Lawyer helps maintain Korea-Iran ties during sanctions

Shin Jae-hyun, chairman of West Asia Economic Forum / Korea Times

By Kang Hyun-kyung

Shin Jae-hyun’s voice trembled with excitement when he spoke about the framework nuclear deal to freeze Iran’s nuclear facilities in return for easing nuclear-related sanctions on April 2, 2015. It was the news that he had been waiting for since 2010 when Korea joined the United States-led international sanctions against Iran.

Back in April, the deal had not yet been finalized. The final agreement came in July following a flurry of time-consuming, painstaking diplomatic efforts between six world powers and Iran.

But the progress made in the nuclear talks in April was positive enough to thrill Shin, who is considered an unrivaled Iran expert in Korea. That afternoon, he traveled to Songdo near the port city of Incheon to meet Ali Masoumifar, the son of former Iranian ambassador to Korea Ahmad Masourmifar. Ali was then attending the State University of New York’s Songdo campus. The Iranian calls Shin “uncle,” as his father and Shin became close friends during his father’s service in Seoul.

Excited about the progress of the deal, Shin and Ali celebrated the framework deal together there.

Shin, 70, is one of the few Koreans who have an extensive network with high-ranking Iranian officials. According to him, Iran is a country that holds an irresistible attraction for him.

“Iranians are educated people, and they are intelligent,” he said on Jan. 28 at his office in Seoul. “The country has a long, rich history starting from the ancient days.”

His affection with Iran has grown over the years as he discovered some elements that are different from his homeland, Korea. “It is a huge country, over 10 times bigger than the territories of the two Koreas combined,” he said. “I felt the country has strong potential to become a regional power once the sanctions were lifted because of its quality human resources and strong cultural traditions.”

His bond with Iran began in May 2008 when he first paid a visit to the Middle Eastern country after he was named by former President Lee Myung-bak as an ambassador in charge of natural resources cooperation and energy affairs. His duties were to meet with high-ranking Iranian officials and businesspeople to establish contacts and bonds to improve bilateral relations. The businessman-turned-president was keen on boosting ties with resource-rich nations, hence, his appointment of Shin.

Iranian officials still call him “Ambassador Shin” even though he no longer works under that capacity. Shin said he was drawn to Iran, and he has visited the country 30 times. The more he discovered in Iran, the deeper his bonds with the country and its people became.

Iranian officials gradually opened their hearts to him and shared their views regarding bilateral relations and Korean companies’ business opportunities in the wake of the Iran nuclear deal.

The relations between the two countries have not always been smooth, however. The bilateral ties were put to the test in 2010 when Korea joined the United States-led sanctions against Iran for the latter’s development of a nuclear program, for which Iran claimed its purposes were peaceful.

Iran protested the sanctions. In a media interview, a high-ranking Iranian official was quoted as saying Iranians would launch a consumer boycott to retaliate at Korea for being party to the sanctions. He said his countrymen considered Korea a close friend, and his country did not deserve the sanctions.

Shin flew to Iran to explain to Iranian officials Korea’s reasons for joining the international sanctions and how doing so was an inevitable move. According to him, Iranian officials said they understood Korea’s position after his explanation.

Although his duties as ambassador ended with the retirement of President Lee in February 2013, Shin continued to visit Iran and meet officials there. “Although my official mission as ambassador was over, I felt strongly about the need to play a bridge role because Iran sanctions were still in place and consequently, bilateral relations became sour,” he said.

Under the approval of the U.S. government, Shin helped the Central Bank of Iran create deposit accounts in Woori Bank and the Industrial Bank of Korea. The CBI and the Korean government established a clearing system to help 23,000 small Korean companies and exporters keep doing business with Iran, on which they depended for trade.

In the meantime, Shin tried to educate Korean journalists, who are relatively unfamiliar with what’s going on in the Middle East, to help them gain an accurate understanding of Iran and the region’s politics. He would call a few journalists he knew on a regular basis to keep them updated about Iran’s positions on regional issues. He encouraged them not to be duped by many Western media outlets that wrongfully described Iran and its motives with its nuclear program.

Shin denied Iran’s expansionist ambitions, saying Iranians are “pacifists” and have little appetite for conflicts with neighboring countries. His siding with Iran often made him vulnerable to the allegation that he is lobbying for the country.

His advocacy for Iran showed no signs of fading even after nuclear-related sanctions were lifted earlier this month. Rather, the lawyer ratcheted up efforts to get the Korea-Iran trade relations back to normal by encouraging Korean businesses to make the most of the immense business opportunities in the Middle East, particularly the post-sanction Iran.

After the nuclear-related sanctions were lifted, Iran regained access to more than $50 billion of its frozen assets overseas and will start to increase its oil sales. Iranian President Hassan Rouhani had a four-day trip to Italy and France a week after the sanctions were lifted. In particular, several Italian companies have signed lucrative business deals with Iran to build its infrastructure and oil services. During his visit to Italy, the Italian government announced $18.4 billion in business deals signed with Iran. Rouhani signed another business deal with Airbus to purchase 118 aircrafts from France.

Korean home appliances and electronic devices are popular in Iran, and Shin predicted that cosmetics and garment products may also have a promising future in the post-sanctions Iran. However, Shin said Korean companies might miss these immense business opportunities if they stick with a self-serving business strategy.

“I think now is the time for Korean businessmen and women to think about how both Korea and Iran can benefit from cooperation,” he said. “I encourage them to find business partners in Iran, rather than seek to earn profits after selling commodities. They can consider investing in Iran or producing products there to benefit their Iranian partners with technology transfer.”

Shin said President Park Geun-hye’s possible visit to Iran, if realized, would help create a positive atmosphere for Korean companies. “I’ve recommended to the president to visit Iran. I thought sending a special envoy to the country could be also helpful to the bilateral relations if she couldn’t find time to travel there,” he said.