking FSD payments for over three years from Korean buyers whose cars cannot activate the software, and the regulator is already investigating.

· · 2 min read

A photograph of a Detroit Electric car on promotional tour from Seattle, to Mt. Rainier, with the mountain in question in the background.
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Four in five Teslas are locked out

About 80% of Teslas sold in South Korea since 2023 are ineligible to activate FSD today due to import restrictions. [1] If you own one of the Teslas that Korea has taken in since then, the software you may have paid for is probably not available to you. [1]

Only about 20% of Teslas registered in South Korea, which are US-assembled, are eligible to enable FSD, according to Reuters. [1] Tesla Korea country manager Seo Young-deuk told lawmakers the same figure, saying FSD works on about 20% of Teslas registered in the country. [2]

Why the split falls where it does

US-built Teslas meet US Federal Motor Vehicle Safety Standards, and a trade agreement lets Korea accept those standards without additional modification. [1] The majority of the remaining Teslas in Korea were manufactured in China, where no agreement or supplementary safety certification for FSD exists. [1]

The transport ministry told a lawmaker that FSD does not comply with local safety rules, including the requirement that drivers keep their hands on the wheel. [2] Current FSD versions let drivers go hands-free as long as the cabin camera sees them watching the road. [2]

The complaint and the probe

Korean consumer advocacy group Citizens United for Consumer Sovereignty filed a complaint with the Korean Fair Trade Commission. [1] It alleges Tesla kept collecting FSD payments from buyers for over three years despite the software being unavailable to them. [1]

Choi Young-suk, who leads the group's automotive issues work, said Tesla sold an expensive driver-assistance system to mass-market buyers who cannot use it. [3] The complaint asks the KFTC to order Tesla to temporarily stop marketing FSD for ineligible cars, to fine the company, and to refer the case to state investigators. [3]

The regulator is not starting from zero. [1] A KFTC official told Reuters the agency opened an investigation into Tesla's FSD advertising this year and has already received written responses from Tesla. [3] Tesla did not respond to Reuters' requests for comment on the complaint. [3]

Certification, subscriptions and a court view

At an October 8 parliamentary hearing, Seo testified that Tesla had never formally asked the transport ministry to test FSD, and the company filed for certification about two weeks later. [3] In August Tesla moved Korean FSD buyers to a monthly subscription of 150,000 won, about $112. [3]

Tesla passed BMW this year to become Korea's top imported car brand. [2] The court said buyers were aware that FSD features depended on technical advances and regulatory approval that could take considerable time, and if those did not happen Tesla was not in the wrong. [1]

Some buyers who used a jailbreak to enable region-locked FSD faced jail time or fines of up to $15,000. [1]

What this means for Korean Tesla owners

If your Tesla was assembled in the United States, you are in the roughly 20% of registered Teslas that are eligible to enable FSD. [1] If it was built in China, no agreement or supplementary safety certification for FSD exists for it. [1]

Owners who tried a jailbreak to unlock FSD have seen the risk: some faced jail time or fines of up to $15,000. [1] The complaint asks the KFTC to order a temporary stop to FSD marketing for ineligible cars, and the agency's investigation of Tesla's FSD advertising is open. [3]

Sources

  1. Tesla Sold FSD To Koreans Who Still Can't Use It. Now It's Facing A Complaint — Yahoo
  2. Tesla accused of selling FSD to Korean owners who can’t legally use it — Electrek
  3. Korean Tesla owners paid $6,700 for FSD their China-built cars can’t legally use — Martin Cid Magazine
FSDSouth KoreaUS Federal Motor Vehicle Safety StandardsKorean Fair Trade CommissionChoi Young-sukCitizens UnitedConsumer SovereigntyKFTCChinaReuters#SouthKorea#KoreanFairTradeCommission#Car#cars#ev

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