Iranian President Hassan Rouhani and South Korean Ambassador Yun Kang-Hyeon meeting in Tehran

On July 20, Iranian President Hassan Rouhani reiterated Iran's clear right to utilize assets kept in South Korean banks; he expressed sadness that "privileged relations" between Tehran and Seoul had been strained in recent years and expressed hope that they would be resolved as soon as possible.

During President Rouhani's welcoming, Yun Kang-Hyeon, the new South Korean Ambassador to Tehran, presented his credentials to the President of the Republic.

"In recent years, the distinctive relations between Iran and South Korea have been handicapped by the unfair American embargo," the Iranian President stated, adding that such barriers should be lifted as soon as possible.

Despite South Korea's promises, Rouhani addressed the persistence of the banking and financial problems between the two countries: "We still face problems in purchasing medical and pharmaceutical equipment and facilities and even the coronavirus vaccine in using our property in Seoul banks while it is our clear right to use our financial assets in South Korean banks.”

He stressed Iran's right to use the assets it had placed in the South Korean banks.

This comes as the US Department of State announced on July 14th that it had issued an exemption to some of Iran's blocked funds in South Korea and Japan, allowing them to import Iranian oil. The waiver, signed by Secretary of State Antony Blinken, allows the "transfer of Iranian funds in restricted accounts to exporters in Japan and the Republic of Korea."

It should be recalled that US sanctions prevented Iran from paying United Nations dues on January 19, putting it on a list of countries in arrears with several others.

"The conditions imposed, which were beyond our control, have affected the relations between Tehran and Seoul” the new South Korean Ambassador in Tehran stated. "But today I have a special mission to do our utmost to strengthen bilateral relations," he added

"Although we are waiting for the good results of the negotiations related to the JCPOA” Hyeon said today as he handed over his credentials to President Rouhani, " South Korea will not waste time and we are preparing the conditions for the further development of bilateral relations," he added.