The sales of 80 Volkswagen models have been suspended in South Korea and the automaker will be fined over allegations the company rigged emissions test data.
VW will be fined 17.8 billion Korean won ($16 million), in addition to a 14 billion won fine from 2015, the ministry of environment said.
The German automaker admitted last year that it had falsified emissions data in its diesel vehicles.
VW has since suffered a global setback in sales and reputation.
The sales ban in South Korea affects 32 types of cars – including the VW Golf and Jetta – but a total of 80 models, which include different size engines or trimmings of each type of car.
The ban, which affect VW, Audi and Bentley models, come as the result of an extensive probe into the company which saw the automaker’s offices in South Korea raided by investigators.
South Korea’s environment ministry also revoked certification for an additional 83,000 cars, bringing the total number of cars de-certified to more than 200,000.
That is about 68% of the 300,000 cars sold by VW in Korea since 2007, Yonhap news agency said.
South Korea is an important market for VW, especially for the company’s luxury brands Bentley and Audi, and the company had more than tripled its sales before it was hit by a slump in the wake of the emissions scandal.
VW global sales fell 2.4% in November 2015 following the emissions scandal, the German automaker announced on December 10.
The total for the 11 months of 2015 was down 4.5% compared with 2014.
The annual tally was likely to fall short of last year’s total as a result.
VW-brand board member Jurgen Stackmann said: “In view of the current challenging situation, I don’t believe VW will be able to make up the gap in the remaining days of the year.”
Volkswagen said it sold 496,100 VW-brand cars worldwide in November.
Sales plunged in Brazil, with a 51.4% fall, and slid by 31.8% in Russia, although economic problems in both countries were largely to blame for those declines rather than the emissions scandal.
The VW brand delivered 6.12 million cars in total in 2014.
The automaker said last week that US sales fell 24.7% in November compared with the same month last year.
Volkswagen group chairman Hans Dieter Potsch said on December 10 that a “chain of errors” led to the emissions scandal and that the entire company was now focused on regaining the trust of customers.
In September, US regulators found that some VW diesel cars had a “defeat device” – or software – to cheat emissions tests.
VW said the situation arose when it decided to launch a large-scale promotion of diesel vehicles in the US in 2005, but found it impossible to meet strict emissions limits in force in that country in time.
Hand Dieter Potsch said: “No business justifies crossing legal and ethical boundaries.”
VW CEO Matthias Muller said he was confident that customers would overcome their reluctance to buy the group’s vehicles in the coming weeks.
VW has seen its US sales decline sharply as a result of the continuing emissions scandal.
November sales were down by 24.7% from the previous year.
The German automaker said the drop reflected “the impact of the recent stop-sale for all 2.0L 4-cylinder TDI vehicles as well as for the 3.0L V6”.
VW was forced to stop selling 2 and 3 liter diesel engine cars after it was discovered they contained software that disguised emission levels.
The group sold fewer than 24,000 cars in November, with the Golf and Passat models seeing the steepest declines.
VW saw a very minor sales decline of 0.24% in October. The US is not a large market for Volkswagen. Even before the scandal it had struggled to gain traction in a market where larger SUVs and trucks are popular.
Volkswagen has admitted to installing devices that lowered the emissions levels of diesel engine cars during testing, but that increased emissions during normal driving.
VW CEO Matthias Muller has previously apologized for the scandal and said: “My most urgent task is to win back trust for the Volkswagen Group.”
Other automakers have seen a steady rise in US sales this year.
Sales of General Motors cars rose by 1.5% in November. Toyota and Fiat Chrysler each reported a 3% increase in their November sales compared with 2014.
VW sales and market share in the EU dipped in October 2015, suggesting that the emissions scandal might have had an impact.
Volkswagen Group’s total EU sales were 0.5% down from October 2014, while market share slipped to 24.9% from 25.37%.
The data from the Association of European Carmakers (ACEA) also showed a slowdown in EU growth as a whole.
Just more than 1.1 million cars were sold in the EU last month, up 2.9% on last year but 9.8% down on September.
Analysts suggested that buyers may been put off purchases while they await the outcome of investigations into the VW scandal, in which it was discovered that Europe’s largest automaker was falsifying emissions tests.
VW’s mass market brands suffered falls in sales last month, with Seat sales down 11.4%, Skoda’s down 2.6%, and the carmaker’s own-brand vehicles down 0.2%.
However, premium brands Audi and Porsche recorded healthy growth in the EU, with sales last month rising 4.1% and 13.9% respectively.
For the first 10 months of the year, EU new registrations were up by 8.2% to 11.523 million vehicles.