Iran struggles to remove frozen funds from Korea… “Show the will of the Korean government”

Choi Jong-gun (left), the first vice minister of the Ministry of Foreign Affairs (left), who visited Iran on the issue of the Korean ship arrest on the 12th, is meeting with the Iranian Ministry of Justice Hekmatnia.[이란 정부 홈페이지 캡처]

The President of the Central Bank of Iran (CBI) demanded that “Korea should show a political willingness to resolve” the issue of $7 billion (about 7.700 billion won) of Iranian funds frozen in Korea. CBI Governor Abdolnaser Hemmati said in a written interview with Bloomberg News on the 19th (local time), “The ROK authorities promised to do everything they could to release the frozen funds, but this was not the first time they made such a promise. “He said.

Choi Jong-gun, the first vice minister of the Ministry of Foreign Affairs, visited Iran on the 10th-12th. During the three-day visit, Vice Minister Choi attempted to resolve the issue of the capture of Korean ships and the release of five Koreans detained in Iran, but Iran left Iran without narrowing the gap, emphasizing resolving the funding freeze issue.

Hemmati only replied “No” to the question about the Korean delegation’s visit to the question, “Is there a connection between the issue of capturing Korean ships and the issue of freezing Iran funds?”

Instead, it raised the level of criticism by addressing the issue of freezing funds. Hemmati said, “The Korean delegation has a political will to solve this problem, but the problem is that they want to follow US policies and regulations as well.” “We are refusing to cooperate with Iran, unlike other countries.” He said, “The measures to freeze funds by Korean banks violate international law,” he said. “The damage suffered by Iran over the past two years should be borne by Korean banks.”

Iran has recently inquired about how to use it to purchase humanitarian goods, such as a new coronavirus infection (Corona 19) diagnostic kit, over the freezing funds. This is because sanctions exceptions may be allowed when trading humanitarian goods such as pharmaceuticals.

Choi Jong-gun, the 1st Vice Minister of Foreign Affairs, is returning to Korea through Incheon International Airport Terminal 1 on the 14th. Earlier, Vice Minister Choi visited Iran for 3 days and 2 nights starting on the 10th and requested the lift of the detention of Korean ships, but no clear results were achieved. [뉴스1]

Hemmati said in this regard, “I found a way to import humanitarian goods for freezing money, but the Korean government did not propose a reliable channel.”

In addition, in terms of how to transfer assets through INSTEX, a special-purpose corporation established exclusively for trade between Europe and Iran as a way to bypass US sanctions, “it was of no use. Europe has no will.” Replied.

At the same time, he argued that methodologies such as Instex were “the second problem”, and “the first important thing is the will of the Korean government, but I can’t see it now.”

South Korea and Iran have established a detour since 2010, when US financial sanctions against Iran began. Iran opens accounts in Korean Won with Korea’s IBK and Woori Bank under the name of CBI, and receives crude oil exports from this account. However, after the U.S. expanded Iranian financial sanctions in 2018 and designated the CBI as a subject of sanctions, $7 billion of funds under the name of the CBI in Korea were frozen.

The issue of Iran’s frozen funds arose again on the 4th when the Iranian Revolutionary Guard captured Korean ships. This is the case in which the Iranian Revolutionary Guard captured five Koreans after seizing the chemical carrier Korea Chemi in the Gulf waters. The Iranian Revolutionary Guards heard marine pollution as a reason for their seizure, but they have not yet provided evidence.

On the 5th, the day after the incident, Iranian government spokesman Ravieri held a press conference and insisted, “If hostage play exists, it would be that the South Korean government has frozen US $7 billion of our funds for groundless reasons.”

Reporter Jeong Eun-hye [email protected]