[Asia Economy Reporter Moon Jiwon] The influential Iranian daily Etemad claimed on the 27th (local time) in a front-page article that South Korea rejected Iran's proposal to purchase medicines needed for humanitarian purposes, asserting that South Korea joined the United States' unilateral 'economic terrorism' (sanctions).
Under the headline "South Korea auctioned off 60 years of friendship with Iran," Etemad criticized, saying, "South Korean companies entered Iran, a market with great potential, defeated competitors, and the Iranian people welcomed this, but now it remains a regrettable memory," adding, "They joined the US economic terrorism, severed relations with Iran, and left."
The phrase 'auctioned off' used in the article's title is an expression used in Iran when selling items that have lost their value at a low price. Etemad explained, "Iran proposed to purchase special medicines needed for rare diseases using the proceeds from Iranian oil exports deposited in South Korean banks, but South Korea did not accept this humanitarian trade."
The oil export proceeds mentioned by the newspaper are interpreted as approximately 5 billion dollars held in a won-denominated settlement account opened in South Korean banks under the name of the Central Bank of Iran for trade with Iran.
This account was a financial channel that allowed South Korea and Iran to trade without violating US sanctions, but it was effectively frozen when the US reinstated sanctions against Iran in August 2018. As a result, Iran has not been able to receive payment for its oil exports. Etemad emphasized that South Korea should not yield to US pressure and should be able to use this money for trading goods such as medicines and medical equipment.
South Korea donated about 1.5 billion won worth of COVID-19 testing kits and quarantine supplies to Iran on the 6th of last month and the 17th of this month.
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