Anchor: The lifting of international sanctions on Iran is expected to unleash the country’s demand for cars. South Korea's biggest carmakers as well as other auto firms worldwide are now seeking to resume partnerships or expand existing businesses in Iran.
Our Andrew Jeong has more.
 
Report: South Korean carmakers are busy trying to gain a foothold in Iran’s alluring automobile market.

With many economic barriers removed following the lifting of sanctions on the Middle Eastern country, Hyundai Motor and Kia Motors are now seeking to resume local partnerships or expand existing businesses in Iran.

The Hyundai-Kia Automotive Group PR team's General Manager Sohn Yong stressed Iran’s population of 80-million and its lack of cars pose automobile manufacturers with new business opportunities.

[Sound bite: Sohn Yong - General PR Manager, Hyundai-Kia Automotive Group (English)]
"Iran is also very attractive for automobile companies as it is the largest such market in the Middle East. Currently, only one out of ten Iranians own vehicles, which is far less than the six out of ten people who own cars in Europe. So, we see huge growth potential. We are sure the competition will be fierce but we remain confident that we can be very successful. We are in the process of carefully reviewing our strategies to ensure sustainable business with Iran."
 
For Hyundai and Kia, the Middle East has been a very important and successful market for us in recent years.

Hyundai Motor had exported over 20-thousand cars to Iran annually from 2009 to 2011, before sanctions against Iran in 2012 halted the sales.
 
The carmaker had sold half-finished vehicles to Iran in a partnership with local firm RVMCO. Kia also has had a partnership with Iranian firm SAIPA Corp., which assembles half-finished Kia models exported to Iran.

South Korea’s Trade Ministry, Finance Ministry and Transport Ministry last week agreed to pursue more partnerships with Iranian firms, including plans to create joint ventures.

The competition, however, is steep to regain the massive market. Alongside Hyundai and Kia from South Korea, Daimler, Renault, Peugeot Citroen, Nissan and Suzuki are also seeking to resume partnerships or expand existing businesses in Iran.
Andrew Jeong, KBS World Radio News.