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Visiting South Korea President Park Geun-hye is expected to sign multiple memorandums of understanding (MoUs) around transport and infrastructure projects during her three-day state visit to Iran.

Park and Iranian President Hassan Rouhani are expected to attend the signing of these agreements today (2 May).

Expected areas of cooperation include:

• Construction of the Isfahan-Ahvaz railway
• Financing of 450 wagons to be supplied by Hyundai Rotem
• Cooperation between Incheon International and Imam Khomeini International (IKIA) airports

Roads and Urban Development Minister Abbas Akhoundi said that the Iranian government also welcomes the participation of the South Koreans in building the Tehran-Northern Iran highway.

Other news sources have indicated that South Korean firm Daelim Industrial Company could sign a $4.9bn railway project during Park’s visit to the Islamic Republic.

Transparent financial protocol is necessary for the signing of the highway and other contracts “to clarify methods of financial exchanges and its economic justification for Iran”, state news agency Irna reported, citing Akhoundi.

Securing funding is seen as crucial in determining which MoUs come into fruition and translate into actual projects.

Akhoundi pointed to the Chinese proposal for financing the electrification of the Tehran-Mashhad railway as a potential model that the Korean companies could adopt.

He said that other potential areas of cooperation between the two countries include smart transport systems as well as the passenger and logistics systems at the IKIA.

Park is the first South Korean president to visit Iran since 1962.

Iran has hosted a number of government delegations from Europe, China and Asia since nuclear related sanctions were lifted in January.