US imposes additional sanctions on N. Korea, including Air Koryo

The United States imposed additional sanctions on North Korea on Friday, blacklisting seven individuals and 16 entities, including the country's flag carrier, Air Koryo, for their links to weapons proliferation or foreign currency earnings for the regime.

The Treasury Department measures came two days after the UN Security Council adopted a new package of sanctions designed to choke off major sources of hard currency for the North, including putting a cap on coal exports, its single biggest source of foreign money.

The new US sanctions targeted individuals and entities engaged in transportation, labor exports, trade in coal and energy, and financial services, demonstrating Washington's commitment to dry up revenue sources for Pyongyang.

"These sanctions aim to cut the flow of financial resources to North Korea and further counter the regime's destabilizing and provocative behavior," Adam J. Szubin, acting under secretary for terrorism and financial intelligence, said in a statement.

"From financial services to mining and energy, today's action targets individuals and entities operating in key industries that support North Korea's illicit activities. Treasury will continue to use all of its financial tools to intensify the pressure on North Korea and those supporting the regime's nuclear ambitions and WMD programs," he said.

Under the measures, any property or interests in property of the designated persons in the possession or control of US persons or within the United States must be blocked. Additionally, US persons are prohibited from engaging in transactions involving the designated persons and listed aircraft.

One of the most noticeable among the newly blacklisted is Air Koryo.

The Treasury Department accused the carrier, which operates all civilian aircraft in the North, of transporting from Pyongyang "spare parts or items used in Scud-B missile systems, which the UN prohibits exporting to North Korea as arms and related material."

In July 2013, an Air Koryo aircraft undertook a fly-over in the Victory Day military parade, and North Korean leader Kim Jong-un is also known to have access to a private jet decorated with the logo of Air Koryo, the department said.

Four entities -- Mansudae Overseas Project Group of Companies, Korea General Corporation for External Construction, Namgang Construction, Korea Rungrado General Trading Corporation -- were blacklisted for involvement in the North's labor exports.

"Some of the revenue generated by overseas laborers is used by the Munitions Industry Department," which was blacklisted by the State Department in 2010 for its support to the North's WMD program, the Treasury said.

Labor exports have increasingly become a key source of earnings for the North.

About 50,000 North Koreans are believed to be toiling overseas, mainly in the mining, logging, textile and construction industries under substandard working conditions. Pyongyang reportedly rakes in hundreds of millions of dollars from this system per year.

Daewon Industries and the Kangbong Trading Corporation were sanctioned for involvement in trade in "metal, graphite, coal, or software, where revenue or goods received may benefit the government of North Korea or the Workers' Party of Korea," the department said.

The Korea Oil Exploration Corporation was sanctioned for supplying crude oil to North Korea. The blacklisted financial institutions include North East Asia Bank, Koryo Credit Development Bank, Rason International Commercial Bank, Kumgang Bank, Koryo Bank, and Korean National Insurance Corporation.

In particular, Korean National Insurance Corporation is "reported to generate substantial foreign exchange revenue that is used to support the regime in North Korea," the department said. It is also tied to the North's "Office 39," a secretive branch that engages in illicit economic activities and generates revenues for the North Korean leadership, the department said.

The seven individuals include Chang Chang-ha, president of Second Academy of Natural Sciences; Cho Chun-ryong, chairman of the Second Economic Committee; Kim Chol-nam, president of Korea Kumsan Trading Corporation; Kim Se-gon, representative of Ministry of Atomic Energy Industry; and Pak Han-se, vice chairman of the Second Economic Committee.

They also include Mavungal Hussain, a Pakistani linked to Korea Mining Development Trading Corporation.

The full list of 16 entities and seven individuals blacklisted by the Treasury Department.

Entities

- Air Koryo

- Daewon Industries

- Kangbong Trading Corporation

- Korea General Corporation for External Construction

- Korea Haegumgang Trading Corporation

- Korea Kumsan Trading Corporation

- Korean National Insurance Corporation.

- Korea Oil Exploration Corporation

- Korea Rungrado General Trading Corporation

- Koryo Bank

- Korea Credit Development Bank

- Kumgang Bank

- Mansudae Overseas Project Group of Companies,

- Namgang Construction

- North East Asia Bank,

- Rason International Commercial Bank

Individuals

- Chang Chang-ha, president of Second Academy of Natural Sciences

- Chang Kyong-hwa, official of Second Academy of Natural Sciences

- Cho Chun-ryong, chairman of the Second Economic Committee

- Kim Chol Chol-nam, president of Korea Kumsan Trading Corporation

- Kim Se-gon, representative of Ministry of Atomic Energy Industry

- Pak Han-se, vice chairman of the Second Economic Committee

- Mavungal Hussain, a Pakistani linked to Korea Mining Development Trading Corporation.

(Yonhap)