South Korea and Iran have held working-level consultations to discuss ways to resolve yearslong disputes over Tehran's assets frozen here under US sanctions, Seoul's foreign ministry said Wednesday.

Iranian bankers and officials from the state-run oil company and the petroleum ministry are in the nation to meet with South Korean government and company officials to talk about pending economic issues as multilateral talks to revive the 2015 Iran nuclear deal enter the final stretch.

Bilateral relations remain frayed over $7 billion in Iranian funds locked in two Korean banks under US sanctions, which were reimposed after former President Donald Trump in 2018 withdrew from the landmark deal.

During the two-day meetings from Tuesday, the two sides discussed detailed payment options and the possibility of resuming oil trade in preparation for potential US sanctions relief on Iran.

The country, which sits on the world's fourth-largest oil reserves, had been a key oil supplier to South Korea, importing its goods such as industrial equipment, household appliances and vehicle parts. (Yonhap)