Minister Joo Hyung-hwan of the Ministry of Trade, Industry and Energy, chief delegate of the joint Korean-Iranian Economic Committee, and his counterpart Iranian Trade Minister Mohammad Reza Nematzadeh presided over the 22nd rendition of the committee in Tehran on Feb. 29.
Korea and Iran resumed the latest meeting of the joint Korean-Iranian Economic Committee 10 years after the meetings were suspended in 2007 when international sanctions against Iran went into force. This significant committee allowed the two countries to build a foothold for cooperation in diverse areas, including in financing, industry, energy, construction/plant, health/medical service and culture.
The Korean and Iranian governments held meetings with related ministries on six subcommittees: financing/fiscal/customs/tax; industry/trade/investment/SMEs; energy/resources/mine; construction/infrastructure/shipping/port/agriculture; health/medical service/environment; and culture/ICT/science technology/e-Government. They came up with cooperation projects and detailed action plans.
Both sides of the financing/fiscal/customs/tax subcommittee agreed to the operation of a settlement system for boosting bilateral trade and investments, financial support, avoidance of double taxation and customs cooperation, and acceleration of collaboration in financing and insurance.
Korea and Iran have agreed to maintain and advance the conventional won-based settlement system as an assistant tool for settlements of both countries. They will provide mutual support for building settlement systems of euros and other currencies.
In the first half of the year, Korea Eximbank is to sign a 5 billion euro loan contract with Iranian commercial banks. Korea Eximbank will open a $200 million credit line with two Iranian banks in Iran and resume projects financed by the Economic Development Cooperation Fund (EDCF) and explore beneficiary projects.
The subcommittee for both countries of the industry/trade/investment/SMEs subcommittee agreed to expand industry cooperation, support corporate entry into each other, expand trade and investments and spur cooperation among SMEs of both countries.
Both sides will be engaged in joint production through joint ventures in such areas as steel, automobile and ICT. Each country will alternate in hosting an annual Korean-Iranian trade and investment conference to ramp up cooperation in strategic areas of both countries.
They agreed to support permits and licenses and financing on the integrated steelworks project POSCO wants to implement with PKP. The ministries of both countries have agreed to open a regular dialogue channel of deputy minister-levels to settle disputes and complaints pending both countries.
The energy/resources/mine subcommittee dealt with ways of promoting cooperation in crude oil and gas mines, importing Iranian crude oil and gas condensate and building power plant and electricity transfer networks as well as petrochemical plant field.
Korea seeks to expand the importing of Iranian condensate and sign an MOU on cooperation in the development of crude oil and gas fields. Both sides agreed to build a stable settlement system so that National Iranian Oil Company can trade crude oil and condensate with SK energy and Hyundai Oilbank in a flawless fashion.
They will explore joint projects by ramping up cooperation in such energy projects as the construction, improvement and repair of power plants and power transfer and distribution network buildup while pursuing policy, system and technology cooperation in new and renewable energy areas.
During the construction/infrastructure/shipping/port/agriculture subcommittee meeting, both sides agreed to expand collaboration in such areas as infrastructure, plant, water resources, new city development, aviation, port, and shipbuilding. The two countries are to sign an MOU on the feasibility study of a master plan for developing water resources, a shipping agreement and developing ports.
The two sides will provide support for the establishment of a joint venture between Korean and Iranian certification agencies for entering the inspection area of the marine plant field. The Korean side has requested Iran for Korean shipping companies to continue to use the second terminal of Bandar Abbas Port since they are restricted to the first terminal of the port, and large-size ships find it difficult to make port calls.
The health/medical service/environment subcommittee agreed to seek to build a system for designing and building of hospitals as well as health insurance.
Both sides agreed to form a working-level officials’ group to collaborate in exchanging of health policies and the design and construction of hospitals, the delivering of patients and the joint development of health and medical service technology. They agreed to carry out manpower exchanges and a feasibility study for building an Iranian health insurance system.
During the culture/ICT/science technology/e-Government subcommittee meeting, both sides agreed to resume the Korean-Iranian ICT Cooperation Committee at the earliest possible date to pursue collaboration in such areas as culture, e-Government and broadcasting. The two countries are to sign an MOU on cooperation in science technology this year.
They agreed to promote cooperation in the efficient building of an e-Government system after holding a meeting among civilians, government officials and research representatives in accordance with the MOU on e-Government, agreed in 2012.
Korea and Iran are to ink an MOU on collaboration in the cultural industry and implement cooperative projects for sharing cultural industry policies and information, holding forums and exhibitions. Arirang TV is to share news content, conduct short-term educational programs and exchange experts with Iran.
Following the joint committee meeting, Korea and Iran signed six MOUs, including ones on SMEs, trade promotion, e-Government, mini-LNG plant, the establishment of a joint venture on marine plant certification, financial support for trade insurance at the presence of MOTIE Minister Joo and his Iranian counterpart. They also inked MOAs and MOUs worth a combined $2.8 billion, including the ones on $1.6 billion Chabarha steelworks construction project, and a $600 million power facility project for the Iranian steelworks.
_주형환 이란 02.jpg)
A view of a joint Korean-Iranian Economic Committee meeting that took place in Tehran on Feb. 29 in which Korean and Iranian delegations discussed ways of promoting cooperation.
Minister announces package of support to help high-potential enterprises boost exports and explore new industries
Minister of Trade, Industry and Energy Joo Hyung-hwan said his ministry will do its utmost to help high-potential enterprises tap new industries and boost exports.
MOTI Minister Joo made the remarks while meeting with CEOs of high potential enterprises, including Chairman Kang Ho-gap of the Association of High Potential Enterprises of Korea (AHPEK) at the Eura Corp.’s R&D Center on Feb. 24.
The latest meeting was designed to discuss ways of helping high-potential enterprises boost exports and explore new industries. High potential enterprises account for 0.12 percent of the nation’s total companies, but they take up a 9.7 percent and a 17.6 percent share in terms of employment and exports, respectively. Despite an overall decline in exports, high potential enterprises saw exports increase 3.2 percent last year over the previous year, serving as a prop for the national economy.
Minister Joo said, “High potential enterprises will have to aggressively explore foreign markets and innovate through endless R&D activities by making the most of their own growth “DNA,” stable fundamentals and fast decision-making capabilities.”
Joo promised to concentrate MOTIE’s support on nurturing high-potential enterprises into global exporters.
The ministry plans to expand the Global Partnering (GP) program, which is designed to provide a comprehensive package of support, ranging from exploring foreign consumer companies to R&D and financing so that high-potential enterprises with a competitive edge, which have cooperative ties with conglomerates, can make inroads into foreign markets, he said. MOTIE plans to increase the budget for financing the program from 2.6 billion won to 4.5 billion won and the frequency of consultation meetings for the GP program from eight to 12.
The ministry plans to work out ways to explore foreign markets by conducting a survey looking into grievances and complaints that exporters experience. It plans to expand the deferment of a provisional import surtax on raw materials for re-exporting, which impacts high-potential enterprises and from SMEs.
Affordable loans will be extended from a 160 billion fund for SMEs and high-potential enterprises’ investments into new industries and a 300 billion won fund for their R&D and commercialization to spur high-potential enterprises’ investments.
Accelerated depreciation will be allowed for high-potential enterprises’ investment into new industries, and the scope of new industries in which a tax credit is allowed for R&D investments into new growth engines will be expanded to cover all 75 new industries.
The participating high-potential enterprises asked for the creation of a multi-purpose R&D business center exclusively targeting high-potential enterprises, and supporting an R&D center in the Magok area, exporting and exploration of foreign markets.
_주형환 이란 01.jpg)
