Korea, Iraq initiate double taxation avoidance pact

Korea and Iraq have initialed a double taxation avoidance pact, Korea’s finance ministry said Friday, in a move that could boost bilateral economic cooperation.

The agreement is set to take effect after a formal signing and parliamentary ratifications in both countries, according to the ministry.

The move comes as Korean construction companies are participating in major infrastructure projects in the war-torn country.

Hanwha Engineering & Construction is set to build 100,000 homes in Besmaya, Iraq, a sprawling suburb located about 10 kilometers (6.2 miles) southeast of Baghdad, by 2019 under a $7.75 billion deal.

The contract is the single largest overseas project for any Korean builder.

In 2014, a Korean consortium led by Hyundai Engineering and Construction Co. won a $6.04 billion contract to build a large oil refinery in the southern Iraqi city of Karbala.

Yonhap