Korean Companies Join Postwar Restoration of Iraq

The government is pushing for a plan allowing Korean companies to form a consortium with American firms in the postwar restoration of Iraq.

In addition, the administration has decided to support Korean firms in Iraq in export finance and insurance, and to include Iraq among those nations for provision of the Economic Development Cooperation Fund (EDCF).

The government announced the plan at a cabinet meeting presided by President Roh at the presidential office in Cheong Wa Dae on April 15.

At the meeting, the Roh government decided to do more in the postwar restoration of Iraq, as the country is more likely to participate in the U.S.-led task of the estimated 25 billion dollars, due to its decision to send forces to the war with Iraq.

Korean companies are likely to form a consortium with their American counterparts or join subcontracts, by providing equipment and human resources. At the same time, the government will try to draw orders for plants, a relatively competitive Korean business.

Moreover, the government will review a plan to ease interest rates on loans it provides to Iraq with EDCF, along with export finance and insurance support. In particular, it will support promising businesses with funds even if they do not have collateral and guarantee payments.

The administration plans to come up with a measure to send a `joint delegation from the private and public sectors` to the Middle East as well as prevent excessive competition among Korean companies. Related ministers will also join the delegation.

Eun-Woo Lee libra@donga.com