Ford announced on Tuesday that it has permanently closed its local sales subsidiary in South Korea, changing to a dealer-centric model, under a new entity – Ford Lincoln Automotive Korea (FLAK).
The shift – aligned with the US automaker’s global operations – occurred over three decades after it entered the Korean market.
FLAK replaces ‘Ford Sales Service Korea,’ which imported and sold Ford and Lincoln vehicles in the country up until now.
The US brand’s Korean division clarified that the reorganization was limited to changing its name and transferring ownership, and does not reflect a market exit or a strategy retreat.
According to the local media outlet Maeil Business Newspaper, FLAK will remain a subsidiary of Ford Motor Company’s Asia-Pacific Distribution Market (APDM).
The publication defended that the company’s restructuring serves as “a paving stone to improve customer management and service quality”, as well as to allow for greater flexibility in the timing of new model launches.
Ford Lincoln Automotive Korea
Sunin Motor – also known as Sunin Automotive – has been Ford’s official dealer since the Detroit automaker established its Korean sales subsidiary back in 1995.
The Seoul-based automotive company was appointed as FLAK’s owner, responsible for the management of the sales and after-sales service for both the Ford and Lincoln brands.
The head of Sunin Motor Jang In-woo announced on Tuesday that Lee Yoon-dong assumed the role of FLAK’s first CEO on January 1.
“We will further enhance brand competitiveness by combining Ford‘s global DNA with 30 years of accumulated field experience”, the new executive emphasized.
“We will focus on providing differentiated brand experiences in the entire sales and service process,” he added.
Yoon-dong previously occupied significant positions at Hyundai, BMW Group Korea, and Audi Volkswagen Korea.
FLAK Plans
FLAK’s strategy for this year is to release four new Ford and Lincoln models in its domestic market, starting with the luxury Lincoln Nautilus hybrid mid-size SUV.
It will be followed by the Ford Explorer Tremor — a new variant of the US automaker’s best-selling Explorer fully electric SUV, which debuted globally last year and will now enter South Korea.
Additionally, FLAK plans to launch the refreshed versions for the Ford Expedition three-row SUV and for Lincoln’s full-size flagship SUV, Navigator.
South Korean Auto Market
Ford was initially active in South Korea’s import market, but sales have slowed in recent years as its product lineup went without major updates.
Last year, the country’s five largest automakers – Hyundai, Kia, GM Korea, KG Mobility, and Renault Korea – sold over 1.3 million vehicles.
Domestic deliveries of these brands combined increased by 1% year-over-year, according to GlobalData.
On the other hand, import sales increased by nearly 17% from a year ago to 307,377 units.
German brands – mainly Mercedes-Benz and BMW – accounted for 59% of this total, with 181,493 vehicles sold.
EV maker Tesla alone saw its sales more than double to 59,916 units last year.
Ford US Sales
Ford registered 2.2 million vehicles in its home country, the US, last year, marking a 6% increase compared to 2024.
As a result, it became the best-selling truck manufacturer in the US market.
Although results improved for the third consecutive period, the automaker saw a second sequential decline last quarter.
Ford has recently restructured its EV strategy as it refocuses on hybrid and internal combustion engine (ICE) models in the US.
