Toyota Motor Executive Vice President Funo Yukitoshi, left, and Toyota Korea President Taizo Chigira introducing the Camry to Korea.

Toyota Motor Corporation announced that sales of Toyota-brand vehicles began today in South Korea at five new dealerships, including three in Seoul, established by TMC’s local distributor Toyota Motor Korea Co., Ltd. (TMKR).

Now available are the third-generation “Prius” gasoline-electric hybrid midsize vehicle, the “Camry” and “Camry Hybrid” mid-size sedans and the RAV4 crossover sport utility vehicle. TMC has set an initial combined monthly sales target of 500 vehicles and aims to increase that number to 700 vehicles beginning in 2010.

The four Toyota brand models join nine Lexus models already on sale since 2000. Lexus has been the best-selling imported car in South Korea since 2005. Lexus sold 6,000 vehicles in Korea last year, about 10% of the total South Korean imported car market.

The domestic car market is almost 1.25 million units. About 95% of the vehicles sold in Korea are Korean cars due to trade practices, which are under attack from free-trade proponents.

Currently free trade agreements between the European Union and the United States and South Korea are stalled. Unlike those depressed areas, Japan runs a trade surplus with South Korea.

At a press conference today in Seoul, TMC Executive Vice President Yukitoshi Funo said: “The introduction of the Toyota brand into South Korea is aimed to meet the diversifying needs of consumers in this growing market. We intend to make every effort to contribute to South Korean society and earn a loyal following.”

The move could be seen as a direct challenge to home automaker Hyundai and its Kia affiliate, which control 72% of the market, but import taxes and fees make Toyota’s cars much more expensive than locally built ones. The Camry will sell for 34.9 million Korean won or $30,000. Hyundai’s Sonata sells for between 21.3 million won and 26 million won in the domestic market.

To mark the launch, TMKR plans a series of social contribution activities including traffic safety workshops for elementary school students beginning in 2010.