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US Sanctions on Iran Pose Risk for South Korean Companies

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South Korea is assessing whether its companies could be exposed to US sanctions on Iran through dealings with third-country firms and financial institutions. The US launched a wide-ranging sanctions regime, Operation Economic Outcast, aimed at cutting Iran off from global financial networks.

The new measures broaden the categories of conduct that may trigger secondary sanctions, allowing Washington to penalize foreign companies and banks for certain dealings with Iran even when no US party is involved.

South Korean trade with Iran has fallen sharply, and imports of Iranian crude have effectively stopped. However, companies could still face risks if transactions with partners in China, Hong Kong, or other trading hubs are used for Iranian oil sales, financing, or sanctions evasion.

US Treasury Secretary Scott Bessent said the goal is to cut every economic lifeline sustaining Tehran, and that the US knows who facilitates transactions and will target them accordingly.

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