Woori Bank Co., one of the major commercial banks of South Korea, reached a non-binding agreement with an Iranian bank to dispatch staff to provide financial services for Korean companies doing business in the country.
The Middle Eastern country's markets are opening up to foreign businesses and investments, following the lifting of international sanctions against Iran on Jan. 16, Korea's Pulse News reported.
According to South Korea's finance industry sources on Sunday, Woori Bank agreed last month with Iran’s second largest lender, Bank Pasargad, in principle to sign a memorandum of understanding to run the Korea Desk, a temporary arrangement to provide services to Korean companies ahead of the bank's full market entry.
The joint venture does not require the approval of local financial regulators. Formal signing will take place in May.
The Korea Desk will open at Bank Pasargad’s headquarters in Tehran.
Woori Bank would decide by the end of 2016 whether to open a branch or incorporated entity in Iran after the trial service.
Korean companies will be able to use Woori Bank’s services in the Iranian bank or the Korean bank’s outlets in neighboring Persian Gulf states for their businesses in Iran.
