Reuters reported on Wednesday that Iran is facing oil payment problems with South Korea similar to problems it faces with India. The report claims that South Korea has been unable to use international banking system to transfer $3.82 billion to Iran for the crude oil it has purchased this year. Iran has a similar problem with India where some $5-7 billion of its cash is trapped due to the inability of Indian banks to transfer the funds to Iran.
The South Korean authorities have allowed Iran to open an account in the local currency won. The refiners who purchase Iranian crude have been transferring funds to this won account. Iran can use the funds to purchase South Korean goods, but Iran has a large trade surplus with the country and most of the cash would still be trapped inside South Korea if Iran continues selling oil to the country.
South Korea imports some 230,000 barrels of Iranian crude per day.