The Ministries of Trade, Industry & Energy, Strategy & Finance and Land, Infrastructure & Transport announced on Jan. 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 where economic sanctions were recently lifted.
The plan includes financing assistance for more plant construction orders from Iran, cooperation in production by means of a complete knockdown and the like, and collaborations between the 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 held so that more Korean medical equipment and agricultural machinery manufacturers can find opportunities in the Middle Eastern country.
Iran’s feasibility studies regarding port development are to be supported by Korea and IR sessions are organized as well. Furthermore, the cooperation between the two countries is expected to the take the form of the resumption of ICT cooperation committee activities, assistance for the penetration of the halal food market, a customs mutual assistance agreement, and other projects. Business agreements are to be scheduled with regards to healthcare policy, hospital design and medical system coordination, too.
Export factoring and forfeiting are to be utilized for the export of more products, while a framework agreement worth 5 billion euros (US$5.4 billion) will be concluded for financial assistance in the fields of hospital establishment, power generation and so on. Also, a dollar-covering settlement system will be introduced, while Korean banks are allowed to set up branches in Iran.