South Korean enterprises can use the euro in trade with their Iranian counterparts starting from late this month.
Deputy Prime Minister Yoo Il-ho announced on August 25, after an economic ministerial meeting held at the government complex located in Seoul, that a euro-based alternative payment system will be put into operation between South Korea and Iran on August 29. He added that this will make a great contribution to the revitalization of investment in and trade with Iran and vice versa.
KEB Hana Bank, Shinhan Bank and Woori Bank are to manage South Korean companies’ euro-based payment with respect to Iran. Up to now, South Korean companies have been unable to use the U.S. dollar since the South Korean government participated in economic sanctions on Iran with Western countries in September 2010.
Under the circumstances, the companies asked for the restoration of settlement based on an international currency with respect to Iran as one of the most important trade enhancement measures to be prepared before lifting of the sanctions. Once the euro-based payment is allowed late this month, South Korea’s exports to Iran are likely to show some substantial increase.