SEOUL, KOREA - Korea's automotive parts exports to Iran will be permitted for six months. In addition, Korean oil importers from Iran will be able to maintain their import quotas without any reduction.

 

As the EU and the U.S. government lifted limited sanctions against Iran after the landmark deal agreed in November to freeze its nuclear ambitions on January 20, Korean companies doing business with the Islamic Republic will benefit accordingly.

 

The U.S. Department of the Treasury announced the guideline on the same day and said, "The sanctions imposed on the Iranian automobile industry and related services industries are to be lifted on a limited-time basis. Except transactions with specifically named persons and organizations, all deals involving automotive parts and components and services will be permitted."

 

The Korea International Trade Association commented that Korean auto parts suppliers will be able to reap the benefit of more than US$100 million from the announcement. According to the trade group, Korea's auto parts export volume was reduced to $134 million from $385 million and $221 million in 2011 and 2012.

 

In addition to the lifting of the auto parts sanctions, the U.S. government has also allowed countries like China, Japan, India, Taiwan, Turkey, as well as Korea to import oil and petrochemical products from Iran. With this measure, Korean companies like SK Energy and Hyundai Oilbank will keep importing about 24 million barrels of oil a year. But this temporary sanctions lifting will last until July 20 and it is subject to whether the Iranian government will follow through with the promises made to the P5+1 (the United States, United Kingdom, Germany, France, Russia, and China).