South Korea on Thursday became the first country outside the United States to punish Volkswagen AG on the basis of its own emissions tests, slapping the German automaker with a record fine and ordering a recall of 125,522 vehicles.
The environment ministry said it ordered Volkswagen Korea to submit a recall plan by Jan. 6, 2016, after its own testing showed Europe's biggest auto manufacturer manipulated devices that record diesel emissions in vehicles with older engines.
It also fined Volkswagen Korea 14.1 billion won , the steepest financial penalty imposed on an automaker in Asia's fourth-biggest economy, a decision that could scare some buyers off imported cars generally.