Economy, Business And Markets

South Korea Eying Iran’s Steel Industry

South Korea Eying Iran’s Steel IndustrySouth Korea Eying Iran’s Steel Industry

South Korea is hoping to boost cooperation with Iran’s steel sector, as the domestic construction sector picks up following the lifting of economic sections.  

South Korean steelmaker POSCO, one of the world’s largest steel producers, has been in touch with various Iranian firms to do business with the country since it signed the historical accord with six major world powers in Vienna last month, ISNA reported.

Kwon Oh-Joon, CEO of POSCO, which has been battered by sluggish global demand, said in July that his company seeks to play a role in reviving the Iranian steel industry.

“A few steel companies in Iran have already contacted us if we can provide steel production technology,” he said.

A report by Korea International Trade Association predicts that Iran’s construction market value will increase from $88.7 billion in 2013 to $154.4 billion in 2016, presenting a significant opportunity for South Korea to gain a foothold in Iran’s construction market as the country will renew and rebuild its infrastructures and require steel products and construction machinery.

Earlier this week, the South Korean Minister of Land, Infrastructure and Transport Yoo Il-ho arrived in Tehran at the head of a 30-strong business delegation, seeking possible cooperation and trade avenues in Iran’s industries.

South Korea, one of Iran’s top trade partners, imposed sanctions against Iranian companies and individuals in 2010 under growing pressure from the United States to join sanctions mandated by the United Nations Security Council over Iran’s nuclear energy program, but is now seeking to make a comeback.