Iran: "No Substantial Progress in Resolving Frozen Funds Issue in Korea"

[Image source=AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] The Iranian government stated that there has been no substantial movement to resolve the issue of frozen funds in South Korea.

On the 11th (local time), according to the Iranian local media Tasnim News Agency, Saeed Khatibzadeh, spokesperson for the Ministry of Foreign Affairs, said this during a regular press conference when asked about the issue of clearing Iran's frozen funds in South Korea. He said, "This money is South Korea's debt to 80 million Iranians from oil sales," emphasizing that this is a matter between Iran and South Korea and must be resolved regardless of negotiations to restore the Iran nuclear deal (JCPOA - Joint Comprehensive Plan of Action).

The statement from the Iranian Foreign Ministry spokesperson came after reports that the $7 billion (approximately 8.6 trillion KRW) overseas frozen funds issue had been resolved. Earlier, the state-run IRNA news agency reported, citing sources, that the $7 billion of Iran's overseas frozen funds would be transferred to Iran. It also reported that a senior official from Oman would visit Tehran on the 12th for this purpose.

Although IRNA did not disclose the source of the funds, speculation arose that the money to be transferred might be the frozen funds in South Korea. Since 2010, Iran has received payment for oil sales to South Korea and paid for imports from South Korea through won-denominated accounts opened in the name of the Central Bank of Iran at IBK Industrial Bank and Woori Bank in South Korea.

Subsequently, when the Trump administration unilaterally withdrew from the nuclear deal in 2018 and reinstated sanctions against Iran, the Central Bank of Iran was placed on the sanctions list, and these accounts were frozen. Iran has consistently pressured South Korea to release the frozen funds, threatening to initiate legal proceedings if the funds are not released.