U.N. panel says ties with N. Korea's Air Koryo breach arms embargo

  Doing business with North Korea's flag carrier, Air Koryo, could violate U.N.-led sanctions, according to U.N. report issued Tuesday.

   An eight-member expert panel with the U.N. Security Council said the airliner, as well as all airports and airfields in the nation, are actually run by the Air Force through its Civil Aviation Bureau.

   Accordingly, U.N. member states "should be aware that providing financial transactions, technical training, advice, services or assistance related to the provision, maintenance or use of Air Koryo's aircraft could constitute a violation of the embargo on all arms and related material" as defined by Resolution 1874, adopted after the North's second nuclear test in 2009.

   The panel also said the reclusive nation continues to develop ways to circumvent U.N. sanctions for its reported arms trade with Myanmar and several African countries.

   Pyongyang presents a "stiff challenge" to the international community as it is experienced in evading sanctions, added the panel.

   It said North Korea appears to remain dependent on foreign procurement for certain items, "especially some that figure in nuclear and ballistic missile programmes."

   "The Panel also assesses that it will likely seek out foreign suppliers for components it will need to fabricate fuel rods for its reactors," read the 127-page report. (Yonhap)