South Korea and Iran Strengthen Banking and Trade Relations

In a meeting between the governor of the Central Bank of Iran (CBI), Valiollah Seif, and South Korean Trade Minister Joo Hyung-hwan, both parties discussed the boosting of banking correspondence and establishment of credit lines in order to facilitate trade relations.

According to CBI public relations department, Dr. Valiollah Seif appreciated the collaboration of South Korea with Iran during sanctions and added:

“As former collaborations have proved useful, there is a strong desire on both parts to continue them. There are lots of economic, trade and industrial potentials for mutual cooperation and we hope the new atmosphere will pave the way for more cooperation.”

The CBI governor considered boosting of banking correspondence as the prerequisite for economic ties between the two countries. “Fortunately, the Korean banks maintained their relations with their Iranian counterparts during sanctions”, he said, “and the negotiations concerning credit lines between the banks of the two countries will strengthen and develop further banking relations.”

Highlighting the future visit of the Korean president to Iran, the chairman of Money and Credit Council emphasized, “This visit will mark a turning point in mutual relations. We desire to provide the conditions for promotion of banking correspondence before this visit takes place.”

Dr. Seif recommended that a joint account to be opened in the central banks of the two countries so that it can be the basis for settlements between Iranian and South Korean banks. 

Minister of Trade, Industry and Energy of South Korea, Joo Hyung-hwan, noted that the meeting sought to discuss issues related to future prospects of Korea’s economic relations with Iran, the proper method for making settlements as well as setting the framework for credit lines between the banks of the two countries.

He pinpointed his country’s desire to participate in the fields of economy and trade in Iran and added, “We are eager to collaborate with Iran in the areas of industrial infrastructure, ICT, automobile assembly lines, ship making, hospitals, vocational training and steel industry. Besides, Korean companies are keen to engage in either shared or independent investments in the fields of oil and gas as well as generation, transfer and distribution of electricity.

He released the news concerning the operation of Iranian bank branches in South Korea. “Iranian bank branches including Bank Mellat face no obstacles on the way of their operations in South Korea after the sanctions have been lifted”, he concluded.

(Source: Central Bank of Iran)

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