March 15, 2016

So far, sanctions are cutting off Pyongyang’s cash while sparing North Korea’s poor.

A month after the President signed the North Korea Sanctions and Policy Enhancement Act and two weeks after the U.N. Security Council approved Resolution 2270, enough information has emerged from North Korea to allow for a preliminary assessment of how the sanctions are affecting those they are meant to target, and those they are meant to spare.  Sanctions have begun to hit their intended targets. The Daily NK reports that the donju, the well-connected traders who help finance Pyongyang’s priorities through trade with...

Categories Border Control/Capitalism/Class Warfare/Famine & Food Aid/Sanctions
March 15, 2016

HSBC freezes “at least” $87M in assets of North Korea-linked Chinese tycoon

You all remember Sam Pa, right? He’s the Chinese ex-spy with a history of dubious business dealings in Africa, for which he was eventually sanctioned by the Treasury Department. Pa’s 88 Queensway group also had dealings with Korea Daesong General Trading Corporation, a financial arm of North Korea’s Bureau 39, for which he was not designated. Today, this happened: HSBC has frozen more than $87m in accounts linked to a Chinese tycoon behind several multibillion-dollar deals in Africa, while it investigates allegations of...

Categories China & Korea/Money Laundering
March 14, 2016

Namibia’s prohibited arms deal with N. Korea triggers mandatory sanctions under U.S. law.

Namibia is a beautiful desert country with a turbulent history. Some years ago, when I worked in South Africa, I flew from Johannesburg to Cape Town, took a bus across the border to Keetnamshoop, and hitch-hiked to the isolated town of Lüderitz, which sits where the barren dunes of the Namib Desert spill into the cold waters of the Atlantic Ocean. Lüderitz was established by German colonists in the 19th Century; today, many of their descendants still live in the...

Categories "United" Nations/Africa/Sanctions
March 11, 2016

Park Geun-hye finds her inner Thatcher

This week, the South Korean government imposed bilateral sanctions on North Korea, banning from its harbors ships that have been to North Korea in the last 180 days, cancelling a joint logistics project with Russia to export coal through Rajin, and designating “30 companies with links to the North’s nuclear and missile programs …, 38 North Korean nationals and two foreigners.” The targets include “Leonard Lai, president of ­Singapore-based Senat Shipping” (see this post) and “the Taiwanese president of Royal Team...

Categories Kaesong/Korean Politics/North-South/Sunshine
March 10, 2016

Before Josef Schwartz spends an eternity in Hell, would Austria please send him back to prison?

Reading through the new Panel of Experts report, I saw a finding, at Paragraph 108, relating to two 2011 “[s]hipments of spare parts and equipment for submarines and military boats brokered by Green Pine” — a North Korean trading company designated by the U.N. over proliferation concerns — “from Austria to Angola and Viet Nam.” Reading on, I saw that “[t]he consignments were shipped from Vienna by an Austrian national, Josef Schwartz, through his company, Schwartz Motorbootservice.” Remember him? Sure you...

Categories Europe/Luxury Goods
March 10, 2016

Convicted N. Korean spy now protesting against sanctions in front of the Pentagon

Years before the Democratic Labor Party lawmaker Lee Seok-ki was recorded on a wiretap plotting violent attacks in support of a proposed North Korean invasion, the DLP was rocked by another North Korean fifth column scandal — the alleged Il Shim Hue spy ring. On October 24th, 2006, South Korea’s state intelligence agency, the NIS, arrested three men: Michael Jang, former Democratic Labor Party (DLP) central committee member Lee Jeong Hun, and the head of a private education institute, Son Jeong...

Categories The Fifth Column
March 9, 2016

N. Korea sanctions are failing because of China. That’s why we need secondary sanctions.

Last November, I put up a post cataloging China’s long and deep history of breaking U.N. sanctions against North Korea. The post, which relied heavily on reports of the U.N. Panel of Experts monitoring North Korea sanctions, attracted a great deal of attention, including from Senate staff as they considered the North Korea Sanctions and Policy Enhancement Act. The new POE report, released yesterday, is almost 300 pages long (including exhibits) and has more than enough material to make a rich...

Categories "United" Nations/China & Korea/Sanctions
March 9, 2016

Beyond sanctions: S. Korea should open direct, people-to-people cell service for N. Koreans

With much of the North Korea policy debate understandably focused on sanctions this week, I hope North Korea watchers won’t miss this new report from Amnesty International on the efforts by “Swiss-educated reformer” Kim Jong-un to seal off all unauthorized contact between his subjects and the outside world. In recent years, the principal medium for such contact has been the use of Chinese cell networks whose signals penetrate a few miles into North Korea. Those calls had become an important lifeline...

Categories Propaganda/Subversion
March 9, 2016

U.N. report: Bank of China told shipper in illegal arms deal to hide N. Korean links

Today, the U.N. Panel of Experts monitoring (non-)compliance with its North Korea sanctions released its latest report, and it’s a doozy. Including exhibits, it’s almost 300 pages long, and the substance should be material for several posts. Our first installment comes from the December 2015 conviction of Chinpo Shipping over the 2013 Cuba arms shipment. Remember last July, when I asked, “What about the Bank of China?” Well, we have our answer, and from the look of it, the Bank of...

Categories China/Money Laundering/Sanctions
March 8, 2016

China’s compliance with North Korea sanctions, so far: mixed, yet hopeful signs.

As I’ve long argued in these pages, China has a long history of evading and violating the North Korea sanctions it votes for at the U.N. Without the threat of secondary sanctions, it will revert to non-enforcement. When the next U.N. Panel of Experts report is published in the coming days, it will reveal yet more extensive evidence of sanctions violations by Chinese banks, ports, and businesses, often with the knowledge of the government agencies that regulated them. Since early...

Categories Sanctions
March 6, 2016

WaPo editorial: “China’s switch” on N. Korea sanctions “had a lot to do with” H.R. 757.

After the President signed H.R. 757 into law, but before the U.N. Security Council approved resolution 2270, sanctions skeptics predicted that the new U.S. law would complicate diplomatic efforts to get China to enforce U.N. sanctions. Events thus far have refuted that view. After the President signed the new law, China, which had inflexibly opposed new U.N. sanctions for weeks, reversed course and voted for the strongest North Korea sanctions resolution so far. Even before China’s official retreat, China’s banks had already begun to freeze...

Categories "United" Nations/China & Korea/Sanctions
March 4, 2016

North Korea denounces “rubbish-like provisions” of H.R. 757

It is my great honor to report, if somewhat belatedly, that for the second time, North Korean state media have denounced something I had a part in writing. While searching the Korean Central News Agency for an article on UNSCR 2270, I stumbled upon this: A spokesman for the DPRK Foreign Ministry issued the following statement on Saturday; The U.S. is getting evermore frantic with the anti-DPRK campaign obsessed with inveterate hostility toward it. “2016 North Korea Sanctions Enforcement Act”...

Categories Unintended Humor/WTF?
March 4, 2016

Europe can play an important role in enforcing U.N. sanctions against N. Korea

With the enactment of UNSCR 2270, the EU foreign policy chief Federica Mogherini says the EU will soon move forward with what EU regulators refer to as “restrictive measures” against North Korea. “There is scope for the European Union to adopt additional autonomous restrictive measures to complement and reinforce the new U.N. measures,” said a diplomatic note seen by Reuters on the latest discussions. Germany, France, Spain and Poland want to see what more the bloc can do in areas...

Categories Europe/Sanctions
March 4, 2016

Samantha Power: N. Korea would rather grow its nuke programs than grow its children

I’ll just give you this excerpt from Ambassador Power’s speech before the adoption of U.N. Security Council Resolution 2270. Ms. Power (United States of America): In looking at North Korea, it can at times feel as though one is seeing two entirely different realities. One is the Democratic People’s Republic of Korea that is expending tremendous resources in pursuing advanced technology to build an intercontinental ballistic missile capable of carrying out a nuclear strike a continent away. The other is...

Categories Famine & Food Aid/Propaganda/Subversion
March 3, 2016

South Korean National Assembly passes human rights bill. Finally.

Last month, I leveled some bitter criticism at South Korea’s opposition Minju Party for blocking North Korean human rights legislation (ironically enough, “Minju” means “democracy”). This week, after an eleven-year battle, the opposition finally gave up its obstructionism, yielded to the tides of morality and history, and allowed the bill to pass the National Assembly. The final vote for 212 for and 24 abstentions (and none against?). Belated as it was, this victory gives us some reasons to rejoice. First, it’s a...

Categories Activism/Human Rights/Korean Law/Korean Politics/Korean Society
March 3, 2016

Treasury freezes assets of N. Korea’s National Defense Commission, No. 2 official Hwang Pyong-so

Within minutes of the U.N. Security Council’s approval of Resolution 2270, a very good friend and Democratic House staffer forwarded me this notice from the Treasury Department. (My transparent attempt to suck up to the next majority party in our budding idiocracy, now that the party that gave us Todd Akin, Christine O’Donnell, and Sarah Palin has found an equally qualified presidential candidate. But I digress.) As it turns out, the Treasury Department’s Office of Foreign Assets Control, or OFAC,...

Categories Sanctions
March 2, 2016

The U.N.’s new N. Korea sanctions will change the game … if they’re enforced.

The U.N. Security Council has just approved a new resolution, UNSCR 2270, sanctioning North Korea under Chapter VII and Article 41 of the U.N. Charter. Now that the Security Council has approved the resolution, I’m publishing this post, which I’ve been holding. It’s a strong text — very strong. In reviewing it, it’s useful to begin with my own wish list: Requiring member states to report North Korean property, accounts, and transactions to the U.N. Panel of Experts; Shipping sanctions...

Categories "United" Nations/Sanctions