Experts Sound Alarm as Tesla’s Full Self-Driving Hits Korea’s Streets

Seoul's streets just got a new driver—and regulators are scrambling to catch up.

Tesla flipped the switch on its Full Self-Driving (FSD) beta in South Korea this week, unleashing its controversial autonomous tech into one of Asia's most complex urban grids. The rollout bypasses years of local regulatory hand-wringing, effectively treating public roads as a live testing ground.

A Regulatory Gray Zone

Korean officials find themselves in a familiar bind—playing catch-up with Silicon Valley's 'deploy first, answer questions later' ethos. The current framework, built for driver-assist features, lacks clear rules for systems that claim full autonomy. It's a legal vacuum, and Tesla just parked right in the middle of it.

The Safety Debate Ignites

Local automotive and AI experts aren't mincing words. They point to unresolved issues with phantom braking, unpredictable lane changes, and the system's performance in dense, unpredictable traffic—a hallmark of Korean cities. The core anxiety? Pushing beta software, with its known flaws, directly onto consumers who paid a premium for the promise.

One transport professor called it "a gamble with public safety," noting the stark difference between controlled trials and a wide public release. Meanwhile, Tesla's playbook remains unchanged: collect vast amounts of real-world data to train its neural networks, with customers footing the bill and assuming the risk.

The Bigger Picture

This isn't just about cars. It's a high-stakes case study in disruptive tech colliding with established governance. Korea, a global tech powerhouse, now faces a test of its own regulatory agility. Can it foster innovation without compromising public safety? The world—and every other automaker racing toward autonomy—is watching.

For now, the cars are driving themselves. Whether the regulations will ever lead is the real question. And if history's any guide, the market's already priced in the eventual fines as a mere cost of doing business.

TLDRs;

• Experts warn Tesla’s FSD rollout in Korea could encourage overreliance and increase accident risks on complex local roads.

• Regulators face pressure to tighten oversight as Level 2 autonomy still requires full driver attention at all times.
• Limited performance data on Korean roads fuels reliability concerns and may raise initial insurance premiums for FSD-equipped cars.
• Tesla targets Korea’s premium EV segment, but adoption may stay slow until FSD reaches higher-volume models.

Tesla’s introduction of its Full Self-Driving (FSD) system in South Korea has ignited a wave of concern among safety experts, consumer groups, and industry analysts.

Although the software has received approval as a Level 2 advanced driver-assistance system (ADAS), specialists warn that the rollout may lead to unintended consequences, including heightened driver overreliance and increased accident risks on Korea’s complex roadways.

The FSD feature, now available on imported Model S and Model X vehicles, arrives at a time when South Korea’s automotive ecosystem is already grappling with fast-evolving autonomous technologies. Yet despite the futuristic branding, Level 2 autonomy is far from hands-free.

Drivers must remain fully alert, ready to take control at any moment. This requirement, experts argue, is precisely why the system demands stricter government supervision and more localized road testing.

Regulators Urged to Step In

Specialists in traffic safety and intelligent transport systems say Korea’s existing regulatory framework is not yet robust enough to manage the behavioral shifts tied to Level 2 automation. They warn that drivers may incorrectly assume the technology allows for hands-off or mind-off driving, even though FSD is fundamentally a driver-assistance tool rather than a self-sufficient system.

Recent incidents involving autonomous features in other markets have amplified public unease. Some Korean drivers have already expressed skepticism, citing FSD’s limited operating history in Korea-specific conditions such as narrow city alleys, dense intersections, and unpredictable pedestrian patterns.

The call for heightened oversight includes demands for mandatory compliance data, performance disclosures, and expanded trials conducted directly on Korean roads before wider adoption.

Driver Reliance Sparks Warnings

A major point of concern centers on behavioral risk. Safety researchers emphasize that Level 2 systems can unintentionally foster a false sense of security. The more capable the automation appears, the more likely drivers may mentally disengage,slowing reaction times and increasing the likelihood of collisions when the system hands control back unexpectedly.

BREAKING: Major South Korean TV network runs a full feature on #Tesla Full Self-Driving $TSLA From Seoul to the rest of the world, people are starting to see what FSD can really do

The global awakening has begun.pic.twitter.com/6W8gCN10T7

— Teslasti Basti (@BastianBraun121) November 29, 2025

Korea’s road networks, characterized by highly variable lane markings, steep gradients, and bustling urban traffic, create unique challenges that FSD has had limited exposure to. Without extensive localized data, experts say predicting the system’s fail points remains difficult.

Insurance Sector Eyes New Risks

FSD’s debut introduces fresh questions for Korea’s insurance industry. With motor premiums already facing slight year-over-year declines, insurers are preparing to navigate new forms of liability tied to driver attentiveness, system faults, and unclear fault attribution.

Under Korea’s Product Liability Act, manufacturers can be held responsible for defective products, yet Level 2 autonomy still places the primary duty of care on the human driver. This blurred responsibility will likely accelerate demand for telematics solutions, tools that record driving behavior, engagement levels, and system-use patterns.

Because actuarial data for FSD performance in Korean conditions is extremely limited, analysts expect premiums for FSD-equipped vehicles to initially rise. This environment could benefit telematics startups, insurtech firms, and providers of ADAS-monitoring devices.

EV Market Shifts Shape Adoption

Tesla’s FSD launch strategically targets Korea’s premium EV segment, but market realities may temper early uptake. In September 2025, the company sold just over 9,000 vehicles, strong numbers, yet dominated by the more affordable Model Y, which does not currently include FSD.