Iran says South Korea holding US$7b of its money

An Iranian government spokesman on Tuesday rejected allegations that Iran's seizure of a South Korean vessel amounted to hostage-taking, and said was it was South Korea that was holding US$7 billion of Iran's funds "hostage".

"We've become used to such allegations ... but if there is any hostage-taking, it is Korea's government that is holding US$7 billion which belongs to us hostage on baseless grounds," spokesman Ali Rabiei told reporters at a news conference streamed live online, Reuters reports.