Key facts
- Citizens United for Consumer Sovereignty said it planned to file the complaint with the Korea Fair Trade Commission on November 5.
- Tesla Korea manager Seo Young-deuk told lawmakers about 20% of Teslas registered in South Korea can use FSD.
- Tesla sold more than 170,000 Shanghai-built vehicles in South Korea since 2023, according to its data.
- Choi Young-suk of the consumer group said Tesla sold a driver-assistance system buyers could not use for even a single day.
- A KFTC official said the agency is investigating Tesla's FSD advertising and has received written responses.
- South Korea's transport ministry said FSD does not comply with local safety rules.
Tesla faces a complaint from a South Korean consumer group to the Korea Fair Trade Commission (KFTC), which oversees consumer protection and competition. The group, Citizens United for Consumer Sovereignty, said in the complaint, seen by Reuters, that Tesla misled tens of thousands of South Korean customers by marketing driver-assistance software it knew most vehicles in the country could not legally use.
The advocacy group said Tesla marketed Full Self-Driving (Supervised) software for years, often taking one-time payments of 9.043 million won ($6,726) from buyers. It planned to file the complaint with the KFTC on Thursday, November 5.
Tesla Korea country manager Seo Young-deuk told a parliamentary hearing in October that FSD could be used on about 20% of Tesla vehicles registered in South Korea, those built to US vehicle-safety standards recognized under a free trade agreement. Most Teslas sold in the country are made in China, and Tesla only recently began seeking FSD certification for those cars, despite charging for the software for more than three years.
The complaint also said Tesla promoted FSD as coming soon and posted a demonstration video filmed in South Korea without clearly disclosing that the software worked in only a small share of the cars being sold.
Choi Young-suk, who leads automotive issues at the group, said Tesla generated substantial revenue by selling an expensive driver-assistance system that buyers could not use for even a single day. Tesla did not respond to requests for comment. A KFTC official said the agency opened an investigation earlier this year into Tesla's advertising of FSD and has received written responses from the company, without giving further details.
Tesla has sold more than 170,000 Shanghai-built vehicles in South Korea since 2023, according to data it sent to the National Assembly. Sales of FSD-incompatible cars made in China grew more than fivefold there from 2023 through 2025, when 99% of new Teslas sold could not legally use FSD. FSD is not fully autonomous and requires active human supervision.
At an October 8 parliamentary hearing, Seo said Tesla had not formally asked the transport ministry to test FSD. Tesla applied for certification about two weeks later. The ministry said in a statement to a lawmaker that FSD does not comply with local rules, including requirements for drivers to keep their hands on the wheel.