Dieselgate: Volkswagen stops selling cars in South Korea

Both Audi and Volkswagen Korea have voluntarily stopped selling its vehicles in South Korea after the government issued threats that it would revoke certification for 32 Volkswagen Group vehicles due to the fabrication of emission tests.

Prior to the announcement, VW sales in South Korea fell by 33 per cent to 12,463 units in the first half of 2016.

Commenting on the decision to stop selling its vehicles, a Volkswagen Korea spokesman told the Wall Street Journal (subscription needed): “This decision doesn’t mean that Volkswagen is pulling out of Korea, which is a very important market to us”.

Next, VW Korea says it will reapply for certification but the process could take "several months".

According to the US newspaper, VW Korea believes some 79,000 vehicles are affected and all will need to be recalled, with a fine paid directly to the Korean government for each car.

Compensation will be due to each owner caught up in the emissions scandal.

Until Dieselgate broke, a third of all vehicles sold in South Korea were Volkswagen Group products following a 2011 free-trade agreement with Europe.

As well as Dieselgate, a Volkswagen Korea exec recently arrested has now also been indicted by prosecutors after it was found the senior VW employee had falsified, not only emissions, but documents relating to noise emissions too relating to papers filed as far back as 2010.

Volkswagen Korea has already been fined around $16 million back in November following the emissions crisis, says the Wall Street Journal.