▲ This undated file photo shows the signs for Bank Mellat in Seoul. (Yonhap)

Iranian bank-compensation suit

Court rules in favor of Iran's Mellat Bank in compensation suit against BOK

SEOUL, May 29 (Yonhap) -- A Seoul court has ruled in favor of Mellat Bank in a suit against the Bank of Korea (BOK) over its denial of a 2019 request to open a new bank account to operate surplus funds, judiciary sources said Friday.

The Seoul Central District Court delivered the verdict on Thursday and ordered the BOK to pay compensation of 10 billion won (US$6.6 million) and interest on arrears, according to the sources.

In June 2019, the BOK rejected Mellat Bank's request to temporarily deposit 10 billion won by using a one-day deposit policy of the central bank, citing the absence of transaction records with other financial institutions.

In December 2024, Mellat Bank filed the suit seeking 10 billion won in initial compensation, claiming the BOK's move incurred a combined loss of 104.5 billion won in interest.

The BOK said it denied the request in principle of good faith as the Iranian bank was on the U.S. government's Specially Designated Nationals list, but the court did not acknowledge such a claim as validating the decision.

Following the ruling, Mellat Bank confirmed the 10 billion-won compensation in the first trial, saying it expects more than 110 billion won in profit in the event it wins the suit.

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