South Korean technology companies are gearing up for post-war reconstruction projects in Iraq, encouraged by signs that Seoul appears to be tilting toward a further deployment of troops to the country.

In the strongest sign yet that South Korea might send more troops to Iraq, Finance Minister Kim Jin-pyo said this week such a move would benefit South Korea?s economy by reassuring investors about a solid alliance between Washington and Seoul.

KTF, the country?s second-largest mobile carrier, has emerged as one of the first bidders for lucrative projects in the Middle East, buoyed by growing hopes that more troops will help South Korean businesses win contracts. ?We?re preparing to bid for large mobile phone projects in Iraq,? Lee Young-bae, a KTF spokesman said. ?There have been initial contacts with Iraqi officials.?

A global leader in communications

The process may pick up speed as 15 Iraqi officials from the transport and telecommunications sectors arrived in Seoul yesterday on the invitation of the Korean government.

The cost of reconstructing Iraq is estimated at $75 billion and the United States has already pledged $20 billion directly for reconstruction.

During their two-week stay, the officials will visit KTF, KT Corp, the country?s largest fixed-line operator, Hyundai Motor Co and steel maker POSCO They will also attend lectures on the establishment of telecom networks and broadband Internet services, according to the government-run institution KOICA, which organised their trip to South Korea.

South Korea is a global leader in the communications industry. About 70 percent of South Korea?s 48 million people have access to the Internet, with 10.6 million having high-speed connections, the highest broadband penetration rate in the world.

The stock market welcomed the news, sending telecom stocks higher. KTF shares gained 2.19 percent to close at 21,000 won and KT surged 3.64 percent to 46,950 won. Broadband operator Hanaro Telecom climbed 2.64 percent to 3,700 won.

Analysts were cautious, though.

?It is too premature to talk about any kind of earnings momentum at this stage,? said Yang Jong-in, a Dongwon Securities analyst. However, ?if the deals materialise, telecom equipment suppliers stand to benefit more than telecom services operators who will get only royalties and long-term dividends.? Another firm that could play a part in rebuilding Iraq is Samsung Electronics Co, the world?s third largest mobile phone maker.

The Maeil Business Newspaper reported yesterday the government was considering measures to ensure South Korean firms play a lead role in the reconstruction of Iraq, when it makes a decision on whether to deploy more troops. South Korea is waiting for the findings of a survey team sent to Iraq. It is scheduled to return later this week.

The United States has asked South Korea for the troops to help ease the burden of stabilising post-war Iraq. A South Korean newspaper quoted a US official as saying Washington would like 5 000 troops and a decision by mid-October.

President Roh Moo-hyun has been caught between turning down his main ally, which has 37 000 troops on the Korea peninsula to deter the communist North, and alienating the public just months before an April parliamentary election.

On Saturday, more than 2 000 people marched through Seoul in the largest rally yet against a US request for combat troops. A South Korean team of 700 engineering and medical troops has been working out of a US base in the Iraqi town of Nassariya since May.

Judy Lee

Baghdad

Violence erupts at Iraqi jobless protests

Protests by frustrated jobless Iraqis in two cities turned violent yesterday as demonstrators threw rocks and set cars ablaze while local security forces responded with gunfire.

In central Baghdad, a few dozen protesters looking for work at a US-backed local security force hurled rocks at the building. Flames and black smoke poured from a police car and a civilian vehicle while gunfire echoed around the area.

In the northern city of Mosul, a much larger crowd threw rocks at an employment office before marching to a local government building. Some storekeepers closed their shops. Security guards fired shots in the air and the crowd began to disperse.

At the Baghdad protest, which took place near a hotel where many Western journalists and other foreign workers are based, police fired automatic rifles and pistols as demonstrators took cover behind nearby buildings. ?We didn?t shoot at the beginning. We think this is a democracy and they can express their point of view. But then they started firing,? policeman Falah Hassan said at the scene. He said several people were wounded. The violence lasted for around half an hour. US troops arrived in the aftermath and secured the area.

Protesters said they had come repeatedly to the office of a force set up to guard state property to look for work.

?Most of us were soldiers and then they disbanded the army and all the soldiers became jobless,? one man said. ?We?ve filled out forms and two months later, still no result.?

The US-led administration running Iraq since the war that ousted Saddam Hussein in April disbanded the Iraqi army, viewing the force as a tool of the deposed Baath party. The administration is in the process of setting up a new army.

International officials have estimated the unemployment rate in Iraq may be running at around 50 percent.