SEOUL: South Korean general trading companies are turning their eyes to a potentially big Iranian market following the lifting of economic sanctions on the Middle Eastern country, industry sources said Wednesday.
South Korea’s five leading GTCs, including Daewoo International, are moving to restore ties with their former trading partners in Iran and consider various ways to explore new business opportunities there.
In particular, the companies are considering participating in such businesses as energy, mineral resources, construction plants and food grain in the Iranian market, according to the sources.
Iran is a resources power with the world’s second-biggest deposit of natural gas and the fourth-largest deposit of crude oil.
Iran’s crude oil deposit was estimated at 157.3 billion barrels as of 2014.
The United Nations lifted most economic sanctions against Iran on Jan. 16 in a follow-up to a nuclear deal.
Local industries expect there will be big demand regarding Iran’s refurbishment of its obsolete infrastructure. Iran reportedly has plans to replace crude pipelines and other infrastructure at a total cost between US$130 billion and $145 billion.
Even under economic sanctions, South Korean GTCs have maintained their offices in Iran and monitored market trends of the country.
Daewoo International, which has maintained an office in Tehran since 1975, is most active in its business with Iran. The company has been making steady efforts to prepare for the lifting of sanctions.
It has increased the number of Korean employees in its Tehran office from two to three. With 15 employees, including 12 local employees, Daewoo is stepping up preparations to capture the Iranian market.
