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Korea Missing Out on Opportunities in
Kurdistan Region-Iraq
29.12.2006
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December 29, 2006
Erbil in Kurdistan autonomous region (northern Iraq)
is a hive of building activity. Since February, a
large tourism complex has been rising on an 830,000
sq. m. Named Empire World, it will accommodate a
five-star hotel, four residential areas, a shopping
center, theaters, a fitness center, a casino, a
man-made lake and swimming pools, all overlooked by
a 70-story high riser.
The US $350 million worth project is led by
companies from Turkey and the Middle East. Two km
west of downtown Erbil, Dream City, a large complex
of luxurious apartment buildings is under
construction on a 1.09 million sq. m site. It will
consist of 1,200 districts where apartments will be
worth between W200 million (US$1=W930) and W2
billion, complete with a mosque to accommodate 1,000
worshippers and a 1,200-seat cultural center.
A neglected area under Saddam Hussein, the Kurdish
city is poised for a revival. When the Chosun Ilbo
visited the city right after Korean troops arrived
there in October 2004, it was reminiscent of Korea
in the 50s and the 60s. Now, thanks to foreign
investment, it is rushing toward the 21st century.
The number of foreign companies in the Kurdish part
of Iraq has risen from 230 last year to 380. The
Kurdish Regional Government says companies from 18
countries have made inroads into the local economy:
256 from Turkey, 13 from Iran, nine from the U.S.
and eight from the U.K.
They are particularly interested in large energy
projects such as oil fields and power plants. It
began developing a large oil field in Zakho in June
together with companies from Norway and China and is
negotiating with firms from Germany, Italy and
Australia to develop another oil field.
Yet despite the presence of a large contingent of
Korean troops in the area, there are no signs that
Korean companies are trying to benefit from the huge
economic potential the region holds. Only LG
Electronics opened a lone dealership in Erbil this
month. When the Korean government decided to station
troops there, one of the reasons it cited to justify
the move was that it would bring economic benefits
including development of oil fields; but no Korean
firms have taken up the challenge.
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Foreign investment is changing the skyline of Erbil,
the capital of Kurdistan region, (Iraq).
A soldier from Korea's Zaytun Unit stand guard in
Erbil, Kurdistan Region (northern Iraq)
Photo:
Digital Chosunilbo |
The reason: until last Wednesday, Seoul banned
Korean companies from doing business there for
safety reasons. "We sincerely hope that Korean
companies do business here," KRG Prime Minister
Nechirvan Idris Barzani said earlier, but it took
too long for Korea to answer the call. "The reason
why Erbil is showing signs of revival is that Korean
troops have played a critical role in maintaining
law and order there,” a local source said. "We can't
just let the hard-won opportunity go."
Seoul moving to allow companies to do business in
Kurdistan region of Iraq
South Korea is moving to
allow its companies
to run businesses in (Iraq's northern)
autonomous Kurdistan region, as the security
condition there has improved, according to Seoul's
Foreign Ministry on Friday.
South Korea has prohibited its people and firms from
entering Iraq or doing businesses in the Middle
Eastern nation since a South Korean worker was
kidnapped by a group of insurgents there on May 31,
2004 and found beheaded a few weeks later.
chosun com | yna co.kr
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