US Sanctions Companies Sending North Korean Workers Overseas (Comprehensive)

Responsibility for Forced Labor Export... Determination to Block Foreign Currency Earnings

The Democratic Party of Korea's Korea Peninsula Task Force delegation held a press briefing on the 19th (local time) at the Korean Cultural Center in Washington DC to explain the results of their visit to the United States. From left to right: Representative Yoon Gun-young, delegation leader Representative Song Young-gil, and Representative Kim Han-jung.
[Image source=Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The U.S. Department of the Treasury has imposed sanctions on two companies from North Korea and Russia involved in the overseas dispatch of North Korean workers. This move is interpreted as an effort to continuously pressure by cutting off foreign currency supplies necessary for maintaining the North Korean regime and developing nuclear weapons, while also serving as a warning to Russia and others. Members of the Democratic Party of Korea visiting the U.S. emphasized that the new U.S. administration should send a message of hope to prevent North Korea from provocations.

On the 19th (local time), the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) added Cholsan Trading, a North Korean company operating in Russia, and Mokran LLC, a Russian construction company, to the Specially Designated Nationals (SDN) list.

OFAC explained that the two companies are involved, facilitate, or are responsible for the export of forced labor from North Korea. Cholsan Trading is known to have been involved in the process of obtaining work permits allowing North Korean workers to enter and work in Russia. OFAC also updated information such as the names and locations of three companies, including Nungnado Trading, which were already designated as SDNs. These companies have been involved in sending North Korean workers to Russia and China.

Under this measure, all assets of these companies located in the U.S. or owned or controlled by U.S. persons must be reported to OFAC. Those involved in transactions with these companies may be subject to sanctions, and foreign financial institutions may face secondary sanctions (third-party sanctions).

This is the first time since March that OFAC has taken sanctions related to North Korea. Although it is at the end of Donald Trump’s administration, it appears to reflect the determination to block foreign currency earnings through the overseas dispatch of North Korean workers.

Countries employing North Korean workers were required by the United Nations (UN) Security Council resolutions on North Korea to repatriate all of them to North Korea by December 22 of last year, but it is recognized within the U.S. that this was not properly observed.

Steven Mnuchin, U.S. Secretary of the Treasury, stated, "North Korea has a long history of sending its people to work in harsh conditions to financially support Pyongyang and its weapons programs," and urged, "Countries still employing North Korean workers should send them back to North Korea."

Song Young-gil, head of the Democratic Party’s Korea Task Force (TF) visiting the U.S., held a press briefing in Washington D.C. on the same day and said, "From North Korea’s perspective, there must be hope to prevent provocations, and I believe there is mutual agreement with the U.S. side on the need for positive signals."

The visiting delegation met with Steven Biegun, U.S. Deputy Secretary of State, members of Congress, and think tank officials to discuss the Korea-U.S. alliance and the situation on the Korean Peninsula, including North Korea-U.S. relations, following President-elect Joe Biden’s victory.

This content was produced with the assistance of AI translation services.