South Korea and Iran agreed to maintain the current won-based settlement system while seeking an alternative payment method that can further promote bilateral trade and investment, South Korea’s government announced, Yonhap News Agency reported on Tuesday. Under this system, a South Korean refinery can purchase crude from Iran and deposit the money either into the Woori Bank or Industrial Bank of Korea accounts. Iran’s central bank would confirm the transfer and give the Iranian seller rial, which then cleared the transaction. These bank accounts that contain some 3 trillion won ($2.49 billion) are owned by Iran and were created in September 2010 to bypass trade restrictions and allow the two sides to conduct trade, without violating the embargo.
