Tensions Rise as Ambassadors Exchange Sharp Words
'Unpaid $7 Billion' Becomes a Flashpoint
Criticism Continues Over Yoon's 'Inappropriate' Remarks

[Asia Economy Reporter Koo Chae-eun] The repercussions of President Yoon Suk-yeol's remark that “Iran is the enemy of the United Arab Emirates (UAE)” are growing. The government explained the intent of the remark through diplomatic channels with Iran, but Iran raised the level of response by 'summoning' the South Korean ambassador to Iran. In response, our Ministry of Foreign Affairs also summoned the Iranian ambassador to Korea, escalating tensions between the two countries.


Iran even mentioned the sensitive issue between the two countries regarding the frozen funds of $7 billion (unpaid crude oil import payments), threatening to reconsider bilateral relations if the South Korean government does not take effective measures.


The term 'summoning' refers to the act of a country's diplomatic authorities calling in the ambassador, minister, or consul of a foreign country stationed in their country to their diplomatic office for diplomatic matters concerning bilateral relations. Although it is not as severe as recalling one's own ambassador, expelling the other country's ambassador, or declaring a persona non grata, it is a negative diplomatic response.


[Image source=Yonhap News]

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South Korean Ministry of Foreign Affairs Summons Iranian Embassy in Korea in Response: "Baseless Allegations"

According to the Ministry of Foreign Affairs on the 19th, First Vice Foreign Minister Cho Hyun-dong summoned Said Badamchi Shabestari, the Iranian ambassador to Korea. Regarding Iran's mention of the Nuclear Non-Proliferation Treaty (NPT) issue when they summoned the South Korean ambassador to Iran in Tehran the previous day, Cho conveyed that it was a “completely baseless allegation.” During the meeting with the Iranian embassy in Korea, Vice Minister Cho also emphasized, “Our country faithfully fulfills its non-proliferation obligations under the NPT and has no intention of changing this commitment.”


Im Soo-seok, spokesperson for the Ministry of Foreign Affairs, also stated at a regular briefing that “Our president's remarks were intended to strengthen the effectiveness of extended deterrence in response to the escalating nuclear and missile threats from North Korea,” and “We clearly point out that Iran's allegations are completely unfounded.”


This was the South Korean government's response to Iran's Ministry of Foreign Affairs summoning Ambassador Yoon Kang-hyun to Iran the previous day. Reza Najafi, Deputy Minister for Legal and International Organizations at the Iranian Ministry of Foreign Affairs, protested President Yoon's remarks when summoning the ambassador. Deputy Minister Najafi demanded an explanation, stating that the South Korean president recently mentioned the possibility of nuclear weapons manufacturing, which violates the NPT. He also protested to Ambassador Yoon regarding the frozen Iranian funds in South Korea.


The $7 Billion Unpaid Crude Oil Payment Becomes a Flashpoint
[Image source=Yonhap News]

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The frozen crude oil import payments mentioned by Deputy Minister Najafi are a critical issue between the two countries. This was the pretext for Iran's retaliatory seizure of a South Korean cargo ship in 2021. Following President Yoon's description of Iran as “the enemy of the UAE,” Iran is expected to increase pressure on payment transfers in the future.


Domestically, $7 billion in crude oil payments that should be remitted to Iran are frozen, representing the largest amount of funds Iran has not received from the international community. In 2018, then U.S. President Donald Trump unilaterally withdrew from the Iran nuclear deal (JCPOA - Joint Comprehensive Plan of Action), restoring economic sanctions against Iran. The international community, including South Korea, joined the sanctions, cutting off financial transactions with Iran.


Initially, when trade transactions in U.S. dollars became impossible due to sanctions related to nuclear development, South Korea opened won-denominated accounts under the name of the Central Bank of Iran at Woori Bank and IBK Industrial Bank from 2010 to pay for crude oil. However, these transactions also became impossible due to U.S. sanctions. The Iranian government has repeatedly demanded payment from the South Korean government. This tension led to the Iranian Revolutionary Guard Corps (IRGC) seizing a South Korean vessel in January 2021, detaining it for three months.


Opposition Criticizes: "President Yoon's Dichotomous Thinking Causes Diplomatic Disaster"

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Accordingly, criticism has been raised that President Yoon's remarks, which sparked diplomatic conflict between the two countries, were inappropriate in themselves. It is pointed out that unrefined remarks on sensitive issues involving the complex interests of Middle Eastern countries and the West, including the United States, have invited diplomatic risks.


Park Hong-geun, floor leader of the Democratic Party, criticized at a policy coordination meeting held at the National Assembly main building, saying, “President Yoon himself is causing a diplomatic disaster, damaging national interests and undermining national dignity.” Kim Sung-hwan, chairman of the Policy Committee, also pointed out, “President Yoon's dichotomous thinking seems to be the cause of this diplomatic disaster.”



Earlier, on the afternoon of the 15th, President Yoon visited the Ark Unit deployed in the UAE to encourage troops, stating, “The most threatening country and the enemy of the UAE is Iran, and our enemy is North Korea,” adding, “We and the UAE share very similar positions.” In response, Iran demanded an explanation from the South Korean government regarding President Yoon's remarks and summoned the South Korean ambassador to Iran the previous day to protest.


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

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