"The Iranian funds that had been frozen in South Korea due to financial sanctions on Iran have been recently transferred to a third country successfully under close coordination among the involved countries," South Korea's foreign ministry said in a statement.

The money in Qatar would be spent on food, medicine and other humanitarian items as it was in South Korea, the ministry said, according to Reuters. 

"Our government expects our bilateral relations to further develop on the occasion of the transfer of the frozen funds," the ministry said and thanked the governments of Qatar and Switzerland for their "constructive role" in resolving the issue.

Iran and the United States agreed to free five prisoners each as part of a deal that also included the release of billions of Iranian assets, which were illegally frozen in South Korea under the pretext of US sanctions.

The funds, owed to Iran for exports of oil and gas, had been frozen in South Korean bank accounts since 2018 after the administration of then President Donald Trump pulled the US from a landmark nuclear deal with Iran, further aggravating tensions with Tehran.

MNA/PR