Zarrin Shahr

Korean companies seek to firm up deals in Iran after president's trip

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• published: 04 May 2016
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이란시장 선점으로 제2 중동 붐 발판 마련 Much of the focus has now shifted to the expected economic benefits the Iran visit will bring for Korean businesses. The presidential office expects the many MOUs inked during the trip to bring about tens of billions of U.S. dollars in new business opportunities. Exactly how and in which sectors? Our Kim Min-ji takes a closer look. The sector expected to reap the biggest benefits from President Park Geun-hye's trip to Iran is construction. Daelim is closer to winning the Isfahan-Ahvaz railway project,… worth over five billion U.S. dollars,... which will establish a 541 kilometer-long inland railway. On top of that, a consortium led by Daewoo E&C; and Hyundai E&C; is nearing a deal on a 2-billion-dollar oil refinery construction project with Iran's Bahman Geno company. Other Korean builders are also working to win orders for the construction of railways, airports and energy facilities,... thanks to the 59 economy-related MOUs that were inked during the trip. "Iran is planning to establish a plant worth some 200 billion dollars over the next five years. Korea is expected to benefit in the energy and petrochemical sectors, thanks to its outstanding technology." This is another one of the follow-on achievements from the president's trip. SK Group says it will expand its global partnerships in the energy, ICT and infrastructure sectors with Iran. After talks in Tehran,... SK agreed to boost cooperation with the National Iranian Oil Company,... and SAIPA,... Iran's second largest auto manufacturer. Hyundai Motor is also seeking to enter the Iranian market... while Kia Motors has resumed exports of parts to a state-run auto company. An MOU on maritime transport and port development is also expected to breathe some life into Korea's shipbuilding sector,.. which have been suffering from eye-watering losses. Through these and other efforts, bilateral trade between Korea and Iran,... which dropped to about 6 billion dollars after international sanctions were imposed,... is also expected pick up to pre-sanctions levels within the next few years. The Korean government has also vowed to set up a financing program,... worth some 25 bilion dollars... for Korean companies working on infrastructure projects in Iran. However, as MOUs are not binding,... the focus now is on whether they are fulfilled -- and more importantly to what degree -- which is expected to become more apparent in the latter half of the year. Kim Min-ji, Arirang News. Visit ‘Arirang News’ Official Pages Facebook(NEWS): http://www.facebook.com/newsarirang Homepage: http://www.arirang.com Facebook: http://www.facebook.com/arirangtv Twitter: http://twitter.com/arirangworld Instagram: http://instagram.com/arirangworld