Tesla faces complaint in South Korea over FSD marketing to ineligible vehicles

Tesla is facing a consumer complaint in South Korea for misleading customers by marketing its Full Self-Driving (FSD) software to buyers whose vehicles are not legally eligible to use the technology.

Consumer advocacy group Citizens United for Consumer Sovereignty plans to file a complaint with the Korea Fair Trade Commission (KFTC) on Thursday.

Tesla has marketed FSD to South Korean customers for years, often charging a one-time fee of 9.043 million won ($6,726). However, only around 20 per cent of Tesla vehicles registered in the country are eligible to use the software, according to Tesla Korea country manager Seo Young-deuk.

Most eligible vehicles were manufactured in the US and qualify for safety exemptions under a free trade agreement. Most other Teslas sold in South Korea are manufactured in China and do not meet the requirements.

Tesla has sold more than 170,000 Shanghai-produced vehicles in the country since 2023. According to data submitted to South Korea's National Assembly, 99 per cent of new Teslas sold in 2025 were ineligible for FSD.

The advocacy group alleges that Tesla promoted the software as "coming soon" and shared demonstration videos filmed in South Korea without adequately disclosing its limitations.

The KFTC confirmed it had launched a probe into Tesla's FSD advertising earlier this year. The company has submitted written responses to the agency.

South Korea's transport ministry has said FSD does not comply with local safety rules, including requirements for drivers to keep their hands on the steering wheel. Tesla applied for certification two weeks after its Korea manager told a parliamentary hearing on October 8 that no formal application had been made.

The group has sought a temporary halt to FSD marketing for ineligible vehicles, administrative fines and a referral to state investigators.