Central Bank of Iran (CBI) Governor Abdolnaser Hemmati has called for faster resolution of problems in banking ties with South Korea, especially the government’s ability to access its fund in Korean banks.
Hemmati criticised a downward trend in bilateral trade exchanges between Iran and South Korea that were caused by the reimposition of the unilateral US sanctions on Iran in August and November last year, according to the Central Bank of Iran website.
He expressed the criticism in a meeting with Bank of Korea (BOK) Governor Lee Juyeol in Seoul on Tuesday. Hemmati arrived in South Korean on Monday night in a visit aimed at resolving banking issues with one of Iran's biggest Asian customers.
Central Bank of Iran (CBI) Goveror, right, shakes hands with Bank of Korea (BOK) Governor, Lee Juyeol in Seoul on Tuesday, 04 June, 2019. CENTRAL BANK OF IRAN
The CBI governor is also expected to hold talks with South Korean Minister of Economy and Finance Hong Nam-ki, who is also deputy prime minister, as well as with the vice foreign minister for bilateral economic affairs.
He urged the South Korean authorities to take measures in a bid to faster resolve the problem that Iran has been facing since the implementation of US punitive measures, that is South Korean banks have blocked Tehran from withdrawing the funds in its accounts.
The majority of Iranian funds in South Korea belong to the sales of oil and petrochemical products to the Asian country.
South Korea resumed imports of Iranian oil in January after a four-month hiatus, according to the country’s customs data, but shipments were down 76 percent from the same month last year, Reuters reports. However, the imports have halted after the US didn’t renew the waivers past 2 May.
South Korean Ambassador to Iran Jeong-Hyun Ryu, cited by Tasnim News Agency, had said Seoul is looking to obtain more exemption from the US.
Abdolnaser Hemmati also expressed hope that banking problems, caused by the “conservatism” of South Korean banks, are resolved soon.
Bank of Korea Governor Lee Juyeol expressed regret for the performacen of South Korean banks regarding Iran, saying they are afraid of the US punishmnet. However, he vowed to do whatever he can to resolve this situation.
Last month, the governor of Central Bank of Iran urged South Korean ambassador to Iran to convey Tehran’s complaint about South Korean banks that have barred Iran from accessing its funds.
Hemmati's visit comes after the a tour of the Asian countries, inclduing Japan and South Korean, by Iranian Foreign Minister Mohammad Javad Zarif, that aimed to rally Asian support behind Tehran in the wake of US sanctions.