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Turkey‘s ambassador to the United Nations (UN) and the Chairman of Sanctions Committee of the UN Security Council announces that the committee has placed three North Korean firms on their watch list for allegedly being involved in trading of weapons of mass destruction

The Sanctions Committee of the United Nation’s (UN) Security Council placed three North Korean firms on their watch list for allegedly being involved in trading of weapons of mass destruction (WMD). The list was announced on Friday (local time). Initially, the U.S. and Japan had wanted to place 10 North Korean firms on the list, but reduced the list to three due to opposition from China and Russia.

The U.S. had already sanctioned Korea Mining Development Trading Corp., Tanchon Commercial Bank and Korea Ryongbong General Corp. on June 29, 2005. Washington froze the three companies’ assets in the U.S. in an attempt to stem the spread of WMDs. The total assets frozen at the time was estimated at around 317 billion dollars. This sanction from the U.N. committee comes with greater force.

Reportedly, these three North Korean companies are under the wing of “the Second Economy Committee” of North Korea which is in charge of North Korea’s military industry. Ostensibly, they carry out ordinary business activities. According to information provided by the Korea Trade Investment Promotion Agency (KOTRA), Korea Ryongbong General Corp. engages in trading of non-metal products, machinery, facilities and other parts, while Korea Mining Development Trading Corp. deals with female apparel, T-shirts and training suits. Tanchon Commercial Bank is reportedly in charge of settlements of overseas payments by companies under North Korea’s military, but the South Korean government speculates that Pyongyang renamed Korea Changgwang Credit Bank into Tanchon in order to avoid being tracked by the U.S. for its business activities.

Reportedly, the U.S. accuses these North Korean firms of being involved in WMD trading based on an analysis of their financial transaction records from Banco Delta Asia (BDA) in Macau. Washington had sanctioned BDA in 2005 for laundering money for North Korea, which sent tensions spiralling between the two countries resulting in North Korea’s nuclear missile test in October 2006.

Even if all allegations turn out to be true, experts remain skeptical that this latest move by the U.N. will effectively prevent the North Korean companies from trading in WMDs. Some even say that Tanchon and Korea Mining Development Trading Corp. have already transferred their weapon business to other companies.

The U.N.’s measure has a limited law-binding effect. While all U.N. members in support of the latest decision must freeze all of assets of the three North Korean companies within their territories and prohibit financial and economic transactions with them, there is no way for the U.N. to force opposing countries to follow suit.

Experts say whether the measure is effective or not depends on the U.S. and China. If China, the largest trade partner for the North Korea, does not join in the effort, or the U.S. does not seek strong financial restrictions for North Korea, the U.N.’s latest measure will bear little fruit.

Please direct questions or comments to [englishhani@hani.co.kr]