Key points
- A Korean group plans a Tesla FSD complaint on November 5
- Tesla filed its first Korean FSD application in October
- A Seoul court recently rejected a Tesla owners' refund suit
A Korean consumer group plans to file a complaint on November 5 accusing Tesla (TSLA) of selling Full Self-Driving to buyers whose cars can't legally use it, Reuters reported.
Citizens United for Consumer Sovereignty (소비자주권시민회의) plans to take the complaint to the Korea Fair Trade Commission (공정거래위원회), which opened its own probe into Tesla's FSD advertising earlier this year. No regulator has ruled on the group's allegations, and Tesla didn't respond to requests for comment.
Tesla filed its first formal FSD application with Korea's transport ministry on October 22, Energy Economy (에너지경제신문) reported. By then, Tesla had been charging Korean customers for the software for more than three years.
Two weeks before the application, at a National Assembly audit, Rep. Jang Jong-tae (장종태) asked Tesla Korea whether it would seek approval and safety testing. Seo Young-deuk (서영득), who heads Tesla Korea, said the company hadn't requested testing.
A Seoul court ruled for Tesla on a related question on October 29, rejecting a refund suit brought by 89 owners. Tesla shares closed at $398.50 on November 3.
Figures Tesla sent to the National Assembly show that 99% of the new Teslas sold in Korea last year couldn't legally use the software.
Where the cars were built matters for FSD access
FSD is a driver-assistance system that requires a human to watch the road. Whether a Korean owner can turn it on depends partly on where the car was built. Korea recognizes US safety standards under the two countries' free trade agreement. Most Teslas in Korea are built in Shanghai, and China has no such arrangement.
Of the 238,968 Teslas registered in Korea, 53,477 US-built cars can use FSD and 185,491 can't, Digital Daily (디지털데일리) reported. That's 22% and 78%, respectively, by our calculations. China-built Model 3 and Model Y cars make up 183,407 of the restricted group. Seo put the eligible share at about 20%.
Korea's transport ministry has a separate objection: it told a lawmaker that FSD doesn't comply with local safety rules, including the requirement to keep hands on the wheel.
The group wants the marketing stopped
The group says its complaint will allege that Tesla promoted FSD in 2025 as "coming soon" and posted a demonstration video filmed in Korea without clearly disclosing its limits. It will also allege that Tesla knew those limits and kept marketing FSD to all customers.
Tesla sold FSD for lump sums such as 9.043 million won ($6,726). In August, Tesla moved to a monthly subscription of 150,000 won ($112). Choi Young-suk, who leads automotive issues at the group, said Tesla sold an expensive system to mass-market buyers who "cannot use it for even a single day."
The group plans to ask the commission for three things: a temporary order stopping FSD marketing for cars that can't use it, administrative fines, and a referral to state investigators.
A Seoul court sided with Tesla on refunds
The Seoul Central District Court ruled against 89 owners on October 29, New Daily (뉴데일리) reported. They had paid about 9 million won ($6,700) for the FSD option between 2019 and 2022 and wanted the money back.
The court said the option doesn't mean full self-driving with no driver involved. It treated the sale as a contract with no fixed delivery date, conditional on regulatory approval and technical progress, and it didn't hold Tesla responsible for the delay. Tesla's sales notice said in small print that timing could vary with each country's regulations, Sisa Week (시사위크) reported. Whether the owners will appeal wasn't known at the time.
That ruling was about the contract. The group's complaint is about advertising, and it goes to a different agency, so the court's decision doesn't settle it.
The Fair Trade Commission was already looking
A commission official said the agency began a probe into Tesla's FSD advertising earlier this year and has received written responses from Tesla. The official wouldn't give more detail.
Sisa Journal (시사저널) first reported that probe on January 6. A Seoul office worker had complained after buying a Hardware 3 Model Y with the FSD option in 2022 and still not being able to use it. The same report noted a counterargument from parts of the tech industry: FSD is still in development, so it's hard to call the ads false.
Approval could take until 2027 or 2028
Transport Minister Hong Ji-seon (홍지선) confirmed the application at a National Assembly audit on October 23. The models, hardware, and functions it covers haven't been disclosed, including whether China-built cars are part of it, though one report described the process as being for China-made vehicles.
The government has no record of testing FSD so far, according to documents released by Jang's office. Lee Ho-geun, an automotive engineering professor at Daeduk University, expects approval for hands-off driving next year or the year after.
Tesla has sold more than 170,000 Shanghai-built cars in Korea since 2023, and it passed BMW this year as the country's top imported car brand. The next steps to watch are whether the complaint is filed on November 5, what the commission does with its probe, and how the ministry handles the application.
Won figures are converted at 1,344.56 won to the dollar, the rate in the November 4, 2026 report cited above.
