[Asia Economy Reporter Hwang Yoon-joo] It has been understood that the United States has agreed to transfer part of Iran's frozen funds in South Korea to Switzerland.
On the 25th, a Ministry of Foreign Affairs official told reporters that when asked whether the U.S. agreed to send Iran's frozen funds held in South Korean commercial banks to Switzerland, "(The U.S.) can be considered to have agreed, but the overall method of remittance still needs to be negotiated."
The government has been discussing with the U.S. the plan to transfer part of the frozen funds to an Iranian account in Switzerland for use in the Swiss Humanitarian Trade Arrangement (SHTA).
SHTA is a system under U.S. government authorization where pharmaceutical, medical, and food companies headquartered in Switzerland export humanitarian goods to Iran, and Swiss banks pay or guarantee the payment for those goods.
With the U.S. agreeing to this plan, it is expected that once the technical issues for the transfer are finalized, the remittance will proceed. Iran has been concerned that the frozen funds in South Korea might be frozen again due to U.S. sanctions during the transfer to the Swiss account, so attention is focused on whether this issue can be resolved.
It is known that South Korea and Iran are pushing for a plan to transfer about 1 billion dollars out of the 7 billion dollars of frozen funds to Switzerland.
Abdolnaser Hemmati, Governor of the Central Bank of Iran, said on the 24th (local time), "Out of the 7 billion dollars frozen in South Korea, we will first recover 1 billion dollars," adding, "The 1 billion dollars will not be returned in the form of goods. It will be transferred to an Iranian bank account."
However, the specific transfer amount and timing may change depending on future negotiations. It is reported that rather than transferring 1 billion dollars all at once, a plan to transfer in installments over several years is gaining weight.
A Ministry of Foreign Affairs official said regarding the specific amount and timing of the funds to be transferred to Switzerland, "We need to consult with related countries including the U.S.," adding, "Ultimately, special approval from the U.S. is required, and consultations with Switzerland are also necessary."
The restoration of the nuclear agreement (JCPOA - Joint Comprehensive Plan of Action), which is a point of contention between Iran and the U.S., could also be a variable.
If the transfer of frozen funds in South Korea to Switzerland is realized, it is expected to have a positive impact on resolving the issue of the Korean vessel detained by the Iranian Revolutionary Guard Corps since January.
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