Iran's Bank Mellat files lawsuit to cancel sanction imposed by S. Korea

SEOUL, Sept. 8 (Yonhap) -- A Iranian bank has filed a lawsuit against South Korea for its 2010 decision to suspend the bank's local branch, which the country suspected was used as a financial channel for Iran's nuclear activities, a Seoul court said Thursday.
In the lawsuit against South Korea's finance minister, Bank Mellat requested that the Seoul Administrative Court order the finance ministry to cancel last year's decision to sanction the bank's Seoul branch, according to the administrative court.
In September 2010, Seoul put 102 Iranian entities, including the Bank Mellat branch, and 24 individuals under government supervision as part of its package of sanctions to join a U.S.-led campaign to censure Tehran over its suspected nuclear program.
"Bank Mellat has not been involved in any illegal activities linked to Iran's nuclear or missile development thus it has no reason to face a sanction," the bank said in a court record.
South Korean financial watchdog's inspection of the local branch last year could not prove the bank was used to transfer money to Iranian terrorist rings or nuclear proliferation activities, the bank claimed.
Bank Mellat also noted the decision is illegal because it was only released to the media without directly informing the bank, adding the total business suspension is affecting its business foundation.