South Korea to prosecute VW execs, hand record fines to the company for false advertising on emissions

VW jetta TDI US-spec

Dieselgate is not over and done with in South Korea, where the authorities will file criminal complaints against five former and current executives at Volkswagen’s local unit, plus fine the company 37.3 billion won (RM142.5 million) for false advertising on vehicle emissions, according to Reuters.

The fine by the Fair Trade Commission (FTC) is a record for false advertising in South Korea, and it follows the suspension of most of VW’s sales in the country since August. FTC said it would ask prosecutors to investigate execs including André Konsbruck, currently VP of sales for the Americas at VW unit Audi.

FTC said VW made “false, exaggerated or deceptive” claims in the advertisements, with punishments ranging from jail terms of up to two years or fines of up to 150 million won. VW advertised its cars as environmentally friendly vehicles that met pollution standards although they were equipped with devices designed to deceive government tests, the regulator said.

Local unit Audi Volkswagen Korea (AVK) said it had not been formally notified of the regulator’s decision. “AVK is committed to rebuilding trust with the authorities and with customers and other stakeholders in Korea,” it said in a statement.

This is not the first South Korean action against VW over Dieselgate. The country had already fined the German carmaker 17.8 billion won (RM67.9 million) for emissions cheating, and arrested one local VW executive on accusations including fabrication of documents and violation air quality laws.

The August sales suspension halted the German giant’s strong growth in South Korea, a market dominated by Hyundai-Kia. It’s a relatively small market for VW, but imported marques such as Audi and Bentley are in demand among wealthy Koreans and both brands enjoy good sales there.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • Mikey on Dec 08, 2016 at 10:35 am

    Please proceed & make this a “Litmus Test”. Not a test for chemical acidity but the one on a test that uses a single indicator to prompt a decision.

    Like or Dislike: Thumb up 0 Thumb down 0
    • Kunta a/l Kinte on Dec 08, 2016 at 11:10 am

      wah so good South Korea. US also like that. The Governments are neutral. They will sue on behalf of the consumer the car company for cheating or if they give lack of safety features.

      In Malaysia, all car companies owned by Msian Gomen. So, Gomen will never sue car companies. Car company sell got no ABS, no VSC and no airbag also, Msian gomen keep quiet.

      Here, Gomen also scared to sue VW cause VW and DRB GLC got partnership

      Like or Dislike: Thumb up 10 Thumb down 3
      • Jimmy on Dec 08, 2016 at 1:25 pm

        Penalty for false advertisement information is fair; it is unfair to penalise VW for environmental pollution because if they want to do this, they must penalise every single vehicle that equally pollutes the environment.

        Like or Dislike: Thumb up 2 Thumb down 0
        • Sama L00 on Dec 09, 2016 at 2:06 pm

          No wonder Proton can’t be sold there. Will kena prosecuted very first day on misleading the client, e.g. “the smart one get it” kind of non-sense BS.

          Like or Dislike: Thumb up 0 Thumb down 0
      • Mikey on Dec 08, 2016 at 1:41 pm

        Ha ha ha Kunta, you’re right on this. Our Gov indeed own partially or have a hand in every car industries in M’sia. Even john agree to sue VW. Cheers …

        Like or Dislike: Thumb up 1 Thumb down 1
      • tokmoh. on Dec 08, 2016 at 5:36 pm

        2016 almost 2017, almari still only 1 airbag cuz their body is strong, no need airbag.

        Take japanese cars with VSC, rebadge, profit kawkaw, then when asked to put back VSC, cannot la cuz not designed for it, then go “talk” with govt if can excuse them from regulation.

        Itu baru budaya kita. RV > all

        The rest of the world, safety > all, that’s why Volvo is the darling now.

        Like or Dislike: Thumb up 3 Thumb down 0
  • Gaviny on Dec 08, 2016 at 10:42 am

    Now it becomes ridiculous, government just jumping on the band wagon to make free money but that’s capitalism , any chance to take out the competition just go for it

    Like or Dislike: Thumb up 2 Thumb down 2
    • Jimmy on Dec 08, 2016 at 1:27 pm

      The penalty for false advertisement is not that big.

      In USa, there is glaring opportunity to penalise but no action taken.

      Like or Dislike: Thumb up 0 Thumb down 0
  • I strongly suggest the Malaysia government to do the same. Get some Euro to help strengthen the Ringgit.

    Like or Dislike: Thumb up 6 Thumb down 2
    • Better Gov sue toyota for endangering pipu lives all these time until recently. But then albert & sammy wun have a job….

      Like or Dislike: Thumb up 3 Thumb down 4
  • mikkkck3 on Dec 08, 2016 at 5:53 pm

    should do the same for VW management. VW risking owners life with unsafe n unreliable vehicles.

    Like or Dislike: Thumb up 1 Thumb down 1
  • Ahmadjr on Dec 08, 2016 at 8:37 pm

    Look how the developed nation care about the emissions. In here, we say “pollution apa benda, dah takdir”. Dasar pandang ke timur apa benda

    Like or Dislike: Thumb up 1 Thumb down 0
 

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