Korea Focusing on Small, Mid-sized Businesses in Iran

One of South Korea’s main trade strategies is to grow links with the Iran’s small and midsize businesses in order to minimize the adverse impacts of any severance of trade interaction between a few major companies, South Korean ambassador to Tehran said.

Seoul is seeking to promote cooperation among Korean and Iranian small and midsize firms as a “strategy for stability” in shaping ties with Tehran, Kim Sung-ho said at a trade meeting in Tehran.

When thousands of Iranian and Korean businesses work in partnership with each other, a cut in relations by a few companies will not have a big effect on the bilateral economic relations, Kim added.

Bemoaning the fact that crude oil accounts for 98 percent of Iran’s exports to South Korea, the ambassador said cooperation between small and medium industries would greatly boost the bilateral trade.

He also reminded the Korean businesspeople present in the meeting that Iran is not a market for the sale of Korean products anymore, stressing that South Korean industries should work on plans to “transfer technology” to Iranian companies.

The Iranian administration’s policy is to cut down on purchasing foreign products, Kim noted, encouraging the Korean activists to seize the opportunity and make investment in Iran.

In May 2016, then South Korean president, Park Geun-hye, paid a visit to Iran with a big delegation of ministers, top officials and business people, and signed 19 agreements with Iran.

South Korea remains one of the major crude importers from Iran. The East Asian nation’s oil imports from Iran sharply increased in 2016 immediately after anti-Iran economic sanctions were lifted under the Joint Comprehensive Plan of Action (JCPOA), a nuclear agreement between Iran and the Group 5+1 (Russia, China, the US, Britain, France and Germany).

(Source: Tasnim, under Creative Commons licence)

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