Government Imposes First Individual Sanctions on Russian 'Choi Cheon-gon' for Joint North Korea Investment

After Acquiring Russian Citizenship, Engaged in Illegal Financial Activities
Involved in UN Security Council Sanctions Violations Against North Korea
Two Companies and One North Korean Collaborator Also Sanctioned

On the 28th, the government designated Russian national ‘Choi Chon Gon,’ who has been operating for the North Korean regime in violation of UN Security Council sanctions, as a subject of independent sanctions against North Korea. Since acquiring Russian nationality, Choi Chon Gon has been involved in illegal financial activities and joint investments with North Korea, violating UN Security Council sanctions against North Korea. The designation of Choi Chon Gon marks the first case in which our government has designated a Korean individual as a subject of independent sanctions through cooperation among diplomatic, intelligence, and investigative authorities.

The Ministry of Foreign Affairs announced on the same day that Choi Chon Gon, two companies he used for sanction-violating activities against North Korea, and one North Korean collaborator were also designated as sanction targets. Choi Chon Gon established a front company called ‘Hannaeulgwan’ to evade North Korean sanctions and supported North Korea’s illegal financial activities. Additionally, he established and operated a trading company named ‘Epsilon’ in a joint investment format with ‘Seo Myung,’ the representative of the North Korean Chosun Trade Bank in Vladivostok, Russia, which is subject to Security Council sanctions.

The Chosun Trade Bank was designated as a UN Security Council sanctions target in August 2017. Numerous UN Security Council resolutions prohibit joint ventures or the establishment, maintenance, and operation of cooperative entities with North Korean organizations and individuals, which has been violated in this case. Accordingly, Seo Myung (representative of the North Korean Chosun Trade Bank in Vladivostok) was also designated as an individual subject of independent sanctions along with Choi Chon Gon. Hannaeulran in Mongolia and Epsilon in Russia were designated as institutional subjects of independent sanctions.

A Ministry of Foreign Affairs official stated, “Since Choi Chon Gon continues illegal activities, we expect practical effects in restricting sanction-violating activities against North Korea by blocking his access to domestic financial networks,” adding, “By comprehensively designating his companies and collaborators, we expect to further enhance the effectiveness of the sanctions.”

This measure is based on the Foreign Exchange Transactions Act and the Act on the Prohibition of Fund-Raising for the Purpose of Threats to the Public and the Proliferation of Weapons of Mass Destruction. Those designated as financial sanctions targets must obtain prior approval from the Governor of the Bank of Korea or the Financial Services Commission to conduct foreign exchange or financial transactions. Transactions without approval may be subject to penalties under relevant laws.

With this, our government has designated 45 individuals and 47 institutions as subjects of independent sanctions against North Korea in nine rounds since October last year. Earlier this month, the government also designated the North Korean hacker group ‘Kimsuky,’ under the Reconnaissance General Bureau, as a subject of independent sanctions against North Korea. This was the world’s first case of designating Kimsuky as a subject of independent sanctions. Kimsuky is a representative hacking group widely known both domestically and internationally, conducting comprehensive cyberattacks for over a decade. According to the government, through hacking, they have stolen advanced technologies related to weapons development, satellites, and space, directly and indirectly contributing to North Korea’s space launch vehicle development.

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