July 30, 2009
TG-247

Treasury Designates North Korean Entity Tied to Weapons
of Mass Destruction Development

WASHINGTON – The U.S. Treasury Department today designated a North Korean entity, the Korea Hyoksin Trading Corporation (Hyoksin), under Executive Order 13382 for being owned or controlled by a North Korean entity, the Korea Ryonbong General Corporation (Ryonbong), which was identified in the Annex to E.O. 13382.  E.O. 13382 freezes the assets of proliferators of weapons of mass destruction (WMD) and their supporters, and it prohibits U.S. persons from engaging in any transactions with them, thereby isolating them from the U.S. financial and commercial systems.

"The world community is taking forceful action against the arms and agencies of North Korea's WMD and missile programs, prohibiting dealings with them and banning them from participation in the global financial system," said OFAC Director Adam J. Szubin.  "We will continue to do our part to identify and sanction such entities."

On July 16, 2009, Hyoksin was designated by the United Nations Security Council Committee established pursuant to Resolution 1718 for being subordinate to Ryonbong and for its involvement in the development of WMD.  Ryonbong, which was also sanctioned pursuant to Resolution 1718, specializes in acquisition for North Korean defense industries and support to Pyongyang's military-related sales. 

These actions were taken pursuant to E.O. 13382, an authority aimed at freezing the assets of proliferators of WMDs and their supporters, and at isolating them from the U.S. financial and commercial systems. Designations under E.O. 13382 are implemented by Treasury's Office of Foreign Assets Control.

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