South Korea will follow the lead of the Paris Club regarding outstanding government credits of $200 million to Iraq, the Korean government said on Friday.
``Seoul is keeping an eye on the ongoing discussions by the international community about debt collection from Iraq as well as U.S.-led debt relief, and will take into consideration the Paris Club’s decision,’’ a government official said. The Paris Club represents 19 creditor nations with large claims on a variety of debtor nations worldwide. It is currently working to resolve creditor issues for those that lent to the war-torn Middle Eastern country.

Last month, Jean-Pierre Jouvet, head of the Paris Club, said that, as soon as official Iraqi authorities are in place, it will negotiate with them on how to readjust its debt by late this year.

South Korea has outstanding credits worth $1.9 billion for its work in Iraq, with Hyundai Engineering & Construction accounting for $1.1 billion.

Other officials have commented that it may be difficult to settle private credit matters, including Hyundai’s, through the Paris Club.