South Korea’s antitrust regulator has launched an investigation into Mercedes-Benz Korea over allegations of false advertising regarding electric vehicle batteries. The probe focuses on claims that the automaker misrepresented battery suppliers across its EV lineup, including a model connected to a major 2024 apartment fire in Seoul.
According to industry officials, South Korea’s Fair Trade Commission (FTC) confirmed its case examiner submitted a report on August 12 recommending sanctions against Mercedes-Benz Korea. The regulator alleges violations of both the Fair Labeling and Advertising Act and the Fair Trade Act. At the heart of the case are claims that Mercedes-Benz Korea advertised all its EVs as using batteries exclusively from CATL, China’s largest battery manufacturer. However, investigators discovered that an EQE sedan involved in an August 2024 underground parking garage fire contained lower-cost batteries supplied by Chinese firm Farasis.
The FTC further accuses Mercedes-Benz Korea of directing dealerships to promote this misinformation to consumers. Following on-site inspections at company headquarters and dealerships in September 2024 and January 2025, the examiner determined sanctions were justified. Before finalizing penalties, the commission will hold a hearing where both sides can present arguments.
Separately, 24 owners of EQE vehicles filed a damages lawsuit last October in Seoul Central District Court against Mercedes-Benz’s German headquarters, its Korean distributor, and affiliated leasing companies. The FTC declined to comment on the ongoing case, citing standard policy during active investigations.
The 2024 apartment fire referenced in the investigation caused significant damage, destroying over 150 vehicles and forcing hundreds of residents to evacuate. Dozens required hospitalization for smoke inhalation after the blaze erupted in an underground parking structure. This incident fueled national concerns in South Korea about EV battery safety standards and manufacturers’ transparency regarding battery specifications.
