South Korea and the U.S. Reach Agreement to Replace Frozen Iranian UN Contribution Funds

Published 03 Feb.2021 17:25(KST)

[Asia Economy Reporter Yoo In-ho] It is reported that South Korea and the United States have reached an agreement to pay Iran's overdue UN contributions using Iran's frozen won funds held in South Korea.

A Ministry of Foreign Affairs official told reporters on the 3rd regarding the issue of Iran's UN contribution payment using the frozen funds, "It is almost resolved," and added, "Overall, the agreement to pay the contributions (with the frozen funds) has been finalized (with the US), and only very technical details remain to be discussed."

The official said that the progress on the contribution issue "became an opportunity for Iran to feel our sincerity in resolving the frozen funds issue," and "Our genuine intentions were conveyed to the Iranian leadership through First Vice Foreign Minister Choi Jong-geon's visit and subsequent diplomatic communications."

Previously, Iran requested the South Korean government to pay the contributions using the frozen won funds, but concerns arose that converting won to dollars and remitting to the UN through the US financial network could trigger sanctions.

Accordingly, the government has been consulting with the US to ensure that the contributions are not frozen. It is known that options such as converting to dollars outside the US financial market are being considered.

The Ministry of Foreign Affairs official explained, "We are discussing measures so that the dollars are not remitted to the US."

According to the UN, the minimum contribution Iran must pay as a UN member state to maintain its General Assembly voting rights is 16.25 million dollars (approximately 18 billion won).

This amount is not large compared to the approximately 7 billion dollars (7.8 trillion won) of Iran's oil export proceeds frozen in South Korea due to US sanctions against Iran.