Korea Trade-Investment Promotion Agency See ‘Big Opportunities’ In Cuba And Iran As Both Nations Agreed To A Timeline Of Economic Sanctions Relief

by Czarelli Tuason / Nov 03, 2015 10:12 PM EST

Cuba poised for change as diplomatic relations reestablished with U.S. (Photo by Chip Somodevillia / Getty Images)

The Korea Trade-Investment Promotion Agency (Kotra) is planning to pave the way for businesses to enter the markets of Cuba and Iran following the easing of economic sanctions on both countries earlier in July, reported Nikkei Asian Review Oct. 20.

"Big opportunities are coming to Cuba and Iran, with markets that were once closed due to the sanctions opening up all at once," said Kotra President Jeohong Kim.

Earlier reports of USA Today on Aug. 23 noted that Cuba and Iran are not quite prepared yet to accommodate new commercial businesses as both countries need to first establish regulations and infrastructure.

"What we have now are companies chasing dreams as opposed to chasing reality," said president of the U.S.-Cuba Trade and Economic Council John Kavulich. "It's important to be excited about a new market opportunity. ... But it's equally and necessarily responsible to make certain that the opportunity that is being sought is reasonable for the existing environment."

Fortunately, in addition to sanctions being lifted on both nations, many companies are clamoring to establish businesses in Cuba and Iran as both are "about to be infused with a lot of money, which means a lot of investment and a lot of infrastructure and opportunity," noted Ed Daly from iJET International.

"Those who get in early ... are likely to fare better and have better relations with locals, which is key to establishing a long-term presence," Daly added.

Kotra, which opened an office in 2005 at Havana, will be joining the international fair in Cuba on November and have invited representatives of South Korean firms to explore and survey the market.

South Korean companies are also very much interested on business opportunities in Iran. Most likely to be seen emerging is the oil markets, as soon as Iran complies with the long list of tasks given by the Obama administration in order to fully relieve the nation of sanctions from nuclear-related issues, noted Forbes on July 15.

Kotra also reportedly plans to open a couple of offices in Slovakia and Serbia within the year, giving them a total of 125 offices overseas in 85 countries.