Tripoli has issued a letter of credit (L/C) to Hyundai to enable the South Korean engineering firm to go ahead and build four power stations in Libya.

The Libyans had withheld the L/C as the two countries faced each other in a diplomatic stand off.

Espionage

Libya had accused South Korea of espionage as it expelled one of the Asian country's intelligence officers from the north African state in June.

The South Korean was accused of trying to collect information on Libyan leader Muammar Al Qaddafi and Libya's weapons system.

Libya also shut down its diplomatic mission in South Korea.

L/C withheld

Additionally, the Libyans refused to issue the L/C needed by Hyundai Engineering and Construction Co to start work on a US$1.36 billion order to build four steam turbine power plants in Libya.

That deal was notionally finalised in July.

Diplomatic upgrade

Now that the diplomatic stand off has been resolved, the L/C was finally issued on 6 October according to a Libyan official.

According to the head of Libya's economic cooperation bureau in Seoul, Masaoud Al Ghali, relations between the two countries are now as good as ever, and Libya's diplomatic mission in the South Korean capital is soon likely to be upgraded to an embassy.

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