Tesla Faces Regulatory Complaint in South Korea Over Unusable FSD Software
Consumer group alleges Tesla collected up to $6,800 for software ineligible on Chinese-built models.
A consumer advocacy group in South Korea has filed a complaint with the Korean Fair Trade Commission alleging that Tesla failed to deliver Full Self-Driving (Supervised) features to customers who paid for them. The dispute highlights significant accessibility gaps for Tesla owners in the region, particularly those with vehicles manufactured in China.
What Happened
Citizens United for Consumer Sovereignty filed the complaint, arguing that Tesla has collected up to $6,800 from buyers for FSD software that remains unavailable to them. According to Reuters, only about 20% of Teslas registered in South Korea—specifically those assembled in the United States—are eligible to activate the software. These U.S.-built vehicles meet Federal Motor Vehicle Safety Standards, which are accepted under a trade agreement between the U.S. and South Korea. In contrast, approximately 170,000 Tesla imports since 2023 were manufactured in Shanghai, and no agreement or supplementary safety certification currently allows their FSD software to function. This means 99% of Teslas imported into South Korea in 2025 were ineligible for the feature.
Why It Matters
This regulatory challenge follows a recent legal setback for Tesla owners in the country. Last week, the Seoul Central District Court rejected a lawsuit from 88 owners who sought full refunds, ruling that Tesla did not breach its contractual obligations. The court noted that the delivery of FSD features depended on technical advances and regulatory approvals that buyers were aware might "take considerable time to become available." However, the new complaint shifts the focus from contract law to advertising practices, questioning whether Tesla’s marketing misled consumers about the immediate usability of the software. The Korean Fair Trade Commission confirmed to Reuters that it had launched a probe into Tesla's advertising earlier this year. Tesla did not respond to requests for comment.
The Bottom Line
Tesla faces continued scrutiny in South Korea as a consumer group escalates the issue of unusable FSD software to regulatory authorities. While a recent court ruling favored Tesla regarding contractual obligations, the ongoing investigation into advertising practices could lead to further action depending on how the regulator interprets the company's communication with buyers of Chinese-built models.
