With international sanctions on Iran lifted, Iranian investment in South Korea's North Chungcheong Province is expected to pick up speed.

The Chungbuk Free Economic Zone Authority said Friday that an Iranian firm has plans to build an "Iranian traditional medicine joint research institute" in Osong in Cheongju City.

The firm and North Chungcheong Province signed a memorandum of understanding on the investment in Cheongju in April last year, with only implementation of the agreement remaining.

Under the agreement, the company will build the institute and invest some two billion dollars over the next decade to construct a pharmaceutical plant that qualifies for the good manufacturing practices(GMP) certification.

The Iranian side was supposed to deposit two million dollars necessary to set up a special purpose company by May last year but failed to make the delivery due to Western sanctions placed on the Middle Eastern nation.

The research institute project in Osong now has the green light to proceed after UN sanctions on Tehran are lifted.