Iran and South Korea are discussing ways to use funds blocked in Seoul due to the US sanctions to settle Tehran’s overdue membership fees to the United Nations.

According to South Korean government sources on Thursday, Tehran and Seoul seek to capitalize on the assets to handle the issue of the UN dues, which have deprived Iran of its voting rights.

"Our government is in consultations with the Iranian government in that regard and is in related consultations with the US and the UN as well," sources told Yonhap News Agency on condition of anonymity.

After the Islamic Republic lost the right to vote at the UN, Foreign Ministry Spokesman Saeed Khatibzadeh said Tehran is trying to find a secure channelto pay its membership fee and end its suspension.

According to the UN charter, a member loses the right to vote when its debts equal or exceed the amount of dues it should have paid over the previous two years.

Last year, Iran managed to pay $16 million of its $65 million arrears to recover its vote after Tehran was granted an exemption from the sanctions and was allowed to access money blocked by the US Treasury. This time the minimum amount Iran must pay is over $18 million.

Two South Korea banks hold $7-9 billion of Iranian money, owed for oil imports.