The South Korean environment ministry has also ordered the German auto maker to recall more than 125,000 vehicles.
South Korea has become the first country to have fined Volkswagen. The fine came from the Environmental ministry of South Korea. The ministry has ordered Volkswagen to pay a fine of $12.3 million/ 14.1 billion won.
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The fine was announced as a punishment on the basis of Volkswagen cheating emissions tests. Volkswagen used to be the biggest auto manufacturer in Europe. It was found the diesel emissions in Volkswagen vehicles were lowered during testing.
The automaker had installed defect devices which cheated the emissions tests. The fine is the steepest financial penalty imposed on an automaker by South Korea ever. The decision could even scare buyers from imported cars locally. It could dent the market share of imported automobiles.
The South Korean regulators have also recalled a total of 125,522 vehicles. The vehicles to be recalled contain the diesel engines which produce emissions greater than allowed, according to Reuters.
The recall has to be submitted by the South Korean division of Volkswagen by the 6th of January 2016. According to Samsung Securities analyst Esther Yim others are also considering the same action. Yim shared even the US is figuring out the fine amount.
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The South Korean government also announced 25 other automakers are also being tested. The testing would be completed by the April 2016. The move has created an uncomfortable degree of uncertainty for foreign cars. South Korea is the world's 11th-biggest auto market. Volkswagen shares fell to 5.4 percent in South Korea already.