Tesla sold more than 170,000 Shanghai-built cars in South Korea since 2023 while marketing Full Self-Driving software that those vehicles couldn't legally use, according to a new Reuters investigation. A consumer group now plans to ask regulators to stop the advertising and pursue penalties.

The figures describe cars sold, not confirmed purchases of the paid software. It's unclear how many owners bought FSD for an ineligible vehicle. The 99% figure applies specifically to new Teslas sold in South Korea in 2025, according to company data submitted to the National Assembly and examined by the news agency.

Where a Tesla was built makes the difference

Reuters' November 4 report centers on a complaint Citizens United for Consumer Sovereignty plans to file with the Korea Fair Trade Commission on November 5. The group's allegation is that Tesla knew most local buyers couldn't legally use FSD but kept promoting it without making that restriction clear.

The divide comes down to manufacturing origin and safety approval. Tesla Korea country manager Seo Young-deuk told lawmakers last month that FSD could operate in roughly 20% of Teslas registered in the country, those manufactured in the United States.

Those vehicles meet American safety standards recognized under the countries' free trade agreement, according to the forthcoming complaint. China-built Teslas have no equivalent route under that agreement. The software needs separate local certification for those cars.

That distinction affects the bulk of recent buyers. Sales of FSD-incompatible, China-made Teslas rose more than fivefold between 2023 and 2025, the parliamentary data showed. By last year, they accounted for almost every new Tesla sold in the country.

Choi Young-suk, who leads automotive issues at the consumer group, told Reuters:

"Tesla generated substantial revenue by selling an expensive driver-assistance system to mass-market buyers who cannot use it for even a single day."

Customers paid for a feature they couldn't activate

For years, Tesla offered the software for a one-time payment of 9.043 million won, about $6,726 at the exchange rate used in the report. It moved to a monthly subscription costing 150,000 won, about $112, in August.

The complaint alleges that Tesla advertised FSD as "coming soon" in 2025 and posted a demonstration filmed in South Korea without clearly explaining how few of the cars on sale were eligible. These are allegations in a planned filing, not a finding that the company broke consumer law.

There is already an official investigation. A KFTC official confirmed that the agency opened a probe into Tesla's FSD advertising earlier this year and has received written responses from the company. The official declined to give further details. Tesla didn't respond to Reuters' requests for comment.

The consumer group wants a temporary cease-and-desist order covering FSD marketing for ineligible vehicles, administrative fines and a referral to state investigators. No such enforcement decision was reported.

Certification started after questions from lawmakers

During an October 8 parliamentary hearing, Seo testified that Tesla hadn't formally asked the transport ministry to test FSD. The company applied for certification two weeks later, despite having charged customers for the software for more than three years.

In a statement sent to a lawmaker, the ministry said FSD didn't comply with local safety rules, including requirements for drivers to keep their hands on the wheel. Reuters reviewed that statement but couldn't reach the ministry for comment. Its report didn't describe a completed approval for China-built vehicles.

The product's name also needs some care. Tesla's own guidance says:

"Currently enabled features require active driver supervision and do not make the vehicle autonomous."

The dispute therefore concerns access to supervised driving assistance, rather than permission to operate a driverless car. Even customers whose vehicles qualify remain responsible for supervising it.

Tesla's broader business in South Korea has continued growing: it overtook BMW as the country's top imported-car brand this year, according to import data cited in the investigation. That leaves the pending certification and advertising probe affecting a much larger customer base than when the company began selling the software.