Economy, Business And Markets

Busan Leads S. Korean Efforts to Make Forays Into Iran

Busan Leads S. Korean Efforts to Make Forays Into IranBusan Leads S. Korean Efforts to Make Forays Into Iran

Among local governments in South Korea, the Busan Metropolitan City Government has been the most active in supporting domestic companies’ forays into the Iranian market since the lifting of the UN economic sanctions against the Islamic Republic in January.

Busan, a large port city in South Korea is the country’s second largest city after Seoul.

According to South Korean magazine Business Korea on Monday, Mayor Suh Byung-soo visited Tehran on June 1 with representatives of 11 local companies active in steel, auto parts and machinery industries.

The business meetings resulted in discussions over 52 export deals amounting to $53.31 million, of which real contracts worth $48.54 million were signed.

The mayor had a meeting with Mansour Moazzami, deputy oil minister for planning and supervision of hydrocarbon resources and chairman of the Industrial Development Renovation Organization of Iran, a leading government-run company in Iran’s industrial investment sector.

Moazzami promised to boost cooperation between shipbuilders in Busan and Iranian companies.

IDRO was founded in 1967 to accelerate the industrialization of Iran and promote Iranian export. The organization has 117 affiliates in industrial sectors such as automobiles, engines, machine parts, energy, finance, trade and shipbuilding.

Suh discussed ways of promoting cooperation between Busan and harbors in Iran in a meeting with officials at the Ports and Maritime Organization and the Islamic Republic of Iran Shipping Line.

He brokered an MoU between the two chambers of commerce of Busan and Tehran, which laid a strong foundation for cooperation between the two cities in the private sector, expanding anticipations for various economic exchanges.   

Another remarkable move was the signing of a memorandum of understanding with Bandar Abbas, Hormozgan Province, the largest port city in Iran. Bandar Abbas is home to the largest dockyard in Iran and harbors, which process 60% of Iran’s export and import cargoes.

The agreement is expected to promote economic exchanges between shipbuilders and port operators in Busan and companies in Bandar Abbas.

On May 30, Governor Jasem Jaderi welcomed Suh at his office in Bandar Abbas and moved to Homa Hotel where the two signed the MoU to promote friendship and cooperation between Busan and Bandar Abbas.

Jaderi promised to help Busan companies gain a foothold in Iran while Abbas Aminizadeh, mayor of Bandar Abbas, asked the Busan mayor to transfer the knowhow of Busan Port that has been expanding rapidly.

During his visit to Shahid Rajaie complex, which houses the largest trade port in Iran and Iran Shipbuilding and Offshore Industries Complex Company, the largest dockyard in Iran, Suh made a presentation on the technological excellence of small- and mid-sized shipbuilders in Busan to high-ranking officials.

Currently, Iran is developing Shahid Rajaie into a harbor that can process 3,000,000 TEUs a year.

“Since the sanctions were lifted, many countries around the world are expressing their interest in Iran,” Suh said.

“We need to continuously pay attention to Iran and carry out exchanges with Iran to help companies in Busan make a foray into the Iranian market and accomplish positive results.”