[Aju News DB]
Finance Minister Yoo Il-ho said Thursday that the lifting of international sanctions on Iran will open up South Korea's business opportunities across a host of sectors from construction to automobiles.
At a meeting with economy-related ministers, Yoo said the Seoul government would draw up measures to strengthen business relations with Iran by the end of February and seek to double South Korea's exports to Iran over two years.
Last year South Korea’s exports to Iran stood at 3.76 billion US dollars, or just 0.7 percent of its total shipments.
Yoo said the government will “draw up specific plans tailored for automobiles, automobile parts, steel and other sectors” as Iran is expected to place massive orders in construction and transport sectors.
“If we conquer the Iranian market more effectively than our competitors, it will provide a great momentum to boost our sluggish exports,” he said.
Last weekend, the International Atomic Energy Agency (IAEA) declared that Iran had fulfilled requirements to limit its nuclear activities, a step that automatically lifted nuclear-related economic sanctions imposed by the international community. The move ended a prolonged isolation that has driven Iran into a deep economic malaise. South Korea responded with the lifting of a ban on trade with Iran in nearly all sectors
Asia's fourth largest economy plans to sign a $2 billion contract for trade insurance financing with Iran, while it will also restore Iran's eligibility to be a recipient country for its Economic Development Cooperation Fund, trade officials said, adding South Korea will also aim to establish an automobile assembly joint venture with Iran.
They said Tehran is expected to place orders worth $60 billion or more this year for building new gas and oil plants and modernizing the existing ones. Details will be discussed at a bilateral government-level meeting in Tehran in late February.
They said Tehran is expected to place orders worth $60 billion or more this year for building new gas and oil plants and modernizing the existing ones. Details will be discussed at a bilateral government-level meeting in Tehran in late February.
Analysts says South Korea's construction sector will greatly benefit from the lifting of sanctions on Iran. South Korean builders once had clinched deals worth $12 billion with Iran for decades, but since 2009, there have been few deals due to UN sanctions.
Iran plans to invest most of the $100 billion that had been frozen under the economic sanctions into replenishing oil infrastructure, modernizing aged refinery facilities. The major oil producer imports 5 million barrels of gasoline a day because of its outdated refining plants.
By Alex Lee
reporter
Park Sae-jin
swatchsjp@ajunews.com
