Iran Seeks Release of $24 Billion in Frozen Assets, Warns Against Repeat of South Korea Case

Iran has asked for the release of $24 billion in frozen assets during talks in Qatar over a peace agreement, Iranian media reported.

Tasnim News Agency, citing a source close to the negotiating team, reported on May 26 that Tehran wants the release of the assets to be a central part of any agreement. If a memorandum of understanding being negotiated with the US is signed, Iran wants immediate access to an initial $12 billion. The remaining half should be transferred within 60 days, the source added.

Parliament Speaker Mohammad Bagher Ghalibaf and Foreign Minister Abbas Araghchi visited Qatar on May 26 to discuss the issue. Tasnim said Ghalibaf's trip was intended to advance Iran's demand and secure agreement on access to the first $12 billion while resolving obstacles.

Iran also stressed that implementation procedures must be closely monitored to avoid a repeat of earlier episodes, citing its experience in negotiations over the release of Iranian assets in South Korea and Qatar.

Qatar holds most of Iran's frozen funds, including $6 billion transferred from South Korea three years ago. South Korea, which had imported Iranian crude, halted payments in May 2019 after President Donald Trump withdrew the US from the Iran nuclear deal, formally known as the Joint Comprehensive Plan of Action, during his first term and reimposed sanctions on Tehran.

The funds were initially frozen at Woori Bank and Industrial Bank of Korea. In 2023, they were transferred to an account of Iran's central bank at QNB in Qatar as part of a US-Iran prisoner swap. The money could be used only for humanitarian purposes such as food and medicine under US oversight, and it was frozen again after the war in Gaza broke out a month later.

Qatar's statement that it is not providing funds as a guarantee for the memorandum of understanding is broadly consistent with the facts, because the assets discussed in Doha already belong to Iran and are unrelated to any guarantee. Because of its past experience, Iran is seeking the return of the funds under close review and strict standards.

Some foreign media outlets reported that Qatar had offered Iran $12 billion to guarantee negotiations with the US, but Qatar's foreign ministry denied the claim. A source told Tasnim the funds under discussion in Doha belong to Iran and are not being guaranteed by Qatar. The source added that the talks in Qatar were generally positive and contributed to progress in the broader negotiations.

Lee Sang-eun, Washington correspondent selee@hankyung.com