Mercedes-Benz Fined Heavily in South Korea Over False Battery Claims

[Corporate Penalty] Mercedes-Benz has been fined 11.239 billion KRW (approximately RMB 52.68 million) in South Korea for concealing that its EQE and EQS models use SVOLT Energy Technology battery cells and falsely claiming they were equipped with CATL cells.

Key Development: Mercedes-Benz EQE/EQS Receive Maximum Penalty for False Advertising

The Korea Fair Trade Commission (KFTC) determined that between June 2023 and August 2024, Mercedes-Benz deliberately concealed in its sales materials that certain electric vehicle models actually used battery cells from SVOLT Energy Technology, while misleading consumers by stating they were powered by CATL batteries.

Key Figures: 11.239 Billion KRW Fine and Over 90 Complaints

The penalty is directly linked to the EQE spontaneous combustion incident in Incheon in August 2024, where a fire burned for eight hours and hospitalized 16 people. Subsequent investigations confirmed the involved vehicle used an SVOLT battery, triggering public safety concerns. The KFTC received more than 90 complaints, and sales of the affected models have significantly declined.