Park calls for 2nd Middle East boom

A shopper looks at bread at a halal certified bakery in Itaewon, downtown Seoul, Thursday. The government announced that it would support local food companies to advance into the Middle East and double exports of halal food by 2017. / Yonhap

By Yoon Ja-young

President Park Geun-hye said Thursday that a second Middle East boom will contribute to the nation’s economy.

“The Middle East can be the answer to our prayer for economic revitalization,” Park told a trade promotion meeting.

She recalled that the first version in the 1970s helped accelerate the nation’s economic development.

The meeting followed her recent four-nation visit to the region.

Korean companies seeking to participate in major plant and development projects in the Middle East will get government support.

Helping small companies and services businesses advance into the region, and encouraging Korean young people to seek jobs there are also included on the agenda. The government also aims to attract the investment of oil money into Korea.

“The first Middle East boom was created by the construction industry, and the labor of workers. The second boom will be led by young professionals in diverse new industries,” Deputy Finance Minister Jeong Eun-bo said.

Back in the 1970s and 1980s, a number of construction projects in the Middle East helped the country’s economy leap forward.

Following President Park’s visit to the Middle East early this month, where a number of agreements were signed, the government hopes to create a second Middle East boom to help boost the economy.

The Middle Eastern countries have typically depended on oil, but now they are seeking to diversify their industries to prepare for the post-oil era after its depletion. The government says Korean companies will have ample business opportunities there.

Major international events scheduled there, such as the 2020 Qatar World Cup and 2020 Dubai Expo, also offer huge opportunities.

The government plans to help Korean businesses advance into the region to maximize the effect of President Park’s visit.

The Korea Export Import Bank and Korea Trade Insurance Association will expand financing for overseas construction and plants, to help Korean businesses win high value-added development projects.

Healthcare is another sector seeking a bump from a Middle East boom.

A related law will be drafted this year to help Korean hospitals’ advance into the Middle East. A 150 billion won fund will also be set up.

The government also hopes to double the export of halal food. Halal, which means lawful or permitted, refers to food produced in accordance with Islamic law. Muslims are required to consume only halal food.

The halal food market was estimated at $1.1 trillion as of 2012, and is expected to grow to 17.4 percent of the global food market in 2018. The government hopes to expand halal food exports to $1.2 billion by 2017.

It also plans to encourage young Koreans to pursue promising jobs overseas, including in the Middle East, adding that the job market is quite open as foreigners represent 80 percent of the population.

It hopes to increase the number of young people employed overseas from 5,000 last year to double that by 2017.

Attracting oil money is another target.

The Middle East capital will get full support to invest in the services sector, from financing to taxation on top of bold deregulation, Jeong said.