Complex organization of North Korean companies

According ot the Choson Ilbo:

Hong Kong government investigators have inspected an office in the territory belonging to North Korea’s Taepung International Investment Group as part of U.S.-led financial sanctions against North Korea. Taepung is charged with attracting foreign investment to the North.

Investigators say that the company registered itself under the address Rm.# 2508, Lippo Centre, Hong Kong with the authorities, but the only office at that address is the Law Office of Ho, Wong and Wong.

Companies registry documents obtained by the Chosun Ilbo show a complicated network of related businesses. It was established in April 2006 with parent company Taepung International Investment Holdings owning all of its shares. Taepung is capitalized at 20 million Hong Kong dollars (W3.2 billion).

It registered a company called Saiying, also listed at the Lippo Centre address, as its corporate secretary, which serves as a bridge with the Hong Kong government. China Deals Finder, which was in turn registered as the corporate secretary of Saiying, also has the same address.

The parent companies of both Saiying and CDF are registered under the same address in tax haven the Virgin Islands. They are paper companies capitalized at 50,000 and 10,000 dollars respectively and have shifted addresses, board of directors and secretaries several times. The law office of Ho, Wong and Wong handled the reporting of each change.

“It appears that Taepung turned to the aid of a legal expert to conceal the identity of its true owner and make it difficult to track its financial activities,” said a financial expert in Hong Kong.

The Hong Kong government has stressed its intend to comply with UN resolutions  According to Yonhap:

The government of Hong Kong affirmed its commitment Friday to continue implementing punitive U.N. sanctions imposed on North Korea to end its nuclear ambitions.

“Hong Kong will continue to exercise vigilance in enforcing our regulation to effectively implement the United Nations Security Coucil sanctions against DPRK,” Josephine Lo, an official at the Commerce and Economic Development Bureau of the Hong Kong government, told Yonhap News, using the North’s official name, the Democratic People’s Republic of Korea.

“Our law enforcement agencies will take appropriate actions on those found in violation of the laws,” she said.

The comment was made after U.S. Secretary of State Hillary Clinton’s announcement Wednesday that the U.S. will hit North Korea with a new set of sanctions to punish it for its sinking of a South Korean warship and prevent it from further provocations.

Those sanctions will “strengthen our enforcement of U.N. Security Council resolutions 1718 and 1874” adopted after North Korea’s first and second nuclear tests in 2006 and 2009, Clinton said at a joint press conference in Seoul after a meeting with South Korea’s foreign and defense ministers.

Hong Kong legislated what is called the U.N. Sanctions Regulation in June 2007 to implement the U.N. Security Council Resolution 1718, according to Lo.

In January, Hong Kong amended the regulation to implement the new and expanded sanctions against North Korea under the Security Council Resolution 1874, she said.

A source here said earlier Friday that the United States has identified about 200 bank accounts with links to North Korea, and that the country is expected to freeze some 100 of those suspected of being used for weapons exports and other illicit purposes banned under U.N. resolutions.

The U.S. State Department said the U.S. will carry out new sanctions within two weeks to cut off money from illicit trafficking of weapons of mass destruction and counterfeit currency or luxury goods flowing into the North Korean leadership.

North Korea has bristled at the announcement of new sanctions and Seoul’s plan to conduct large-scale joint naval exercises with the U.S., claiming the moves pose grave threats to regional peace.

Read the full stories here:
Probe Reveals Elusive Structure of N.Korean Company
Choson Ilbo
7/26/2010

Hong Kong to continue implementing U.N. sanctions on N. Korea
Yonhap
Kim Young-gyo
7/23/2010

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