The state-run Industrial Bank of Korea (IBK) said it will provide special loans to small- and medium-sized businesses that do business with Iran to tide them over possible financial difficulties as a result of tighter U.S. sanctions against Tehran over its suspected nuclear weapons program.
The U.S. sanctions could make it harder for Korean firms to collect funds from Iran, Korea’s biggest trading partner in the Middle East.
Earlier this week, the U.S. included the Seoul branch of the Iranian Bank Mellat on its sanctions list.
IBK will provide up to 300 million won ($255,000) worth of loans with one-year maturity to help companies suffering from delayed payments. The loans can be extended up to three years if necessary. The bank will extend the grace period for bankruptcy proceedings from one to two months.