Iran pulls SKorean sponsorship deal over atomic row

Reuters - Iran has blocked sponsorship by a South Korean company of an international soccer tournament in further retaliation against Seoul's stance regarding Iran's nuclear programme, newspapers reported.
Tehran last month placed an informal import ban on South Korean goods after Seoul sided with Washington and the European Union in backing a tough U.N. resolution on Iran's nuclear programme. British goods have been hit with a similar ban, industrialists and diplomats say.

The soccer tournament involving national sides from Iran, Macedonia, Togo and Paraguay was to be sponsored by South Korean consumer goods manufacturer LG Electronics. The matches are due to be played on Friday and Saturday in Tehran.

Mohammad Reza Pahlavan, secretary of Iran's Football Federation, said Iran's Physical Education Organisation had vetoed any sponsorship of sporting events by South Korean firms.

"Therefore, the Football Federation is attempting to find another sponsor for the games," he told the semi-official Fars news agency.

He said he hoped a local sponsor would be found in time to allow the tournament, part of Iran's preparations ahead of the 2006 World Cup Finals in Germany, to go ahead as planned.


An unnamed LG official in Tehran told the ISNA students news agency the company may seek damages.

"We want to cooperate with Iran's Football Federation as our aim is to support Iran's national team so that it has a strong performance at the World Cup," he said.

But Tehran lawmaker Fatemeh Alliya said sponsorship of the tournament was a matter of national pride.

"What is the point of hosting our flag in a South Korean-sponsored tournament when this country has humiliated us over the nuclear issue?" Fars quoted her as saying.

Iran says its nuclear programme will never be used to make atomic weapons, only electricity to meet booming demand.

Tehran has adopted a tougher stance on the nuclear issue since former Revolutionary Guardsman Mahmoud Ahamdinejad became president in August.

Ahmadinejad's new government has said it wants to strike a balance between political and economic relations meaning that those countries which do not support it on political issues may find their trade relations with Tehran harmed.