South Korean media: The final uncertainty in the ceasefire talks is "freezing of assets"... Iran demands unfreezing of $100 billion

¬ Overseas assets have become the core point of contention

As the second face-to-face ceasefire negotiations between the U.S. and Iran approach, whether Iran’s funds frozen overseas due to U.S. sanctions can be unfrozen has become a major variable. Despite receiving less attention compared to previous issues such as restrictions on nuclear weapons programs, opening the Strait of Hormuz, and supporting local proxy forces, Iran—facing a severe economic crisis—is strongly demanding that the unfreezing of these funds be made a prerequisite for negotiations.

On the 16th, Al Arabiya TV from the UAE reported that the total amount of Iranian assets frozen overseas is estimated to exceed $100 billion (approximately KRW 147 trillion). This is roughly equivalent to one-quarter of Iran's GDP last year and about three to four times its annual oil and gas export revenue. Iranian frozen assets are scattered globally. At least $20 billion are frozen in China, $7 billion in India, $6 billion in Qatar, $6 billion in Iraq, $2 billion in the U.S., $1.6 billion in the European Union, and $1.5 billion in Japan. These assets were mostly seized by various countries during transactions meant to offset payments for imported Iranian crude oil. If real estate, investment shares, anonymous accounts, and other non-cash assets are included, the total scale may be even larger.

South Korea has also frozen $6 billion of Iranian funds. Originally intended for payment toward Iran’s oil and gas imports, these funds were dispersed across South Korean banks and IBK Industrial Bank but were frozen after the Trump administration’s first term began imposing sanctions on Iran in 2018. However, as part of a condition for releasing Americans detained by Iran, this $6 billion was transferred in September 2023 to Iran’s central bank account at Commercial Bank of Qatar.

Recently, Iran has strongly demanded resolution of the issue of frozen overseas assets. After President Trump returned to office for his second term, the U.S. and Iran held multiple rounds of talks on nuclear issues, yet the freezing of assets remained secondary to other topics. But when Iran’s Parliament Speaker Mohammad Bagher Ghalibaf stated on the 10th that unfreezing assets is a precondition for entering negotiations, the issue once again drew attention. On the 11th, just before the first round of talks, reports emerged that Iranian officials claimed the U.S. had agreed to unfreeze $6 billion in assets held in Qatar. The White House swiftly denied the report within an hour, calling it “entirely fictitious.” On the 15th, Iran’s Foreign Ministry spokesperson Ismail Baghai stated: “Unfreezing assets is not a concession from the other side—it is merely the restoration of rightful rights.”

The background behind Iran’s strong push for resolving the frozen asset issue lies in an impending economic collapse. Ongoing structural crises—including high inflation, soaring exchange rates, and deteriorating infrastructure—are compounded by geopolitical tensions, triggering a vicious cycle of capital flight. The very issue used by the U.S. as justification for airstrikes—“cracking down on anti-government protests”—is itself a consequence of worsening economic conditions. Thus, to alleviate economic pressure, unfreezing assets is essential. Some experts believe that because cash assets can be deployed quickly, the frozen asset issue could become the most powerful leverage in negotiations. According to Reuters, Iran has linked the unfreezing of assets to safe passage through the Strait of Hormuz, turning it into a key point of contention in the talks.

For decades, the U.S. has consistently used frozen assets as leverage in negotiations with Iran. Sanctions against Iran began during the 1979 Iranian Islamic Revolution, specifically following the hostage crisis at the U.S. Embassy in Tehran. In 1981, under Jimmy Carter’s administration, some frozen assets were unfrozen in exchange for the release of American hostages. During Barack Obama’s presidency, in 2015, the majority of frozen assets were unfrozen under the Joint Comprehensive Plan of Action (JCPOA) on Iran’s nuclear program. In 2023, the U.S. and Iran signed an agreement to exchange five prisoners of war from various nations; after U.S. approval, $600 million originally detained in South Korea was transferred to Qatar. However, hardliners within the Trump administration fear that once frozen assets are unfrozen, they might be used to develop missiles or fund terrorist organizations in the Middle East, leading them to oppose the move strongly.

Source: Chosun Ilbo

Original article: toutiao.com/article/1862680893236224/

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