S. Korea to support companies affected by Iran sanctions
Reported by HPMM Group according to Yonhap NWES ; South Korea to extend financial support for companies affected by reimposed sanctions on Iran and explore business opportunities in alternative markets to minimize fallouts to the local economy, the trade ministry in Seoul said Thursday.
The Ministry of Trade, Industry and Energy convened a meeting with trade promotion agencies and banks, as well as local refiners, automakers and construction companies doing business in Iran to discuss various support options available.
Washington’s new sanctions, which took effect Aug. 7, target numerous areas of Iranian economic activities, including autos, gold, graphite, aluminum and steel. U.S. sanctions on Iran’s energy sector are set to be re-imposed after a 180-day wind-down period ending Nov. 4.
The ministry said it has held two consultations with the U.S. government to get exemptions on Iranian crude imports and will continue the efforts before the energy sanctions go into force in November. Seoul received a waiver during previous sanctions on Tehran.
“The Korean government will continue to consult with the U.S. government to get relief on Iranian crude purchases to minimize the effect of the reimposition of Iran sanctions on the Korean economy and doing business with Iran,” Kang Sung-cheon, vice trade minister, said in a task force meeting.
The Ministry of SMEs and Startups will ease qualifications for the emergency business fund for small and medium-sized companies and extend the maturity by one year, and the Korea Trade Insurance Corporation will expand insurance coverage on local exporters.
The Korea Trade Promotion Agency will send business delegations to the Middle East, including the United Arab Emirates and Saudi Arabia, later this year to seek new business opportunities in energy, infrastructure and other areas.
South Korean refiners have already begun to increase purchases of ultralight crude from Qatar, the United States and other countries as they cut imports of Iranian condensate ahead of the November deadline.
SK Innovation Co., South Korea’s biggest oil refiner by sales, said it has been steadily slashing imports of Iranian crude oil and that no Iranian condensate has arrived since July as it has diversified its sources of crude oil imports.
Hyundai Oilbank Co., another major refiner, has diversified its sources of condensate to Norway, Qatar, Nigeria and the U.S. as it didn’t received any Iranian condensate in July. Hanwha Total Petrochemical Co. has increased condensate purchases from Qatar and Australia this year.
