South Korea

Kiswel attended Iran’s 19th annual international oil and gas show between May 6-9. (Press TV, “Foreign firms rushing towards Iran's oil market,” 5/6/14) 

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"Foreign firms dealing with Iran's oil and gas sector admit that severe Western sanctions are taking their toll on business, despite Tehran talking up its ambitions at the opening of an international industry exhibition this week. The International Oil, Gas, Refining and Petrochemical Exhibition, held in northern Tehran, was three-quarters filled by Iranian companies working at every level of the industry, from the biggest to ones involved in peripheral activities such as instruments, quality inspections and oil barrel manufacturing. There were 315 foreign stands, down from the 496 present at last year's trade show. Some of the biggest foreign companies that had been major partners in the industry, such as the Anglo-Dutch group Shell and Italy's ENI, were not present. Others, such as the China Petroleum Technology and Development Corporation, the French-Iranian joint venture Beh Total and Norway's Statoil, did have stands -- but representatives there told AFP they had been instructed by their bosses to give no comments at all to journalists...Seung-Hwan Jung, an export manager for Kiswel, a South Korean welding parts firm partnered for years with an Iranian company, was one of the few foreigners to speak on the record. His company's dealings with the country were "good" but were hobbled by the "political problems," he said. Stepping in to fill a vacuum left by departing German companies, Kiswel has doubled its Iran earnings projection to $1.5 million compared to last year, he said. 'We want to be number one in the market, up from maybe 3rd of 4th last year," he said. He added: "Iran can't do everything by itself. It needs reserves from other countries.'" (Agence France-Press, "Foreign firms say times tough in Iran's energy sector," 4/18/12)

On its website, KCC lists a branch office in Tehran, Iran. (KCC Website, "Global Networks")

Youngshin is a South Korean die-cutter manufacturer, with over 70% of the South Korean die-cutting equipment market. It has a wholly-owned American branch, Youngshin USA, located in Illinois (Company Website).

Iranian engineering company IHI Hydraulic Industries announces on the front page of their website that, "IHI has obtained license from Korean company Youngshin for manufacturing of high technology command hydraulic pumps for sedans and trucks."

In January 2021, the State of New Jersey Department of the Treasury listed SK Energy as a company engaged in prohibited activities in Iran pursuant to P.L. 2012, c. 25 ("Chapter 25"). 

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On October 14, 2020, SK Energy remained on the Tennesse Department of General Services list of persons it determines engage in investment activities in Iran, as described in 12-12-105.

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As of July 1, 2020, SK Energy is listed as an entity “determined, based on credible information available to the public, to be engaged in prohibited activities in Iran pursuant to New Jersey P.L. 2012, c.25 (“Chapter 25”). 

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In 2020, the U.S. state of Mississippi listed SK Energy on its state lists of Companies Doing Business with the Iranian Petroleum/Natural Gas, Nuclear and Military Sectors, rendering it ineligible for investment and/or state contracting.

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As of June 8, 2020, SK Energy is listed on the Pennsylvania Department of General Services Iran Free Procurement List. Entities included on this list are ineligible to enter into a contract with the Commonwealth of Pennsylvania for goods and services worth at least $1,000,000 per sections 3501-3506 of the Commonwealth Procurement Code, 62 Pa. C.S. §§ 3501-3506.  

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As of April 15, 2020, SK Energy is included as an entity determined to be non-responsive bidders/offerers pursuant to The New York State Iran Divestment Act of 2012.  

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As of April 15, 2020, SK Energy is included on the Tennessee list of persons it determines engage in investment activities in Iran, as described in § 12-12-105. 

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On March 13, 2019, the Mississippi Department of Finance & Administration identified SK Energy as a company “engaged in investment activities in Iran, providing funds, goods or services valued at $20,000,000 or more in the energy sector of Iran.”  

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In 2018 and 2019 Tennessee used the New York list of “Entities determined to be non-responsive bidders/offerers pursuant to the New York State Iran Divestment Act of 2012.” SK Energy was included on this list in 2018 and 2019. Tennessee states "Inclusion on this list would make a person ineligible to contract with the state of Tennessee, if a person ceases its engagement in investment activities in Iran, it may be removed from the list."

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“South Korea's crude imports from Iran surged 104 percent in February from a year earlier as refiners hiked purchases ahead of maintenance shutdown starting from March, according to the country's customs data and a refining source. South Korea imported 1.1 million tonnes of Iranian crude last month, or 294,069 barrels per day (bpd), up 4.5 times from January and double from a year earlier, preliminary customs data showed on Saturday…’The two refiners had to hike the imports ahead of maintenance shutdown starting from March. Before and after the maintenance, refiners usually import more to meet annual import contracts,’ a Seoul-based refining source told Reuters. Of four South Korean refiners, SK Energy and Hyundai Oilbank are the only ones that buy Iranian oil on a regular basis. Their Iranian crude imports can vary from month to month as one of the two refiners that buy from the OPEC receives the oil only every other month. SK Energy will shut a 260,000 bpd No. 5 crude distillation unit (CDU) and a 57,000-bpd No.1 gasoline-making unit in the second quarter for maintenance, a spokesman at parent SK Innovation Co Ltd said. Hyundai Oilbank will shut its No.1 110,000-bpd CDU in April for maintenance, it said last month.” (Reuters, “S.Korea Feb Iran oil imports soar ahead of shutdown," 3/15/14)

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"South Korea's Iranian crude imports fell in October from September, meeting a targetted 15 percent cut in its shipments from the OPEC member for the June-November period to secure an extension of its six-month U.S. sanctions waiver…outh Korea imported 420,402 tonnes of Iranian crude last month, or 99,405 barrels per day (bpd), down more than a quarter compared with September and down nearly a half from a year earlier, preliminary customs data showed on Friday…The total means South Korea met the 125,814 bpd it aims to achieve in its imports from Iran in the six months through November…South Korea's Iranian crude imports vary from month to month as one of the two Korean refiners that buys from Iran receives oil only every other month, according to industry sources. The imports unexpectedly jumped in July from the year-earlier period before dropping off again in August. SK Energy and Hyundai Oilbank are the only South Korean refiners that take Iranian oil on a regular basis. South Korea, the world's fifth-largest crude buyer, imported a total of 10.7 million tonnes of crude last month against 11.1 million tonnes in October 2012, data from the Korea Customs Service also showed on Friday." (Reuters, "S.Korea's Oct Iran oil imports drop, meet target," 11/15/13)

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"South Korean refiners SK Energy and Hyundai Oilbank are the only two in the country to import Iranian crude. Spokesmen at both refiners declined to comment." (Reuters, "South Korea Pledges 15 Percent Cut to Iran Oil Imports," 06/24/13)

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"South Korea's imports of Iranian crude in March fell 16.2 percent from a year ago to 4.02 million barrels, data from the state-run Korea National Oil Corp showed on Monday, after its biggest refiner SK Energy shut a crude unit for maintenance... But imports from sanctions-hit Iran should surge month-on-month to 190,000 bpd in April as SK Energy's 110,000-bpd crude distillation unit returned to operation on April 16 after 30 days of maintenance... Its two buyers of Iranian crude, refiners SK Energy and Hyundai Oilbank, are shutting a combined 560,000 bpd of refinery capacity for planned maintenance between March and June." (Reuters, "Update 1 - S.Korea's Iran Crude Imports for March Down 16.2 pct Y/Y," 4/22/2013)

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"South Korean refiners will cut imports of Iranian crude during the six months to May by about a fifth from a year earlier, to avoid sanctions by Washington, government and industry sources told Reuters on Monday. Last week the United States granted 180-day waivers on Iran sanctions to China, India, South Korea and some other countries after they cut oil purchases from the Islamic Republic... South Korea, the world's fifth largest importer of crude, and one of Iran's biggest oil customers, gave the assurance on the size of the cuts in talks with the United States following discussions with Korean refiners, the sources said. Such a cut would imply South Korean imports of about 147,814 barrels per day (bpd) over the period to next May, since the country imported 184,767 bpd of Iranian crude from December 2011 to May 2012. Two refiners, SK Energy and Hyundai Oilbank, now import about 200,000 barrels per day of crude from Iran." (Reuters, "South Korea to Cut Iran Crude Imports 20 Percent," 12/10/12)

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"South Korea's biggest oil refiner SK Energy loaded a second cargo of crude in Iran last week, a government source said on Wednesday, as Seoul resumes Iranian oil shipments after a near two-month gap caused by a European Union ban on insurance cover... A spokesman for SK Energy's parent firm confirmed last week that another Iranian cargo of the same volume was already on its way to South Korea. 'SK Energy lifted its second cargo in Iran last week,' said the source at South Korea's economy ministry, adding that SK Energy's first cargo had not arrived yet in Korea. SK Energy and its parent SK Innovation declined to comment... Of South Korea's four refiners, only SK Energy and Hyundai Oilbank import Iranian crude. SK Energy's term contracts with Iran this year provide for imports of two Very Large Crude Carriers (VLCCs) of crude per month, or 4 million barrels, and Hyundai Oilbank imports one VLCC per month, or 2 million barrels, according to the economy ministry source." (Reuters, "S.Korea's SK Energy lifts 2nd Iran crude cargo-source," 9/26/2012)

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"South Korean refiners will resume imports of up to 200,000 barrels per day of Iranian crude from September, economy ministry sources said on Monday, ending a two-month gap due to a European Union ban on insurance cover for Iranian oil... Total imports envisaged at resumption will be six million barrels per month, or 200,000 bpd. SK Energy will import four million barrels per month and Hyundai Oilbank will import two million barrels per month, the economy ministry source added. This is the volume refiners agreed in term contracts with Iran for this year... A spokesman at SK Innovation, which owns SK Energy, told Reuters last Friday that the talks with Iran were progressing well, and the refiner expected to resume the imports around September loading." (Reuters, "S.Korea to resume Iran oil imports from Sept -econ min sources," 8/20/12)

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"South Korean refiners plan to resume buying crude from Iran in September after a two-month hiatus due to a European Union embargo that made shipping the oil difficult, government and refining sources said on Wednesday. The refiners have, like their Chinese and Indian counterparts, asked Iran to deliver crude on Iranian tankers, government and industry sources said. This shifts the responsibility to Iran for insurance, sidestepping a ban in the EU on insurers from covering Iranian shipments... South Korean refiners and the National Iranian Tanker Company (NITC) are close to finalising a deal that would allow loading to resume from September, sources said.'Refiners have requested Iran to deliver crude, and the deal is almost reached,' a government source with direct knowledge of the matter said... Two refining sources confirmed the request had been made to NITC. SK Energy and Hyundai Oilbank are the only two South Korean refiners that import Iranian crude. The refiners would buy a similar quantity of oil as they had prior to the July stoppage, sources said. There may be some variance month by month due to the size of vessels available for imports from NITC, one refining source said." (Reuters, "S.Korea to resume buying Iranian crude in Sept," 8/8/12)

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"There's a 'high chance' that South Korea will resume importing Iranian crude oil in the near future, Minister of Knowledge Economy Hong Sukwoo said Thursday… Iranian officials have since offered accident insurance coverage worth a maximum of $1 billion on Iranian tankers shipping crude oil to South Korea, a Hyundai Oilbank official said earlier this month. Hyundai Oilbank and SK Energy, the two South Korean refiners that imported Iranian crude, are considering Iran's offer to provide shipping services, officials from both companies have said… South Korea usually imports around 10% of its crude-oil requirements from Iran, but that percentage declined to 7.4% in the first six months of this year." (Dow Jones, "S Korea Oil Imports to Iran Seen Restarting," 7/26/12)

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"South Korea became the first major Asian consumer of Iranian crude to announce a halt to imports after the government said they would be suspended from July 1 due to a European Union ban on insuring tankers carrying Iranian oil... Of South Korea's four refiners, only SK Energy and Hyundai Oilbank import Iranian crude. Sources said both refiners will stop importing from Iran when the EU insurance embargo takes effect from July 1." (Reuters, "South Korea to halt Iran oil imports as EU ban bites," 6/25/12)

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"Earlier this month, two South Korean shipping companies said they had suspended importing Iranian crude due to a separate EU embargo set to come into force from July. SK Shipping, which handles the needs of refiner SK Energy, said it shipped its last cargo from Iran early this month and it would arrive by the end of June... SK Energy and Hyundai Oilbank are the only Korean refiners still importing Iranian oil. They said the suspension was temporary as Seoul seeks an exemption from the EU measures." (France 24, "S.Korea reports sharp fall in Iran oil imports,"6/25/12)

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"SK Innovation fully owns SK Energy, the country's largest oil refiner, which relies on Iran for around 10%-15% of its crude-oil imports." (The Wall Street Journal, "Official: South Korea Has No Plans To Halt Iran Crude," 5/22/2012)

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"South Korea's largest oil refiner SK Energy <096770.KS> will stop Iranian oil imports after the ban takes effect, two sources with direct knowledge of the matter said on Monday... 'SK Energy won't lift Iranian crude oil after lifting a 2 million barrel cargo in early June,' one of the two sources said. SK Energy will not import Iranian oil for July arrival.'... SK Energy had agreed to import 130,000 barrels per day (bpd) of Iranian crude this year under a long-term supply deal, while Hyundai Oilbank had agreed to import 70,000 bpd." (Reuters, "Exclusive: South Korea poised to halt Iran oil imports from July: sources," 5/21/2012)
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"South Korea will make sharp cuts in imports of Iranian crude from June as tightening Western sanctions make it impossible to secure insurance cover for tankers to ship the crude, industry and company sources said... With no resolution in sight, Hyundai Oilbank, one of two buyers of Iranian oil in South Korea, has decided to stop lifting cargoes from June, industry sources told Reuters. But bigger counterpart SK Energy is sticking with its plan to lift annual committed volumes at least until June. For July onwards, SK Energy, the country's largest refiner, is in talks with the government to secure insurance cover for tankers shipping the oil. If the government disagrees, the company will have little option but to halt purchases, said the sources, who declined to be identified as they are not authorized to talk to the media." (Chicago Tribune, "South Korea's Iran crude imports to plunge from June: sources," 4/26/12)

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"SK Energy will buy the additional crude, taking 130,000 bpd in 2012, up 10,000 bpd on the year, a government source said. An SK Energy spokesman declined to comment when asked about the deal... SK Energy could replace Iranian oil with imports from elsewhere in the Middle East if it needed to, although that might cost more money, an SK Energy source said." (Reuters, "S.Korea buys more Iran oil but eyes alternatives," 1/4/2012)

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"'We don't see any impact on crude imports from Iran,' a source at South Korea's largest refiner SK Energy said. 'While we cannot disclose the term import barrels for 2011, I can tell next year's oil import from Iran will continue as much as this year's.'

 An official at Hyundai Oilbank also said the term volume for 2011 will be stable from 2010. SK Energy and Hyundai Oilbank are the only buyers of Iranian crude in the country among four refiners.    Trade with Iran accounts for less than 1.5 percent of South Korea's overall trade but Iran is an important supplier of crude oil to South Korea, which imports all of its crude needs.

 Iran is South Korea's fourth-largest crude supplier. South Korea imported 67.1 million barrels of Iranian crude between January and November this year, accounting for 8 percent of the country's total crude imports, down about 10 percent from a year earlier." (Reuters, "Iran's Asian crude buyers see flow steady despite financial sanctions," 12/30/10)

As of May 17, 2021, Iowa's Public Employee's Retirement System lists Hyundai on its Iran Scrutinized Companies List.

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As of August 15, 2019, the state of Iowa listed Hyundai on its Iran scrutinized companies list.

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"A week after it was announced that French carmaker Peugeot-Citroen had left the Iranian market, Japan’s Mazda and South Korean Hyundai have also suspended contracts with Iran, according to a member of the parliamentary Industries and Mines Commission. In an interview with the parliament-affiliated website, Valiyollah Maleki said June 12, “Mazda and Hyundai’s interests in the U.S. market are much more than in Iran, and they will not sacrifice their profit for the sake of Iran.”" (June 13, 2018).

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"So despite concerns over regulation and reputation, that opportunity explains the caravan of container carriers that started resuming service to Iran back in January. The Iranian port at Bandar Abbas now welcomes ships from Evergreen, Hyundai, OOCL, Hanjin, “K” Line, KMTC, X-Press, Yang Ming, and many more..." (Global Trade, "Transportation/Logistics:Iran is Back Open for Business," 11/1/2016).

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The Hyundai Corporation is a general trading company specializing in a wide variety of shipping, industrial, chemical, and electrical products. Hyundai Heavy Industries owns a controlling stake  in the Hyundai Corporation.

In 2005, Hyundai Corp signed a $1.9 billion contract to provide Iran with materials “in the fields of shipbuilding, machinery, steel & metal, chemicals, home appliances, etc.” Hyundai Corp’s Tehran Office website contains a Major Products section, which contains a litany of sensitive products with wide applicability in the Iranian energy, petroleum, and even defense industries. This products include: oil tankers, LNG carriers, diesel engines, signaling systems, optical cables, conductor wires, high voltage cables, transmission cables, steel, aluminum, zinc, polypropylene, other chemicals, and consumer electronics. 

As of October 29, 2021, Korea Shipbuilding & Offshore Engineering Co, the parent company of Hyundai Heavy Industries, is listed on Pennsylvania Treasury's List of Scrutinized Companies Determined as Having Involvement In Iran because of oil-related investment of US $20 million since 1996. Hyundai Heavy Industries is not listed.

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As of July 1, 2021, Korea Shipbuilding & Offshore Engineering Co is not listed on Mississippi's list of Companies Doing Business with the Iranian Petroleum/Natural Gas, Nuclear and Military Sectors.

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"The company, through a sub-holding company, was reported as potentially having entered into a contract to build ships for an Iranian state-owned shipping company. CalPERS moved the company into “monitor” status in 2018. News reports in 2018 cite a source at the company as confirming no ships have been delivered under the contract, and that “it is impossible for [the company] to deliver the ships with U.S. sanctions back in position.” CalPERS has maintained the company in “monitor” status for 2020. CalPERS continues to monitor the company for possible changes in status relevant to the Act."

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In 2020, the U.S. state of Mississippi listed Hyundai Heavy on its state lists of Companies Doing Business with the Iranian Petroleum/Natural Gas, Nuclear and Military Sectors, rendering it ineligible for investment and/or state contracting.

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As of October 2019, Hyundai Heavy Industries remains on the Pennsylvania Treasury's List of Scrutinized Companies Determined as Having Involvement In Iran because of oil-related investment of US $20 million since 1996. 

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Iranian oil, gas, petrochemical and energy firm, Nirou Taban Spadana Company (“Nirou Taban) claims to sell products of Hyundai Heavy. 

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"In December 2016, signed a $760 million contract with the Islamic Republic of Iran Shipping Lines (IRISL) to build four 14,500 20-foot equivalent unit (TEU) container ships and six 49,000-ton tankers for petrochemical products; tankers were built by its affiliate, Hyundai Mipo Dockyard; is taking a “wait-and-see approach” noting that it will be impossible to deliver the ships to Iran under U.S. sanctions." ("Mazda, Hyundai Leave Iranian Market, Affecting Cars and Shipping," Radio Farda, June 13, 2018.

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"Managing Director of the Islamic Republic of Iran Shipping Lines Mohammad Saeedi said on Saturday the first of 10 new ships ordered by his company from Hyundai Heavy Industries will be delivered in March 2018." (December 2017)

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In 2017 the U.S. state of California listed Hyundai Heavy Industries as a company under review for potentially having entered into a contract to build ships for an Iranian state-owned shipping company.

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In 2017 the U.S. state of Pennsylvania, Mississippi, South Carolina and Tennessee listed Hyundai heavy., on its Iran scrutinized list for an oil related involvement of at least US $20 million since 1996, rendering Hyundai Engineering & Construction ineligible for investment and/or state contracting. 

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In 2016 Tennessee used the South Carolina list of "Entities Ineligible to Contract with the State of South Carolina or any Political Subdivision of the State per the Iran Divestment Act of 2014, S.C. Code Ann." as its list of persons it determines engage in investment activities in Iran. Hyundai Heavy was included on this list in 2016. "Inclusion on this list would make a person ineligible to contract with the state of Tennessee, if a person ceases its engagement in investment activities in Iran, it may be removed from the list."

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In 2016, Hyundai Heavy Industries was added to the Pennsylvania Treasury's List of Scrutinized Companies Determined as Having Involvement in Iran because of oil-related investment of US $20 million since 1996 and new involvement was identified.

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Hyundai Heavy Industries Co. received a $700 million order to build 10 ships for Iran’s state-owned shipping company in a deal that signifies the Middle Eastern country’s return to the international market after a decade. The deal is part of plans by Islamic Republic of Iran Shipping Lines and Iranian Offshore Oil Co., a subsidiary of state oil company National Iranian Oil Co., to spend a total of up to $2.5 billion to modernize their fleets. Iranian shipping companies haven’t modernized their fleets since 2006, when the United Nations imposed wide-ranging sanctions against Tehran over its uranium-enrichment program... “This marks Iran’s first ship order since international sanctions were lifted early this year. Hyundai plans to provide technical support for Iran to run its shipyards as well,” the South Korean company said Sunday. (Wall Street Journal, "Hyundai Heavy Gets $700 Million Deal to Build 10 Ships for Iran Shipping Lines," 12/10/2016).

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"Iran’s state-owned shipping company is in advanced talks with Korean shipyard Hyundai Heavy Industries Co. for a $650 million order of container ships and tankers, people involved in the talks said, marking Iran’s return to the international market after a decade. The deal may be announced as early as this week and is part of plans by Islamic Republic of Iran Shipping Lines and Iranian Offshore Oil Co., a subsidiary of state oil company National Iranian Oil Co., to spend a total of up to $2.5 billion to modernize their fleets. A Hyundai Heavy spokesman said Monday that Islamic Republic of Iran Shipping Lines, or IRISL, was in talks with the shipyard over a 10-ship order, but gave no details. Iranian shipping companies haven’t modernized their fleets since 2006, when the United Nations imposed wide-ranging sanctions against Tehran over its uranium-enrichment program." (The Wall Street Journal, "Iran Shipping Lines Close to $650 Million Korean Order," 12/5/2016).

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Hyundai Oilbank and Hyundai Corporation are subsidiaries of Hyundai Heavy.

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"Iran said on Saturday that a deal has been reached with South Korea to launch a joint shipbuilding venture between the two countries. The venture will be established between Iran Shipbuilding and Offshore Industries Complex Company (ISOICO) and Hyundai, IRNA reported. ISOICO Managing Director Hamid Rezaian has emphasized that the related consultations as well as key agreements for the move have already been taken care of... Rezaian had announced in late November that ISOICO is looking into partnerships with major international shipbuilders including Hyundai and Germany's Nordic Yards Wismar." (Press TV, "Iran, South Korea to launch shipbuilding JV," 12/5/15) 

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On March 24, 2015, Florida State Board of Investments removed Hyundai Heavy Industries from the Iran Continued Examination list during the quarter.

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"None of the firms targeted are based in the United States. Only one name might appear familiar to American consumers: Hyundai Heavy Industries, the world's largest shipbuilder. However, that company has no connection to the similarly named automaker, said Jim Trainor, a spokesman for Hyundai Motor Co. The group United Against Nuclear Iran has criticized Hyundai Heavy Industries for its dealings with Iran and has faulted the Obama administration for failing to put it on the sanctions list." (The Baltimore Sun, "22 companies are listed for alleged Iran ties, sanctions," 9/17/2012)

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Hyundai Heavy Industries is the world's largest shipbuilder, with a 15% world market share. It also manufactures a variety of industrial, construction, and electrical equipment (Company Website). 

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Hyundai Heavy Industries has received numerous contracts to provide manufactured goods to Iran over the past six years. In 2004, HHI received an $18 million contract to provide construction equipment including excavators and wheel loaders to assist in the development of Iran's South Pars gas field. 

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In 2007, HHI received a $54 million contract to upgrade a refinery owned by the National Iranian Oil Engineering and Construction Co, a state-owned entity. And as recently as 2009, HHI received a contract to provide six high-pressure pump units to outfit an Iranian power plant.

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In 2005, HHI together with Daewoo Shipbuilding received a $1 billion contract from the state-owned National Iranian Oil Tanker Co to build 10 oil tankers (Bloomberg). At the contract’s issuance, NIOTC officials planned to order another 35 vessels for 2010; the status of this order is unknown. Each tanker is capable of carrying 2 million barrels of crude, providing a massive increase in shipping capacity for the Iranian petroleum industry.

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HHI owns a controlling stake in the Hyundai Corporation, a general trading company specializing in a wide variety of shipping, industrial, chemical, and electrical products. Hyundai Corp signed a $1.9 billion contract to provide Iran with materials “in the fields of shipbuilding, machinery, steel & metal, chemicals, home appliances, etc.” Hyundai Corp’s Tehran Office website contains a Major Products section, which contains a litany of sensitive products with wide applicability in the Iranian energy, petroleum, and even defense industries. This products include: oil tankers, LNG carriers, diesel engines, signaling systems, optical cables, conductor wires, high voltage cables, transmission cables, steel, aluminum, zinc, polypropylene, other chemicals, and consumer electronics. 

In 2020, the U.S. state of Mississippi listed DK-Tech on its state lists of Companies Doing Business with the Iranian Petroleum/Natural Gas, Nuclear and Military Sectors, rendering it ineligible for investment and/or state contracting.

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Lists Gostaresh Niko Shimeh Co. Ltd as a distributor on its company website.

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"DK-Lok (105740), a fitting and valve manufacturer, said on Sept. 6 that it has signed a contract worth 827.9 million won (US$749,470) with Iran’s Gostaresh Niko Shimeh to supply tube fitting and instrumentation tubing. The supplied equipment will be used for developing a gas field. " (September 2016)

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Lists Gostaresh Niko Shimeh Co. Ltd as a distributor on its company website.

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DK Tech Corporation is an instruments manufacturer serving the petrochemical, offshore drilling, power generation, and shipbuilding industries. DK Tech Corp specializes in semiconductors, fittings, valves, and other analytical and process instruments. It is an official vendor to ExxonMobil, Shell, and Petronas (Company Website). 

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On December 17 2010, the Wall Street Journal reported that DK Tech Corp signed a deal to help develop Iran's South Pars gas field: "Korea's DK Tech Corp. (105740.KQ) has signed a small deal for projects in a giant Iranian natural gas field, the oil and gas equipment maker said in a corporate filing Thursday, as Asian suppliers replace U.S. and European companies amid mounting sanctions. In a disclosure to the Korean stock exchange, DK Tech said it had signed a contract worth EUR598,000 to supply phases 17 and 18 of the South Pars field until July 15, 2011. The operators of the world's largest non-associated gas field, which Iran shares with Qatar, have struggled to source technologies after Western companies stopped supplies to comply with sanctions over the country's nuclear program. DK didn't disclose what equipment it would sell to Iran but it normally sells valves and tube fittings for the oil and gas sector, among other industries" (Wall Street Journal, South Korea's DK Tech Signs Deal for Iran Gas Field, 12/17/10). 

Hyundai Motor is not listed on IPERS February 2022 Iran Prohibited Companies list.

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Hyundai Motor Company is listed on Texas's 2021 Comptroller List of Companies Engaging in Scrutinized Business Operations in Iran.

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On February 16, 2021, Iowa Public Employees' Retirement System removed Hyundai Motor from its Iran Prohibited Companies List. 

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Hyundai Motor is listed on the 4Q 2020 Minnesota State Board of Investment List of Unauthorized (Scrutinized) Iran Companies.

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"Korea’s Hyundai has quietly removed from its main website the details of two companies that represent it in Iran, Asbe Bokhar magazine reported on July 20. Asan and Pakro are reportedly the two representative companies that have disappeared from the website’s list of authorised international Hyundai vendors. Iran’s Kerman Motors and Soroush Diesel Mabna CO remain on the list. Despite the deletion, Asan and Pakro can continue to operate in the field of Hyundai after-sales service in Iran. Both companies confirmed they intended to do so." (BNE, "Hyundai removes two representative companies in Iran from website," 7/20/20). 

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Hyundai Motor is listed on Iowa's June 2020 Iran Divestment list.

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On May 15, 2020, the IPERS identified Hyundai Motor on its Iran Prohibited Companies List.

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As of December 2020, Rhode Island continues to list Hyundai Motor as an Iran scrutinized company for active involvement of at least $50 million in Iran's energy sector. The company sells its vehicles in Iran through Tehran-based Kerman Motors, Assan Motor, and Soroush Diesel Mabna. (Company website, 12/2019).

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The company's minority-owned subsidiary Hyundai Wia lists Control Afzar Tabriz Co Ltd as its sales and service agent in Iran. (Company website, 12/2019)

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On January 20, 2020, Minnesota SBI listed Hyundai Motor as a scrutinized investment. The managers are explicitly instructed to refrain from purchasing securities on this list. 

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In 2018 and 2019 Hyundai Motor was listed on the Texas Comptroller List of Companies Engaging in Scrutinized Business Operations in Iran.  

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"South Korea’s Hyundai resumed cooperation with Iran after the ratification of the Joint Comprehensive Plan of Action (JCPOA) or Tehran’s nuclear deal with world powers, to manufacture its I10, I20, and Accent models in 2017.

However, after U.S. President Donald Trump’s decision to leave JCPOA, Hyundai also prepared itself to end cooperation with the Iranian company Kerman Khodro in the Special Economic Zone, Arg-i Jadid." (Radio Farda, 6/13/2018).

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"In an interview with the parliament-affiliated website, Valiyollah Maleki said June 12, 'Mazda and Hyundai’s interests in the U.S. market are much more than in Iran, and they will not sacrifice their profit for the sake of Iran.'"(Radio Farda, "Mazda, Hyundai Leave Iranian Market, Affecting Cars and Shipping," 6/13/18).

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"South Korea’s Hyundai Motors is consolidating its presence in Iran through a joint production deal with local carmaker Kerman Motor. Under a joint venture deal signed in March 2017, Kerman Motor currently assembles three Hyundai models namely i10, i20 and Accent in the central city of Bam, Kerman Province. Assembly lines of two other models, Elantra and Tucson are to be launched, ILNA quoted Kerman Motor’s marketing manager as saying." (Financial Tribune, "Hyundai Asserting Stronger Presence in Iran Auto Industry," 1/15/18)

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In 2018 the U.S. state of Iowa listed Hyundai Motor on its Iran prohibited companies list rendering Hyundai Motor ineligible for investment and/or state contracting.

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South Korea's Hyundai Motor Group is looking for a stronger presence in Iran's auto market through better services and improving relations with car buyers, says the chief executive of Kerman Motor Company. "Following Kerman Motor's success in assembling and distribution of Hyundai i10 and i20 and last year's deal to assemble the Accent model, the Korean carmaker is eager to have a bigger footprint in Iran's market," Saman Firouzi said, according to Kerman Motor's website. In March he had said that his firm would launch the Hyundai Accent production line in September." (May 2017)

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"South Korea's Hyundai Motors, Middle East and Africa office director, Mike Song, signed a production agreement with Iran's Kerman Motors to start production of the Elantra model in the local firm's Kerman production facility, in the south of the country. The deal signed in Kerman on March 13 by representatives of both firms. Saman Firouzi, chief executive of Kerman Motor, said that his firm will also launch Hyundai Accent production line in September 2017. "Our target is to employ 10,000 people by 2019," he added. The company previously agreed with Hyundai at the end of 2016 to begin production of the Hyundai i10 and i20 hatchback models which are likely to go on sale following the Iranian New Year." (Financial Tribune, "Hyundai, Kerman Motor Sign Deal to Produce Elantra in Iran," 3/13/2017).

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Before the implementation of the JCPOA, Hyundai had sold around 20,000 auto part units to Iranian cars annually. (Korea Herald, “Hyundai Motor to resume export of auto parts to Iran in April,” 3/15/2016).

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"Iran totally imported 51,967 cars in the first half of the current Iranian calendar year (March 21 - September 22). Hyundai with 24,991 cars was the main exporter of cars to Iran in the mentioned period..." (Trend, "Korea’s Hyundai gains lion share of Iran’s car imports market," 11/16/14)

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"According to the report, 17 car brands have been permitted to be imported in the current year. The cars include Hyundai (2 models), ABT, Alfa Romeo (2 models), MG, SsangYong, Toyota, Renault (6 models), and Kia (2 models). Previously, 25 car brands were included in the list, such as South Korean brands (Kia and Hyundai), Chinese brands (SAIC motors), Italian brands (Fiat, Alpha Romeo), Japanese brands (Honda, Mitsubishi), German brands (ABT), and Swedish brands (Volvo)." (AzerNews, "Iran bans imports of renowned car brands," 5/27/2013) 

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"The report said that aside from Nissan and Peugeot, such car brands as Chinese Lifan, Mazda, Suzuki, and Hyundai are still being manufactured in Iran." (Trend, "Five reasons why Iran's car manufacturing suffers blow after blow," 11/27/2012)

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Hyundai Motor and several of its subsidiaries and affiliates have reported business dealings with Iran, including:

• Hyundai Rotem: 57.64% owned – sale of rail cars
• Hyundai HYSCO: 26.1% owned, primary shareholder; 13.9% owned by Kia Motors, second largest shareholder – sales of steel pipes
• Hyundai Mobis: 16.88% owned by primary shareholder Kia Motors – equipment for auto manufacturing

Hyundai Motor's business in Iran can be broken down into exports, manufacture, and orders:

Exports

Hyundai sells passenger cars through Assan Motors, its exclusive distributor in Iran since 1992. Assan trumpets its “tremendous growth” in recent years. The Hyundai Iran website also features dozens of Iranian dealerships that sell Hyundai vehicles.

Business Monitor’s “Iran Autos Report Q4 2010” (September 2010) reports as of February 2010, Hyundai Motors was only one of six carmakers that have secured license to import cars into Iran. In August 2010, Hyundai reportedly ceased vehicle exports to Iran.

In July 2011, the Korean daily JoongAng reported that due to pressure from United Against Nuclear Iran, Hyundai had ceased its exports to Iran for two months in early 2011 but quickly reversed course: "In February, Hyundai Motor and Kia Motors - both affiliates of Hyundai Motor Group - stopped shipping automobiles to Iran after the companies came under pressure from United Against Nuclear Iran (UANI), an American lobby group, for not complying with U.S. sanctions. In April, they reversed track, saying it 'wasn’t right' that they continue to withhold their products from Iranians. It was the first time that the Korean company decided to stop exports due to political pressure from a third party or country."

Manufacture

In 2004, the first Iranian-made Hyundai vehicles were produced with local partner Kerman Motor Company. The Hyundai Verna model was initially set at 20,000-30,000 units per annum (upa) with plans to be increased to 100,000 upa. (World Markets Analysis, “First Iranian-Made Hyundai Models Rolled Out in Kerman,” 9/9/04)

The “CKD [Complete Knock Down] assembly facility” with Rayen Vehicle Manufacturing Company (RVMCO) in Tehran manufactures the Hyundai Accent and Elantra. CKD refers to a kit (e.g. engine, transmission, battery, etc.) used by foreign affiliates to assemble manufactured goods.

The Iran Khodro Diesel Co. (IKDC), a manufacturer of commercial vehicles (trucks, buses, minibuses, vans), produces the Hyundai Mighty (Light Truck) and Hyundai Chorus (Minibus).

In July 2009, it was reported the auto-manufacturing companies Kerman Khodro and Rain Khodrosazan would introduce Hyundai’s smallest car, the i10. Rain Khodrosazan reportedly also manufactures the Hyundai Avante, Verna and Sonata.

Orders

August 2010: Reports indicated that Hyundai Motors and Kia Motors had shipped a total of 17,000 vehicles to Iran during the first half of the year before suspending their exports.

September 2006: Reuters reported that Hyundai Motor won a $227 million order to supply vehicles to Iranian government agencies and taxi operators. The models supply included sedans and SUVs. In 2007, it was expected Hyundai would also be rewarded another 8,500-unit order.
 

Hyundai Rotem in Iran
57.64% owned

Hyundai Rotem is a Korean manufacturer of rolling stock, defense products and plant equipment.

• 2004: Hyundai Rotem won a contract to deliver 150 DMUs (diesel multiple units/railcars) to the Islamic Republic of Iran Railways. The deliveries were scheduled for between 2007-2009.
• 2004: In consortium with the Marebuni Corporation, Hyundai Roten won a 110 million euro for 120 Diesel Multiple Unit (DMU) cars from Irankhodro Rail Industries Company (IRICO). The delivery was scheduled the beginning of 2007 through to 2008. (Rotem Website)
• Iran is listed as one of their “Global Markets” for “Railway Systems.” 

U.S. Government Business

Hyundai Motors received over $14.7 million in U.S. government contracts this past decade.

According to its form 20-F filed with the SEC for fiscal year 2021: "We [Woori Bank] operate certain accounts for the Central Bank of Iran, or the CBI, which were opened by the CBI pursuant to a service agreement entered into by us and the CBI in September 2010, as amended from time to time, to facilitate trade between Korea and Iran.

In the past, we also provided fund transfer and financing services to Korean exporters and importers in connection with their trade transactions with Iranian parties that were permitted under the relevant Korean sanctions regime. We have discontinued all trade financing activities relating to export and import trades involving the CBI accounts since November 5, 2018.

We also maintain a limited number of deposit accounts in Korea for an Iranian financial institution subject to OFAC sanctions that were opened prior to it becoming subject to OFAC sanctions. The relevant accounts have since been restricted, and no transactions are currently allowed through these accounts."

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"A subsidiary of the company has been identified as potentially providing import/export financing services to facilitate trade with Iran. In 2019 CalPERS designated the company as under review. In 2020 CalPERS changed the designation to “being monitored” because CalPERS’ initial screening has not identified the company as having involvement in the regions and/or activities targeted by the Act. CalPERS continues to monitor the company for possible changes in status relevant to the Act."

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"Woori Finance Holdings Co. was identified as providing import-export financing services to facilitate trade with Iran. In late 2014, Woori Finance Holdings Co. merged with its subsidiary Woori Bank and changed its name to Woori Bank. In 2014, CalSTRS designated Woori Finance Holdings Co. as “Under Review” for potentially having ties to Iran. In 2015, CalSTRS designated the company as “Being Monitored.” In 2020, CalSTRS removed Woori Bank as it no longer held any of the company’s securities."

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According to its Annual Report filed with the SEC for fiscal year 2019: "In 2019, we engaged in the following activities relating to Iran:         

• We have operated certain accounts for the CBI, which were opened by the CBI pursuant to a service agreement entered into by us and the CBI in September 2010, as amended from time to time, to facilitate trade between Korea and Iran. The accounts opened by the CBI consist of Won-denominated accounts that are used for the settlement of exports of goods produced or substantially transformed in Korea to Iran by Korean exporters and Won, U.S. dollar, euro and Japanese Yen-denominated accounts (of which only the Won accounts are in use) that are used for the settlement of imports of crude oil and nauralgas from Iran by Korean importers. By the terms of the service agreement between us and the CBI, settlement of export and import transaction payments due from Iranian entities to Korean exporters or from Korean importers of oil and gas to Iranian entities through such accounts opened by the CBI was effected by crediting or debiting the relevant amount to or from the applicable accounts while a corresponding payment of funds was made to or from an Iranian commercial bank by the CBI. Any funds deposited for the account of Iranian entities as a result of Korean imports of crude oil and natural gas was only to be used by transferring them to the Won-denominated account and then making payment to accounts of Korean persons and entities opened at financial institutions in Korea in respect of Korean exports to Iran. No transfers of funds were to be made from these accounts to Iran, to Iranian accounts in any third country, or for any use other than those described above. In light of the discontinuation of the SRE, from July 8, 2019 to September 20, 2019, we limited activity in the existing CBI accounts to processing payments for exports of humanitarian goods to Iran, and since the imposition of additional secondary sanctions against the CBI on September 20, 2019, we ceased all activity in the existing CBI accounts. In 2019, the total fee revenue from maintaining the CBI accounts amounted to approximately ￦1.8 million. As there were no expenses directly applicable to such activities under our internal management accounts, we estimate that our net income before tax from maintaining the CBI accounts also amounted to approximately ￦1.8 million.

• We have also provided fund transfer and financing services to Korean exporters and importers in connection with their trade transactions with Iranian parties which were permitted under the relevant Korean sanctions regime and not subject to U.S. secondary sanctions. We have discontinued all trade financing activities relating to export and import trades involving the CBI accounts since November 5, 2018. In 2019, all such exports and imports were settled through telegraphic transfer and did not involve our financing services. In addition, we continued to honor our obligations on a limited basis under previously-issued bank guarantees to the extent that such activities did not violate OFAC sanctions or applicable U.S. secondary sanctions. In 2019, our total fee revenue from the relevant telegraphic transfer services amounted to approximately ￦0.64 million. As there were no expenses directly applicable to such activities under our internal management accounts, we estimate that our net income before tax from such activities also amounted to approximately ￦0.64 million.

• We also maintain a limited number of deposit accounts in Korea for an Iranian financial institution that were opened prior to its designation for U.S. sanctions. The relevant accounts have since been restricted, and no transactions are currently allowed through these accounts. Accordingly, there were no fee revenues from maintaining such deposit accounts, and there were no expenses directly applicable to such activities under our internal management accounts."

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In May 2016, we established a representative office in Tehran, Iran, which had engaged in the collection of local market information without generating any revenue. Following the re-imposition of sanctions, the representative office is no longer operational and does not have any employees or office space. (2019)

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In 2014, Woori Finance Holdings Co. was identified as providing import-export financing services to facilitate trade with Iran. In late 2014, Woori Finance Holdings Co. merged with its subsidiary Woori Bank and changed its name to Woori Bank. In 2014, CalSTRS designated Woori Finance Holdings Co. as “Under Review” for potentially having ties to Iran. In 2015, CalSTRS determined to classify Woori Bank as “Being Monitored” and maintained that designation in 2018.--

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Woori Bank and IBK partially suspend financial transactions with Iran,” Pulse (South Korea), June 19, 2018.) 

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In 2016, we engaged in the following activities relating to Iran:
 
We operate certain accounts for CBI, which were opened by CBI pursuant to a service agreement entered into by us and CBI in September 2010 to facilitate trade between Korea and Iran. The accounts opened by CBI consist of Won-denominated accounts that are used for the settlement of exports of goods produced or substantially transformed in Korea to Iran by Korean exporters and Won, U.S. dollar, euro and Japanese Yen-denominated accounts (of which only the Won accounts are in use) that are used for the settlement of imports of crude oil and natural gas from Iran by Korean importers. By the terms of the service agreement between us and CBI, settlement of export and import transaction payments due
 
from Iranian entities to Korean exporters or from Korean importers to Iranian entities through such accounts opened by CBI are effected by crediting or debiting the relevant amount to or from the applicable accounts while a corresponding payment of funds is made to or from an Iranian bank by CBI. Any funds deposited for the account of Iranian entities as a result of Korean imports of crude oil and natural gas may only be used by transferring them to the Won-denominated account and then making payment to accounts of Korean persons and entities opened at financial institutions in Korea in respect of Korean exports to Iran. No transfers of funds may be made from these accounts to Iran, to Iranian accounts in any third country, or for any use other than those described above. In 2016, the total fee revenue from maintaining the CBI accounts amounted to approximately ￦192 million (which represented approximately 0.002% of our total revenue). As there were no expenses directly applicable to such activities under our internal management accounts, we estimate that our net income before tax from maintaining the CBI accounts also amounted to approximately ￦192 million (which represented approximately 0.012% of our total net income before tax). We intend to continue maintaining the accounts opened by CBI, and in light of the lifting of certain sanctions against Iran, including U.S. secondary sanctions, the scope of our services provided to CBI may be adjusted to reflect such change in circumstances.

We also provide limited export-import financing services to Korean exporters and importers in connection with their trade transactions with Iran that were permitted under the relevant Korean sanctions and were not subject to U.S. secondary sanctions, primarily by discounting, advising on or issuing letters of credit, and to a lesser extent, issuing performance bonds on behalf of Korean contractors with respect to Iranian construction projects permitted under the relevant Korean sanctions and not subject to U.S. secondary sanctions. All such transactions are settled through the accounts opened by CBI with us as described above. In 2016, our total fee revenue from such export-import financing services amounted to approximately ￦11.5 billion (which represented approximately 0.11% of our total revenue), while our net income before tax from such activities (net of expenses directly applicable to such activities based on our internal management accounts) amounted to approximately ￦4.2 billion (which represented approximately 0.27% of our total net income before tax). We intend to continue providing the export-import financing services with its current scope, to the extent U.S. secondary sanctions or other applicable sanctions remain lifted.

We also maintain a limited number of deposit accounts in Korea for an Iranian financial institution that the U.S. government has historically viewed as controlled by the government of Iran. These accounts were opened with us before the institution was designated for U.S. sanctions. Under Korean customer protection requirements, we are unable to provide specific information identifying this Iranian financial institution or the volume of its deposits. In 2016, there were no fee revenues from maintaining such deposit accounts, and there were no expenses directly applicable to such activities under our internal management accounts.
 
In May 2016, we established a new representative office in Tehran, Iran, which only engages in the collection of local market information and did not generate any revenue in 2016.

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"Three foreign banks are opening up representative offices in Iran as the country seeks to boost investment after reaching an international sanctions deal last year, a central bank official said. Oman’s Bank Muscat SAOG, Woori Bank of South Korea and India’s UCO Bank Ltd. are all in the process of establishing a presence in Tehran, Central Bank Vice Governor Peyman Ghorbani said Tuesday in an interview." (Bloomberg News, "Three Foreign Banks to Open in Iran, Central Bank Official Says," 11/1/2016).

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According to its Annual Report filed with the SEC in 2014: 

• In 2013, we and our affiliates engaged in the following activities relating to Iran:
  • Woori Bank operates certain accounts for CBI, which were opened by CBI pursuant to a service agreement entered into by Woori Bank and CBI in September 2010 to facilitate trade between Korea and Iran. The accounts opened by CBI consist of Won-denominated accounts that are used for the settlement of exports of goods produced or substantially transformed in Korea to Iran by Korean exporters and Won, U.S. dollar, euro and Japanese Yen-denominated accounts (of which only the Won accounts are currently in use) that are used for the settlement of imports of oil and natural gas from Iran by Korean importers. By the terms of the service agreement (as amended) between Woori Bank and CBI, settlement of export and import transaction payments due from Iranian entities to Korean exporters or from Korean importers to Iranian entities through such accounts opened by CBI are effected by crediting or debiting the relevant amount to or from the applicable accounts while a corresponding payment of funds is made to or from an Iranian bank by CBI. Any funds deposited for the account of Iranian entities as a result of Korean imports of oil and gas may only be used by transferring them to the Won-denominated account and then making payment to accounts of Korean persons and entities opened at financial institutions in Korea in respect of Korean-origin exports to Iran. No transfers of funds may be made from these accounts to Iran, to Iranian accounts in any third country, or for any other use. Furthermore, the applicable laws and regulations and banking guidelines of Korea require that trade transactions between Korean and Iranian parties be subject to prior certification and clearance by relevant Korean governmental authorities (or organizations designated thereby) to ensure compliance with Korean economic sanctions and export controls against Iran, and the settlement of payments through the accounts opened by CBI at Woori Bank are not permitted without such prior certification and clearance. In 2013, the total fee revenue from maintaining the CBI accounts amounted to approximately ￦128 million (which represented approximately 0.001% of our total revenue). As there were no expenses directly applicable to such activities under our internal management accounts, we estimate that our net income before tax from maintaining the CBI accounts also amounted to approximately ￦128 million (which represented approximately 0.04% of our total net income before tax). Woori Bank intends to continue maintaining the accounts opened by CBI within the current scope of services, to the extent such activity is permitted under, or otherwise exempted from, the indirect U.S. sanctions or other applicable sanctions.
  • Woori Bank also provides limited export-import financing services to Korean exporters and importers in connection with their trade transactions with Iran that are permitted under the relevant Korean sanctions and not subject to the indirect U.S. sanctions, primarily by discounting, advising on or issuing letters of credit, and to a lesser extent, issuing performance bonds on behalf of Korean contractors with respect to Iranian construction projects permitted under the relevant Korean sanctions and not subject to the indirect U.S. sanctions. All such transactions are settled through the accounts opened by CBI at Woori Bank as described above. In 2013, our total fee revenue from such export-import financing services amounted to approximately ￦3 billion (which represented approximately 0.03% of our total revenue), while our net income before tax from such activities (net of expenses directly applicable to such activities based on our internal management accounts) amounted to approximately ￦2 billion (which represented approximately 0.66% of our total net income before tax). Woori Bank intends to continue providing the export-import financing services with its current scope, to the extent such activity is permitted under, or otherwise exempted from, the indirect U.S. sanctions or other applicable sanctions.       
  • Woori Bank also maintains a limited number of deposit accounts in Korea for a certain Iranian financial institution which is currently on the list of specially designated nationals maintained by OFAC (with an “IFSR” designation). Under Korean customer protection requirements, we are unable to provide specific information identifying this Iranian financial institution or the volume of its deposits, which constitute less than 0.05% of the Woori Bank’s total deposit base. These accounts were opened at Woori Bank before such Iranian financial institution was added to OFAC’s list of specially designated nationals, and under Korean law, these financial institutions are generally unable to repatriate the amounts in these accounts from Korea without specific authorization of the Korean authorities. As a Korean bank is generally prohibited under Korean law from unilaterally terminating a deposit account without the consent of the depositor, Woori Bank does not currently have plans to terminate these deposit accounts. In 2013, there were no fee revenues from maintaining such deposit accounts, and there were no expenses directly applicable to such activities under our internal management accounts."

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“South Korea is set to become the second Asian nation to make a payment to Iran for crude oil imports under an interim nuclear deal…Japan became the first of Iran's oil buyers to make a payment to Iran under the eased sanctions earlier this month. It was not clear the amount to be transferred but the Iranian central bank was holding up to $5.6 billion in two won-denominated accounts, one at Woori Bank and the other at Industrial Bank of Korea as of late 2013, according to one of the sources. A second source who confirmed the money transfer added the payment would be made by the two Korean banks next month - one part on early March and the other later in the month…State-owned Woori Bank and Industrial Bank of Korea declined to comment on the money transfer…Bank of Korea and South Korean finance ministry officials contacted by Reuters said no decision had been made about money transfers to Iran.” (Reuters, “South Korea set to make oil payment to Iran - sources,” 2/12/14)

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“Under penalty of expulsion from the U.S. banking system, Iranian crude customers such as China, Japan and India will be restricted to using their own currencies for the purchases, starting today. Importers will be compelled to keep the payments in escrow accounts that Iran can use only for locally sourced goods and services, in what will amount to barter arrangements…The new blockage on remittances will add to financial restrictions the U.S. imposed last year that curtail Iran’s access to dollars, euros and other hard currencies. Sanctions have already forced it into barter arrangements with China, its largest oil customer…South Korean buyers have been paying for Iranian crude in local won, through two accounts that Iran’s central bank opened in 2010 at the Industrial Bank of Korea and Woori Bank…South Korea’s exports to Iran of goods such as iron, steel and petrochemicals increased 3.2 percent to $6.3 billion last year, while imports dropped 25 percent, to $8.5 billion, according to customs data. Oil made up 99 percent of the goods that Japan and South Korea imported from Iran.” (Bloomberg, “Iran Faces Oil-Cash Squeeze as U.S. Bolsters Sanctions,” 2/6/14)

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“Iran will receive $4.2 billion from its oil sales to be transferred in instalments if it fulfils its commitments in a landmark nuclear deal struck between world powers and Tehran in Geneva. Here is a look at where Iranian oil payments are held in the countries in Asia that are still importing crude from the OPEC producer…

COUNTRY: South Korea

BANK: Woori Bank and Industrial Bank of Korea

ESTIMATED AMOUNT: Iran has about 5.9 trillion won ($5.56 billion) in won deposits, a foreign exchange authority source said.” (Reuters, “FACTBOX-Iran's oil fund stash in Asia,” 11/25/13)

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According to its Annual Report filed with the SEC in 2013: 

• In 2012, we and our affiliates engaged in the following activities relating to Iran:    
  • Woori Bank operates certain accounts for CBI, which were opened by CBI pursuant to a service agreement entered into by Woori Bank and CBI in September 2010 to facilitate trade between Korea and Iran. The accounts opened by CBI consist of Won-denominated accounts that are used for the settlement of exports of goods produced or substantially transformed in Korea to Iran by Korean exporters and Won, U.S. dollar, euro and Japanese Yen-denominated accounts (of which only the Won accounts are currently in use) that are used for the settlement of imports of oil and natural gas from Iran by Korean importers. By the terms of the service agreement (as amended) between Woori Bank and CBI, settlement of export and import transaction payments due from Iranian entities to Korean exporters or from Korean importers to Iranian entities through such accounts opened by CBI are effected by crediting or debiting the relevant amount to or from the applicable accounts while a corresponding payment of funds is made to or from an Iranian bank by CBI. Any funds deposited for the account of Iranian entities as a result of Korean imports of oil and gas may only be used by transferring them to the Won-denominated account and then making payment to accounts of Korean persons and entities opened at financial institutions in Korea in respect of Korean-origin exports to Iran. No transfers of funds may be made from these accounts to Iran, to Iranian accounts in any third country, or for any other use. Furthermore, the applicable laws and regulations and banking guidelines of Korea require that trade transactions between Korean and Iranian parties be subject to prior certification and clearance by relevant Korean governmental authorities (or organizations designated thereby) to ensure compliance with Korean economic sanctions and export controls against Iran, and the settlement of payments through the accounts opened by CBI at Woori Bank are not permitted without such prior certification and clearance. In 2012, total fee revenue from maintaining the CBI accounts amounted to approximately Won 55 million (which represented less than 0.001% of our total revenue). As there were no expenses direct applicable to such activities under our internal management accounts, we estimate that our net income before tax from maintaining the CBI accounts also amounted to approximately Won 55 million (which represented less than 0.01% of our total net income before tax). Woori Bank intends to continue maintaining the accounts opened by CBI within the current scope of services, to the extent such activity is permitted under, or otherwise exempted from, the indirect U.S. sanctions or other applicable sanctions.
  • Woori Bank also provides limited export-import financing services to Korean exporters and importers in connection with their trade transactions with Iran that are permitted under the relevant Korean sanctions and not subject to the indirect U.S. sanctions, primarily by discounting, advising on or issuing letters of credit, and to a lesser extent, issuing performance bonds on behalf of Korean contractors with respect to Iranian construction projects permitted under the relevant Korean sanctions and not subject to the indirect U.S. sanctions. All such transactions are settled through the accounts opened by CBI at Woori Bank as described above. In 2012, our total fee revenue from such export-import financing services amounted to approximately Won 21 billion (which represented approximately 0.12% of our total revenue), while our net income before tax from such activities (net of expenses directly applicable to such activities based on our internal management accounts) amounted to approximately Won 8 billion (which represented approximately 0.3% of our total net income before tax). Woori Bank intends to continue providing the export-import financing services with its current scope, to the extent such activity is permitted under, or otherwise exempted from, the indirect U.S. sanctions or other applicable sanctions.
  • Woori Bank also maintains a limited number of deposit accounts in Korea for a certain Iranian financial institution which is currently on the list of specially designated nationals maintained by OFAC (with an “IFSR” designation). Under Korean customer protection requirements, we are unable to provide specific information identifying this Iranian financial institution or the volume of their deposits, which constitute less than 0.05% of the Woori Bank’s total deposit base. These accounts were opened at Woori Bank before such Iranian financial institution was added to OFAC’s list of specially designated nationals, and under Korean law, these financial institutions are generally unable to repatriate the amounts in these accounts from Korea without specific authorization of the Korean authorities. As a Korean bank is generally prohibited under Korean law from unilaterally terminating a deposit account without the consent of the depositor, Woori Bank does not currently have plans to terminate these deposit accounts. In 2012, total fee revenue from maintaining such deposit accounts amounted to approximately ￦1 million (which represented less than 0.00001% of our total revenue). As there were no expenses direct applicable to such activities under our internal management accounts, we estimate that our net income before tax from maintaining the CBI accounts also amounted to approximately ￦1 million (which represented less than 0.0001% of our total net income before tax)."

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"In response, Rabobank and Société Générale say they have stopped servicing Iran deals or curbed their trade finance. According to Iranian trade professionals, Korea's Woori Bank and Industrial Bank of Korea have done the same. The Korean banks could not be reached for comment." (The Wall Street Journal, "Willing Banks Find Profits in Legal Trade With Iran," 4/8/2012) 

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Woori Bank is the lending unit of South Korea's third-largest financial company, the state-owned Woori Finance Holdings Co. The firm is currently undergoing privatization negotiations and came under investigation for fraud during the summer of 2010. (Businessweek).

In October 2010, Woori Bank, along with Industrial Bank of Korea, have been appointed by the South Korean government to "finance legitimate trade with Iran in sectors unaffected by sanctions, channelled through Iran's central bank." The deal will allow Iran's central bank to deposit oil proceeds in Woori Bank, which will then use the funds to pay South Korean firms exporting to Iran. South Korean trade to Iran amounts to $10 billion annually. A Woori Bank spokesman explained that "Iran's central bank is not the target of sanctions, so transactions through the bank are legal. We do not worry about any possibly sanctinons by the US against us" (Financial Times). 

In 2011, the Central Bank of Iran maintained an account at IBK in Seoul containing
the equivalent of over $1 billion in KRW (the "CBI Won Account"). The purpose of this account was to permit limited forms of trade between Korea-based entities and Iran, including the import of Iranian oil to Korea. The CBI Won Account at IBK was subject to several limitations. Among other things, the account could be used for transactions involving only certain, permissible types of goods, including crude oil exports from Iran. The CBI Won Account could also be used to compensate Korean businesses who were owed compensation from Iran for certain types of limited and permissible commercial trade and sales actions. All other transactions — including
transactions for weapons — were specifically prohibited. Additionally, transactions involving the CBI Won Account could not involve USD." (U.S. Department of Justice, "Indictment," 6/3/2020). 

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"New York authorities fined a South Korean bank over long-running gaps in its defenses against money laundering, after the lender’s Manhattan branch was used to launder cash for Iran.

The state-backed Industrial Bank of Korea must pay $35 million for lapses dating back to 2010, which centered on failing to install and maintain an adequate transaction-monitoring system, New York state’s Department of Financial Services said in a document reviewed by The Wall Street Journal. A spokesman for the bank said he had no immediate comment." (The Wall Street Journal, "New York Fines South Korean Bank Used for Iran Payments," 4/20/2020). 

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"stopped guaranteeing transitions and buying usance letters of credit for companies doing business with Iranian firms in response to the U.S.'s renewed sanctions against iran." (“Woori Bank and IBK partially suspend financial transactions with Iran,” Pulse (South Korea), June 19, 2018.) 

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"The US Treasury Department accused the Industrial Bank of Korea (IBK) branch in New York illicit arms transactions for Iran, the Korea Times reported on Thursday.
The bank denied the accusation that may lead the U.S. regulator to levy heavy penalties on it, like closing down its branch in New York. The US Treasury Department has submitted a report to the Korean financial regulator recently on its inspection results on a $1 billion illicit money transfer to Iran by a Korean-American businessman in 2012 which involved an escrow account at IBK’s New York branch." (March 2018)

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“South Korea is set to become the second Asian nation to make a payment to Iran for crude oil imports under an interim nuclear deal…Japan became the first of Iran's oil buyers to make a payment to Iran under the eased sanctions earlier this month. It was not clear the amount to be transferred but the Iranian central bank was holding up to $5.6 billion in two won-denominated accounts, one at Woori Bank and the other at Industrial Bank of Korea as of late 2013, according to one of the sources. A second source who confirmed the money transfer added the payment would be made by the two Korean banks next month - one part on early March and the other later in the month…State-owned Woori Bank and Industrial Bank of Korea declined to comment on the money transfer…Bank of Korea and South Korean finance ministry officials contacted by Reuters said no decision had been made about money transfers to Iran.” (Reuters, “South Korea set to make oil payment to Iran - sources,” 2/12/14)

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“Under penalty of expulsion from the U.S. banking system, Iranian crude customers such as China, Japan and India will be restricted to using their own currencies for the purchases, starting today. Importers will be compelled to keep the payments in escrow accounts that Iran can use only for locally sourced goods and services, in what will amount to barter arrangements…The new blockage on remittances will add to financial restrictions the U.S. imposed last year that curtail Iran’s access to dollars, euros and other hard currencies. Sanctions have already forced it into barter arrangements with China, its largest oil customer…South Korean buyers have been paying for Iranian crude in local won, through two accounts that Iran’s central bank opened in 2010 at the Industrial Bank of Korea and Woori Bank…South Korea’s exports to Iran of goods such as iron, steel and petrochemicals increased 3.2 percent to $6.3 billion last year, while imports dropped 25 percent, to $8.5 billion, according to customs data. Oil made up 99 percent of the goods that Japan and South Korea imported from Iran.” (Bloomberg, “Iran Faces Oil-Cash Squeeze as U.S. Bolsters Sanctions,” 2/6/14)

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"South Korean prosecutors have detained and charged a Korean American with the illegal transfer of a staggering 1.09 trillion won ($1.02 billion) in Iranian money frozen in South Korea under international sanctions, the lawyers said on Friday. The Seoul Central District Prosecutors' Office said a 73-year-old man, identified only by his family name, Chung, was suspected of making fraudulent transfers in 2011 from the Iranian central bank's won-denominated account at a South Korean bank by using fake invoices for payment. Prosecutors marveled at the scale of the withdrawals, indicating they believed there had to be more than one person involved. The prosecutors' office said those involved took advantage of a banking procedure that was now more tightly supervised... The prosecutors' office and the Industrial Bank of Korea (IBK) confirmed media reports that identified the state-owned lender as the financial institution that held the Iranian central bank account. IBK had received a payment order from the Iranian central bank, the bank and prosecutors said. It believed the order to be authentic because Chung had attached authorization from the Bank of Korea and a government agency that tracks exports of goods to countries under international sanctions, the prosecution said." (Reuters, "South Korea reveals staggering $1 billion transfer fraud in Iranian money," 1/25/13)

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"In response, Rabobank and Société Générale say they have stopped servicing Iran deals or curbed their trade finance. According to Iranian trade professionals, Korea's Woori Bank and Industrial Bank of Korea have done the same. The Korean banks could not be reached for comment." (The Wall Street Journal, "Willing Banks Find Profits in Legal Trade With Iran," 4/8/2012)

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Industrial Bank of Korea is one of South Korea's largest banks. It is a publicly-owned institution specializing in loans for small and medium-sized corporations. IBK is also involved in consumer banking, investment banking, and asset management (Google Finance).

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In October of 2010, the South Korean government appointed IBK to "finance commerce with Iran and revive business ties damaged by sanctions." The deal allows the Iranian central bank to deposit proceeds from oil sales at IBK, which will use the funds to pay South Korean firms exporting to Iran. South Korean trade with Iran amounts to $10 billion annually (Financial Times).