By Yi Whan-woo
Korea and Iran will resume talks next month to revive their business ties in response to the international lifting of nuclear-related sanctions against Tehran on Jan. 16, according to officials, Tuesday.
The working-level dialogue took place 10 times before it was suspended in 2007.
The officials said that Korea will also discuss with the United States and Iran about restoring Seoul's payment channel for euros with Tehran as part of preparations to help Korean enterprises advance into the Iranian market.
"The ministries are working together on the government's efforts to expand its economic relations with Iran," an official at the Ministry of Foreign Affairs said on condition of anonymity. "Under such circumstances, the economic dialogue is scheduled on Feb. 29 and it will take place between the commerce ministers of the two nations."
The official said that the Seoul and Tehran governments may sign a set of 15 memoranda of understanding relating to various sectors, including trade, construction and pier businesses.
It is speculated that Iran will finance Korea in nurturing Seoul's medical care system through a $4 billion-worth project involving Tehran University of Medical Sciences.
POSCO, Korea's leading steelmaker, seeks to collaborate with PKP, an Iranian steel manufacturer, to jointly set up a mill there.
An envisioned Korean economic delegation, which will be comprised of officials from up to 80 companies, is scheduled to visit Iran on Feb. 29, hold business forums and meet Iranian entrepreneurs.
Meanwhile, the Ministry of Strategy and Finance will consult the U.S. Department of the Treasury as well as the Central Bank of Iran to restore the payment channel using euros. The lifting of the U.S-led sanctions against Iran still excludes trade conducted in dollars.
"Given such circumstances, use of euros will be relevant at the moment," said the foreign ministry official.
The official cited that finance authorities from Seoul, Washignton and Tehran will also discuss whether Korea should maintain a payment channel in Korean currency with Iran.
With consent from the U.S., Korea purchased a limited amount of crude oil from Iran and made the payment in Korean currency when the Washington-led sanctions were in effect.
The preparation on the governmental level comes after concerns that the government is behind China and Japan in helping its enterprises run businesses in Iran.
The critics have cited that Chinese President Xi Jinping and Iranian President Hassan Rouhani held a summit on Jan. 22 for economic cooperation.
Xi is the first foreign head of state to hold bilateral talks with Rouhani since Jan. 16.
Japanese Prime Minister Shinzo Abe is speculated to visit Tehran by June at the latest for a Japan-Iran summit.
Cheong Wa Dae has not mentioned anything about President Park Geun-hye's possible trip to Iran.
"I'd say Korea is being a slow starter and it would help if Park travels to Iran in the the second half," said Park Won-gon, an international relations professor at Handong University.
Korea and Iran will resume talks next month to revive their business ties in response to the international lifting of nuclear-related sanctions against Tehran on Jan. 16, according to officials, Tuesday.
The working-level dialogue took place 10 times before it was suspended in 2007.
The officials said that Korea will also discuss with the United States and Iran about restoring Seoul's payment channel for euros with Tehran as part of preparations to help Korean enterprises advance into the Iranian market.
"The ministries are working together on the government's efforts to expand its economic relations with Iran," an official at the Ministry of Foreign Affairs said on condition of anonymity. "Under such circumstances, the economic dialogue is scheduled on Feb. 29 and it will take place between the commerce ministers of the two nations."
The official said that the Seoul and Tehran governments may sign a set of 15 memoranda of understanding relating to various sectors, including trade, construction and pier businesses.
It is speculated that Iran will finance Korea in nurturing Seoul's medical care system through a $4 billion-worth project involving Tehran University of Medical Sciences.
POSCO, Korea's leading steelmaker, seeks to collaborate with PKP, an Iranian steel manufacturer, to jointly set up a mill there.
An envisioned Korean economic delegation, which will be comprised of officials from up to 80 companies, is scheduled to visit Iran on Feb. 29, hold business forums and meet Iranian entrepreneurs.
Meanwhile, the Ministry of Strategy and Finance will consult the U.S. Department of the Treasury as well as the Central Bank of Iran to restore the payment channel using euros. The lifting of the U.S-led sanctions against Iran still excludes trade conducted in dollars.
"Given such circumstances, use of euros will be relevant at the moment," said the foreign ministry official.
The official cited that finance authorities from Seoul, Washignton and Tehran will also discuss whether Korea should maintain a payment channel in Korean currency with Iran.
With consent from the U.S., Korea purchased a limited amount of crude oil from Iran and made the payment in Korean currency when the Washington-led sanctions were in effect.
The preparation on the governmental level comes after concerns that the government is behind China and Japan in helping its enterprises run businesses in Iran.
The critics have cited that Chinese President Xi Jinping and Iranian President Hassan Rouhani held a summit on Jan. 22 for economic cooperation.
Xi is the first foreign head of state to hold bilateral talks with Rouhani since Jan. 16.
Japanese Prime Minister Shinzo Abe is speculated to visit Tehran by June at the latest for a Japan-Iran summit.
Cheong Wa Dae has not mentioned anything about President Park Geun-hye's possible trip to Iran.
"I'd say Korea is being a slow starter and it would help if Park travels to Iran in the the second half," said Park Won-gon, an international relations professor at Handong University.
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