Economy, Auto

S. Koreans Invited to Set Up Auto Production Lines

S. Koreans Invited to Set Up Auto Production Lines
S. Koreans Invited to Set Up Auto Production Lines

A senior Iranian official has invited South Korean carmakers and auto part manufacturers to set up production lines in Iran.  

Head of Trade Promotion Organization of Iran, Valiollah Afkhamirad, made the statement on Tuesday during a meeting with a South Korean delegation headed by deputy trade minister, Woo Tae-hee.

Highlighting the fact that South Korean brands are trusted by Iranian buyers, Afkhamirad said, "We are eager to set up joint ventures with Korea for manufacturing auto parts and vehicles in Iran," IRNA reported.

Iran produces 1.2 million vehicles annually, which figure is set to more than double in the coming years.

Due to western sanctions imposed on Iran over its nuclear energy program, the country's advancement in many industries has been impeded.

"We hope to make up for the past years. Korean industries are well advanced and with mutual cooperation, Iran can benefit from Korea's experience and expertise," Afkhamirad said.

"To support and ease the process for foreign investors interested in entering the domestic auto market, Iran will prepare reliable legal frameworks in full transparency."

Woo noted that South Korea has always managed to maintain a healthy and productive bond with Iran and has never abandoned the country "not even during the period of Iraq-imposed war."

During the sanctions period, the value of Iranian goods purchased by South Korea stood at an annual $45 million.

"Our technological advances were hard earned," he said, "Korea was once a poor country. However, with enough perseverance, we have managed to keep up with global technological and industrial advances."

He added that Iran has progressed in the fields of industries and technologies, and "both countries can benefit from future mutual cooperation."

Woo noted that giant South Korean brands are now internationally accepted.

"The South Korean government does not control them, however, it can introduce incentives so as to motivate the companies to invest in Iran," he said.

Over 20 South Korean companies currently operate in Iran.