Trump Team Weighs $300 Billion Iran Reconstruction Fund With South Korean Firms Participating

The Trump administration is considering setting up a reconstruction fund of as much as $300 billion if Iran agrees to a final ceasefire deal that includes nuclear negotiations. While publicly framed as an investment vehicle backed by private companies, the proposal is effectively seen as support for rebuilding Iran’s economy in return for ending the war.

The Financial Times reported on June 15, citing a senior US official, that negotiators discussed easing sanctions on Iran and establishing a $300 billion reconstruction fund during ceasefire talks. Vice President JD Vance also acknowledged the discussions in an interview with CBS, saying Iran would be able to access the fund if it meets its obligations.

The FT reported that the fund would be created only after a final agreement is reached and explicitly included in a memorandum of understanding. Under the MOU, the US and Iran would first reopen the Strait of Hormuz, then continue negotiations on a final agreement covering Iran’s nuclear program and sanctions relief.

The fund would probably be centered on private companies rather than governments. US, European and Asian companies interested in investing in Iran’s energy industry could participate. A person familiar with the negotiations told the FT that companies from Europe and Asia, including South Korea and Japan, as well as US firms, are showing interest. If sanctions are lifted, the fund could grow to a substantial size.

The question of the US providing funds to Iran in exchange for a ceasefire remained a sensitive issue throughout the negotiations. President Donald Trump has criticized the Iran nuclear deal under former President Barack Obama, formally known as the Joint Comprehensive Plan of Action, saying that “cash changed hands.” In the current talks, he has insisted there will be no arrangement that involves directly handing over money.

Some observers say the scale of the financial support now under discussion could exceed the economic benefits provided under the previous nuclear agreement.

The FT also reported that the release of Iran’s frozen overseas assets and sanctions relief would proceed in stages in line with progress in the nuclear talks. US officials said limited initial financial relief would be offered as a trust-building measure, with additional easing to follow in phases depending on how the negotiations develop.

Iran sees the proposed reconstruction fund as effectively resembling war reparations. Mehdi Mohammadi, a strategic adviser to the chief adviser of Iran’s negotiating team, told local media that although the word “reparations” was not explicitly used, any discussion of reconstruction clearly meant compensation for the damage Iran suffered during the war.

Kang Kyung-ju, Hankyung.com reporter, qurasoha@hankyung.com