The South Korean government will allow domestic firms trading with Iranian businesses to perform transactions using the South Korean currency, the won, in light of the government’s planned sanctions against Iran.

The move is in line with the government’s efforts to alleviate the difficulties South Korean companies that trade with Iran may face.

The Ministry of Strategy and Finance said it is pursuing with the Iranian central bank the opening of accounts where deposits can be made in won. It is also looking to have settlements for legal and normal exports and imports to be made in won.

Through this method, the Central Bank of Iran would receive money for exporting oil to South Korea in won from accounts in South Korean banks, and will pay its import settlements in won to the South Korean company it bought it from.

This plan will safely maintain settlement of legal transactions, thereby protecting South Korean companies. In addition, South Korean companies can pay for their imports in won, which relieves them of currency risk.

However, settlement in won will not be allowed for transactions conducted with those on the list for financial sanctions.