Benz accused of conspiring with dealers to raise repair cost: watchdog

By Park Sae-jin Posted : September 26, 2017, 15:21 Updated : September 26, 2017, 15:21

[Courtesy of Mercedes Benz]


In South Korea's used car market, foreign cars just over two years from their initial registration can be spotted with ease mainly because of the repair cost that soars after their two-year warranty expires.

A high repair bill for foreign cars has been a favorite topic in South Korea's online car forums. Because parts and repair fees were much expensive than those of home-made cars, some foreign car owners turn to unlicensed repair shops to reduce cost.

Finally, South Korea's anti-trust watchdog discovered collusion between Mercedes Benz importers and dealers to gain illegal profits by raising the high repair cost, although it was not clear whether such a practice is common among all foreign car importers.

Mercedes Benz Korea was found to have colluded with eight authorized dealers in 2009 with their overall repair fees raised by 15 percent, the Free Trade Commission said in a statement. Individual car owners have been the victim of overcharge because of their limited access to information at repair shops.

The watchdog slapped Benz Korea with a fine of 1.32 billion won (1.16 US dollars) and issued a correction order and the dealers with a total fine of 460 million won.
 
기사 이미지 확대 보기
닫기