US exit from Iran deal to impact South Korean economy

WION Web Team
New Delhi, Delhi, India Published: May 20, 2018, 07:35 AM(IST)

File photo. Photograph:( Others )

South Korea held a meeting on Friday to discuss on reducing the impact of the United States' decision to exit the 2015 nuclear deal with
Iran on local economic affairs.

As reported by the Yonhap news agency on Saturday, a session was hosted Deputy Foreign Minister for economic affairs Yun Kang-Hyeon where they discussed strategies to deal with changing dynamics of the nuclear deal and its impact on their country.

Following exit from the nuclear deal, the United States had announced the imposition of sanctions on Tehran with firms given 90-day or 180-day grace periods, depending on their business sector.

Such economic measures are bound to impact Iran's trade relation with other countries including South Korea.

Meanwhile, South Korea is planning to meet relevant agencies in the United States to ensure wavering of the sanctions on Iran.

"The government will make constant efforts based on close cooperation among relevant authorities to minimize effects from future U.S. steps to the South Korean economy and firms with business ties with Iran," the ministry said.

Iran said Saturday it would wait to see whether Europe produces tangible results in overcoming US sanctions before deciding whether to stay in the nuclear deal, as a top EU official visited Tehran to present plans to maintain trade ties.

"The ball is in the court of the EU. They have presented different proposals, we will see if they materialise," Iran's Atomic Energy Organisation head Ali Akbar Salehi told reporters.

Iran has threatened to resume industrial uranium enrichment "without limit" unless its interests are preserved.

Salehi said the Iranian people had lost trust in the nuclear agreement, and if trade benefits were not protected "they will lose more confidence... and we will be forced to leave."

European leaders have outlined measures to protect EU firms from US sanctions.

But several of their companies -- including France's Total and Holland's Maersk -- have already said it will be impossible to stay in Iran once US sanctions are reimposed unless they receive explicit exemptions from Washington.

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