South Korea plans to launch production plants in Iran

South Korea plans to launch production plants in Iran to manufacture various products, including cars and home appliances, South Korean Ambassador to Tehran Sung Wung Yeub was quoted as saying by Iran Daily on Thursday.

"In case production lines of South Korean factories are set up in Iran, we can export our products to Iran's neighboring countries and Europe under better conditions," the ambassador said in a meeting on Wednesday with Valiollah Afkhamirad, the head of Trade Promotion Organization of Iran.

Sung said South Korean companies are gradually expanding their cooperation with Iran following the interim nuclear agreement between Iran and the so-called P5+1 group -- including the five permanent UN Security Council members plus Germany.

Iranians believe South Korean products are of good quality and South Koreans can seize the current opportunity created by the agreement to pave the way for the transfer of their manufacturing technology to Iran, Afkhamirad said.

"The investment law in Iran's special economic and free zones has been eased for foreigners and South Koreans can have easier cooperation with Iran through these zones," he added.

In January, Iranian President Hassan Rouhani called for closer economic ties with South Korea, saying that "The South Korean private sector and companies should come closer to Iran's private sector and expand the scope of their cooperation."

There was no obstacle to impede the economic, scientific, cultural and trade relations between Iran and South Korea and all conditions were ready for investment and operation of South Korean firms in Iran's oil, gas and energy sectors, Rouhani said.

In November 2013, Iran and the P5+1 group reached a landmark interim deal in Geneva, under which Iran would suspend some sensitive nuclear activities in exchange for limited sanction relief by western nations.