ISLAMABAD, Feb 7: A number of South Korean companies are interested in joint ventures with Pakistan to increase present level of their investment, says Yoon Jee-Joon, the outgoing Ambassador of South Korea.

He met Finance Minister Shaukat Aziz here on Thursday and told him that a Korean delegation was expected to visit Pakistan shortly to explore possibilities of investment in business ventures and infrastructure.

He said a number of Korean companies including Daewoo, LG and Hyundai were already engaged in profitable ventures in Pakistan. These companies were manufacturing home appliances, automobiles, and excel in construction and hotel business.

He said that South Korea has given $12 million grant in aid to Pakistan to off set impact of post-Sept 11 events on its budget. Another $25 million have been allocated for Afghan reconstruction which would be given in a period of two years.

The South Korean Ambassador said that foreign investment in South Korea exceeds $10 billion. Korean companies annually invest over $5 billion in the world out of which 70 per cent is invested by small and medium enterprises. He asked Pakistan to encourage Korean investment through establishment of regular contacts between the potential investors in private sector of the two countries. The South Korean Ambassador also proposed opening of Pakistani Trade Mission in the leading capital markets of the world including Seoul.

Shaukat Aziz appreciated South Korean support for stock re- profiling of debts in the Paris Club and the grant in aid given to Pakistan. He said that the government would encourage South Korean private sector for joint ventures in Pakistan, and its participation in reconstruction of Afghanistan.

Dilating on tax regime, Aziz said to protect and encourage local industry, the government has in the last budget reduced the duty of household electrical components to 5 per cent and the incidence of duty on imported electrical goods has been increased to 30 per cent. This has resulted in substantial increase in local assembly of television sets and home appliances.

The minister said that Pakistan is an ideal country for contract manufacturing due to the productive labour, model location and lower operating costs.

He appreciated the Korean companies for investing in the physical infrastructure and development of inter-city transport system. He said high standards of quality and efficiency set by the Korean companies have enabled them to established and operate successfully such profitable venture.

He also assured the Korean outgoing Ambassador that the government would encourage visit of Pakistani entrepreneurs to Korea for setting up joint ventures in Pakistan. He said that trade and investment flows between the two countries need to be increased to the mutual benefit of the two countries.

The outgoing Korean Ambassador invited the finance minister to visit South Korea. The invitation was accepted and it would take place on mutually agreed dates.