S.Korea lists new sanctions against Iran

South Korea Wednesday blacklisted 102 companies, including the Seoul branch of Iran's Bank Mellat, as well as 24 individuals accused of facilitating Iran's efforts to develop nuclear weapons.

Bank Mellat has been at the heart of US demands for tougher South Korean sanctions, as it has been accused of facilitating hundreds of millions of dollars in transactions for Iranian nuclear and defense entities.

"We based the measures on the need to join in international efforts related to Iran's nuclear program," a government official told reporters. "Any transactions by Bank Mellat as small as $1 will require government authorization. It's our belief that normal transactions by Bank Mellat will be difficult."

South Korea will also ban investment and construction contracts in Iran related to petroleum resources, he said.

South Korea has agonized for weeks over to whether to back close ally, the US, and impose toughened sanctions on Iran, or heed Iran's warning that new sanctions could risk business deals and endanger oil supplies from a major source.

Iran is the fourth-largest source of crude oil for South Korea, accounting for about 10 percent of its supplies.

Any disruption of shipments would have a big impact on Asia's fourth-largest economy, which relies on imports for all its energy resources.

Reuters