S. KOREA-IRAN FAILS TO REACH AGREEMENT

[Anchor Lead]

Talks between Korea and Iran over the release of the seized Korean tanker have hit a snag. Iran insists on receiving first its frozen funds in its bank accounts in Korea and believes it's feasible.

[Pkg]

South Korea's diplomatic delegation visiting Iran met with the head of Iran's central bank on January 11. In addition to the seized South Korean tanker, they also discussed Iran's 7-billion-dollar frozen assets in South Korean bank accounts under U.S. sanctions. Iran's Central Bank chief Abdolnaser Hemmati expressed strong discontent over Korea's failure to deliver on its promise made one and a half year ago to solve this matter. He even brought up the possibility of legal action and threatened to make Korea pay the interest on Iran's frozen funds. Iran's Central Bank chief Hemmati visited Korea in June 2019 and met with Finance Minister Hong Nam-ki. Iran's Foreign Affairs Minister Mohammad Javad Zarif also urged the Korean delegation to solve the issue of frozen assets first. He drew a clear distinction by saying that the Korean tanker was seized due to environmental issues and that the situation must be resolved according to law, which the Iranian government cannot intervene with. The Korean delegation attempted to find a solution by meeting with Iranian health authorities to offer cooperation in the health care sector in return for the tanker's release. However, the negotiations have hit a snag. Sources say the five seized South Korean crew members spoke to their families in Korea by phone last weekend.

[Soundbite] (STAFF AT TANKER MANAGEMENT COMPANY) : "The captain sounded quite upbeat. He said the Iranian troops are not using force and are just present on board the ship."

An official from the Ministry of Foreign Affairs says the other crew members of foreign nationalities also spoke to their respective home countries on the phone and everyone remains unharmed.