Sanctions Hinder Cooperation with South Korean Companies

TEHRAN (Iran News) Firoozi explained that the discrepancy in trade statistics between the two countries arises from the fact that each country relies on its own customs data. Since intermediary countries play a role in the trade process, South Korea includes them in its customs records, whereas Iran does not. As a result, the reported figures differ. He further noted that Iranian traders, in their efforts to bypass sanctions and maintain trade under restrictions, often resort to indirect methods that hinder the transparency of trade data.

Despite the discrepancies, Firoozi acknowledged a general downward trend in Iran’s imports from South Korea. Although Iranian exports to South Korea have shown some growth, this increase is primarily value-based due to global inflation and remains modest in volume.

Currently, over 90% of Iran’s exports to South Korea consist of copper concentrate. Given South Korea’s advanced technology sector, the demand for copper remains high. Previously, Iran’s primary export to South Korea was gas condensate.

Firoozi pointed out that 2020 marked the lowest trade volume between Iran and South Korea, and the decline continued until 2022. However, in 2023, trade volumes saw a slight improvement, halting the downward trend. Nevertheless, he confirmed that trade levels have now reached their lowest point, primarily due to financial exchange barriers and sanctions, which prevent direct collaboration with South Korean companies.

Iran’s main imports from South Korea currently include medical, pharmaceutical, and dental equipment. Firoozi added that due to the ban on household appliance imports to Iran, South Korean brands such as Samsung and LG are no longer available in the Iranian market. The import of cars, except for a few specific and limited cases, has also been halted, and direct imports of South Korean mobile phones remain highly restricted.

Regarding Iran’s frozen assets in South Korea, Firoozi stated that the matter is no longer under negotiation, as the funds have been transferred to Qatar.