In another blow to the German automaker Volkswagen’s efforts to move on from the emission scandal, a South Korean court on Friday issued the first warrant for the arrest of a Volkswagen AG executive in connection with its cheating of vehicle emissions tests.

Ever since the German car maker admitted in September to using software to falsify pollution tests on some diesel cars, spurring legal action in the United States, Germany, South Korea and elsewhere, this is the first warrant that is to be levelled against a Volkswagen executive anywhere in the world.

“This is just the beginning of the investigation,” an official at the prosecution office said to the media while declining to be named because the investigation was ongoing.

Seoul Central District Court spokesman Shin Jae-hwan said that five accusations including fabrication of documents and violation of the Air Quality Preservation Law have been leveled against the Volkswagen Korea executive who has been identified by his last name Yun.

“The court acknowledges the reason and the necessity of the arrest,” Shin Jae-hwan was quoted by Reuters as saying. He however declined to give further details or name the executive.

There were no comments forthcoming from Volkswagen Korea.

ordering Volkswagen to recall 125,522 vehicles and filing a criminal complaint against two other executives, fining it 14.1 billion won ($11.97 million), South Korea has taken a particularly hard line against the German automaker.

Demanding compensation over the false emissions claims from Volkswagen and sister marque Audi, about 4,400 Korean consumers have also filed a class action lawsuit against the companies.

On the other hand, there were reports emerging from the US that claimed that more than $10 billion to settle claims by nearly 500,000 owners and fund efforts to offset pollution would be paid by Volkswagen.

Meanwhile in Germany, investigations over whether two executives from Volkswagen – former Volkswagen CEO Martin Winterkorn and another executive, effectively manipulated markets by delaying the release of information about the test cheating is being conducted, said German prosecutors.  The South Korean arrest warrant comes soon after that investigation was announced and started.

The official said in Seoul that the South Korean prosecutors would cooperate with their counterparts in Germany and the United States.

Volkswagen’s shares in the Asia’s No.2 diesel car market after India, have fallen triggered by the scandal. In the South Korean market, Volkswagen competes with dominant domestic players Hyundai Motor and Kia Motors.

The German car maker faces global repercussions and potentially billions of dollars of costs over the scandal.

In April, Volkswagen said that it would slash its dividend to cover the costs from the scandal and would set aside 16.2 billion euros ($18.2 billion) to cover for settlement of the scandal and the car recalls.

(Adapted from Reuters & CNBC)

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