A team of 16 business people, headed by Park Se-Yong, president of South Korea’s Hyundai Corporation, arrived in Pakistan at the end of August to negotiate the start of a range of joint venture schemes.
Sixteen memoranda of understanding worth more than $4,000 million were signed with South Korean firms during a government investment mission to South Korea and Hong Kong in October 1994 (MEED 18:11:94).
Park said memoranda of understanding for three projects with Hyundai had already been signed, but they could not be initiated yet because the necessary licences had not been issued. Park said he would request policy changes to help boost investment in Pakistan in planned talks with Prime Minister Benazir Bhutto.
Hyundai wants to set up two 210-MW power projects costing $400 million with the state-run Karachi Electric Supply Corporation (KESC). Hyundai Motor Company also has an agreement to set up a car production plant in Lahore with the local Saigol group, costing about $85 million. Hyundai Engineering & Construction Company has an agreement with the state-run Pakistan State Oil to set up a 90,000-barrel-a-day oil refinery in Karachi, costing between $700 million-800 million (MEED 10:2:95).
Lee Kyung-Hoon, chairman of Daewoo Corporation, said his company was looking for new projects in power generation, automobile assembly and basic chemicals production. Daewoo signed three memoranda of understanding in October 1994. The first was for a $50 million hydrogen peroxide plant with the local Gul Ahmad Textile Mills. Daewoo also made two agreements with the local Siddique Sons, to set up a 114-MW power plant, costing $100 million, and a $30 million tin plant.