TEHRAN- South Korea and Iran signed a memorandum of understanding on Sunday based on which Korea Trade Insurance Corporation (K-sure) will provide €5 billion finance for infrastructure, development, and manufacturing projects in Iran

.Korean Trade, Industry and Energy Minister Joo Hyung-hwan signed the MOU in Tehran after a meeting in Tehran with Iranian Finance and Economic Affairs Minister Ali Tayyebnia.

On the sidelines of the meeting, Tayyebnia said Iran is interested in expanding its relations with South Asian countries, especially with South Korea.

Iran is fully prepared to pave the way for Korean companies to invest in Iran’s automobile, oil and gas, and tourism projects, Tayyebnia said.

The Korean minister, for his part, said the Islamic Republic of Iran has always been a reliable trading partner for South Korea. “We maintained our relations with Iran during the sanctions and we are willing to start a new phase of cooperation in the post-sanctions era.”

The South Korean Trade Ministry has forecasted that its annual trade with Iran would rise to $17 billion, as it was before 2011, from the current $6 billion. 

South Korea is one of the biggest buyers of Iranian crude oil.

In September 2015, Korea Eximbank said it could support Korean firms looking to secure a slice of $31 billion of gas and $25 billion of oil projects being offered by Iran this year.  

Iran is currently South Korea’s third-biggest export market in the Middle East.