Hyundai to Compensate Duped Customers

Hyundai has decided to compensate owners of the Santa Fe SUV for exaggerating the car's fuel efficiency.

This is the first time a Korean carmaker is voluntarily compensating duped customers in cash.

Hyundai said Monday it would offer up to W400,000 in compensation to customers who bought the 2-liter, two-wheel-drive Santa Fe SUV.

The carmaker will spend a total of W56 billion in compensation, which covers around 140,000 Santa Fes manufactured after April 2012.

A Hyundai spokesman said customers will be informed by mail or via the company website how to claim the compensation. The firm also decided to adjust the official mileage figure for the Santa Fe from 14.4 km/L to 13.8 km/L.

The compensation amount was calculated based on the forecast diesel fuel cost over five years considering the difference in mileage and also includes a goodwill payment. It applies to both new and used cars.

The measure follows controversy after the Ministry of Land, Infrastructure and Transportation gave the Santa Fe a failure rating in a fuel-efficiency test in June, which prompted many owners of the SUV to file a lawsuit against Hyundai for false advertising.

englishnews@chosun.com / Aug. 13, 2014 11:46 KST