Treasury Targets North Korean Weapons Exports for Sanctions
President Barack Obama authorized sanctions against North Korea on Jan. 2, several weeks after the Justice Department accused the Pyongyang regime of cyber hacking Sony Pictures. In an executive order, Obama said North Korea’s “destructive, coercive cyber-related actions during November and December 2014” violate UN resolutions (here). The U.S. does not import goods from North Korean due to restrictions already in place (here), so the executive action is unlikely to change the bilateral trade relationship.
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U.S. officials pointed a finger at North Korea in the massive Sony hack, saying the Kim Jong-un regime acted in response to the U.S. film “The Interview.” The film, a comedy released publicly around Dec. 25, involves an assassination plot against the North Korean leader.
Obama directed the Treasury Department, in consultation with the State Department, to apply the executive authorization in the way the agency sees fit. Treasury followed up the executive action with targeted sanctions on 10 North Korea’s government officials. The following individuals are now added on the Specially Designated Nationals list (here):
- Jang, Song Chol, Korea Mining Development Trading Corporation representative in Russia
- Jang, Yong Son, Korea Mining Development Trading Corporation representative in Iran
- Kang, Ryong, Korea Mining Development Trading Corporation official in Syria
- Kil, Jong Hun, Korea Mining Development Trading Corporation representative in Namibia
- Kim, Kwang Chun, Korea Ryungseng Trading Corporation representative in Shenyang, China
- Kim, Kwang Yon
- Kim, Kyu, Korea Mining Development Trading Corporation External Affairs Officer
- Kim, Yong Chol, Korea Mining Development Trading Corporation representative in Iran
- Ryu, Jin, Korea Mining Development Trading Corporation official in Syria
- Yu, Kwang Ho
The executive order points to the Korea Mining Development Trading Corporation (KOMID), Korea Tangun Trading Corporation and the Reconnaissance General Bureau as controlled by North Korean government entities and subject to sanctions. No contract agreed upon or license granted before Jan. 2 will be impacted by the order, and the move takes effect immediately. Treasury accused KOMID of being the largest weapons exporter in North Korea. The United Nations authorized sanctions in 2006 against the Korea Mining Development Trading Corporation (here).
Obama also said North Korean human rights abuses and threats to U.S. security warrant more sanctions. The executive order blocks property and bans dealings with individuals and entities that meet the following criteria:
- an agency, instrumentality, or controlled entity of the Government of North Korea or the Workers' Party of Korea
- an official of the Government of North Korea
- an official of the Workers' Party of Korea
- materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, the Government of North Korea or any person whose property and interests in property are blocked pursuant to this order
- owned or controlled by, or to have acted or purported to act for or on behalf of, directly or indirectly, the Government of North Korea or any person whose property and interests in property are blocked pursuant to this order
House Foreign Affairs Chairman Ed Royce, R-Calif., applauded the sanctions, but said they'll do little to prevent North Korean actions in the future. "Many of the North Koreans blacklisted today have already been targeted by U.S. sanctions," said Royce in a statement (here). "We need to go further to sanction those financial institutions in Asia and beyond that are supporting the brutal and dangerous North Korean regime, as was done in 2005." Royce called on Congress to pass his North Korea Sanctions Enforcement Act, H.R. 1771 (here).