Iran's Supreme Leader Bans Import of Korean Home Appliances to "Protect Domestic Products"

[Asia Economy Reporter Koo Chae-eun] The Supreme Leader of Iran has officially issued a ban on the import of Korean home appliances.

According to foreign media and state-run news agencies on the 30th, Ayatollah Seyyed Ali Khamenei, the Supreme Leader of Iran, recently sent a letter to the Presidential Office and the Ministry of Industry, Mining and Trade, instructing them not to import finished Korean home appliances.

The letter stated, "If home appliances produced by two Korean companies are imported, all domestic electronics companies will go bankrupt," and added, "This issue needs to be approached seriously." Although the Supreme Leader did not specify the company names in the letter, it is interpreted that the two Korean companies are Samsung Electronics and LG Electronics.

After the US sanctions on Iran in August 2018, most Korean companies withdrew from Iran. At that time, Samsung Electronics and LG Electronics also ceased their operations in Iran. When Korean companies withdrew from Iran in 2018, Iran warned, "Iran does not forget friends who helped in difficult times. It will be very difficult for companies from countries that joined the US sanctions and left Iran to re-enter the Iranian market."

Since then, Iran has fostered domestic companies such as 'Sam' (SAM) and 'Gplus' (Gplus). As US sanctions continued and home appliance prices rose in Iran, some local media reported that sales of Korean companies' products might resume.

Hossein Tanhai, Chairman of the Iran-Korea Chamber of Commerce, mentioned in June that "Frozen funds can be utilized for importing Korean industrial goods, electronic products, production machinery, and technical equipment," indicating the possibility of resuming trade.