Iranian President Hasan Rouhani received his South Korean counterpart Park Geun-hye in Tehran, saying there is suitable ground for foreign investment in Iran.

Iranian President Hasan Rouhani received his South Korean counterpart Park Geun-hye in Tehran, saying there is suitable ground for foreign investment in Iran.

President Park was accorded an official welcome in Tehran on Monday on the first day of her three-day visit, heading South Korea's biggest-ever traveling business delegation of over 230 executives.

The two presidents then sat for their first meeting since the establishment of diplomatic relations between the two countries in 1962.

After the national anthems of the two countries were played, Iranian and South Korean presidents inspected guard of honour.

Soon after the welcoming ceremony, Rouhani and Park started holding bilateral talks.

They were expected to discuss a wide array of issues, ranging from energy, banking, and infrastructure to challenges in the Middle East and the Korean Peninsula. The two sides are also expected to seal deals worth over €10 billion.

President Park is scheduled to attend a conference on promotion of Tehran-Seoul economic ties as well as investment in Iranian projects by South Korean companies.