According to the Korea International Trade Association, South Korea has imposed limits on its exports to Iran mainly steel, cars and electronics to reduce its risk of payment defaults as western sanctions disrupt Iranian oil exports.

The KITA said that Asia's fourth largest economy, which sold USD 1.7 billion of goods in Iran in the Q1 of this year would seek to impose export limits.

South Korea's representative trade body said that a self imposed export control including setting settlement ceilings for exports to Iran starts from June 12th 2012 for those exporters who receive payments from the Iranian central bank's won denominated accounts at local banks.

KITA said that the measure had been taken in advance of planned European Union sanctions on insuring Iranian oil tankers. It also came as South Korea won an exemption from US sanctions thanks to its cuts in oil imports from Iran.

KITA said that fresh export deals to Iran will be approved only if their payment period is within 180 days to reduce uncertainty in payment settlement. This is temporary to prepare for the situation that Iranian crude imports do not go smoothly and it will be lifted if the trading condition with Iran improves sharply.

Source - Reuters

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