Identifier
Created
Classification
Origin
07SEOUL1403
2007-05-10 07:30:00
SECRET//NOFORN
Embassy Seoul
Cable title:  

SEOUL RESPONSE: IMPLEMENTATION OF BANK SEPAH AND

Tags:  DA EFIN IR KNNP KS PARM 
pdf how-to read a cable
VZCZCXYZ0001
PP RUEHWEB

DE RUEHUL #1403 1300730
ZNY SSSSS ZZH
P 100730Z MAY 07
FM AMEMBASSY SEOUL
TO RUEHC/SECSTATE WASHDC PRIORITY 4475
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY
S E C R E T SEOUL 001403 

SIPDIS

NOFORN
SIPDIS

STATE FOR NEA/IR - MISKO AND ISN/CPI - CHALMERS
TREASURY FOR TFFC - LOEFFLER

E.O. 12958: DECL: 05/10/2017
TAGS: DA EFIN IR KNNP KS PARM
SUBJECT: SEOUL RESPONSE: IMPLEMENTATION OF BANK SEPAH AND
SEPAH INTERNATIONAL ASSET FREEZE

REF: STATE 60238

Classified By: ECON MINCOUNS ANDREW QUINN FOR REASONS 1.4 (B AND D).

S E C R E T SEOUL 001403

SIPDIS

NOFORN
SIPDIS

STATE FOR NEA/IR - MISKO AND ISN/CPI - CHALMERS
TREASURY FOR TFFC - LOEFFLER

E.O. 12958: DECL: 05/10/2017
TAGS: DA EFIN IR KNNP KS PARM
SUBJECT: SEOUL RESPONSE: IMPLEMENTATION OF BANK SEPAH AND
SEPAH INTERNATIONAL ASSET FREEZE

REF: STATE 60238

Classified By: ECON MINCOUNS ANDREW QUINN FOR REASONS 1.4 (B AND D).


1. (S/NF) MINISTRY OF FINANCE AND ECONOMY (MOFE) FOREIGN
EXCHANGE REGULATIONS DIVISION DIRECTOR HWANG KUN-IL TOLD
ECONOFF TODAY THAT MOFE NOTIFIED FINANCIAL INSTITUTIONS ON
APRIL 6 ABOUT THE FREEZE ON ASSETS OF BANK SEPAH AND BANK
SEPAH INTERNATIONAL AND OTHER ENTITITES PURSUANT TO UNSCR

1747. MOFE'S ASSET FREEZE GUIDELINES COVERED IMMINENT
PAYMENTS OF USD 140 MILLION THAT BANK SEPAH WAS POISED TO
MAKE TO KOREAN EXPORTERS HERE FOR DELIVERIES TO IRAN
COMPLETED BEFORE MARCH 24. HWANG NOTED THAT KOREAN EXPORT
COMPANIES CONTINUE TO PLEAD FOR THE RELEASE OF THIS MONEY
FROM BANK SEPAH BRANCHES IN SEOUL AND PUSAN SINCE THESE
MONIES ARE CRITICAL TO MANY OF THE SMALLER FIRMS, AND ALL THE
FIRMS INVOLVED ARGUE THESE PRE-MARCH 24TH TRANSACTIONS ARE
NOT COVERED UNDER UNSCR 1747. MOFE IS HOLDING FIRM ON THE
ASSET FREEZE BUT REMINDED US THAT THE U.K. GOVERNMENT IS
UNDER SIMILAR PRESSURE AND HAD THEREFORE SOLICITED ROKG
SUPPORT ON APRIL 20 TO HELP CLARIFY THIS ASPECT OF THE UNSCR
ASSET FREEZE THROUGH UN CHANNELS. HWANG SAID THE ROKG HAS
NOT YET DECIDED ON HOW TO RESPOND TO THE BRITISH REQUEST AND
WOULD APPRECIATE ANY U.S. GUIDANCE.


2. (S) WHEN ASKED FOR DETAILS ON FROZEN ASSETS, MOFE
DIRECTOR HWANG SAID NO ASSET FLIGHT HAS BEEN FOUND TO DATE
BUT THE INVESTIGATION CONTINUES. HE CONFIRMED THAT BANK
SEPAH BRANCHES IN SEOUL AND PUSAN ARE NOT CONDUCTING BUSINESS
AT THE PRESENT TIME. HWANG REITERATED EARLIER REQUESTS THAT
FINCEN SEND HIS OFFICE A WRITTEN REQUEST FOR ANY DETAILED
INFORMATION ON BANK SEPAH ACCOUNT HOLDERS INCLUDING THEIR
NAMES AND DATES OF BIRTH, IF SUCH INFO IS DESIRED. (NOTE:
KOREA'S REAL NAME TRANSACTION LAW PROTECTS ACCOUNT HOLDER
INFORMATION UNLESS A FOREIGN FINANCIAL SUPERVISORY AUTHORITY
REQUESTS SUCH DATA IN WRITING. END NOTE.)


3. (S) ASKED ABOUT OTHER ENTITIES COVERED UNDER THE ASSET
FREEZE, HWANG CONFIRMED THAT AMMUNITION AND METALLURGY
INDUSTRIES GROUP, ESFAHAN NUCLEAR FUEL RESEARCH AND
PRODUCTION CENTER, ESFAHAN NUCLEAR TECHNOLOGY CENTER,

KAVOSHYAR COMPANY, PARCHIN CHEMICAL INDUSTRIES, KARAJ NUCLEAR
RESEARCH CENTER, NOVIN ENERGY COMPANY, CRUISE MISSILE
INDUSTRY GROUP, AEROSPACE INDUSTRIES ORGANIZATION, SHAHID
HEMMAT INDUSTRIAL GRUP AND SHAHID BAGHERI INDUSTRIAL GROUP
WERE SO DESIGNATED. IN ADDITION, ALL IRANIAN REVOLUTIONARY
GUARD CORPS ENTITIES AND KEY PERSONS INVOLVED IN THE
REVOLUTIONARY GUARD OR NUCLEAR/BALLISTIC MISSILE ACTIVITIES
WERE DESIGNATED PURSUANT TO UNSCR 1747.
VERSHBOW