Accessibility links

Breaking News

US Sanctions Hit Iran's Trade With South Korea

File photo - A home appliances shop in Tehran undated.
File photo - A home appliances shop in Tehran undated.

The Iranian chairman of the joint chamber of commerce of Iran and South Korea says U.S. sanctions against Iran have adversely affected commercial relations with Korea.

Hossein Tanhai told Fars news agency that talks with two major Korean home appliance manufacturers have remained futile as the Korean companies are not willing to do business with Iran fearing this would endanger their trade ties with the United States. He did not name the Korean companies.

He said the volume of transactions between those companies and U.S. companies are 25 times bigger than their potential business with their Iranian trade partners.

Tanhai added that financial links between Iran and South Korea have been cut off and Iranian businesses obtain spare parts for Korean machines from other countries.

According to South Korea's customs, the country's exports to Iran during the past five months have been ten times smaller than the amount in the similar period last year reaching just $148 million.

During the same period, Iran's exports to South Korea has declined by 33 percent and reached $2 billion. This includes oil shipments, which were allowed to continue by a U.S. waiver offered to a handful of countries from last November until May 2.

Iran’s international trade has significantly declined with all its major industrial trading partners, including European Union countries.