Top diplomats of Korea, Iran discuss frozen assets, detained vessel

By Kang Seung-woo

Foreign Minister Chung Eui-yong and his Iranian counterpart Mohammad Javad Zarif spoke on the phone Wednesday about the issue of Tehran's assets frozen in two Korean banks, according to the foreign ministry.

The banks are holding $7 billion (7.7 trillion won) in proceeds from Iranian oil sales due to U.S. sanctions re-imposed in 2018 following former U.S. President Donald Trump's withdrawal from the 2015 Iran nuclear pact, also known as the Joint Comprehensive Plan of Action (JCPOA).

“Minister Zarif demanded that the Korean government resolve the frozen assets issue as soon as possible. Minister Chung responded that the Korean government is making sincere efforts to address it,” the ministry said in a statement.

The phone talks took place as the assets have emerged as a thorny diplomatic issue between the two countries with Iran repeatedly complaining about the Korean government's “failure” to release them. Last July, the Iranian foreign ministry threatened to take Korea to the International Court of Justice.

Speculation is rampant that Iran's seizure of a Korean oil tanker and its crew members last month was a tactic to put pressure on Seoul over the funds. Earlier this month, Iran said it would release the sailors, while holding on to the captain and the vessel.

“Chung also asked Zarif to swiftly release the captain and the ship,” the ministry added.

Regarding the frozen funds, Korea's hands appear to be tied. The U.S. government has maintained that it won't lift sanctions on Iran unless the Middle Eastern country returns to the JCPOA, a request that Iran shows no signs of complying with at the moment.

Chung expressed support for Iran's efforts to negotiate with the United States on restoring the JCPOA.