The Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman EUN, Sung-soo, “Korea Eximbank”) hosted a seminar titled, “Participating in Iraq’s Reconstruction” to provide guidance on financial, legal and regulatory frameworks in Iraq, at its headquarters in Seoul on March 14.
About 70 officials from the Ministry of Economy and Finance, the Ministry of Land, Infrastructure and Transport and major construction equipment companies in Korea attended the event.
Commemorating the 30th anniversary of Korea-Iraq diplomatic ties, the seminar was organized to provide information on financing methods and legal systems in Iraq to Korean companies seeking to enter the reconstruction market in Iraq.
The size of the so-called economic reconstruction projects in Iraq, which are expected to usher in the "second Middle East boom" for Korean companies operating business overseas, is expected to total $88.2 billion over the next 10 years.
In the first session, Hussain Qaragholi, the head of Iraq, Northern Gulf & Levant at Deutsche Bank explained 2019 budget of Iraq, which includes its political and economic status and major investment inducement plans.
He suggested financing options which may be most befitting for Korean companies seeking to enter the Iraqi market, presenting Deutsche Bank’s case studies.
Chris Down, a Norton Rose Fulbright lawyer, also provided information on credit enhancement devices such as guarantees by the Iraqi government and creating security interest which are required for financing, along with an overview of the legal, regulatory environment and overseas investment law of Iraq.
Following the presentation, heated discussions took place among participants on how to effectively make inroads into the Iraqi market and sectors with great prospects.
A Korea Eximbank official remarked, "As the world's fifth largest crude oil reserve country, Iraq has been carrying out full scale reconstruction projects through driving political and environmental improvements in its market." He added, "We will continue our support for Korean companies to win project contracts by providing local information and precedent cases using our global networks."
