hankyoreh

By Song Kyung-hwa, staff reporter

In the document detailing the establishment of paper companies in the British Virgin Islands that was released by Newstapa on June 6, the name “Mun Kwang-nam” appears along with the address “Ginmal-dong 2, Moranbong district, Pyongyang, North Korea.” Newstapa reported that the company, which was established in the British Virgin Islands in Nov. 2004 under the name Larivader Solutions, was in existence at least until Oct. 2009.

Ginmal-dong 2, Moranbong, is an actual place in Pyongyang, North Korea. It is in the city center near the Chinese embassy. At least two North Koreans by the name of “Mun Kwang-nam” appear in a South Korean database about North Korean figures. One is the chairman of the farming accounting committee for the county of Seonggan in Jagang Province. The other is a textile worker in Pyongyang who has experience with patent applications.

Unlike other companies that were established for the purpose of tax evasion, the document for Mun Kwang-nam’s paper company includes a shipping address. Since it is listed as the address for issuing receipts to the Russian Federation and sending invoices with trade documents, the company could have been used in actual trade, Newstapa reported.

The company that referred Mun Kwang-nam with Commonwealth Trust Limited (CTL), an agency that establishes shell companies, was GSL, a legal firm whose main clients are Russian criminal organizations, according to a report by the International Consortium of Investigative Journalists.

CTL’s internal documents also contain the names of shell companies that suggest some kind of connection with North Korea, including Chollima, Chosun, and Koryo Telecom. Two names that feature in the documents related to these companies are Won Yuk Kwan and Lim Jong-ju, the latter of which appears to be Korean.

Won Yuk Kwan was discovered to be the chairman of a Hong Kong company called Pearl Oriental Oil. This company, purchased 50% of the business rights to mobile communication in North Korea from Lancelot Holdings Ltd. in 1999, which is believed to be operated by an ethnic Korean living abroad. Lim Jong-ju is the founder of Lancelot Holdings and is listed in the records of the Hong Kong stock exchange as an executive in the area of telecommunications for Pearl Oriental Oil, Newstapa reported.

These paper companies were established between 2000 and 2001. Considering that the early part of the 2000s was when North Korea was facing difficulties caused by economic sanctions from the international community, some are suggesting that these companies are related to North Korean slush funds.

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