VW Fined $12.31 Million By South Korean Government. Forced To Recall Cars

South Korea, today punished German automaker Volkswagen for its fudging of emission results and fined its Korean arm, a record 14.1 billion won ($12.31 million) and ordered a recall of 125,522 vehicles.

The environment ministry of the South Korean Government said that it ordered Volkswagen Korea to submit a recall plan by Jan. 6, 2016, after its own testing showed that VW manipulated devices that record diesel emissions in vehicles with older engines.

The $12.31 million fine is the steepest financial penalty imposed on an automaker in South Korea, a decision that could scare some buyers off imported cars generally.

Cars to be recalled are those using the 1.6 and 2-litre TDI diesel "EA189" engines, mainly sold in South Korea between 2008 and 2015. The Korean environmental ministry said it had not yet determined whether VW vehicles with the newer "EA288" engine had manipulated emissions.