$2 Million Humanitarian Aid Plan, First Phase Completed on the 4th
Multiple Methods Employed Due to Complex Procedures... Korean-Style Humanitarian Trade Channel Also Established
[Asia Economy Reporter Lim Cheol-young] The South Korean government is simultaneously promoting humanitarian trade with Iran in three forms: the general type (License 8), the Korean type, and the Swiss type. Additionally, the government plans to provide $2 million in humanitarian aid, of which $200,000 worth of aid was confirmed to have been completed on the 4th.
On the 10th, a senior official from the Ministry of Foreign Affairs told reporters, "Humanitarian trade with Iran is being promoted simultaneously through three channels: the general type based on License 8, the establishment of a Korean-type humanitarian trade channel, and the use of the Swiss-type trade channel," adding, "The one that can be implemented first is the general type."
The general type is a method where the U.S. grants a license, allowing transactions for humanitarian goods even if the Central Bank of Iran is involved. The U.S. announced this on February 27, and export procedures began on the 6th. However, it is expected to take more than a month before full-scale exports can proceed.
The senior Ministry of Foreign Affairs official said, "Our companies and financial institutions must meet enhanced due diligence (EDD) requirements to avoid violating sanctions," adding, "Although it started on the 6th, it will take about a month of procedures before goods can be shipped."
The government also plans to establish a Korean-type humanitarian trade channel (KOHTA). This method involves opening a non-sanctioned Iranian bank account on the Korean side and depositing won funds frozen in the Central Bank of Iran, using those funds to handle the export of humanitarian goods.
The senior official stated, "We are conducting detailed consultations with the U.S. side," adding, "Although the procedures are not yet complete, if successful through continuous consultations, the general type will be unified into the Korean-type channel."
The Swiss-type humanitarian trade channel (SHTA) will also be activated. It took one year and six months from the start of consultations to launch this channel. SHTA is a humanitarian trade channel operated since February 27 through consultations between the U.S. and Switzerland. It exports pharmaceuticals and medical devices to Iran via Swiss-based companies, with payments guaranteed by Swiss banks. Participating companies and financial institutions must submit information such as transaction settlement methods, transportation routes, exporters/importers, and Iranian end consumers to the U.S. Treasury Department to enhance transparency in humanitarian trade.
The senior Ministry of Foreign Affairs official explained, "Since several banks are involved procedurally, consultations take time, so it is not a situation where it can be done quickly," adding, "That is why the three methods?general type, Korean type, and Swiss type?are being promoted simultaneously."
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