Iran appears to have banned S.Korea exports - Seoul

Reuters:

Iran appears to have imposed a ban on South Korean imports in retaliation for Seoul backing a U.N. nuclear agency resolution against it, South Korean officials said on Wednesday.

Iran said last month it could use trade to punish countries that voted for an International Atomic Energy Agency (IAEA) resolution that would send Tehran's nuclear programmes to the U.N. Security Council for possible sanctions.

"We are trying to confirm reports that have been coming in that that was the case," a South Korean official said by telephone.

"It appears the ban has been imposed," he said, speaking on condition of anonymity. READ MORE

Electronics and automotive exports would suffer most from such a move, he said. Iran's crude oil exports to South Korea were unlikely to be affected, he added.

South Korean Foreign Minister Ban Ki-moon said at a briefing he could not confirm whether the ban had been imposed.

He said Seoul was in contact with Tehran's envoy in South Korea over the reports, but cast doubt on whether the action, if true, was related to Seoul's position on the IAEA resolution.

"It would not be appropriate for Iran to take this type of action for a position we have taken at an international organisation," Ban said, referring to the IAEA vote.

An official at a state-run South Korean trade agency noted reports that the Iranian trade agency had been rejecting permits for South Korean products.

It was not clear whether the rejections meant Tehran had imposed a total ban on South Korean exports, she said.

The agency, KOTRA (Korea Trade Investment Promotion Agency), also said there has been no problems reported in imports from Iran, including energy imports.

"All energy-related imports deals are fine. We haven't heard of any problem," said an official.

Iran is usually one of the top five oil suppliers to South Korea, the world's fourth biggest crude buyer.

Officials at SK Corp. and Hyundai Oilbank Corp., South Korean refiners which receive Iranian crude, also said they had no problem with oil supply so far.

South Korean exports to Iran were worth $2.1 billion last year, according to data from KOTRA.

(Additional reporting by Rhee So-eui)