Bad Korea move for VW

Volkswagen Group could be facing deeper problems in South Korea than in America, as the fall out from the emissions scandal nearly a year ago continues.

VW has agreed packages of between $5,000 and $10,000 for the half million drivers affected, but ramifications in South Korea could be more severe with the country suspending the sale of VW models.

South Korea is a relatively small market for Volkswagen, the ban also includes Audi and Bentley models, which are more popular in the country.

VW anticipated this decision and halted sales of most models on 25 July, and it’s unlikely it will be able to resume sales in the country until all the affected models have been recertified. This normally takes three months, although VW could face a longer period on the sidelines after the South Korean environment ministry director Hong Dong-gon told Reuters that regulators plan to be especially thorough.

In addition to this, South Korea has fined VW $16.1m while a South Korean law firm is bringing 4,500 civil suits against the manufacturer, with claimants asking for full refunds, lease payments and personal damages.