By Lee Hyo-sik
Staff Reporter
South Korea has imposed financial sanctions on three firms in North Korea ― retaliation for the Communist state's long-range rocket launch in early April, further straining the already uneasy inter-Korean relations.
The decision followed the United Nations Security Council resolution against the North in response to action, despite repeated warnings from the international community. It was the first time the South has slapped sanctions on North Korean companies in relation to the regime's use of long-range missiles and other weapons development programs.
The Ministry of Strategy and Finance said Tuesday that since June 1, the government has put financial restraints on Korea Mining Development Trading Corporation, Tanchon Commercial Bank and Korea Ryongbong General Corporation, which are suspected of having ties with the Communist state's missile and nuclear development projects.
Under the measure, South Korean businesses and individuals are banned from carrying out financial transactions and trade with the three companies, with their assets being frozen indefinitely. None of these firms based in the North currently do business with any domestic firm and do not hold any assets in the South, the finance ministry said.
The move came after the United Nations took financial sanctions against the three North Korean businesses on April 24, following Pyongyang's launch of a long-range rocket on April 5. It is also set to impose additional sanctions after the Stalinist state's nuclear test on May 25.
A ministry official the government decided to follow the UN Security Council's move and the measure has been effective since June 1. ``It is the first time for us to bring sanctions against North Korean companies. There are no domestic businesses holding ties with the North's firms and they have no assets here.''
The official then said the government will consider taking additional measures if the United Nations imposes new punitive actions against the North for detonating the nuclear device.
Last week, Vice Strategy and Finance Minister Hur Kyung-wook and Stewart Levey, the U.S. treasury undersecretary in charge of terrorism and financing terrorism movements, met here and agreed to cooperate and share information to tackle the North's money laundering activities.
South-North relations are currently at an all-time low, with the North threatening to shut down the Gaeseong Industrial Complex. In response, the South has announced a plan to participate in the U.S.-led Proliferation Security Initiative (PSI) to help prevent the proliferation of weapons of mass destruction.
Seoul has been participating in the multinational ship-interdicting operations as an observer in an effort not to damage ties with Pyongyang.