WASHINGTON -- There will not be a significant impact from the release of frozen Iranian assets in South Korea, a White House official said Friday, amid reports that the transfer of up to $7 billion from South Korea may weaken the local currency.

John Kirby, National Security Council coordinator for strategic communications, said the US has worked "extensively" with South Korea to that end.

"All I can tell you without getting into too much of the details is that we have worked extensively with the South Koreans on this and there's no impact to the movement of the account from South Korea," the NSC spokesperson told a virtual press briefing when asked about any potential impact to the value or exchange rate of the South Korean won.

Earlier reports said the US has agreed to release the Iranian assets, frozen in two South Korean banks since 2019, in exchange for the release of five American citizens detained in Iran.

South Korea on Friday declined to confirm the US-Iran deal, but said it hopes for a smooth resolution of the issue of frozen Iranian assets, adding the government has been in close consultation with relevant countries, including the US and Iran, to address the issue. (Yonhap)