The Iranian Melat Bank suffered hundreds of millions of won in losses due to U.S. sanctions against Iran, as its funds deposited in South Korea were frozen, and it ultimately lost its damages lawsuit against Woori Bank.
The Supreme Court decided on the 28th that it dismissed the appeal in the 'deposits return and damages lawsuit' filed by the Melat Bank Seoul branch against Woori Bank, which had been heard on the 24th. The dismissal of the appeal means that the original ruling has been confirmed without a separate review of the case.
Earlier, the Seoul High Court ruled in January that the fund freeze was a normal measure due to international sanctions and that interest was normally paid during the freeze period, and therefore, there was no obligation for damages.
Melat Bank filed a lawsuit for the return of 20.2 billion won in deposits held by Woori Bank in September 2023. These deposits are funds that were frozen in November 2018 due to U.S. economic sanctions against Iran.
In addition to the return of deposits, Melat Bank demanded that Woori Bank pay interest at 6% annually for the 5 years and 11 months since November 2018, up to October 2023, and 12% annually from that point until the funds are returned, claiming additional interest due to lost investment opportunities. However, both the first and second trials ruled in favor of Woori Bank.