Iranian lender Bank Mellat is contemplating withdrawing from South Korea due to mounting fears of U.S. secondary sanctions, an official from the bank's Seoul branch told The Korea Herald. The official said the upcoming US presidential election will only escalate the pressure on Iran and Bank Mellat may have to consider closing its operations in Korea. The bank faces operational hurdles as Korean companies, including local banks, are reluctant to associate with Iranian lenders due to potential US penalties. Bank Mellat, 20% owned by the Iranian government and 80% privately held, is the sole Iranian bank operating in South Korea. It is currently appealing a court decision dismissing its lawsuit against Woori Bank over frozen funds worth around KRW20bn (USD14.5m), with the court citing risks of US sanctions.