Iran Government: "Korean Government Holds 7 Billion Dollar Hostage"

South Korea, Which Blocked Crude Oil Export Payments, Accused of Hostage Taking Instead

[Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] As the South Korean-flagged vessel 'Hanguk Kemi' was seized by the Iranian Revolutionary Guard Corps on charges of marine pollution, the Iranian government has instead criticized the South Korean government. When claims arose that Hanguk Kemi's marine pollution activities were unfounded, Iran countered by accusing the South Korean government of holding a hostage situation over the frozen oil export payments in South Korean banks due to U.S. sanctions against Iran.

According to major foreign media on the 5th, Ali Rabiei, spokesperson for the Iranian government, dismissed the allegations of Iran 'kidnapping' the South Korean vessel during an online press conference, stating, "If there is a hostage situation, it would be the South Korean government's baseless freezing of our funds amounting to 7 billion dollars (approximately 7.6 trillion won)."

Earlier, the Iranian Revolutionary Guard Corps seized the South Korean-flagged vessel 'Hanguk Kemi' around 10 a.m. the previous day in the Gulf region (Persian Gulf) on charges of marine pollution. However, DM Shipping, the shipowner of Hanguk Kemi, strongly denied the allegations, arguing that there was no reason to pollute the marine environment and that since there were already many ships nearby, any pollution would have already been reported. The South Korean government summoned the Iranian ambassador to protest and demanded the prompt release of the vessel and crew. The Ministry of National Defense dispatched the Choi Young warship, part of the Cheonghae Unit, to the Strait of Hormuz.

In response to accusations of an Iranian 'hostage situation,' Iran rebutted the claims. However, this is seen as a reaction to South Korea's inability to retrieve funds frozen in Korean banks due to U.S. sanctions against Iran.

Currently, Iran is unable to withdraw its oil export payments frozen in two South Korean banks due to U.S. sanctions. Since the South Korean government joined the U.S. sanctions against Iran, banks in South Korea have refused to process trade payments between Iranian and South Korean companies. Essentially, the accounts are frozen. Facing severe foreign currency shortages due to U.S. sanctions and the impact of the COVID-19 pandemic, Iran has continuously requested the South Korean government to allow withdrawal of these funds. The South Korean government also requested the U.S. government to grant exceptions for the withdrawal of frozen funds, but there has been no progress.

This content was produced with the assistance of AI translation services.