A South Korean consumer group is taking Tesla's Full Self-Driving (FSD) marketing to the country's fair-trade regulator. Citizens United for Consumer Sovereignty is filing a complaint with the Korea Fair Trade Commission (KFTC) on Thursday, 5 November 2026, Reuters reported after seeing the document. The group alleges that Tesla misled tens of thousands of customers by marketing FSD (Supervised) while knowing that most of the cars it sells in Korea cannot legally use it.
The regulator is already looking. A KFTC official told Reuters that the commission began investigating Tesla's FSD advertising this year and has received written answers from the company. The official gave no further details. Tesla did not respond to Reuters' requests for comment.
What the group wants
The complaint asks the KFTC for three things:
- a temporary order stopping Tesla Korea from marketing FSD for vehicles that cannot use it
- administrative fines
- a referral of the case to state investigators
According to the complaint, Tesla promoted FSD as "coming soon" in 2025 and released a demonstration video filmed in Korea, without clearly saying that only a small share of its cars could use the feature. "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, who leads automotive issues at the group.
Why most Korean Teslas are locked out
FSD is legal in Korea only on US-built cars. They enter under the Korea–US free trade agreement, which recognises American safety standards. The Shanghai-built Model 3 and Model Y have no such route. Tesla Korea country manager Seo Young-deuk told parliament in October that only about 20% of the Teslas registered in Korea can use FSD. Tesla's own figures put the share at 22.4% at the end of September, as TeslAnt reported when Tesla filed for approval for its China-built cars.
The data Tesla gave the National Assembly, as cited by Reuters, shows how the gap grew:
| Tesla in South Korea | Figure |
|---|---|
| Shanghai-built cars sold since 2023 | more than 170,000 |
| Sales of FSD-ineligible China-built cars, 2023 to 2025 | up more than fivefold |
| New Teslas sold in 2025 that could not legally use FSD | 99% |
| FSD as a one-off option | 9,043,000 won (about $6,726) |
| FSD subscription now | 150,000 won a month (about $112) |
How many owners of ineligible cars actually bought FSD is not known.
At a hearing on 8 October, Seo said Tesla had not formally asked the transport ministry (MOLIT) to test FSD. Two weeks later Tesla applied for certification. In a statement to a lawmaker seen by Reuters, MOLIT said FSD does not meet Korean safety rules, including the requirement that drivers keep their hands on the wheel.
A different route from the court case
The complaint caps a busy fortnight for FSD in Korea. On 27 October police booked 80 owners for fitting devices that unlocked FSD. On 29 October a Seoul court threw out 89 HW3 owners' refund suit, ruling that regulatory delays were not Tesla's fault.
That case was a civil claim about what the owners had bought. The KFTC complaint targets how FSD was advertised, and it asks the commission to act through its own orders and fines rather than through a court.
What it means for Europe
European buyers get the same supervised system under a different name: Tesla now sells it as Tesla Assisted Driving. Its approval runs through the Dutch RDW and covers HW4 cars wherever they were built, including the Shanghai-built Model 3; HW3 cars are excluded. The KFTC has not said when it will decide.