Seoul to release Iran's $6 billion frozen funds in Korea

Seoul plans to release some $6 billion worth of Iranian funds frozen in Korea due to U.S. sanctions on Tehran, according to local media reports on Friday.

Iranian flag [YONHAP]

Seoul plans to release around $6 billion worth of Iranian funds frozen in Korea due to U.S. sanctions on Tehran, according to local media reports on Friday.

Korea is “in the process of unfreezing the Iranian assets that have been frozen in Korea under the leadership of the United States,” a senior government official said, according to the Korea Economic Daily. “That will significantly help normalize the strained relations between Korea and Iran.”

Some $7 billion in Iranian assets have been frozen at the Industrial Bank of Korea and Woori Bank since September 2019, when U.S. sanction waivers for Korea’s imports of Iranian oil expired.

Iran may free five detained U.S. citizens as part of the deal to get the funds unfrozen in Korea, according to a report from Reuters.

BY JIN MIN-JI [jin.minji@joongang.co.kr]