Economy, Domestic Economy

Seoul Determined to Expand Iran Market Share

Seoul Determined to Expand Iran Market ShareSeoul Determined to Expand Iran Market Share

South Korean products’ market presence in Iran has fallen over the past few years despite higher export volume, due to China increasing its sales at a faster pace.

According to data compiled by the state-run Korea Trade-Investment Promotion Agency (KOTRA), South Korea’s exports to Iran reached $4.14 billion in 2014, up 8.3% year-on-year.

South Korea’s share in Iran’s imports, however, fell 0.5% point over the cited period to 7.9%, South Korean news agency Yonhap reported.

China, on the other hand, emerged as the No. 1 player with a market share of 23.4% in 2014, beating the UAE, which posted 22.1% for the first time.

“South Korea’s market share in the Iranian market has fallen for three consecutive years as of 2014,” an official from KOTRA said.

“There is still hope, however, in the auto part, petrochemical, information-communications technology, machinery and steel segments for South Korea.”

South Korean Finance Minister Yoo Il-ho says the country aims to double exports to Iran in two years. Its ministries of Trade, Industry & Energy; Strategy & Finance; and Land, Infrastructure & Transport announced on January 21 that they voted for a plan for the promotion of business in Iran so that joint-stock automobile companies can be established in Iran and cooperation projects can be launched in the shipbuilding and port industries of the country, South Korean magazine Business Korea reported.

The plan includes financing assistance for more plant construction orders from Iran, cooperation in production by means of a complete knocked-down and the like, and collaborations between the South Korean and Iranian governments.

In the automobile industry, joint-stock companies are to be set up and models are to be developed with Iranian manufacturers.

At the same time, business conferences and forums are being held so that more South Korean medical equipment and agricultural machinery manufacturers can find opportunities in Iran.