South Korea Reportedly Fines German Carmaker Volkswagen $12.3 Million Over Emissions Scandal
South Korea revealed on Nov. 16 that it fined German company Volkswagen $12.3 million on the issue of emission scandal that came out in September. According to reports, it also ordered the carmaker to recall more than 125,000 diesel vehicles, as reported by US News.
Ministry of Environment director Hong Dong Gon reportedly said in an interview that they will carry on with their investigation of 30,000 other Volkswagen diesel cars for which it did not discover proof of emissions cheating.
After the German carmaker was accused of emissions cheating in September, the South Korean government has initiated their own investigations regarding the issue last month.
In addition, the Ministry of Environment has also ordered VW to recall more than 125,000 vehicles in South Korea, as noted by International Business Times on the same day. Reports have revealed that cars with 1,600cc "EA189" engines and 2,000cc "Euro 5" engines will be recalled.
Aside from that, the ministry has also mandated the German company to present a recall plan by January 6, 2016.
Further reports have revealed that South Korea becomes the only country that sanctioned VW over emission scandal aside from the United States.
Meanwhile, VW said in a statement that they "will take necessary measures based on legal procedures and requirements under the relevant laws and regulations."
An analyst from Samsung Securities said this one is South Korea's biggest fine so far of a carmaker over an issue.
"Today's measures are similar to what many other countries are doing - Germany ordered a mandatory recall, while the U.S. has begun the process of figuring out the fine amount," said Esther Yim, as noted by Reuters on Nov. 26.
"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's Ministry of Environment will reportedly investigate other car manufacturers and will announce the results in April.