South Korea Eager to Further Broaden Trade Ties with Iran

South Korean Prime Minister Hwang Kyo-ahn said the nuclear agreement between Tehran and the six world powers (the US, Russia, China, France, Britain and Germany) in Vienna on July 14 has paved the way for the further expansion of cooperation between his country and Iran, specially through the private sector, AVA Diplomatic reports.

Seoul government will expand financial and investment support so local companies can actively gain entry into promising markets such as Iran and India, Hwang was quoted as saying by Yonhap news agency.

The South Korean government will make efforts to prop up exports and support local companies make inroads into untapped markets with growth potential, he added.

In relevant remarks on Wednesday, South Korean Ambassador to Tehran Kim Seung-ho underlined his country’s enthusiasm for the further expansion of economic and trade ties with Iran, adding that the government and businesspersons should restore their position in the Iranian market.

The South Korean government officials and businesses are striving to regain some of the lost ground in the increasingly competitive Iranian market with a population of 80 million, Kim Seung-ho was also quoted as saying by Yonhap.

South Korea is revving up efforts to restore economic ties with Iran as the resource-abundant Middle-East state is generating fresh business opportunities following the lifting of international sanctions earlier this year, he told reporters in Seoul.

“The international attention is focused on Iran as it boasts rich resources and a large population. Thus, many countries are scrambling to gain the upper hand in the market after the sanctions were scrapped,” the envoy said.

“The Korean government and businesses are also striving to restore ties with Iran with a sense of crisis and anxiety as competition heats up to capitalize on the business opportunities in Iran,” he added.

As China, Japan, Russia, Germany and other countries have beefed up diplomacy with Iran to advance economic interests, South Korea has also made a flurry of diplomatic efforts to enhance cooperation.

Head of Securities and Exchange Organization of Iran Mohammad Betanat announced earlier this month that South Korea’s President Park Geun-hye is scheduled to visit Tehran in April for trade and business.

He said Park would be the first South Korean president to visit Tehran to tap into business opportunities, coming on the heels of a recent lifting of sanctions on the Islamic Republic, which has unleashed a flurry of interest in the country.

“With a capital market of $1.2 trillion, South Korea is among the top 13 investment markets in the world,” he said, adding that “Seoul’s policy is investment in the developing nations.”

Fetanat noted that South Korean bourse officials have already proposed to purchase shares in the Tehran Stock Exchange, adding that they have also been invited to take part in joint ventures in free economic zones which have no limits for foreign direct investment. South Korea also aims to restore economic ties with Iran, which host large reserves of oil and gas.