01 September 2010

United States Imposes New Sanctions on North Korea

Treasury Under Secretary Stuart Levey discusses sanctions.

By Merle David Kellerhals Jr.
Staff Writer

Washington — The United States broadened financial sanctions against North Korea to block the U.S. assets of entities that trade in conventional arms, luxury goods and counterfeit currency or engage in money laundering, drug smuggling and other “illicit economic activities” that enrich the highest levels of the regime of Kim Jong-il, the U.S. Treasury says.

Treasury Under Secretary Stuart Levey said the action, which imposes new sanctions against four North Korean citizens and eight companies, was taken by President Obama in a new executive order issued August 30.

“The president decided that North Korea’s continued provocative actions — such as its unprovoked attack on the South Korean naval ship Cheonan in March of this year, which resulted in the ship’s sinking and the deaths of 46 sailors, its test of a nuclear device and missile launches in 2009, its violations of U.N. Security Council resolutions … and its illicit and deceptive practices in international markets — justify additional sanctions,” Levey told reporters.

“The destructive course that the North Korean government is charting is facilitated by a lifeline of cash generated through a range of illicit activities,” he added. “North Korea’s government helps maintain its authority by placating privileged elites with money and perks, such as luxury goods like jewelry, luxury cars and yachts.”

Levey said North Korea receives millions of dollars annually from arms sales outlawed by the United Nations and from illicit criminal activities. One of the entities targeted by these new sanctions is a shadowy network known as Office 39, which is reportedly a branch of the Korean Workers’ Party. The network raises hard currency to pay for luxury items like liquor, exotic food and expensive cars for friends of Kim Jong-Il, Levey said.

Also targeted in the sanctions are Green Pine Associated Corporation and its parent company, the Reconnaissance General Bureau, and the bureau’s commander, Lieutenant General Kim Yong Chol, Levey said. The Treasury Department also targeted Ri Hong-sop, believed to be the former head of the Yongbyon nuclear complex; Ri Je-son, believed to be director general of the General Bureau of Atomic Energy; and Yun Ho-jin.

Sanctions were also imposed against the Korea Taesong Trading Company, Korea Heungjin Trading Company, Munitions Industry Department, Second Academy of Natural Sciences, and Second Economic Committee.

Robert Einhorn, the State Department’s special adviser for nonproliferation and arms control, speaking at the same press briefing, said the actions being taken by the United States are intended to convince the North Korean regime that it will face consequences if it engages in provocative and unacceptable behavior. He added that these actions are not being taken against the North Korean people, who are the victims of the regime’s actions.

(This is a product of the Bureau of International Information Programs, U.S. Department of State. Web site: http://www.america.gov)