Tesla self-driving feature sparks safety concerns in S Korea

Experts have raised safety concerns as Tesla launches Full Self-Driving (FSD) in South Korea, warning that drivers could become overly reliant on the system, increasing the risk of accidents.

They urged more rigorous government oversight and testing of FSD under Korean road conditions.

Tesla’s FSD feature is now available on imported Model S and Model X vehicles, following approval for level 2 autonomous driving.

Level 2 systems still require drivers to stay attentive at all times, as the software is considered a driver assistance tool rather than fully autonomous.

Some drivers have voiced concerns about the technology’s reliability, citing recent incidents and its limited history.

The Korea-US Free Trade Agreement has lifted restrictions on imported US vehicles, allowing more Tesla cars with FSD to enter the market.

🔗 Source: The Korea Times

🧠 Food for thought

Implications, context, and why it matters.

Tesla’s FSD launch targets Korea’s EV premium segment

Tesla sold about 9,069 cars in September 2025 1 after August deliveries near 8,000 and about 30% of imported sales 2. FSD sits on premium models only, which trail the Model Y at 8,361 units in September 3, so uptake will start small.
FSD’s market stays modest until it reaches volume models, so Tesla is testing regulators and customers before any wider push.
In September 2025, hybrids took 50.5% of imported sales while EVs held 39.3% 3, which may curb near-term FSD adoption.

Level 2 autonomy scrutiny creates openings for telematics providers and insurers

Non-life premiums hit KRW 30.91 trillion in Q1 2024, with motor down 0.3% year over year 4. FSD adds new liability questions on attentiveness and system reliability. Insurers will lean on telematics (vehicle operating and driving-behavior data captured via onboard sensors) to price risk and separate human from software incidents.
Manufacturers face more responsibility under the Product Liability Act (Korea’s law holding manufacturers liable for defective products). Drivers keep a duty of care at level 2, so they must stay responsible and attentive 5. This opens demand for usage-based policies that track engagement and system use, creating room for telematics startups and insurtech companies (startups applying software and data to insurance).
Thin actuarial data (historical risk data) on FSD in Korean road conditions may lift early premiums 5, which rewards telematics vendors and device makers with Advanced Driver Assistance Systems (ADAS)-monitoring tools.