Trading arms of South Korean conglomerates are actively tapping into the Middle East in the hopes that the recovering oil economy could help aid their slowed business. Recovery in prices after output cut decision by oil producers and regional stability have raised business prospects in the Middle East, especially in Iran after international sanctions were lifted.

SK Networks has been most active among Korean trading companies in exploring new ventures in the region. The trading arm of SK Group newly established Middle East Business Division in December last year to maintain the momentum of upbeat performance in overseas subsidiaries operating in the region and to deliver group-wide new year plans to localize business models. The company said the new division aims to operate overseas subsidiaries as an integrated team to build on robust business results especially in the Middle East, adding the local business will serve as its growth driver.

Samsung C&T Corporation has put on track its $1 billion LNG terminal project in Bahrain. The terminal construction started in November as the company fully raised $740 million in financing to see through the project.

LG International Corporation is set to sign a formal contract in the first half of this year with the Iranian government to co-develop electric vehicles last May. The multi-billion dollar project to produce 60,000 EVs by 2023 is also backed by other LG Group companies. The company said it had hoped to seal the deal last year, but predicted to enter partnership by the first half of this year.

POSCO DAEWOO Corporation is exploring a gas field participating in a natural gas development project agreed by Iranian and Korean governments. The Iranian government introduced the Iranian Petroleum Contract (IPC) last October to attract foreign investors for oil and gas exploration and the Korean company passed a pre-qualification assessment for the project on Jan. 3.

By Kang Young-woon

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