The war between Iraq and the Islamic State (IS) group started drawing to a close from July 10 this year, when the terrorists were expelled from Mosul, their last major foothold in the country.
Iraq is now focusing on reconstruction, so its people rebuild their lives.
Among the international community supporting the country's stabilization through various efforts including a U.N. development program, Korea's government and companies have become especially prominent partners of Iraq, because of Korea's outstanding achievements after the 1950-53 Korean War.
Anbar Province west of Baghdad is one of the Iraqi governorates emulating Korea's postwar experiences.
The province, which is about one-and-a-half times of the size of South Korea, suffered the most due to its geographical position bordering Syria, Jordan and Saudi Arabia.
"We have been so impressed by Korea's postwar experiences. Over the past 50 years, Koreans have developed their country into one of the most developed countries in the world," Anbar Investment Commission Chairman Mahdi Khalaf said in a recent interview with The Korea Times and its sister paper the Hankook Ilbo.
To induce the Korean government and companies to participate in the reconstruction of the region, he visited Seoul last month with delegates from the National Assembly of Iraq, the Anbar Provincial Government, the Anbar Provincial Council and the Anbar Investment Commission.
Since it signed a partnership agreement with the Seoul-based TRAC Development Group last year, the provincial government has pushed ahead with projects to establish a new city in Habbaniyya, which has long been regarded as a famous tourist attraction due to a vast lake there.
The new city will have an industrial complex, residential areas and resort hotels, according to TRAC. The project will begin in the second half of next year and will take more than 10 years to complete.
"When we visited Songdo New City in Incheon, we were extremely motivated to build something similar," Khalaf said. "Iraq needs modern smart cities that can offer quality services, education and health to its citizens with high purchasing power."
He said the top priority for the stabilization of Anbar is reconstruction of infrastructure such as water, electricity, roads and bridges, which were destroyed in the war. The chairman regarded Korean companies as the best partners for the reconstruction.
"In 1983, Hyundai built a 120-kilometer segment of Iraq's longest highway. The segment is still acknowledged as the best in terms of quality," he said. "Iraqi people also have positive views on KOGAS, which operated in southern Basra. We expect the company to resume its operations, which were suspended because of IS attacks."
Incentives for investment
Many still regard Iraq as a dangerous country.
The chairman dismissed the concerns, saying the project venue near an Air Force base and U.S. troops is safe from terrorists.
He also came up with various incentives to attract global investors.
"The Iraqi government is now working to protect local production. It will be good news for those who consider building their factories in Iraq, because goods produced in the factories will be protected from additional competition," he said.
"The investment law of Iraq guarantees investors exemption from taxes and customs for up to 15 years, when they import their equipment and raw materials to the country. The law also guarantees global companies the right to hire a certain percentage of foreign labor, although the country's labor costs are reasonable."
According to the chairman, Iraqi workers for the project will get $20 to $25 a day, while engineers will be paid $2,000 to $3,000 a month.
He implied Korean companies will especially benefit from doing business in Iraq.
"Korean products have been famous for their quality in the Iraqi market," he said. "We want Korean companies to set up their factories in Anbar, which is rich in raw materials, to manufacture their products there."
Anbar specializes in the petrochemical and fertilizer industries. It is also rich with silica and natural gas.
By Park Jae-hyuk
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