1. North Korea has been funding its nuclear and missile program by various illicit activities such as procurement of petroleum products through illicit ship-to-ship transfers and smuggling of coal in violation of UN Security Council resolutions. In response to this, on Wednesday, January 17, the government of the Republic of Korea designated 11 ships, 2 individuals, and 3 entities that supported North Korea's nuclear and missile development by engaging in ship-to-ship transfers, oil shipments and smuggling.

※ Refer to the attached file for the list of designated individuals and entities.

2. This measure marks the first time in eight years that the ROK government has resumed its designation on vessels since March 2016. All of the designated vessels are listed in the Reports of the Panel of Experts of the UN 1718 Committee for engaging in ship-to-ship transfers with North Korean vessels, delivery of refined petroleum products into North Korea and coal smuggling, and transfer of used vessels into North Korea, in violation of the relevant UN Security Council resolutions -- Paragraph 11 of resolution 2375 prohibiting ship-to-ship transfers to or from North Korean vessels of any goods or items that are being supplied, sold, or transferred to or from North Korea; paragraph 5 of resolution 2397 limiting the supply of refined petroleum products; paragraph 8 of resolution 2371 prohibiting North Korea’s coal export; paragraph 14 of resolution 2397 preventing the supply, sale or transfer of any new or used vessels to North Korea. Seven* of these vessels were recommended by the panel to be designated by the UN Sanctions Committee.

* The Panel of Experts recommended that the Sanctions Committee designate the following vessels: NAM DAE BONG, NEW KONK, UNICA, A BONG 1, XING MING YANG 888, and SUBBLIC in violation of paragraph 5 of resolution 2397, limiting the supply, sale or transfer of refined petroleum products, by entering North Korean ports and directly delivering refined oil; and KYONG SONG 3 in violation of paragraph 11 of resolution 2375, prohibiting ship-to-ship transfers to or from North Korean vessels of any goods or items that are being supplied, sold, or transferred to or from North Korea, by engaging in illicit ship-to-ship transfers.

3. In its midterm report published in September 2023, the Panel of Experts noted that North Korea was estimated to have imported 780,000 barrels of refined oil by April 2023, which is 1.5 times its annual limit, and that North Korea continued to smuggle coal and other goods. Today’s designation demonstrates the ROK government's strong commitment to blocking North Korea's continued illicit revenue generation and procurement of materials through ship-to-ship transfers and to dissuading North Korea from developing its illicit nuclear and missile program.

4. Except for two vessels*, all of the other designated vessels, individuals and entities are blacklisted by the ROK government for the first time in the world. The ROK government has designated 17 entities and 3 individuals since 2022, including shipping and trading companies, for engaging in illicit ship-to-ship transfers and oil smuggling. This time, by imposing comprehensive maritime sanctions, the ROK government intends to lead the international efforts to block illicit maritime activities by North Korea. The ROK government will continue to impose sanctions not only on vessels engaged in ship-to-ship transfers, but also on individuals and entities engaged in illicit ship-to-ship transfer networks.

* Two vessels (NEW KONK, UNICA) were sanctioned by the EU on December 12, 2022.

5. Sanctioned Pak Kyong Ran is a member of Korea Paek Sol Trading Company in Dandong, who transferred used ships and refined petroleum products into North Korea. Min Myong Hak, General Director of Risang Trading Company, engaged in illicit ship-to-ship transfers and sending North Korean workers overseas. Mangang Trading Company engaged in export of coal and other goods from North Korea and transfer of used vessels into North Korea through ship-to-ship transfers in conjunction with the Dandong branch of Korea Paek Sol Trading Company, while Risang Trading Company engaged in the smuggling of oil and other goods through ship-to-ship transfers, and Yua Trading Company engaged in the smuggling of North Korean coal through ship-to-ship transfers.

6. This measure is the first in 2024 and the fifteenth package of autonomous sanctions imposed by the ROK government since the inauguration of the Yoon Suk Yeol government. In addition to the previous designations on individuals and entities who engaged in malicious cyber activities, sending overseas workers including IT workers, arms trade, and illicit financial transactions, today’s designation in the maritime sector will contribute to tightening the global sanctions network.

7. This measure is in accordance with the Act on the Arrival and Departure of Ships, the Act on Prohibition against the Financing of Terrorism and Proliferation of Weapons of Mass Destruction, and the Foreign Exchange Transactions Act. The designated ships will require special management for arrival at and departure from a trade port in the ROK in order to ensure national security, and the captains of those ships need to obtain permission prior to their arrivals at ports from the management authority pursuant to Article 4 of the Act on the Arrival and Departure of Ships and Article 3 of the Enforcement Decree of the same Act.

8. In addition, pursuant to Article 4 of the Act on Prohibition against the Financing of Terrorism and Proliferation of Weapons of Mass Destruction, Article 15 of the Foreign Exchange Transactions Act and Article 29 of the Enforcement Decree of the Act, ROK nationals require approval from the Financial Services Commission for the financial transactions and from the Governor of the Bank of Korea for foreign exchange transactions with the designated individuals and/or entities. If they make transactions without prior approval of the relevant authorities, they may be punished in accordance with the relevant laws.