Seoul court rules against Volkswagen in emissions scandal

Posted on : 2020-02-07 18:02 KST Modified on : 2020-02-07 18:02 KST
Former CEO of German automaker’s S. Korean branch sentenced to two years and fine of 26 billion won
A Volkswagen maintenance center
A Volkswagen maintenance center

Volkswagen, which has been accused of tampering with emissions readings on its automobiles, has been fined over 20 billion won (US$16.84 million) by a South Korean court after a trial lasting over three years. The former chief executive of its South Korean branch was also sentenced to two years in prison.

On Feb. 6, the 31st criminal division of Seoul Central District Court under Hon. Kim Yeon-hak ruled to impose a fine of 26 billion won (US$21.89 million) on Audi Volkswagen Korea (AVK), which was referred for trial on charges of violating the Clean Air Conservation Act by importing automobiles that violated emissions regulations. Park Dong-hoon, AVK’s former chief executive, was also sentenced to two years in prison, while a Volkswagen certification division official surnamed Yoon was sentenced to one year in prison but was not taken into court custody. Four other Volkswagen officials received sentences of up to eight months deferred for one year. Johannes Thammer, CEO of AVK, was also referred for trial, but was not included in the sentencing due to his long absence from court.

The court concluded that Volkswagen had repeatedly violated local regulations when doing business with South Korean customers.

“Volkswagen claims that its emissions tampering was not as severe as that of other companies, but if we consider the trust of consumers who purchased imported cars at higher rates than those of domestic automakers because they believed in the ‘eco-friendly’ concept, the extent of exhaust gas excess is not necessarily a favorable factor [in sentencing] even if it was not severe,” the court said.

Regarding Park, the court said, “Despite being sufficiently aware of the importance of related regulatory laws, the defendant disregarded them. Even so, he has continued to make excuses for his own actions and attribute responsibility to other employees. Severe punishment is unavoidable.”

The Volkswagen emissions tampering case was referred for trial in January 2017 after a roughly yearlong investigation by prosecutors, who had received a complaint from the Ministry of Environment in 2016. The prosecutors’ investigation found that Volkswagen had imported hundreds of thousands of vehicles with exhaust gas tampering. The different methods employed included routine adjustments of electronic control devices and forgery of documents to provide false explanations. Between 2008 and 2015, approximately 120,000 Euro 5-standard Volkswagen and Audi diesel vehicles from 15 models were imported from Germany and sold with manipulated NOx emissions, where electronic control devices were tampered with to prevent the exceeding of emissions limits only under indoor testing conditions.

Between August 2010 and January 2015, Volkswagen submitted 149 forged documents related to emissions and noise to the National Institute of Environmental Research, using them to obtain a total of 75 fuel efficiency approvals and environmental certifications. Around 41,000 vehicles were imported on that basis in an attempt to meet the launch schedule for new models.

Convictions were handed down on most of the charges. But in the case of charges concerning Volkswagen Korea’s importation of around 600 diesel vehicles, the court found the company not guilty on the basis of “insufficient evidence to conclude based on testing under abnormal conditions that the importation was based on methods involving the violation of permissible standards only under certain conditions or in violation of legally decreed conditions.”

Criminal extradition procedures are currently under way for former AVK CEO Johannes Thammer, who departed South Korea for Germany and has refused to stand trial.

By Ko Han-sol, staff reporter

Please direct comments or questions to [english@hani.co.kr]

button that move to original korean article (클릭시 원문으로 이동하는 버튼)

Related stories