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US Okays Seoul's 70 Bln Won ISD Compensation to Iranian Shareholder

Written: 2022-01-12 19:00:37Updated: 2022-01-12 19:05:42

US Okays Seoul's 70 Bln Won ISD Compensation to Iranian Shareholder

Photo : YONHAP News

Procedures to transfer some 70 billion won in compensation by the South Korean government to Iran's Dayyani family are expected to begin in the near future following U.S. authorization. 

The transaction involving an investor-state dispute(ISD) was put on hold due to U.S. sanctions on Iran.

Seoul's foreign ministry said it was notified of a "specific license" issued by the Office of Foreign Assets Control of the U.S. Treasury Department which would allow the remittance of the compensation. 

The Dayyanis, the largest shareholder of Iranian electronics maker Entekhab Industrial Group, had planned to take over Daewoo Electronics a decade ago but the deal broke down. The firm, finding fault with Korean creditors, filed an international arbitration suit against the Korean government in 2015, demanding Seoul pay back 93-point-five billion won in contract deposit it had paid. 

The International Centre for Settlement of Investment Disputes ruled in favor of the Iranian company, ordering Seoul to pay 73 billion won. But the payment could not be made as U.S. sanctions on Iran were reinstated in late 2018. 

The ministry hoped the resolution of the case can help improve relations with Tehran.

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