President of the Republic of Korea, Lee Myung-bak held a summit with Iraqi President Jalal Talabani on February 24. President Talabani was on a state visit to Korea on February 23-26. The two leaders held an in-depth discussion on various bilateral issues, such as expanding substantive cooperation in such fields as the promotion of bilateral relations between the two countries. President Talabani is the first Iraqi President to visit Korea since the establishment of diplomatic ties between the two nations in 1989.

Noting that, bilateral ties in various fields have progressed in a stable manner since then, the Iraqi President said the two countries may well take his visit as an opportunity to further strengthen cooperative ties. In particular, President Talabani highly appreciated the significant contributions of the Zaytun Division to peace-keeping and reconstruction while it was stationed in Arbil Province in northern Iraq from 2004 to 2008. On behalf of the Iraqi Government, he expressed appreciation to the people of Korea and the soldiers of the Zaytun Division for their successful completion of reconstruction missions in the face of difficult conditions.

Through the summit, the two heads of state reached an agreement on a US$3.55 billion business deal and signed a memorandum of understanding (MOU). With this agreement, Korea will participate in major social overhead capital (SOC) projects, including the construction of power plants, to help rebuild Iraq in exchange for the right to develop oil reserves in the Basra region in the south, where most of Iraqi oil is produced.

President Lee asked for the Iraqi Government’s cooperation for the participation of ROK businesses in the development of oil and gas reserves in the middle and southern parts of Iraq. As one of the post-war reconstruction endeavors, the development project is the largest of its kind in the world. In particular, President Lee requested the Iraqi Government’s cooperation to ensure that oil development and SOC building projects to be carried out by the Korea National Oil Corporation and the Kurdistan Regional Government would proceed without a hitch. He also requested that South Korean companies be allowed to take part in Iraq’s second generator purchasing project, worth US$550 million and in a preliminary design project for a new oil refinery in Baghdad, worth US$84 million. In response, President Talabani welcomed the Korean Government’s offer to expand cooperation in the area of energy and resources as well as the participation of Korean businesses in Iraq’s SOC construction projects. He then expressed that he would consider the President’s requests in a positive way.

On the occasion of President Talabani’s visit, Incheon International Airport Corporation in Seoul, Korea and the authorities of the Kurdistan Regional Government concluded a US$31 million consulting service contract concerning operation of Arbil International Airport in Iraq. The contract means that Incheon Airport, which is recognized as one of the best-run airports globally, has begun for the first time to export its management expertise to other countries. An MOU was signed between the Korean Federation of Construction Industry Societies and the Iraqi Ministry of Housing and Construction raising the prospect that the entry of Korean construction companies into the Middle East country would be expedited.