Post Sanctions Opportunism by South Korea

A financial expert stated that although analyzing and critiquing a subject requires understanding its historical context, South Korea's opportunistic behavior during sanctions is evident.

Bank Mellat Seoul, a branch of Bank Mellat operating legally in South Korea before sanctions, was a highly active financial institution in East Asia. Despite compliance with South Korean banking laws, its operations were unilaterally halted, replaced by Korean banks like Woori Bank. Bank Mellat is still pursuing legal action in South Korea to reclaim its lost rights, but no resolution has been reached.

Iranian shipping companies were among the most active in South Korea, handling up to 18,000 TEU shipments monthly. However, South Korea unilaterally stopped these operations, rejected Iranian shipping documents in Korean banks, and replaced them with Korean shipping companies charging double the rates.

South Korea halted the export of car parts to paralyze Iran's automotive industry. Meanwhile, it increased exports of fully assembled cars to Iran, flooding the market with both modern and outdated Korean vehicles, further strengthening its presence in the Iranian market.

During sanctions, South Korea obtained permits to purchase Iranian oil using Korean Won, which was deposited in designated Korean banks. While appearing to continue oil trade, this strategy essentially led to free oil acquisition as the funds were used to import Korean consumer goods, tilting trade balances in South Korea’s favor.

Prominent Korean brands in household appliances and mobile phones secured over 70% of Iran's market, generating more than 10 trillion tomans in revenue. Through extensive marketing, these brands have become symbols of reliability and progress in Iran.

By halting machinery and billet exports, South Korea exported finished steel products to Iran at lower prices than domestic producers, causing severe damage to Iran’s steel industry.

Under the pretext of sanctions, South Korea unilaterally withdrew from petrochemical projects in Iran, halting investments while increasing exports of petrochemical products, reaping significant profits from the Iranian market.

Karimian concluded: With sanctions lifted and the return of trade delegations from Europe and the US, it is essential for officials to reassess and strategically plan future trade relations with South Korea.