In the wake of the lifting of the international sanctions on Iran, the South Korean government announced it will lift it regulations on trade and investment in the Islamic Republic.
The South Korean government agencies involved in Iranian sanctions, including the Ministry of Strategy and Finance, the Ministry of Foreign Affairs, the Ministry of Trade, Industry and Energy and the Bank of Korea, held a news briefing yesterday and said they will lift the restrictions on the exports and imports with Iran.
Seoul had imposed industrial and financial restrictions on economic dealings with Iran since 2010, joining its close ally the US in sanctioning Iran for its controversial nuclear programme.
Soon, however, nearly all types of goods and services, except for strategic goods related to weapons of mass destruction, will be tradable with Iran.
The South Korean government said it will also free the imports of oil produced in Iran as well as financial transactions with Iranian financial institutions.
Local companies are praising the lifting of sanctions on Iran, as it opens a new accessible market with a population of 80mn.
In particular, construction, petrochemical, airline and shipping industries are expected to benefit from the opening of the Iranian market.
Iran was the sixth largest overseas market for South Korean construction companies before South Korea placed sanctions on the country in 2010.
Analysts say the resumption of trade with Iran will raise South Korean exports to levels rivalling those in 2012, when exports to Iran peaked at $6.1bn.
Iran’s oil production is expected to worsen the global oil supply glut, but South Korean refineries voiced hopes that the opening of Iran would broaden oil supply routes.
The government plans to come up with various measures to help local companies do business with Iran.
