TEHRAN – The South Korean government has predicted that the release of Iran’s frozen funds will lead to further improvement of relations between Tehran and Seoul.

“The Korean government anticipates that the transfer of the funds will help further develop the bilateral relationship between Korea and Iran in the future,” the South Korean foreign ministry said in a statement. 

The statement also confirmed the release of Iranian funds. 

“The Iranian funds that were frozen in Korea due to the financial sanctions on Iran have recently been successfully transferred to a third country through close cooperation among the relevant nations,” the statement said. “Despite the sanctions on Iran, the Korean government has paid Iran’s UN contributions at Iran’s request and has been supplying humanitarian goods needed by Iranians, such as medicine, through humanitarian trade with Iran. Furthermore, the Korean government has continued diplomatic communication and discussions with relevant countries to ultimately resolve the frozen funds issue, with the clear understanding that the assets belong to Iranian citizens.”

South Korea also thanked Qatar and Switzerland for their help in this regard. “Especially, not only the concerned nations but also third-party nations such as Qatar and Switzerland played a vital role in resolving the frozen funds issue. In that light, the Korean government expresses special appreciation to these countries for their constructive roles,” the statement said. 

It added, “Even after their transfer to Qatar, the Iranian assets are expected to be used for humanitarian purposes, such as purchasing food and medicine, in a way that is similar to their use in Korea. The Korean government has shared its humanitarian trade experience with Qatar.”

On Monday, Iran and the United States swapped prisoners simultaneously. The Iranian funds had been deposited to Qatari banks before the prisoner swap.