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Iran’s Supreme Leader Ayatollah Ali Khamenei imposed a strict import ban on home appliances made in South Korea, a directive that will rekindle debates over its micromanaging the Iranian economy.
In his brief communication to President Ebrahim Raisi, the top Iranian leader ordered the radical cleric to “firmly block” such imports. Without naming Samsung and LG, Khamenei said the renewal of imports from “the two” [South] Korean companies … will break the backbone of domestic manufacturers who have just started to stand on their own two feet. ”
Both Samsung and LG have seen a booming market in Iran over the past two decades as domestic manufacturers have largely failed due to several problems including government interference, international sanctions and corruption. The skyrocketing inflation in Iran has almost tripled prices domestic appliances, both domestic and imported, in the past two years, adding to the turmoil in the already ailing market.
Before her last attempts The two South Korean giants left the Iranian market for re-entry in early 2020, at a time when the US policy of “maximum pressure” was being exerted at full speed by former US President Donald Trump. The strategy should discourage international companies from doing business with Iran. On her departure, the then Iranian Deputy Foreign Minister Abbas Araghchi reminded Samsung and LG that companies leaving Iran may not find it easy to return.
In his public statements, Khamenei has been a vocal supporter of domestic production and has named successive Persian New Years celebrations after Economic slogans, with the current focus on “production, support, removal of hurdles”.
However, bans on certain companies have been rare for Iran’s ally, China. Chinese products continue to dominate the Iranian market, forcing bankruptcy Iranian company almost daily. Despite protests, well-connected importers working directly or indirectly with the Financial empires of the supreme leader to maintain a robust monopoly, which makes some domestic manufacturers practically irrelevant.
It was not immediately clear whether Khamenei’s ban on the two South Korean firms was politically motivated or whether he would apply the same argument to Chinese companies. But to the Iranian leadership, South Korea, as an ally of the USA, represents the interests of the “enemy” in East Asia and is therefore hardly a reliable partner.
When triggering criticism against direct disturbance and micromanagement, the Iranian leader’s ban also led to another backlash on social media platforms. It dug up recent memories of its US and UK bans on vaccines in January, despite growing demands for imports to contain a deadly wave of the coronavirus pandemic.
Later in August, Khamenei changed his stance slightly and called for some vaccine imports to be accelerated. But over 39,000 Iranians lost in the seven months between Khameneis initial ban and be Change of heart.
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