Iran, South Korea discuss cooperation in transportation sector
Iranian Roads and Urban Development Minister Abbas Akhoundi in a meeting with South Korea’s Minister of Land, Infrastructure and Transport Kim Hyunmee discussed the development of infrastructural and transportation ties between Tehran and Seoul.
During the meeting in Tehran, Akhoundi and Hyun-mee explored grounds for investment by South Korean firms, cooperation in the railway, air and road transportation projects as well as transit, logistics, housing and urban development projects in Iran, IRNA reported.
The two sides underlined the need to set up a joint cooperation commission during a meeting slated to be held on November 15 in South Korea.
According to Akhoundi, the two ministers also discussed involvement of South Korean firms in the development of Isfahan-ahvaz rail line, purchase of railbus systems and investment in Iranian airports.
Meanwhile, Hyun-mee said holding the joint economic commission and its operational committee will accelerate Korean companies’ investment in Iran.
Following her meeting with Oil Minister Bijan Namdar Zanganeh, the South Korean minister said that Seoul supports investment in Iran’s oil industry.
She said the two sides discussed the participation of South Korean companies in Iran’s oil industry projects.
The minister said that South Korean companies are interested in participating in Iran’s oil, gas and petrochemical industries, and added that directors of South Korean Gas Company (KOGAS) are negotiating with Iranian counterparts. Zanganeh said that the two sides discussed exports of oil and gas condensates and problems in payments.
He added that Kim Hyun-mee will relay the issue to the finance minister and a delegation will visit Seoul to solve the problem.
Zanganeh said that in addition to gas condensates, Iran is exporting 120,000 barrels a day of oil to South Korea.
If payment problem cannot be resolved, Iran will reduce export to South Korea.
“They pay part of the money in euro and the rest in South Korean national currency, while we like to increase euro part of the payment.”
National Iranian Oil Company and KOGAS signed a memorandum of understanding in May 2016.
South Korea is the largest importer of gas condensates from Iran with 50 percent of Iran’s gas condensates going to South Korea.
In the first nine months of 2017, South Korea imported 430,000 barrels a day of oil and gas condensates from Iran.