South Korea has released a small portion of Iranian funds in its banks for the purchase of medicine and vaccines, Press TV reported Wednesday, quoting a senior Iranian businessman.

"Only $30 million of Iranian funds in South Korea have been released for purchase of coronavirus vaccines and other medications," Hossein Tanhayi, head of Iran-South Korea Joint Chamber of Commerce, said on Wednesday.

In February, South Korea agreed to help release at least $1 billion out of the around $7 billion of funds that have remained blocked in two South Korean banks since 2018, said Tanhayi. "However, the agreement has not been implemented yet," he added.

Tension rose after Iran seized a South Korean ship and its sailors in the Strait of Hormuz in January, accusing them of polluting the waters, and demanded South Korea release $7 billion in assets frozen in South Korean banks under U.S. sanctions.

(With input from Xinhua and Reuters)