South Korea’s Pivot toward Iran: Resource Diplomacy and ROK-Iran Sanctions
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As United States-led sanctions on Iran tightened in 2012, South Korea stood out among U.S. allies for its reluctance to cut financial ties and reduce imports of Iranian oil. With import numbers dropping, South Korea struggled to find ways to overcome European Union shipping insurance restrictions and maintain a significant trade relationship with Iran. Given the close relations between the United States and South Korea, there were rising concerns over the possibility that the initiator of the sanctions might have to block South Korea from its domestic financial market in retaliation for continued trade with Iran. This paper explores the reasons behind South Korea’s reluctance to join sanctions on Iran;namely long-held realist assessments of Middle Eastern threats, inflated perceptions of the effect of oil price hikes on the domestic economy, and an established practice of circumventing U.S. sanctions in order to maximize economic security. Much of the evidence concerning Korea’s motivations in Iran unveiled in this paper has been overlooked or inaccessible to Western analysts. Using recently declassified cables from the Ministry of Foreign Affairs and Trade and other Korean sources never before translated, this paper explains why South Korea seeks to maintain links to Iran, even at the risk of disrupting its alliance with America.
Abstract
As United States-led sanctions on Iran tightened in 2012, South Korea stood out among U.S. allies for its reluctance to cut financial ties and reduce imports of Iranian oil. With import numbers dropping, South Korea struggled to find ways to overcome European Union shipping insurance restrictions and maintain a significant trade relationship with Iran. Given the close relations between the United States and South Korea, there were rising concerns over the possibility that the initiator of the sanctions might have to block South Korea from its domestic financial market in retaliation for continued trade with Iran. This paper explores the reasons behind South Korea’s reluctance to join sanctions on Iran;namely long-held realist assessments of Middle Eastern threats, inflated perceptions of the effect of oil price hikes on the domestic economy, and an established practice of circumventing U.S. sanctions in order to maximize economic security. Much of the evidence concerning Korea’s motivations in Iran unveiled in this paper has been overlooked or inaccessible to Western analysts. Using recently declassified cables from the Ministry of Foreign Affairs and Trade and other Korean sources never before translated, this paper explains why South Korea seeks to maintain links to Iran, even at the risk of disrupting its alliance with America.
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