Ford president and CEO Alan Mulally on Friday in Seoul expressed his high expectations for expanding Ford’s presence in the Korean market, benefiting from the free trade agreement between Korea and the U.S. that took effect on Aug. 1 last year.

He arrived in Korea after a three-day tour in China where he attended a groundbreaking ceremony for Ford’s new $760 million assembly plant in the Chinese eastern city of Hangzhou.

It was the first time a Ford CEO visited Korea since the Dearborn, Michigan-based carmaker started its operations here back in 1996. Mullaly, who took the helm of the U.S. carmaker in 2006, said he had personally visited Korea several times. 

“Until recently, we had limited production line-ups available here. But the free trade agreement between Korea and U.S. has now enabled Ford to import more vehicles to Korean customers,” he said in a press conference held at a Seoul hotel on Friday.

“The FTA is very important part to reducing our prices. We will be offering better solutions to Korean customers, which is great just like other markets, including the U.S.”

Following the implementation of the free trade pact, Ford lowered prices on all 2012 Ford/Lincoln vehicles sold in Korea by as much as 5.25 million won and reduced parts pricing up to 35 percent on 161 of the highest-demand auto parts, the company said.

Reflecting the CEO’s renewed commitment to the Korean market, the Korean Ford unit plans to launch six all-new or significantly revamped products in Korea this year, including revamped Taurus, Lincoln MKS and Mustang models.

“This year represents our most aggressive year ever for new product launches in South Korea,” said Jae Jung, Ford Korea president, in a statement.

The Ford CEO stressed the importance of the Korean market as part of the Asia Pacific region where car deliveries continue to grow largely led by China, but Ford still lags behind its global rivals.

When asked about the possibility of Ford purchasing Korean auto parts makers whose U.S. sales are increasing following the Korea-U.S. FTA, he responded the company has no plan to do so even though it is seeking to expand partnerships with Korea suppliers.

During his Seoul visit, he was also scheduled to deliver a special lecture at Korea Advanced Institute of Science and Technology, one of the nation’s elite schools, located in Daejeon, some 160 kilometers south of Seoul.

By Lee Ji-yoon (jylee@heraldcorp.com)