Iran's Banking Problems With South Korea Resolved

EghtesadOnline: Following the approval of a measure by lawmakers that allows Iran to formally join the UN treaty for combating the financing of terrorism earlier this week, Iranian residents in South Korea can now open bank accounts, said the secretary-general of Iran-South Korea Chamber of Commerce.

News ID: ۷۸۴۱۲۵

10 October 2018

“According to Iranian Embassy in South Korea, Iranians can open bank accounts from October 5 in all branches of KEB Hana Bank and Woori Bank and carry out banking transactions,” Pooya Firoozi was quoted as saying by Bourse Press.

Referring to effects of the CFT law on Iran-South Korea relations, he said approval of such transparency laws removes suspicions about banking transactions. It surely affects the volume of Iran’s financial exchange be it with South Korea or any other country. In today’s world, it would be really difficult to work with countries which do not uphold anti-money laundering and anti-financing of terrorism because the simplest principle in commerce, which is money transfer, would not be possible. Joining such conventions can and will increase trust and credibility and reduce risks, Financial Tribune cited him as saying.

The Majlis approved on Sunday a measure allowing Iran to formally join the convention, clearing a huge hurdle to normalized relations with the global anti-money laundering body the Financial Action Task Force.

According to the parliamentary news website ICANA, the measure was approved by 143 votes to 120.

Firoozi said South Korea, like China, is a member of this convention and the East Asian country has a tight supervision over international financial transactions. Any suspicious activity by companies will be monitored and dealt with.

Iran has been among South Korea’s major export destinations; however, following the US pulling out of the nuclear deal, South Korean companies faced limitations in doing trade with Iran.

Firoozi believes the South Korean government has always been interested in developing bilateral trade with Iran but Korean companions act and decide independently based on the interest of their shareholders.

Iran traded 2.12 million tons of non-oil commodities worth $2.27 billion with South Korea during the first six months of the current fiscal (March 21-September 22), registering 62.69% and 41.09% decline in volume and value respectively compared to last year, customs data show.

Iran’s exports to South Korea stood at 1.59 million tons worth $843 million, down 68.03% and 60.58% in tonnage and value respectively year over year. South Korea was Iran’s 6th major export destination during the period.