Economy, Domestic Economy

S. Korea Minister Encourages Firms to Enter Iran Market

S. Korea Minister Encourages Firms to Enter Iran Market
S. Korea Minister Encourages Firms to Enter Iran Market

South Korea will provide comprehensive financial support to local companies wanting to enter the Iranian market, the South Korean trade and industry minister reiterated on Friday.

Seoul joined other countries in lifting sanctions against Iran last month after the landmark nuclear accord reached in July 2015 went into effect.

“Government-wide assistance will be offered so businesses can gain access to the resource-rich country,” Minister of Trade, Industry and Energy Joo Hyung-hwan said in a meeting with senior executives from Hyundai Motor Co., LG Electronics Inc., Daelim Industrial Co. and other companies planning to do business in Iran, South Korean news agency Yonhap reported.

He said a ministerial-level meeting is planned for Feb. 29, with a high-ranking economic delegation to be sent to the country to open new business ties.

“To promote trade and investment, Seoul is committed to maintaining the current Korean-won based settlement of accounts system while adding other forms of exchange using different foreign currencies,” he said. “The euro and Japanese yen can be used in tandem with the won to settle accounts.”

Joo also said that actions will be taken to set up a financial support system that can help South Korean companies win orders in Iran. He said creating a tied loan arrangement is being examined which could foster closer financial cooperation.

He said that the government will provide information about Iran that can make it easier for local companies to expand into the market. To expand bilateral trade, South Korean companies should set up joint ventures and reach technical transfer deals in such areas as autos, petrochemicals and steel. Construction and plant building also has growth potential, he noted.