"Government Regulation Is the Issue"...Tesla Denies Responsibility for Selling 10 Million Won Non-Functioning 'FSD'

Hearing Held on March 5 for Lawsuit Seeking Return of FSD Option Payment
Owners Say "Option Does Not Work Even Until Vehicle Is Scrapped"
Tesla Responds "No Binding Agreement... Fulfillment with 'Supervised' FSD"

Tesla has avoided responsibility for selling the 'Full Self-Driving (FSD)' option, which has remained unusable in Korea for nine years. Tesla claimed that government regulations are the only issue, and asserted that since it never specified when FSD would become available, refunds for the option fee are not possible.

According to legal and industry sources on March 6, the 30th Civil Division of the Seoul Central District Court (Presiding Judge Kim Seokbeom) held a hearing on March 5 for a lawsuit seeking the return of payment for Tesla’s FSD option. Previously, in December 2024, 98 Tesla owners filed a lawsuit against Tesla Korea.

The plaintiffs argue that Tesla Korea led consumers to believe that FSD would be introduced soon and encouraged them to select the option. Hwang Yoonkoo, managing partner at Dongin Law Group and the attorney representing the owners, said, "The situation is such that the option does not function at all, even until the vehicle is scrapped," adding, "This constitutes deception of the consumer."

Tesla Model Y Juniper.

It is reported that a significant number of consumers purchased the expensive FSD option, costing around 10 million won, expecting that the feature would be implemented in the near future.

In response, Tesla Korea’s legal representative, the law firm Bae, Kim & Lee LLC (Taepyungyang), reportedly rebutted that there is no binding agreement in the vehicle purchase contract to provide Level 5 Full Self-Driving capability by a specific date. In particular, Tesla attributed the delay in FSD implementation to regulations by the Ministry of Land, Infrastructure and Transport.

Tesla Korea also reportedly argued that the introduction of "Supervised FSD" in Korea in November of last year fulfilled a significant part of the FSD option. Supervised FSD requires the driver to be ready to take over at any time and uses an interior camera to monitor attentiveness, resulting in limited functionality. Even this is only available on certain U.S.-manufactured vehicles.

According to industry data, out of 59,916 Tesla vehicles sold in Korea last year, only 719 U.S.-manufactured vehicles, about 1.2% of the total, were eligible for FSD functionality. FSD can only be applied to certain models such as Model S and Model X produced in the United States.

This is due to the "mutual recognition of safety standards" clause in the Korea-U.S. Free Trade Agreement (FTA), which allows vehicles manufactured in the U.S. that meet the Federal Motor Vehicle Safety Standards (FMVSS) to use the feature in Korea without additional local approval.

In response, the plaintiffs countered that this amounted to "deception regarding the nature of the product." They pointed out that the FSD announcement on the website dates back to 2021, suggesting it was a makeshift notice. The plaintiffs stated, "Failing to provide the function for nine years constitutes 'impossibility of fulfillment' by social standards."

The plaintiffs also criticized Tesla Korea’s lackadaisical attitude, noting that they had raised concerns consistently even before filing the lawsuit, and that Tesla Korea has not issued any official position since the legal action began.

The plaintiffs pointed out, "The FSD option was initially priced at 7 million won, then raised to 9 million won, and when someone questioned its availability, it was bundled at 4 million won," adding, "If Tesla considers the Korean market important, it should not respond in this way."

The court did not reach a conclusion on this day and requested both sides to submit additional materials. The final hearing is scheduled for May 28. If the court does not reach a decision in May, additional proceedings may take place. This lawsuit is the first in the world to potentially result in a formal judgment regarding Tesla’s FSD option.

Meanwhile, Tesla ranked first in the Korean imported car market. According to the Korea Automobile Importers & Distributors Association (KAIDA), Tesla sold 7,868 vehicles in February, taking the top sales spot. Tesla continues to show steady growth in the Korean market, even as it struggles with slowing demand globally.

This content was produced with the assistance of AI translation services.