announced a 35 percent increase in exports to South Korea in 11 months (March 21, 2021-February 19, 2022) compared to the corresponding figure of the preceding year.
Talking to Iran Daily, Pouya Firouzi said, “Clearly, trade between the two countries has improved compared to last [Iranian] year, but it is still a long way from its peak.”
Referring to South Korea's oil debts to Iran, he noted: "Until the issue of monetary and banking transfers between the two countries as well as the fate of Iranian money in Korean banks is not resolved, establishing regular and sustainable trade between Tehran and Seoul won’t be achievable.”
It is estimated that South Korea's debt to Iran amount to between $7 billion and $9 billion.
Firouzi added: "In the eleven months, Iran exported $62.6 million worth of commodities to South Korea.
Iran also imported about $462 million worth of goods from South Korea during the said period, which is 21 percent less than the figure for corresponding period of last year.
"Despite the rise in trade between the two countries during the current Iranian year, there is still a significant gap with its peak period which was scored four years ago ($7.7 billion),” the chamber secretary general criticized.
“The current bilateral trade is even far from the figure for the first year of the US unilateral withdrawal from the JCPOA (2019), which was more than $1 billion,” Firouzi added.
In the year to March 2018, the volume of trade (excluding oil exports) was close to $7.7 billion.
"South Korea was Iran's fifth-largest trade partner before the imposition of US unilateral sanctions against Iran," he said.
But under the influence of sanctions in recent years, South Korea has stood 18th to 20th, the chamber secretary general added.
The bilateral trade balance was negative for Iran and it was positive in favor of South Korea, except in 2017 and 1397, which due to the growth of gas condensate exports, the balance was in favor of Iran.
He said: "Before the imposition of sanctions, oil and its products were the main commodities Iran exported to South Korea. Until then, South Korea was known as one of the main clients of Iranian crude oil.”
Between 2010 and 2019, Iran supplied six percent of South Korea's imported oil.
Gas condensate was the main product Iran exported to South Korea before the sanctions, so that Iran was the second-largest
According to him, blood glucose monitoring devices, acrylonitrile copolymers, TV control panels and dental implants are the main imported commodities of Iran from the country.
Firouzi noted: "Before the sanctions, home appliances, car and auto parts were the main export goods from Korea to Iran, but now due to sanctions and new import laws, it is not possible to import these products.”
Pointing to monetary problems and banking transfer barriers between the two countries, he said: "Unfortunately, due to the compliance of Korean banks with the US sanctions policy, financial transfers completely stopped.”
The chamber secretary general added: "In the past 18 months, a mechanism for importing humanitarian goods was considered and implemented amid great problems."
“The officials of the Central Bank of Iran and the Iranian Ministry of Health have more detailed information about the financial channel, but according to our figures, less than $80 million worth of medical and pharmaceutical goods have entered the country through this route.”
He said that the increase in the level of trade between the two countries depends on the settlement of the current issues.
Firouzi noted: "If the obstacles between us and especially those tied to sanctions are removed, Iran will seek cooperation with South Korea with new strategies."
Iran will plan to import technology, cooperation in the field of joint production, and the import of goods, he explained.
The export of products with competitive advantages is on the agenda, Firouzi said.
In addition to oil and gas condensate, Iran has a good capacity to export agricultural products, aquatic products and minerals to the country, the chamber secretary general concluded.
supplier of gas condensate for South Korea during 2016-2018, and even up to 38% of the gas condensate of the country was met by Iran in the first seven months of 2018.