Industry minister calls for wisdom in drawing foreign investment for East Sea project

A photo provided by the Ministry of Trade, Industry and Energy shows Industry Minister Ahn Duk-geun. [YONHAP]

Industry Minister Ahn Duk-geun said Monday the government needs to take a “prudent approach” in attracting foreign investment for the development of potential oil and gas reserves off the East Sea and revamp related policies to brace for the project.

Ahn made the remark during a meeting with reporters in the central city of Sejong, as Korea embarked on the project that could potentially uncover between 3.5 billion and 14 billion barrels of gas and oil in the East Sea.

“Attracting foreign investment is crucial, and we intend to take a strategic and prudent approach,” Ahn said.

“If commercial development begins, we will need an astronomical amount of funds. Therefore, we need major players from overseas to finance it,” Ahn said, noting that the country needs help from foreign companies in terms of technology as well.

Kim Dong-sub, head of the state-run Korea National Oil Corp. (KNOC), recently hinted that major oil companies have expressed interest in participating in the project, including those from the Middle East, without elaborating on details.