Tesla accused of selling self-driving software most South Korean customers cannot legally use
Tesla faces allegations of misleading South Korean consumers by selling its Full Self-Driving (FSD) driver-assistance software for vehicles that cannot legally use it in the country, Reuters reported on November 4.
The consumer advocacy group Citizens United for Consumer Sovereignty plans to file a complaint with the Korea Fair Trade Commission (KFTC) on November 5, accusing Tesla of deceptive marketing.
According to Tesla data submitted to South Korea's National Assembly, 99% of new Tesla vehicles sold in the country in 2025 were not legally eligible to use FSD.
The software is currently available for use in only about 20% of Tesla vehicles registered in South Korea, Tesla Korea country manager Seo Young-deuk told lawmakers in October.
Why most Tesla vehicles cannot use FSD
South Korea recognizes US vehicle safety standards under a bilateral free trade agreement, allowing US-manufactured Teslas to use the system.
However, most Teslas sold in South Korea are manufactured in China and are not covered by the same arrangement.
Tesla has sold more than 170,000 Shanghai-produced vehicles in South Korea since 2023, according to company figures provided to lawmakers.
For years, the automaker charged customers a one-time payment of approximately 9.04 million won ($6,726) for FSD, before switching to a monthly subscription costing 150,000 won ($112) in August 2026.
It remains unclear how many owners of ineligible vehicles purchased 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 of Citizens United for Consumer Sovereignty.
The group alleges that Tesla advertised FSD as "coming soon" and promoted the technology without adequately explaining that most vehicles sold in the country could not legally use it.
Regulator already investigating
The Korea Fair Trade Commission confirmed that it opened an investigation into Tesla's FSD advertising earlier this year and had received written responses from the company.
The consumer group is seeking an order to halt FSD marketing for ineligible vehicles, administrative fines and a referral to state investigators.
Tesla did not respond to Reuters' requests for comment.
South Korea's transport ministry has said the system does not comply with certain local safety requirements, including rules requiring drivers to keep their hands on the steering wheel.
Tesla applied for certification for China-made vehicles in October, after its country manager testified to lawmakers that the company had not yet formally requested testing.
Despite its name, Full Self-Driving is a driver-assistance system, not fully autonomous technology, and requires continuous human supervision.
A Seoul court separately dismissed a lawsuit in October brought by Tesla owners seeking refunds for FSD, ruling that regulatory restrictions had limited the company's ability to introduce additional features.