Envoy: Restoration of trade ties, strategic axis for bilateral relations development

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Tehran, June 10, IRNA — South Korean Ambassador to Tehran Kim Seung Ho said on Saturday that trade relations between Iran and South Korea is promising.

The ambassador said that when the new president takes office in South Korea, there would be no changes in trade policy concerning Iran and our mutual relations will be promising in the new government surely.

Iran is the main supplier of crude oil for South Korea, without Iran’s oil, Korean economy will be shaky, he added, ‘Following nuclear deal; bilateral trade ties between the two countries had noticeable growth.’

Ho said that past year our trade exchange increased by 37 percent.

‘There is no limitation for development of relations, either in public sector or private one with Iranian side and South Korea is committed to develop relations with Iran,’ the envoy added. 

Ambassador Seung Ho said that ‘our strategy for development of ties with Iran is based on four axes; first restoration of trade relations, which were decreased to less than one third by imposed sanctions’.

Second, trade balance is another axis, now South Korea is importing 95 to 98 percent of its consuming oil, so if ‘we decide to import oil from another country’ what will happen?

The third axis is to establish inter-connectivity between the two countries, because trade cannot guarantee long-term relations and by changing the price, countries might change their partners, while investment may create close ties, more powerful and long-standing one.

The two countries should dispatch their companies to one another for investment and participation in different projects, the two countries should share their technological experiences.

To this end, mutual understanding is needed, otherwise the two sides could not be good trade partners, so mutual understanding is the fourth axis.

Seung Ho said the outlook for bilateral relations is so promising. 

Presidential election in South Korea was held recently and beginning of new governments of South Korea and Iran’s 12th government will be almost coincide which could be helpful for more coordination between them.

He expressed hope that President Rouhani will visit South Korea this year as well, and said that such visits will be so effective in strengthening cooperation.

The two countries should not consider enough the trade ties, and they should expand cultural and social relations, meanwhile, this year is the 55th anniversary of establishment of diplomatic ties between Iran and South Korea and ‘we intend to hold different celebrity and cultural programs to commemorate the occasion’.

According to Customs Office statistics in year 1395 (past year), South Korea by $2.876 billion was the fifth destination for Iranian export after China, UAE, Iraq and Turkey.

In the same time, South Korea exported $3.460 billion woth of goods to Iran.

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