Seoul, Baghdad agree on $3.55 billion deal to rebuild Iraq

(ATTN: UPDATES with additional remarks from Iraqi president, more details; TRIMS lead)
By Byun Duk-kun
SEOUL, Feb. 24 (Yonhap) -- South Korea on Tuesday signed a US$3.55 billion deal
with Iraq to help rebuild the war-torn nation and build various forms of social
infrastructure, Seoul's presidential office Cheong Wa Dae said, an agreement that
will give South Korea the right to develop Iraq's oil reserves.
The deal was signed by South Korean President Lee Myung-bak and visiting Iraqi
President Jalal Talabani.
"With this agreement, our side can now acquire rights to develop oil reserves in
Iraq's Basra region, where most Iraqi oil is produced," the presidential office
said in a press release.
In return, Seoul will help build social infrastructure, such as power plants, it
said.
The amount is only a small portion of some $150 billion expected to be needed in
the next eight years to rehabilitate Iraq, but Seoul expressed hope more South
Korean businesses will be able to take part in various projects to rebuild the
war-torn nation.
"President Lee also requested that South Korean businesses be allowed to take
part in Iraq's $550 million project to buy new generators and another project to
design a new oil refinery, worth $84 million," the presidential office said.
Talabani called for strengthening of the Korea-Iraq relationship while also
thanking Lee for Seoul's contribution so far to help rebuild his country.
"Especially, President Talabani noted the important role played by South Korea's
Zaytun Unit to establish peace in Iraq and rebuild the country and expressed the
gratitude of the Iraqi government for the Zaytun Unit and our people," Cheong Wa
Dae said.
Speaking at a separate meeting with business representatives at a hotel here, the
Iraqi president repeated his hope that more South Korean firms will take part in
the reconstruction of his country.
"We have a plenty of natural resources. I hope that many South Korean companies
will contribute to rebuilding Iraq," Talabani said at a meeting hosted by the
Korea Chamber of Commerce and Industry (KCCI).
Sohn Kyung-shik, chairman of the KCCI, welcomed the invitation, noting South
Korean firms have carried out large-scale construction projects in Middle Eastern
countries for over 40 years and that such experience will be very "helpful" in
rebuilding Iraq.
Meanwhile, a $31 million deal was also signed Tuesday between Seoul's Incheon
Airport Corporation and Iraq's Kurdistan Regional Government to provide the
Korean airport's operating systems to airports in the Iraqi region where the
Zaytun Unit was deployed from 2004 to late last year.
"The deal marks the first case, in which our know-how in operating an
international airport was exported," the Cheong Wa Dae said.
The Iraqi president is currently on a four-day visit here that began Monday,
accompanied by some 60 government officials and business representatives.
Talabani is the first Iraqi president to make a state visit to Korea since the
two countries established diplomatic relations in 1989.
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