The South Korean government has fined Volkswagen’s branch over the emission scandal and has ordered a recall for all the affected cars in the country.
After the United States, South Korea is the second country fining Volkswagen AG over the misleading emission levels. The government has also ordered Volkswagen Korea to submit a recall plan for 125,522 vehicles by January 6, 2016. The environment ministry said Volkswagen Korea would have to pay 14.1 billion won (8 million pounds) in fines, the steepest financial penalty imposed on an automaker in Asia’s fourth-biggest economy. “Today’s measures are similar to what many other countries are doing – Germany ordered a mandatory recall, while the US has begun the process of figuring out the fine amount,” Samsung Securities analyst Esther Yim said. “But it is Korea’s biggest fine ever of an automaker for a single issue, and could dent the market share of imported automobiles.”
South Korea decided to conduct its own tests on Volkswagen vehicles after the German carmaker admitted in September that it installed software in up to 11 million diesel vehicles worldwide. But country’s regulators will not limit the investigation only to Volkswagen, 15 other automakers will be also tested by April next year to check if their diesel engine models are complying with the emission standards.
Cars to be recalled in South Korea are Euro 5 engine ones with 2.0-litre and 1.6-litre diesel “EA189″ engines, mainly sold in South Korea between 2008 and 2015, the ministry said in a statement. He also added it had not yet determined whether Volkswagen models with the newer Euro 6 “EA288″ engine had cheated on emission tests.