Seoul rules out Hormuz toll, eyes Middle East reconstruction projects

Foreign Minister Cho Hyun speaks during a press conference held at Government Complex Seoul, Monday. Yonhap

Korea is positioning itself for a postwar role in Middle East reconstruction while maintaining firm opposition to any tolls on Strait of Hormuz passage, Foreign Minister Cho Hyun said Monday, as the diplomatic fallout from the U.S.-Iran conflict continues to influence Seoul's regional strategy.

“To drive the participation of Korean companies in regional reconstruction and build a comprehensive economic partnership with the Middle East, the foreign ministry launched a dedicated comprehensive economic cooperation team on Korea-Middle East, while using overseas embassies to actively scout for tailored cooperation opportunities across the region,” Cho said during a press conference.

“The ministry has been preparing for the post-war era since before a potential U.S.-Iran memorandum of understanding.”

The agreement, signed electronically by Washington and Tehran, extends the ceasefire and sets the stage for reopening the strait. Korea is among the countries reportedly being considered for participation in a $300 billion (459 trillion won) private fund designed to channel investment into Iran and has also been approached about contributing to France- and U.K.-led multinational naval missions to support shipping through the waterway.

The foreign ministry launched an internal task force on Middle East economic cooperation on June 5, aimed at securing Korea's supply chain stability amid the geopolitical uncertainties triggered by the conflict and a rapidly shifting global economic structure. The team also aims to expand the scope of cooperation into high-value-added new industries.

Vessels in the Strait of Hormuz, as seen from Musandam, Oman, Thursday. Reuters-Yonhap

A senior foreign ministry official said joining the reconstruction fund would be considered as part of a broader strategy linking cooperation with all six Gulf Cooperation Council (GCC) countries and Iran.

"Although it is too early to discuss the specific details of joining a reconstruction fund — and no official request has yet been made — the ministry proactively formed the team. This decision reflects broad expectations that Korea will soon face a complex array of challenges, ranging from postwar reconstruction to industrial diversification and navigating the postoil era," the official said.

The official added that the task force is intended to help Seoul get ahead of those challenges by mapping out cooperation opportunities with the GCC and Iran before formal requests arrive.

On the Hormuz passage toll issue, the official was outspoken. With 22 Korea-linked vessels still in the strait — two having cleared the waterway earlier Monday — the official said Seoul has never paid a toll for Hormuz passage and will not start now.

"The international community should not allow this to change, as doing so would threaten global trade, international law and maritime order ... As a nation built on free trade, we will firmly stick to this position," the official said, adding that Seoul is coordinating with the U.K., France and others to uphold freedom of navigation.

Cho also confirmed that Seoul is arranging a phone call with Iranian Foreign Minister Abbas Araghchi in the near future to discuss the situation.

A North Korean prisoner of war held by Ukraine / Captured from Ukrainian President Volodymyr Zelenskyy's X (formerly Twitter) account

North Korean POWs in Ukraine

Cho also announced an upcoming meeting with Ukrainian Foreign Minister Andrii Sybiha, scheduled for June 30, which is expected to advance discussions on transferring two North Korean prisoners of war (POWs) held in Ukraine to South Korea.

"South Korea and Ukraine have reached a basic agreement in principle on the two North Korean POWs and we expect further progress when the Ukrainian foreign minister visits Seoul," the senior official said.

"Repatriation is conducted in accordance with the individual POWs' free will and we are pushing to move them to South Korea as quickly as possible. We are doing our best to make an announcement during this visit, though we cannot say for certain whether that will be possible."

The two North Korean soldiers' detention in Ukraine came to light through media reports, sparking concerns in South Korea over the possibility of their forced repatriation to the North, a prospect that could pose a severe threat to their lives. The reports prompted fundraising campaigns and widespread public calls for their transfer to the South, driven by the fact that the South Korean Constitution defines North Koreans as citizens of the Republic of Korea.