The South Korean government said it will impose tougher penalties on vehicle manufacturers that try to hide vehicle defects and delay recalls, according to local reports.
The news came as BMW was struggling to come to terms with a rising incidence of car fires which had forced the automaker to recall over 106,000 cars – mostly 520d models – in the country.
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Two years ago, Volkswagen group was found to have falsified emissions data in South Korea which it to suspend sales almost entirely in this market for around 18 months.
Since the beginning of the year over 40 BMWs have caught fire in South Korea while being driven on public highways. The problem, while still being investigated, has been blamed on a faulty, locally sourced exhaust gas recirculation (EGR) component. Similar models sold overseas have not been affected.
The South Korean Ministry of Transport is carrying out its own investigation into the incidents due to public safety concerns, to establish the exact cause of the problem and to study the response from the automaker
Last week, South Korean law enforcement raided BMW Korea headquarters in Seoul and confiscated documents and other materials as part of the investigation.
The tougher penalties by the government are aimed at speeding up the response by vehicle manufacturers to similar situations in the future to improve public safety and transparency.
The government proposed imposing fines equivalent to 3% of the affected models' overall sales in the country if the manufacturer plays down or tries to hide the defects.
If automakers delay recalls, the current fine will increase from 1% to 3% of the affected models' overall sales under the new proposals.
