Woori Bank to open 'Korea desk' at Iranian bank
By Nam Hyun-woo
Lee Kwang-goo Woori Bank CEO
Woori Bank said Monday that it will set up a Korea desk at an Iranian bank, a first for a Korean bank.
According to a Woori Bank official, the bank agreed with Iran’s second largest Bank Pasargad to open a window at Pasargad’s Teheran office in May.
“Woori will send an official to Pasargad’s Teheran office to prepare a memorandum of understanding (MOU),” the official said. “The official will depart for Iran as early as the end of this month. After the MOU, Woori will provide information and other non-transactional financial services to Korean and Iranian companies which are interested in mutual trading.”
Through the window, Woori Bank will relay financial regulations and market information in Iran to Korean companies and in Korea to Iranian firms, according to the official. The desk will be operating by the end of the year.
“If financial barriers are lifted further, Woori will seek to open a branch in Iran so that the bank can actually provide transaction services,” the official said, adding that opening a branch requires the local government’s approval.
Woori Bank has been aggressively seeking to advance into countries in the Middle East. It is one of two Korean banks where the Central Bank of Iran has accounts. After U.S. dollars were banned in direct trading with Iran, companies in Iran and Korea have been trading with each other in dollars indirectly through these accounts.
Last month, Woori became Korea’s first bank to conduct a financial transaction with an Islamic bank, extending $10 million in loans to the Qatar Islamic Bank. Since many Iranian banks are Islamic banks, which do not use specific interest or fees for loans, the transaction with Qatar Islamic Bank will serve as an experience for Woori seeking an entrance to Iran, the official said.