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On May 9

The cargo ship Wise Honest, whose seizure the US government announced on May 9, is reportedly North Korea’s second largest cargo ship. While the US has previously filed charges against North Korean officials and companies in absentia for violating sanctions, this was the first time it has seized a North Korean ship.

Built in 1989, the 17,000-ton Wise Honest is a large bulk carrier with a length of 177m. Reports indicate that it was generally used to export North Korean coal to countries such as China and Russia, as part of the North’s efforts to accumulate foreign currency.

In March 2018, this ship loaded 26,500 tons (worth about US$3 million) in North Korea’s Nampo harbor. While sailing near Indonesia in April under the flags of North Korea and Sierra Leone, the ship was apprehended by the Indonesian authorities because it had deactivated its Automatic Identification System during navigation and because it had failed to report its entrance into Indonesia’s territorial waters. Last year, an Indonesian court acquitted the ship’s captain, Kim Jong-son, which led some to think that the Indonesian government was siding with North Korea. But Indonesia appears to have handed the ship over to the US, in agreement with the American position that this isn’t a matter that can be fully dealt with under Indonesian domestic law.

The justification given by the US government for its seizure of the Wise Honest is that the ship transported coal in violation of the UN Security Council’s sanctions resolutions against North Korea and the US’ International Emergency Economic Powers Act (IEEPA). Another issue cited by the US was that shipowner Kwon Chol-nam, who is also the president of Pyongyang-based trading company Korea Songi, had used accounts linked to US financial institutions to pay for the ship’s upkeep and repairs.

The US Department of Justice has also filed civil suit at a New York federal court to enable the ship’s confiscation in a process known as civil forfeiture. In response to a written request by the US Attorney for the Southern District of New York for confiscation, the court issued a warrant granting the seizure of the Wise Honest on July 17, 2018, and the ship has apparently been under the control of the US government since that point. Reports indicate that the Wise Earnest is currently being transported to American Samoa.

Seizure is a legal measure taken to prevent the original owner from liquidating or otherwise disposing of their property, while confiscation implies taking over assets that are involved in illegal activities. If the court approves the request for confiscation, its ownership will transfer from North Korea to the US, which is expected to be a blow for the North. A shipping industry insider quoted by the Voice of America (VOA) said that the ship, though old, is so large that it could fetch US$3 million for its scrap metal alone. North Korea could appeal the proceedings, but it has never filed a lawsuit in an American court.

By Lee Jung-ae, staff reporter

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