Korea Trade-Investment Promotion Agency (KOTRA) has signed an MOU on cooperation in promoting bilateral trade with Iran’s Trade Promotion Organization (ITPO).
KOTRA President Kim Jae-hong exchanged a certificate of an MOU on information exchange and research with Valiollah Afkhami Rad, head of ITPO, in Tehran on Feb. 29.
The agreement calls for the exchange of economic and trade information; joint research; support for such trade promotion projects as exhibitions, seminars and trade promotion delegations; and the exchange of such trade manpower as trade experts and trainees and operating of educational programs, among others.
On the same day, 27 Korean SMEs held one-on-one business meetings with Iranian counters in such areas as energy, plant equipment, systems, heavy equipment and consumer goods. Iranian buyers, who showed up at the meeting, wanted to launch business lines with Korean companies with higher technology capabilities.
Korean SMEs have also showed their concern not only for opening new business links, but also to resume the business lines which have been disrupted, thus raising the possibility that bilateral trade outlooks will be rosy, a KOTRA official said.
“This agreement takes on great significance as it parlays the expansion of bilateral trade into three arenas — information, business and manpower,” KOTRA President Kim said.
Forum on Iranian Projects and Market Entry
KOTRA hosted a forum on entering the Iranian market at the KOTRA headquarters in Heonneung-ro, Seocho-gu, Seoul, on March 9.
It has been told that those who want to enter the Iranian market should cope with how to finance projects. The forum was designed to meet a flood of inquiries about the information of the Iranian market, forecast to grow to some 60 trillion won this year.
The event attracted around 300 businessmen. Kim Seung-uck, head of KOTRA’s trade office in Tehran spoke on details of major projects being undertaken in Iran and strategies, including the ones designed to win order and matters to be attended to.
The Iranian government plans to expand the railway network to 12,000 km and implement such mega-projects as the $2.2 billion, 2nd phase expansion project of Imam Khomeini International Airport, Kim said.
Such projects are being implemented in the form of requirements for project financing and build-operate-transfer format due to a lack of financing.
Korea needs to pay attention to projects to modernize state-run and publicly-financed hospitals the Iranian government attaches priority to the construction of medical facilities during the 6th national development plan, said Kim, adding that the hospital system buildup in which Korean companies have a competitive edge is promising.
He added that it will take some time for Iran to launch architectural projects that the private sector can implement when the Iranian economy turns around.
Finally, Kim said Korean companies should not turn to the external development of Iran as a top three market in the Middle East, and they need to take into account higher financing costs, current trade practices, and difficulties in establishing relations with the Iranian government as well as such risks as the potential snapback of sanctions against Iran.
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