1. The government of the Republic of Korea has decided to designate the Hong Kong-based shipping company HK Yilin Shipping Co Ltd and the North Korean-flagged ship Tok Song as targets of autonomous sanctions against North Korea as of July 19, for violating relevant UN Security Council resolutions.

2. HK Yilin Shipping Co Ltd is the owner of the stateless vessel DE YI. The government of the Republic of Korea has investigated vessel DE YI since late March for its alleged engagement in violating the UNSC resolutions on North Korea.

3. Based on inter-agency investigation, the ROK government concluded that DE YI had conducted a ship-to-ship transfer of North Korean coal from the North Korean-flagged ship Tok Song in waters near Nampo, North Korea, in March of this year. Consequently, the government has detained DE YI and placed HK Yilin Shipping Co Ltd and Tok Song under autonomous sanctions against North Korea. Paragraph 11 of UN Security Council Resolution 2375 (2017) prohibits ship-to-ship transfers to or from DPRK-flagged vessels and Paragraph 8 of Resolution 2371 (2017) prohibits North Korea from supplying, selling, or transferring coal, and it also prohibits all states from procuring coal from North Korea. Tok Song is a second-hand vessel acquired by North Korea at the end of March last year, yet Paragraph 14 of Resolution 2397 (2017)  prohibits supply of any new or used vessels to North Korea.

※ Designated targets

4. After the designation comes into effect, financial transactions and foreign exchange transactions with HK Yilin Shipping Co Ltd will require prior approval from the Financial Services Commission or the Governor of the Bank of Korea under Article 4 of the "Act on Prohibition against the Financing of Terrorism and Proliferation of Weapons of Mass Destruction" and Article 15 of the "Foreign Exchange Transactions Act" and Article 29 of its enforcement decree. Failure to obtain approval before conducting transactions may result in penalties under such relevant laws.

5. Under Article 4 of the "Act on the Arrival and Departure of Ships" and Article 3 of its enforcement decree, vessel Tok Song is designated by the head of a national security agency as a vessel which requires special attention and must obtain entry approval from the relevant authority before its entry into the trade ports of the ROK.

6. North Korea continues to procure materials and funds necessary for developing its nuclear and missile programs through various illicit activities evading UN Security Council sanctions, such as ship-to-ship transfers and trading of prohibited items. Today's announcement demonstrates the ROK government's resolution to thwart North Korea's illicit maritime activities and dissuade its development of illegal nuclear and missile programs.

7. While closely cooperating with like-minded countries, the ROK government will continue to take strong and consistent law enforcement measures against ships and shipping companies engaged in transporting prohibited items and other activities in violation of the UN Security Council resolutions against North Korea.