German car importers’ Busan dealers were indicted for over-charging repair works, which is amounting to several hundred million won.

Busan Metropolitan Police Agency reported on January 8th that 11 persons related to the fraud were booked without detention. Those indicted include three repair shops, which reclaimed the insurance premium of 800 million won by charging excessively.

The accused are three Busan dealers, including dealer D and U for German BMW and Audi-VW.

They are reportedly on charge of illegally claiming 800 million won from four insurance companies over 1,390 repair cases since June 2011.

Those under the unarrested indictment are reported to be the chiefs of the Busan dealers’ repair centers and A/S advisers.

Beforehand, the Busan Metropolitan Police Agency has been investigating the allegation of any excessive repairing or over-charging based on the monthly work orders covering the span of 2011~2014, that were handed over by the four German dealers from June last year.

At the investigation, Star Motor, a Mercedes-Benz’s Busan dealer, was excluded from the accusation due to minimal amount of over-charges.

The dealers under incrimination reportedly charged fraudulently for reclaiming insurance premium by deceptively uploading on the dealer management system (DMS) the extra repair works, such like replacement of a motor or fixing superfluous parts not related with an accident.

Futhermore any parts damaged by the repair shops’ negligence were replaced and then relevant payments were claimed to the insurance companies.

A person at the Busan Metropolitan Police Agency said that “The cases of dealers’ hoax were closed for the moment, but there seem to be much more cases undisclosed, and so the follow-up investigation is expected later on.”