Korea to export service sector package to Qatar

Korea will export a package of services –- Asan Medical Center, a branch of Korea Advanced Institute of Science and Technology or KAIST, and a shipbuilding plant from STX Group –- to oil-rich Qatar.

If medical and education services complement Korea`s construction-dominated exports to the Middle East, another Korean boom could hit the Mideast region. The Korean government says this will be a turning point for Korea to export education and medical services, and plans to lift regulations in the service sector.

According to the Strategy and Finance Ministry and the Foreign Affairs and Trade Ministry Thursday, ruling Grand National Party Rep. Lee Sang-deuk, KAIST President Suh Nam-pyo, STX Energy and Heavy Industries CEO Lee Hee-beom, and Asan Medical Center staff visited Qatar and agreed with the Qatari government to proceed with an economic cooperation plan.

“The Qatari government showed great interest in Korean medical services and science education and asked us for cooperation. We formed a public and private task force and proposed to Qatar a package deal comprising three kinds of services,” a high-ranking official said, “We will develop the scope of the project and investment in detail and deliver it to them.”

Seoul estimates that investment for Phase I of the project will reach at least 923 million U.S. dollars.

The largest natural gas exporter to Korea (4.92 billion dollars last year), Qatar is keenly interested in the Korean medical, educational and shipbuilding industries.

“Qatar wants us to build Asan Medical Center there and the Korean government promised to help in the construction,” said an Asan source involved in a medical reform project in Qatar, adding, “We`re discussing details on whether to send medical staff or provide only medical services aside from building a medical center.”

A KAIST source said, “If a Qatari branch of KAIST is set up, we will consider entering other Middle Eastern countries.”

STX CEO Lee said in an interview with The Dong-A Ilbo, “We plan to build a shipbuilding plant in Qatar.”

A Korean government official said building a shipbuilding plant means more than simply building a ship.

Korean government support is essential to help more Korean service businesses make inroads into the Middle East. “Korean hospitals are non-profit organizations, which face many obstacles to entering the overseas market after getting investment,“ said a Finance Ministry source, “Since we have an opportunity to export services, we`ll consider how to help the service industry.”

achim@donga.com witness@donga.com