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South Korea to Ban New Oil, Gas Investments in Iran on Nuclear Program
South Korea said it will ban any new investments for Iranian oil, gas and construction projects, joining nations including the U.S. in imposing sanctions for the Middle Eastern country’s nuclear program.
South Korea also put 102 Iranian organizations including Tehran-based Bank Mellat and 24 individuals on a list banning financial transactions without central bank approval, according to an e-mailed statement today from the Ministry of Strategy and Finance. South Korea will prohibit its own banks from opening new branches in Iran and Iranian banks from expanding in South Korea.
“The Bank of Korea will apply very strict rules in approving financial and trade transactions,” Vice Finance Minister Yim Jong Yong told reporters today in Gwacheon, south of Seoul. “We will sincerely follow the UN resolution.”
The move comes after the United Nations imposed new sanctions against Iran in June, prompting the U.S., European Union, Canada, Australia and Japan to toughen their punitive measures. The U.S. has pressed South Korea to follow, after backing South Korean claims that North Korea sank one of its warships in March.
Deputy Assistant Secretary of Treasury Daniel Glaser said on Aug. 2 in Seoul that it was “absolutely vital” for South Korea to impose measures against Iran.
Iran is South Korea’s fourth-largest supplier of crude oil, according to the state-run Korea National Oil Corp. South Korea imported $5.7 billion of Iranian goods last year, while exporting $4 billion, according to the Korea International Trade Association. South Korea’s total imports were $323 billion, and exports $363 billion.
Seoul-based GS Engineering & Construction Corp. on July 1 said a 1.42 trillion won ($1.2 billion) order to build a gas project in Iran was canceled because of strengthened U.S. and United Nations sanctions.
To contact the reporter on this story: Bomi Lim in Seoul at blim30@bloomberg.net
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