UANI

Doosan Corporation is the parent company of the construction equipment brand Bobcat, which also does business in Iran.

--

Doosan has a significant presence in Iran’s energy sector, having constructed at least nine power plants in Iran.  (Doosan Heavy Industries Website. “Major Projects”). 

--

Doosan has won orders to supply more than 60 Heat Recovery Steam Generators (HRSGs) for Iran.  (Doosan Website. “Doosan Wins Successive Orders for Power Generation Equipment from Iran, Vietnam,” 7/21/2009; Doosan Website. “Doosan Heavy Industries and Construction wins 74 million-euro power plant project in Iran,” 6/14/2009). 

--

Recently, Doosan has also worked directly with the Iran Oil Company, specifically on LPG Recovery for the Win-teco/Lavan Oil Refinery in Iran in 2007, and the SAZEH Ball Tank project for Win-teco/National Iran Oil Company in 2008 (Doosan Mecatec Website. “Major Accomplishments”). 

--

In total, all Doosan companies have received more than $100 million from the U.S. Government in federal contracts since 2000 (USASpending.gov).   

Youngshin is a South Korean die-cutter manufacturer, with over 70% of the South Korean die-cutting equipment market. It has a wholly-owned American branch, Youngshin USA, located in Illinois (Company Website).

Iranian engineering company IHI Hydraulic Industries announces on the front page of their website that, "IHI has obtained license from Korean company Youngshin for manufacturing of high technology command hydraulic pumps for sedans and trucks."

"SK Energy will buy the additional crude, taking 130,000 bpd in 2012, up 10,000 bpd on the year, a government source said. An SK Energy spokesman declined to comment when asked about the deal... SK Energy could replace Iranian oil with imports from elsewhere in the Middle East if it needed to, although that might cost more money, an SK Energy source said." (Reuters, "S.Korea buys more Iran oil but eyes alternatives," 1/4/2012)

--

"'We don't see any impact on crude imports from Iran,' a source at South Korea's largest refiner SK Energy said. 'While we cannot disclose the term import barrels for 2011, I can tell next year's oil import from Iran will continue as much as this year's.'

 An official at Hyundai Oilbank also said the term volume for 2011 will be stable from 2010. SK Energy and Hyundai Oilbank are the only buyers of Iranian crude in the country among four refiners.    Trade with Iran accounts for less than 1.5 percent of South Korea's overall trade but Iran is an important supplier of crude oil to South Korea, which imports all of its crude needs.

 Iran is South Korea's fourth-largest crude supplier. South Korea imported 67.1 million barrels of Iranian crude between January and November this year, accounting for 8 percent of the country's total crude imports, down about 10 percent from a year earlier." (Reuters, "Iran's Asian crude buyers see flow steady despite financial sanctions," 12/30/10)

The Hyundai Corporation is a general trading company specializing in a wide variety of shipping, industrial, chemical, and electrical products. Hyundai Heavy Industries owns a controlling stake  in the Hyundai Corporation.

In 2005, Hyundai Corp signed a $1.9 billion contract to provide Iran with materials “in the fields of shipbuilding, machinery, steel & metal, chemicals, home appliances, etc.” Hyundai Corp’s Tehran Office website contains a Major Products section, which contains a litany of sensitive products with wide applicability in the Iranian energy, petroleum, and even defense industries. This products include: oil tankers, LNG carriers, diesel engines, signaling systems, optical cables, conductor wires, high voltage cables, transmission cables, steel, aluminum, zinc, polypropylene, other chemicals, and consumer electronics. 

Hyundai Oilbank and Hyundai Corporation are subsidiaries of Hyundai Heavy.

--

Hyundai Heavy Industries is the world's largest shipbuilder, with a 15% world market share. It also manufactures a variety of industrial, construction, and electrical equipment (Company Website). 

--

Hyundai Heavy Industries has received numerous contracts to provide manufactured goods to Iran over the past six years. In 2004, HHI received an $18 million contract to provide construction equipment including excavators and wheel loaders to assist in the development of Iran's South Pars gas field. 

--

In 2007, HHI received a $54 million contract to upgrade a refinery owned by the National Iranian Oil Engineering and Construction Co, a state-owned entity. And as recently as 2009, HHI received a contract to provide six high-pressure pump units to outfit an Iranian power plant.

--

In 2005, HHI together with Daewoo Shipbuilding received a $1 billion contract from the state-owned National Iranian Oil Tanker Co to build 10 oil tankers (Bloomberg). At the contract’s issuance, NIOTC officials planned to order another 35 vessels for 2010; the status of this order is unknown. Each tanker is capable of carrying 2 million barrels of crude, providing a massive increase in shipping capacity for the Iranian petroleum industry.

--

HHI owns a controlling stake in the Hyundai Corporation, a general trading company specializing in a wide variety of shipping, industrial, chemical, and electrical products. Hyundai Corp signed a $1.9 billion contract to provide Iran with materials “in the fields of shipbuilding, machinery, steel & metal, chemicals, home appliances, etc.” Hyundai Corp’s Tehran Office website contains a Major Products section, which contains a litany of sensitive products with wide applicability in the Iranian energy, petroleum, and even defense industries. This products include: oil tankers, LNG carriers, diesel engines, signaling systems, optical cables, conductor wires, high voltage cables, transmission cables, steel, aluminum, zinc, polypropylene, other chemicals, and consumer electronics. 

DK Tech Corporation is an instruments manufacturer serving the petrochemical, offshore drilling, power generation, and shipbuilding industries. DK Tech Corp specializes in semiconductors, fittings, valves, and other analytical and process instruments. It is an official vendor to ExxonMobil, Shell, and Petronas (Company Website). 

--

On December 17 2010, the Wall Street Journal reported that DK Tech Corp signed a deal to help develop Iran's South Pars gas field: "Korea's DK Tech Corp. (105740.KQ) has signed a small deal for projects in a giant Iranian natural gas field, the oil and gas equipment maker said in a corporate filing Thursday, as Asian suppliers replace U.S. and European companies amid mounting sanctions. In a disclosure to the Korean stock exchange, DK Tech said it had signed a contract worth EUR598,000 to supply phases 17 and 18 of the South Pars field until July 15, 2011. The operators of the world's largest non-associated gas field, which Iran shares with Qatar, have struggled to source technologies after Western companies stopped supplies to comply with sanctions over the country's nuclear program. DK didn't disclose what equipment it would sell to Iran but it normally sells valves and tube fittings for the oil and gas sector, among other industries" (Wall Street Journal, South Korea's DK Tech Signs Deal for Iran Gas Field, 12/17/10). 

Hyundai Motor and several of its subsidiaries and affiliates have reported business dealings with Iran, including:

• Hyundai Rotem: 57.64% owned – sale of rail cars
• Hyundai HYSCO: 26.1% owned, primary shareholder; 13.9% owned by Kia Motors, second largest shareholder – sales of steel pipes
• Hyundai Mobis: 16.88% owned by primary shareholder Kia Motors – equipment for auto manufacturing
• Hyundai Oil Bank: 4.35% owned, second largest shareholder – purchase of Iranian crude oil

Hyundai Motor's business in Iran can be broken down into exports, manufacture, and orders:

Exports

Hyundai sells passenger cars through Assan Motors, its exclusive distributor in Iran since 1992. Assan trumpets its “tremendous growth” in recent years. The Hyundai Iran website also features dozens of Iranian dealerships that sell Hyundai vehicles.

Business Monitor’s “Iran Autos Report Q4 2010” (September 2010) reports as of February 2010, Hyundai Motors was only one of six carmakers that have secured license to import cars into Iran. In August 2010, Hyundai reportedly ceased vehicle exports to Iran.

In July 2011, the Korean daily JoongAng reported that due to pressure from United Against Nuclear Iran, Hyundai had ceased its exports to Iran for two months in early 2011 but quickly reversed course: "In February, Hyundai Motor and Kia Motors - both affiliates of Hyundai Motor Group - stopped shipping automobiles to Iran after the companies came under pressure from United Against Nuclear Iran (UANI), an American lobby group, for not complying with U.S. sanctions. In April, they reversed track, saying it 'wasn’t right' that they continue to withhold their products from Iranians. It was the first time that the Korean company decided to stop exports due to political pressure from a third party or country."

Manufacture

In 2004, the first Iranian-made Hyundai vehicles were produced with local partner Kerman Motor Company. The Hyundai Verna model was initially set at 20,000-30,000 units per annum (upa) with plans to be increased to 100,000 upa. (World Markets Analysis, “First Iranian-Made Hyundai Models Rolled Out in Kerman,” 9/9/04)

The “CKD [Complete Knock Down] assembly facility” with Rayen Vehicle Manufacturing Company (RVMCO) in Tehran manufactures the Hyundai Accent and Elantra. CKD refers to a kit (e.g. engine, transmission, battery, etc.) used by foreign affiliates to assemble manufactured goods.

The Iran Khodro Diesel Co. (IKDC), a manufacturer of commercial vehicles (trucks, buses, minibuses, vans), produces the Hyundai Mighty (Light Truck) and Hyundai Chorus (Minibus).

In July 2009, it was reported the auto-manufacturing companies Kerman Khodro and Rain Khodrosazan would introduce Hyundai’s smallest car, the i10. Rain Khodrosazan reportedly also manufactures the Hyundai Avante, Verna and Sonata.

Orders

August 2010: Reports indicated that Hyundai Motors and Kia Motors had shipped a total of 17,000 vehicles to Iran during the first half of the year before suspending their exports.

September 2006: Reuters reported that Hyundai Motor won a $227 million order to supply vehicles to Iranian government agencies and taxi operators. The models supply included sedans and SUVs. In 2007, it was expected Hyundai would also be rewarded another 8,500-unit order.

Hyundai Rotem in Iran
57.64% owned

Hyundai Rotem is a Korean manufacturer of rolling stock, defense products and plant equipment.

• 2004: Hyundai Rotem won a contract to deliver 150 DMUs (diesel multiple units/railcars) to the Islamic Republic of Iran Railways. The deliveries were scheduled for between 2007-2009.
• 2004: In consortium with the Marebuni Corporation, Hyundai Roten won a 110 million euro for 120 Diesel Multiple Unit (DMU) cars from Irankhodro Rail Industries Company (IRICO). The delivery was scheduled the beginning of 2007 through to 2008. (Rotem Website)
• Iran is listed as one of their “Global Markets” for “Railway Systems.” 

U.S. Government Business

Hyundai Motors received over $14.7 million in U.S. government contracts this past decade.

Woori Bank is the lending unit of South Korea's third-largest financial company, the state-owned Woori Finance Holdings Co. The firm is currently undergoing privatization negotiations and came under investigation for fraud during the summer of 2010. (Businessweek).

In October 2010, Woori Bank, along with Industrial Bank of Korea, have been appointed by the South Korean government to "finance legitimate trade with Iran in sectors unaffected by sanctions, channelled through Iran's central bank." The deal will allow Iran's central bank to deposit oil proceeds in Woori Bank, which will then use the funds to pay South Korean firms exporting to Iran. South Korean trade to Iran amounts to $10 billion annually. A Woori Bank spokesman explained that "Iran's central bank is not the target of sanctions, so transactions through the bank are legal. We do not worry about any possibly sanctinons by the US against us" (Financial Times). 

Industrial Bank of Korea is one of South Korea's largest banks. It is a publicly-owned institution specializing in loans for small and medium-sized corporations. IBK is also involved in consumer banking, investment banking, and asset management (Google Finance).

--

In October of 2010, the South Korean government appointed IBK to "finance commerce with Iran and revive business ties damaged by sanctions." The deal allows the Iranian central bank to deposit proceeds from oil sales at IBK, which will use the funds to pay South Korean firms exporting to Iran. South Korean trade with Iran amounts to $10 billion annually (Financial Times). 

"Hapag-Lloyd's previous Bandar Abbas service had been jointly operated with South Korea's Hyundai Merchant Marine. A source familiar with the matter said Hyundai had reduced its shipping service to Iran and was closely monitoring the situation. 'Hyundai's vessels, however, en route via Bandar Abbas do not contain any refinery or nuclear-related products since those items are blacklisted,' the source said." (Reuters, "Sanctions blowback crippling Iran's shipping trade," 12/1/2011)

--

Hyundai Merchant Marine is a container shipping company, part of the conglomerate Hyundai Group. It is an "integrated logistics company, operating around 160 state of the art vessels" (Company Website).

--

After a ten year hiatus, Hyundai Merchant Marine resumed shipping to Iran through the port of Bandar Abbas (Business Monitor - "Hyundai MM Enticed Back to Iran After 10 Years", 5/25). Hyundai Merchant Marine's website gives addresses and contact listings for offices in Tehran and Bandar Abbas (Company Website).

--

In the past, Iran has used foreign-operated vessels to ship weapons caches (Business Monitor - "Hyundai MM Enticed Back to Iran After 10 Years, 5/25).