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Iranian President Haasan Rouhani giving a speech on Mar. 20 during the Iranian New Year celebration. (AFP/Yonhap News)

Iranian President Haasan Rouhani reportedly wrote a letter to South Korean President Moon Jae-in recently requesting diagnostic kits and other forms of assistance amid the country’s struggles with a rapid spread of the novel coronavirus. The South Korean government is also exploring ways to provide Iran with support. Observers are watching to see whether the resumption of humanitarian trade between South Korea and Iran after its suspension due to US sanctions can also provide a breakthrough for the two sides’ soured relations.

Explaining that “diplomatic practice prevents us from confirming the exchange of correspondence between leaders,” a South Korean Ministry of Foreign Affairs (MOFA) said on Mar. 23 that Iran “has made it known through various channels that it is suffering a severe public health crisis due to the coronavirus outbreak, and the [South Korean] government is exploring various approaches to providing humanitarian aid.” Iran has over 21,000 people with confirmed coronavirus diagnoses and a death toll of over 1,600 to date. Struggling under US sanctions, the Iranian government has appealed to the international community for medical and health assistance, but officially rejected a proposal of support from US President Donald Trump.

As a first step, Seoul is working on a plan for supplying Iran with medical items in connection with the virus. A MOFA official said, “We’re working to provide support as quickly as possible, focusing on items that will not create issues in terms of domestic supplies.”

A more important step will involve the swift resumption of trade in humanitarian items such as medication and medical equipment by using Iran’s petroleum export funds, which are currently tied up in won-denominated accounts in South Korean financial institutions due to US sanctions. Around 7 trillion won (US$5.58 billion) in funds for petroleum exported to South Korea by Iran is currently frozen in South Korean financial institutions, with the Iranian government repeatedly protesting its non-delivery because of US sanctions. The institutions remain adamant that the money cannot be sent to Iran without firm guarantees from the US government.

A MOFA senior official said, “We are examining the Swiss approach and pursuing a method where we establish a similar system to provide humanitarian support.” Under the “Swiss approach,” banks and companies provide detailed information about transactions in exchange for a guarantee from the US Treasury Department that their transactions with Iran are not in violation of sanctions. The approach was used by Switzerland to engage in US$25.5 million worth of pharmaceutical transactions with Iran last January. South Korea is also in discussions with the US government to resume humanitarian item transactions with Iran under the same method.

“We’re pursuing concrete discussions with the US government based on three potential approaches for having exceptions to the sanctions recognized for humanitarian trade with Iran,” a MOFA senior official said.

By Park Min-hee, staff reporter

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