South Korea said on Monday that it has received Iran’s request regarding Tehran’s reported plan to pay its overdue United Nations membership fees with its seven billion dollars frozen at two South Korean banks due to U.S. sanctions.

A senior official of the South Korean Foreign Ministry confirmed Iran made the request, adding the ministry is discussing the matter with other South Korean ministries and agencies, and also with the UN to examine the viability of the Iranian proposal. 

Iranian Foreign Ministry Spokesperson Saeed Khatibzadeh revealed the proposal on the Iranian Foreign Ministry website on Sunday, saying the country's central bank is in the process of the relevant approval and negotiation.

The spokesperson urged the UN to guarantee the safe transfer of payments, demanding that it stop using U.S. banks as an intermediary due to concerns over Washington's ill intent towards Tehran and possible misuse of funds.

The proposal came amid strained ties between Seoul and Tehran over the recent seizure of a South Korean oil tanker by Iran’s Revolutionary Guard Corps.

Many view the seizure as aimed at increasing Tehran’s negotiating power over its oil funds frozen at two South Korean banks for over two years under U.S. sanctions on the Middle East country.

Iran has denied the possible connection, attributing the seizure to alleged environmental issues caused by the South Korean vessel.