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  • Nov 20, 2014
  • Updated: 9:01am

North Korea

The Democratic People's Republic of Korea is a country in East Asia, located in the northern half of the Korean Peninsula bordering South Korea and China. Its capital, Pyongyang, is the country's largest city by both land area and population. It is a single-party state led by the Korean Workers' Party (KWP), and governed by Supreme Leader Kim Jong-un since 2012. It has a population of 24,052,231 (UN-assisted DPRK census 2008) made up of Koreans and a smaller Chinese minority. Japan 'opened' Korea in 1876 and annexed it in 1910. The Republic of Korea (ROK) was founded with US support in the south in August 1948 and the Soviet-backed Democratic People's Republic of Korea (DPRK) in the north in September that year. 

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NORTH KOREA

UN accuses North Korea of using embassies, front companies to circumvent its sanctions

United Nations accuses Pyongyang of using sophisticated techniques to circumvent curbs, including deals with Hong Kong companies

PUBLISHED : Tuesday, 11 March, 2014, 11:02pm
UPDATED : Wednesday, 12 March, 2014, 5:42pm
 

North Korea has developed sophisticated techniques to circumvent sanctions, including the suspected use of its embassies in Singapore and Cuba to facilitate an illegal trade in weapons, a UN report said.

The United Nations said North Korea was also making use of more complicated financial countermeasures via companies in Hong Kong that made its purchase of prohibited goods more difficult to track.

[North Korea] makes increasing use of circumvention techniques
UNITED NATIONS REPORT

The report, compiled by a panel of eight UN experts, is part of an annual accounting of North Korea's compliance with layers of UN sanctions imposed in response to its banned nuclear and missile programmes.

The panel reports to the UN Security Council.

"From the incidents analysed in the period under review, the panel has found that [North Korea] makes increasing use of multiple and tiered circumvention techniques," a summary of the 127-page report said.

It said North Korean embassies in Cuba and Singapore were suspected of organising an illegal shipment of fighter jets and missile parts that were seized on a North Korean container ship in Panama last July.

Panama seized the Chong Chon Gang ship for smuggling Soviet-era arms, including two MiG-21 jet fighters, under thousands of tonnes of sugar. After the discovery, Cuba acknowledged it was sending "obsolete" Soviet-era weapons to be repaired in North Korea and returned to Cuba.

The report showed North Korea had gone to great lengths to obfuscate the origin of its merchant shipping fleet, and fostered a complicated corporate network outside the international financial system to purchase both banned and permitted goods.

North Korea is banned from shipping and receiving cargo related to its nuclear and missile programmes. The importation of some luxury goods is also banned, along with the illicit transfer of bulk cash.

The panel cited an example of an "unusually complex" transaction involving a contract by Air Koryo, the national carrier, to purchase new aircraft in 2012.

It said 109 payments were structured through eight Hong Kong-registered companies, which asserted they were trading partners of Air Koryo and were wiring funds they owed it.

The purchase of civilian aircraft is not prohibited, but some of the companies appeared to have been recently formed shell entities, the report said.

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