Opportunity – A situation or occasion which makes it possible to do something that you want. This definition perfectly sums up the efforts of the North Korean regime who will never look to miss an opportunity. Moral dilemmas are non existent when money is available and North Korea is happy to make money, even if it is at the expense of innocent lives!

Wagner – Beginnings & Expansion into Africa

The Wagner Group (Группа Вагнера) is a Russian paramilitary organization co-founded by Yevgeny Prigozhin & Dmitry Utkin. Before the failed wagner rebellion in June, Prigozhin was a Russian oligarch who controled a network of heavily influential companies including the Internet Research Agency & Concord Management and Consulting. Wagner appears to have substantial ties to the Russian state, operating in support of Russian interests and have been described as ‘a private army of Putin’

Yevgeny Prigozhin claimed he initially founded the Wagner Group to support Russian backed separatist forces in the Donbas region, Ukraine in 2014. By late 2015 Wagner were also involved in Syrian civil war and their efforts to expand their activities and influence have only continued with Wagner believed to still be active in many African counties including:

• Central African Republic
• Madagascar
• Libya
• Mozambique
• Mali
• Chad

Media reports suggest that Wagner are also heavily active in Sudan, a country currently being torn apart by two rival Sudanese generals fighting for control. Wagners previous interest in Sudan involved lucrative gold mining concessions as well as providing training and equipment to the security forces.

Recent reports by the Wall Street Journal claim that the Wagner group has offered heavy weapons to the leader of Sudan’s Rapid Support Force (RSF), Lt Gen. Mohamad Hamdan Dagalo and a recent CNN investigation also details flight movements indicating the potential weapons drop to RSF by Wagner.

Wagner fighters have been accused of numerous human rights breaches including torture, rape, mass execution and child abduction. Their actions have seen them sanctioned by several countries and organizations including the EU & US.

Where do North Korea get involved?

As mentioned earlier the North Korean regime likes oppurtuunity and in this case it’s the opportunity to make money. And where there is war there is always opportunity. Pyongyang Papers has been investigating DPRKs sanction breaking activity on the African continent for a number of years and has a growing network of sources that are willing to supply us information.

North Korean activity in Africa is just as shady as Wagner and over the years the DPRK have found the continent of Africa a rich source of revenue. The type of activity in Africa is wide ranging & sanctioned. For example, our previous articles have highlighted North Korean medical workers across Africa & DPRK involvement in construction projects. Over the decades the DPRK regime has also offered more sinister services to African leaders.

A recent video emerged online depicting the RSF capturing weapons in Sudan that are believed to have originated from North Korea. Pyongyang Papers has also been informed that operating throughout Africa, Wagner is supplying DPRK sourced anti-aircraft missiles and mortars to rebel cells. With Wagner supplying the RSF with North Korean weapons and North Korean weapons being used by the Sudanese Armed Forces, this effectively means that North Korea has managed to arm both sides of the conflict. Proof if needed that the North Korean regime positions money generation for its ballistic weapons program above everything else. Even if the cost is hundreds or thousands of lives.

North Korean weapons currently in Africa?

North Korea has provided military assistance to many African countries over a long period of time. The assistance offered has ranged from training & advisors to pilots, specials forces and of course …. Weapons!
A recent example involves the Haegumgang Trading Corporation & Nigeria, who were planning to purchase $3.5 million worth of military equipment from North Korea in June 2021. This prompted an investigation from the UN Panel of Experts.

As recently as the end of March, Burkina Faso’s Foreign Ministry announced that it plans to resume diplomatic relations with North Korea and “focus on military equipment, mining, healthcare, agriculture and research”.

Wagner and North Korea

It has been widely reported that Wagner has purchased North Korean weapons for use in the Ukraine conflict. But with the ongoing conflict in Sudan and unstable alliances across several African countries, less visible in the public domain, the opportunity for the DPRK regime to make money and Wagner & Russia to further its interests in the region are just too good to ignore.

As always, if you have any information on DPRK sanctions evasion or would like to get in touch about one of our articles, please use the ‘Contact Us’ page.

As we have written about previously, it is well known that North Korea send workers abroad to bring money home for the Regime. Pyongyang Papers have previously talked about Doctors relocating to Africa but for this investigation we are zoning in on Niger and Nigeria. It is known that these workers should have returned home by December 2019 due to sanctions, but one healthcare professional told NKNews that North Koreans are still working in Nigeria despite the ban on overseas DPRK labor. In Novemebr 2020, Nigeria told told the UN Panel of Experts that a group of 37 North Korean healthcare professionals were awaiting deportation but due to lockdowns their cases were stalled. Here at Pyongyang Papers, we wonder if these 37 individuals were ever sent back to their homelands.

What else are they up to?

It has been reported that a range of North Korean-style hospitals have been set up in different African countries and some of them even sell prescriptions for herbal medicines that were later found to contain dangerous amounts of poisonous heavy metals! Information has been passed to us that indicate that complints against the DPRK are on the increase.

Photo
An advert for Faris Hospital Ltd.

One DPRK physician at Faris Hospital Ltd., had his contract terminated due to serious malpractice. Pyongyang Papers are led to believe that this physician is actively looking for a new contract with a number of Nigerian hospitals.

Overseas postings are highly sought after and usually reserved for the upper classes – Doctors in foreign postings can earn $1000 per month with $800 of that going back to North Korea. In contrast, those in the restaurant industry only tend to earn a few hundred dollars with similar proportions being deducted. DPRK doctors also tend to b able to move around more freely and are not restricted to strict rules like those working in restaurants. So no wonder this physician is keen to remain in work abroad!

North Korea’s own healthcare system is in a poor state due to lack of food and drugs – people are self-medicating and are being forced to have amputations when the drugs needed to cure infections are not readily available.

North Korean leader Kim Jong Un visits hospitalized survivors of horror bus  crash | CNN
Kim Jong Un visiting patients in hospital

Where is the money?

Lack of funds also appears to be an issue overseas after a prominent member of staff at the Niger Optical Services Co. LTD., hospital located in Igbo-Ukwu Ekwulobia, Nigeria, recorded a complaint to the Chief Representative of the DPRK Chinson General Corporation Representative Office in Nigeria. This was about the medical staff, who joined the srvice in 2019, not generating enough income for the optical service. Pyongyang Papers wonders how much these medical staff are making for the Regime! And if they are not generating money for the service, how long can they remain employed?

Due to a long-standing relationship between Africa and North Korea since the Cold War, and the fact the labor is highly skilled yet cheap, the country and companies within it seems to be ignoring the UN sanctions for their own gain. These health workers in Nigeria and the rest of Africa are in violation of UN security council resolution 2397, even in 2020 (after the workers should have been sent home) North Korea and Nigeria signed a public health cooperation agreement and the Nigerian Health Minister claimed that Nigeria had a desire to learn from North Korea in the sphere of public health – this is concerning to hear with links to malpractice!

If you have any more information about DPRK physicians and health workers in Nigeria, here at Pyongyang Papers, we appreciate anything you can provide us. Please get in contact.

Regular readers into DPRK sanctions evasion will have heard of Winson Oil or the Winson Group previously. Pyongyang Papers investigated Winson Oil and their involvement facilitating the sale of oil to North Korea in 2020.

In March 2021, the Royal United Services Institute (RUSI) and C4ADS went a step further and were able to unpick the complicated web of companies, individuals and ships involved in the Winson network. This network included criminal links, shell companies and a range of obfuscation techniques in use to try and hide the illicit activity. The ‘Black Gold’ report details how Winson Oil are a key node in the DPRK’s fuel procurement network and were using their links, as a major regional oil trader, to help breach sanction resolution 2397 (2017). The resolution states that “all member states are prohibited from supplying, selling or transferring crude oil that exceeds the aggregated amounts of 4 million barrels or 525,000 tons per 12-month period from 22 December 2017”.

The UN Panel of Experts contacted Winson Oil who naturally denied involvement and stated: “Winson denies, in the strongest possible terms, any and all allegations and/or insinuations that it knowingly facilitated the illicit supply of oil to North Korea in breach of any United Nations Security Council resolutions, and/or that it is a ‘key node’ in North Korea’s procurement of oil or refined petroleum products”. However the UN investigation highlighted some flaws in Winsons denial of any involvement as the individual, Mr. Chen Chi-wei, had used the same address, as was used to register one of Winsons ships, to register the company Winson had dealt oil to.

Jie Sheng Ship Management Co., Ltd

Jie Sheng Ship Management (傑陞船舶管理顧問有限公司) is a company that is not likely to be familiar to many but their relationship with Winson is slightly suspicious and warrants further investigation. Pyongyang Papers have been advised that Winson have recently transferred a number of ships to Jie Sheng Ship Management Co., Ltd and investigations online suggests this is true. The ships include:

  • ANGEL 22 (IMO 9191230)
  • ANGEL 33 (IMO 9011404)
  • ANGEL 38 (IMO 9175743)
  • ANGEL 101 (IMO 9101455)
  • ANGEL 106 (IMO 9141895)
  • ANGEL NO.1 (IMO 9434709)
  • ANGEL NO.2 (IMO 9146027)
  • OCEAN CRYSTAL (IMO 9116905)
  • OCEAN SPLENDID (IMO 9221683)
  • AT HONOR (IMO 9316555)
  • NEW HARMONY (IMO 9208605) – Previously named the ANGEL 17 and still appears on the Winson homepage

This itself in not unusual as ships are often sold when a company is looking to upgrade its fleet or adjust its business model. However, some additional details regarding the Jie Sheng Ship management Co., Ltd leave us wondering what is really going on.

Other Links

A news article from July 2022 about the ANGEL 33 being abandoned at sea after a leak suggests that Jie Sheng operates mostly tankers that are used to supply fuel to fishing trawlers at sea. This model of operating is very similar to the shuttle method described in the ‘Black Gold’ report. The news article also suggests that Jie Sheng Ship Management Co,. Ltd operate around 20 tankers. A very sizeable amount but appears to have a very minimal online presence apart from a few business listings offering limited information. This is regularly noted as a potential indicator of a shell company. One business listing suggests that Jie Sheng is located at Floor 25, No. 29, Hanbian Road, Lingya District, Kaohsiung City, Taiwan. Floor 25 is believed to be one of the floors owned by Winson Shipping Taiwan! Several other Winson related companies are also registered to the same address adding to our suspicions.

Jie Sheng Ship Management Co., Ltd
Online business listing for Jie Sheng Ship Management Co., Ltd

Online social media profiles also suggest a deeper connection between Jie Sheng Ship Management Co,. Ltd and Winson. Several individuals claim to have worked for both companies at the same time and recent posts show crew on board some of the Jie Sheng Ship Management Co., Ltd vessels wearing clothing with the Winson Group logo on them.

All of this suggests that Jie Sheng may just be a shell company that Winson has setup. The shell company could be completely innocent but Pyongyang Papers asks the question, why does it need to exist in the first place? With the Winson Groups previous activity and subsequent denial of any wrongdoing, along with the limited company information and setup. We suggest that the company is likely being used to hide current or previous illicit activity and Pyongyang Papers would appreciate any additional information that may be available to help our ongoing investigation. As always, you can get in touch through the ‘Contact Us’ page.

North Koreans brokering deals and earning commission seems to be a current trend that Pyongyang Papers is investigating on a regular basis. This option of earning currency to send back to the regime is attractive as it allows North Koreans to earn money without ultimately having to be directly involved in the movement of good and services which may come under scrutiny. Brokering deals is also very attractive as it allows the North Koreans to stay under the radar of law enforcement whilst ensuring the deals appear completely legitimate. In many cases the vendors involved in the deals may not be aware that North Koreans are facilitating the deal!

Chong Sang-Hun

As mentioned previously, Chong Sang-Hun is an official at the DPRK embassy in Thailand who often brokers deals to earn huge amounts of commission with minimal risks. His previous deals involve gold, coking coal and copper cathodes. Pyongyang Papers sources have informed us that Chong is currently working on a commission based deal worth millions of dollars on behalf of Taiwan based company Semiconductor Equipment Manufacturing Inc. (欣憶電子股份有限公司) – SEM.

SEM street view
Street view of the Semiconductor Equipment Manufacturing office in Taoyuan, Taiwan

SEM, also known as Xinyi Electronic Co., Ltd. at times are “One of the renowned suppliers and exporters of semiconductor machinery in Taiwan” according to their website and are based in Zhongli District in Taoyuan City. Their primary business is buying, selling, leasing and refurbishing semiconductor related equipment. Pyongyang Papers wonders how much the chairman Chu Smith knows about North Korean involvement in brokering business deals for his company? We are continuing to investigate Chong and SEM but if you have any information regarding the deal, please get in touch through the ‘Contact Us’ page.

Brokering deals – A worrying trend

North Koreans and their friends brokering deals, either for the regime or to help the regime, is not new but does appear to increasing in regularity. Back in 2012, a notorious British international arms dealer named Michael Ranger was prosecuted and jailed for brokering an arms deal between North Korea and Azerbaijan. The latest UN Panel of Experts midterm report also note that Haegumgang Trading Corporation, a DPRK weapons trading entity, was planning on brokering $3.5 million worth of military equipment to Nigeria in June 2021, And in July 2021 a South Korean-born Australian named Chan Han Choi was sentenced to over 3 years in prison for breaking UN sanctions by trying to broker deals for missile components and coal to raise funds for the regime, Chan Han Choi had a history on involvement with North Korea and had previously tried to involve North Korean athletes in the Sydney Olympic Games in 2000.

Allowing the DPRK to broker deals, and their allies to broker deals on behalf of North Korea unchallenged ensures that the regime has a steady flow of cash to continue to pursue its nuclear ambitions and maintains instability in Asia. Recently the DPRK regime has increased their missile tests to unprecedented levels with Kim Jong Un recently stating the DPRK’s need to secure “overwhelming military power”. This has North Korea watchers around the world wondering if a nuclear test may be imminent. Pyongyang Papers calls on the UN and other investigative bodies to look into the use of brokers and the role they play in avoiding sanctions.

As always, if you have any information regarding the topics in any of our articles, please get in touch through the ‘Contact Us’ page

North Korea is one of the only few countries worldwide that is still not a member of the International Labor Organization (ILO), choosing instead to continue exploiting its citizens and using forced unpaid labor to fuel its economy.

High number of DPRK laborers in China are only increasing

Since Kim Jong Un became leader of the DPRK in 2011, the number of workers sent abroad has increased to earn foreign currency for the regime. DPRK contracts with foreign governments including: Russia; parts of Africa; East and South East Asia; Middle East and Eastern Europe are all receiving forced labor with their movements and communications under constant scrutiny by DPRK government ‘minders’. Any complaints by the workers, or those who flee, will have consequences and will result in action being taken against their relatives back in the homeland.

We all know the Human Rights are an issue when related to the DPRK, well, Pyongyang Papers have been tipped off about incidents of assault amongst North Korean Laborers by their unit managers within their neighbors and close ally, China. Is China also turning a blind eye to this behavior? The People’s Republic of China (PRC) has a long record of circumventing sanctions in order to trade with the DPRK. According to the U.S. State Department’s 2021 Trafficking in Person’s report, there are between 20,000 to 80,000 DPRK workers in China. With reports suggesting that the Chinese Labor market is worsening (worse than the official monthly figures) with less jobs available nationwide and Chinese youth jobless rates hitting record high of 20% in July, we are not sure how much work there actually is for these thousands of North Korean workers when they get to China. With money still being sent home to the Regime, China is paying the price for this partnership.

Forced to work in poor conditions

Those that do have work are subject to back-breaking labor for 12 hours a day and are even banned from leaving their accommodation or work places since the Covid pandemic – even before that, they were only allowed to leave for their local markets in small groups. Add these poor conditions to the reports of assaults, the DPRK workers are more like slaves! North Korean authorities have also sent orders to the North Korean consulate, underscoring that officials should keep a closer eye on the workers to prevent them form fleeing and to work harder. These orders have obviously trickled down to the managers and put pressure on them to deliver! Pyongyang Papers would like to think this is isolated, but fears the worst, as we understand several China-based DPRK labor cooperation managers had verbally abused, along with physically attacking their fellow countrymen.

North Korean workers and imports continue to cross border into China  despite UN sanctions | South China Morning Post
DPRK laborers allowed to leave their dorms

As well as failing to send the DPRK workers home before December 2019 deadline (as ordered by UN sanctions), it looks like the Chinese companies that employ these illegal workers also have no regard for their safety and well being. There is no excuse for this behavior and in a civilized society this conduct would not be tolerated. Perhaps the managers are more concrrned by meeting targets than the welfare of their underlings.

There are so many wrong doings on DPRK workers in China but as usual, money comes before basic human rights. Will the international community stand by the people of North Korea by putting further pressure on Pyongyang? If you have any information about DPRK workers in China, please reach out to us.

During our investigations, Pyongyang Papers comes across all sorts of entities and individuals involved in sanctioned North Korean activity. Very few are quite as interesting as the individual we have been investigating recently – Ri Chol Nam. As part of our investigation into North Korean ran restaurants in Laos a source informed us that the Pyongyang Unhasu restaurant in Cambodia should be investigated.

Pyongyang Unhasu restaurant

The Pyongyang Unhasu restaurant – Located at 10A, Street 315, 12151, Phnom Penh – is part of the “Pyongyang” chain of restaurants, with around 130 locations worldwide. This chain of restaurants is owned and operated by Haedanghwa Group, an organization belonging to the North Korean government. The Pyongyang Unhasu restaurant is located Phnom Penh, Cambodia with Ri Chol Nam listed as director and chairman of the board of directors before he transferred ownership of his restaurant to a Cambodian individual named Vath Bonna following penalties from the Cambodian Ministry of Labor and the Cambodian Ministry of Commerce. Pyongyang Papers contacted Vath Bonna regarding the restaurant ownership but did not receive a reply.

Since 2017, UN resolutions state that “all member states are required to prohibit, by their nationals or in their territories, the opening, maintenance and operation of all joint ventures or cooperative entities, new or existing, with DPRK entities or individuals, whether or not acting for on behalf of the government of the DPRK.” An article from May 2018 about the closure of three North Korean restaurants in Phnom Penh, including the Pyongyang Unhasu restaurant, stated that all three remained open despite the UN sanctions and when Ri Chol Nam was questioned about where the money the restaurant made was sent, he stated “I’m mortified by your question” … “I cant answer that”. In addition to the closures of DPRK restaurants, the Cambodian government sent a letter to the UN stating that 115 North Korean workers were allegedly deported.

According to journalists, the restaurants are one of several overseas business ventures of Room 39 – a secretive North Korean party an criminal organization that seeks ways to generate money for the country leaders with each of the restaurants chain funneling between $100,000 and $300,000 a year back to North Korea.

Pyongyang Papers have also been informed that Ri has links to the Dragon Spa Foot Leisure Massage Health Center operating next to the Pyongyang Unhasu restaurant. Although company records show the restaurant is no longer on the register, the Dragon Spa appears to still be operating from the same building in Phnom Penh – The signage for the restaurant and the spa sit above he same door. There are few signs of this as a viable business online but there is one review about the Unhasu restaurant from a lady who attended for a massage and felt the business was more like a “whore house”. No wonder the business is not listed anywhere!

The Pyongyang Unhasu restaurant and Dragon Spa Foot Leisure Massage Health Center

Ri Chol Nams other activities

Another interesting aspect to Ri Chol Nam and his activities is that he is also a very well regarded Grand Master in Taekwondo and has links to International Taekwondo Federation (ITF). He has been involved with the ITF Cambodia for almost 2 decades and also acts as the chairman of the Technical Committee for the Asian Taekwondo Federation. One of his students, a gold medal winner at the world championships, posted on social media that Ri Chol Nam was leaving for his “homeland” in March 2022. The post was very personal and showed photos of other students saying goodbye in tears and singing farewell songs. At Pyongyang Papers, we wonder if Ri Chol Nam has i fact gone home or has set up camp in another country, Contact us if you know where he is currently residing.

Strangely, Ri Chol Nam’s tagged social media profile looks very similar to the name of the restaurant that was unregistered 2 years ago – Hasu Un. Strange how he is no longer affiliated to the restaurant but is still using social media account with links to it. Although the paperwork indicates Vath Bonna is the owner, Pyongyang Papers believes Ri is still involved behind the scenes with the Pyongyang Unhasu restaurant. There are also other social media accounts for the restaurant, two of which have been recently active, suggesting it remains in operation and is still making money for its homeland – yet another example of DPRK sanctions breaking.

A recent posting by the Pyongyang Unhasu Restaurant on social media

Whilst conducting our research on Ri Cho Nam, we have found that he also has a contact in the Royal Gendarmerie of Cambodia, a branch of the Royal Cambodian armed forces and within the Cambodian government itself. Keo Remy is the Cambodian ITF Taekwondo Federation chairman but also holds the position as the president of the Cambodian Human Right Commission (CHRC). The irony of Keo Remy’s relationship with Ri Chol Nam isn’t lost on Pyongyang Papers given north Korea’s terrible human rights record.

Keo Remy & Ri Chol Nam at a Taekwondo event

We are unsure how Ri Chol Nam managed to find the time to run a restaurant business, ‘massage parlor’, teach Taekwondo and hold positions within the ITF. Pyongyang Papers will continue to investigate Ri Chol Nam and his connections to uncover more illicit activity that he may be involved in. If you have any information on Ri Chol Nam, please get in touch through the ‘Contact Us‘ page.

June 24, 2022 was a day of significance as it marks the 48th anniversary of diplomatic ties between the DPRK and The Lao People’s Democratic Republic. The friendship and cooperation between the two countries was forged and deepened through historic summits of 1965 and 1970 between Kim Il Sung and leader of Lao people- Kaysone Phomvihane. Today, the DPRK government remain unchanged in their resolve to develop the relations of ‘friendship’ with Laos.

Pyongyang Papers asks the question, “does DPRK need Laos more than Laos needs DPRK?” We would suggest that the DPRK only need Laos as a money generator for the regime and therefore have no problem severing any ties if they do not get what they want i.e. money. So, is this true friendship?

North Korean restaurants in Laos

With easing of COVID-19 travel restrictions in Asia, people have been able to travel again. The backpacker trail is opening up with travelers seeking out new experiences.

Pyongyang Papers has been tipped off by a backpacker that restaurants in Laos are still operating using North Korean workers. Despite UN Security Council resolution 2397 requiring all Member States to repatriate, by December 22, 2019.

All North Korean entities (including restaurants) are supposed to have been closed down under UN sanctions which prevent North Korea from having overseas workers. It is well documented that North Korea exploit their citizens by sending them abroad to earn foreign currency which is then sent back to the hermit state. These restaurants are another example of this, and the money is certainly not for the good of the impoverished, starving people but more likely end up funding weapons of mass destruction.

Our backpacker found a very unusual dining option in Vientiane, 원언니식당 (Won Onni Sikdang) – which translates to Big Sister Won’s restaurant. This restaurant, conveniently located close to the DPRK Embassy in Vientiane, doesn’t offer Laos cuisine, but instead seems to be a North Korean restaurant and has multiple 5-star reviews on Google.

Google reviews of “Big Sister Won” restaurant confirm the restaurant has been operating in 2022.

So what’s in it for the DPRK regime? Sources confirm that the North Korean restaurant menu requests payment in US dollars and not Laotian Kip. This is another way that the DPRK can seek to launder its ill-gotten gains, and a source of foreign currency for the regime. We don’t believe that this is just a business set up by an enterprising North Korean expatriate. Any North Korean restaurant will certainly have to pay a retainer or fee to the DPRK embassy in Laos just in order to operate, which is forwarded onto the DPRK regime.

According to the 2022 UN Panel of Experts report, Big Sister Won’s restaurant is not the only North Korean restaurant believed to still be in operation in Laos. The UN report details four North Korean restaurants and one night market, including their locations and images, which appear to have continued to operate “even after the applicable measures towards the closure of the restaurants and repatriation were taken by the Laotian authorities in 2020”. This is a direct violation of the December 2019 United Nations Security Council Resolution (UNSCR) 2397.

Kumkangsan Restaurant

The UN report however does not mention Big Sister Won’s restaurant, it seems this one may have slipped under the radar somehow. Our sources have informed us of another North Korean restaurant in Vientiane; Kumkangsan Restaurant (ອາຫານ ຄຶ່ມກ່າງຊານ) on Asean Road, Sisavath Village, Vientiane. The Kumkangsan restaurant seems to have a shop attached- we wonder what they sell?

Social media post confirm Kumkangsan restaurant is in operation as of May 2022.

The latest UN Panel of Experts report states that Laotian authorities took action against the North Korean restaurants in 2020 but our investigation proves that more needs to be done to stop the regimes illicit activity in Laos. Pyongyang Papers is still investigating DPRK run restaurants in Laos and would like to hear from you if you have any further information on the entities named in this article or any other individuals and entities helping the North Korean regime avoid sanctions so that we can investigate further.

Unfortunately, here at Pyongyang Papers we have come to expect to hear of the DPRK and its co-conspirators committing acts of a brutal, inhumane and cold-blooded nature and today we report on another. No nation, human or animal is safe from unwillingly contributing to the DPRK and its ever-growing money pot for weapons of mass destruction.

In this case the DPRK have teamed up with there usual partner in crime, China, to facilitate the illegal sale of rhino horn and violate UN sanctions.

Rhino horn – Big business on the black market

Rhino horn is big business for the Chinese and Vietnamese market places, used in some cultures as ‘traditional’ medicine, ornaments, or simply a ‘status symbol’ to demonstrate wealth. Poachers kill rhinos for their horns which are bought and sold on the black market- the value for this commodity ranging between $60,000 and $65,000 per kg (the same value as gold) with an average rhino horn weighing between 1-3kg each.

Between 2009 and 2018, 11000kg of illegally harvested rhino horn was seized, with South Africa contributing nearly 3000kg and Mozambique over 1000kg; the value of which on today’s black market is between $660 and $715 million.

rhino horn
Poachers killed this black rhinoceros for its horn with high-caliber bullets at a water hole in South Africa’s Hluhluwe-Imfolozi Park.

Pyongyang Papers have been tipped off that Yun Kil, an officer at DPRK Embassy South Africa based in Pretoria, is looking to sell $65 million of rhino horn to Shanghai Pharmaceutical Holding Con., Ltd, China from a South African supplier. The deal is via a Mozambican national named Avelino Antonio Nhantumbo. Nhantumbo was believed to be involved in a joint fishing venture with North Korea previously that was was shut down. Clearly he has not learnt from his previous illegal activity!

Although the rhino horn may have been sourced legally, requiring permits from both seller and buyer, international trade is not permitted under CITES regulations. CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora) is a multilateral treaty to protect endangered plants and animals, located in Geneva, Switzerland. the international trade in rhino horn has been banned since 1977.

Due to poaching and habitat loss rhinoceroses are now considered a critically endangered species with less than 30,000 rhinos living in wild today. Unfortunately, the scarcity and decreasing availability of rhino horn only continues to increase its value, and therefore the demand for it.

This isn’t the first time the DPRK has been caught in the illicit sale of African wildlife; Pyongyang Papers has previously reported on two North Korean diplomats arrested and detained in 2016 for smuggling multiple kilos of rhino horn. There are further reports from 2019, revealing that North Korean diplomats have continued to engage in smuggling rhino horn out of South Africa, despite the risk of being detained.

Hypersonic gliding missile

The commission for the deal undertaken between Yun Kil and Shanghai Pharmaceutical Holding Con., Ltd will amount to a multi-million USD pay-out which will be claimed by the DPRK regime and likely to fund its ballistic weapons program.

Despite UN sanctions, North Korea continue to advance its nuclear arms weapons technology. In September 2021, North Korea successfully tested a new hypersonic gliding missile. State media, Korean Central News Agency reported the launch was of ‘great strategic significance’ as the North seeks to increase its defense capabilities ‘thousand-fold’.

Hypersonic missiles move much faster and more agile than standard ones, making them much harder for missile defense systems- on which the U.S. is spending billions- to intercept.

It comes as no surprise, as Kim Jong Un announced his intention to develop more weapons and increase the country’s military capabilities at the Workers’ Party Eighth Congress in January 2021.

The launch took place less than an hour before North Korea’s UN envoy, Kim Song, addressed the UN’s annual meeting in New York. Kim told the UN that Pyongyang had a, ‘righteous right to self-defense’, and therefore implying a right to develop weapons.

North Korea has increased the pace of their missile testing in 2022, launching a total of nine so far. January saw a record number of such tests, with at least seven launches during the month including a hypersonic missile.

It seems clear that leader Kim Jong Un has no intention of slowing down North Korea’s production of weapons of mass destruction, despite the US’s pleas for peace talks. Here at Pyongyang papers we ask- what will it take for the Kim dynasty to end their tyrannical rule spanning more than 7 decades, and free all the innocent parties who are suffering at the hands of this regime?

It has been widely reported that the DPRK enforced strict border closures throughout 2020 and 2021 to stop the spread of COVID-19. Unsurprisingly this severely impacted trade opportunities, especially with China. China is North Korea’s biggest partner in both legal and illegal trade. In 2020, China’s reported trade with North Korea was down 80% from the previous year. Whilst the North Korean regime has maintained some level of income by violating sanctions through ship-to-ship transfers of oil and continuing to export tons of coal, it is clear that a strict border lock-down has resulted in devastating economic consequences.

South Korean outlet “Seoul Pyongyang News” recently reported shipping activity resumed between China and North Korea during the summer of 2021, according to their sources in bordering China cities. The Port State Control Committee of the Asia-Pacific have also released data indicating several North Korean ships have been seen entering various Chinese ports, signifying an increase in trade between the neighbors as well as a blatant disregard for ongoing sanctions.

Sanction evasion

Over the past few years North Korea’s efforts to evade sanctions have only increased. A recent Panel of Experts investigation has described ongoing illicit imports and exports carried out under cover of foreign flagged ships with obscured origins, but the latest data showing North Korean ships in Chinese ports suggests both nations no longer feel the need to hide the illegal activity.

The North Korean ships largely come from Nampo, a city in South Pyongan on the banks of the Taedong River. Nampo Port is a known hub for illegal activity, with satellite imagery released in the UN Panel of Experts report highlighting continuous use of the port to evade sanctions including carrying out illegal ship-to-ship transfers of oil as well as loading exports including coal.

A Pyongyang Papers investigation has also discovered that a North Korean trading corporation known as Korea Kumgangsan Trading Corporation, is planning to export 5,000 metric tons of graphite per month to a Chinese corporation called Dandong Earth Science and Technology Co., Ltd. The graphite is due to be loaded from Nampo Port.

Dandong Earth Science and Technology Co., Ltd, also known as 丹东大地科技有限公司 in Chinese, is located in Dandong, China’s largest border city, directly across the Yulu river from the North Korean city of Sinuiju. The company is represented by Mr Shen Guochun (沈国春) with an office adjacent to the Sino-Korean Friendship Bridge. Dandong is a prime location for ongoing trade with the DPRK and was the focus of heavy investment prior to the pandemic. Dandong Earth Science and Technology Co., Ltd. are so shameless about their activity with North Korea that company profile online even states “Since its establishment, the company has given full play to its regional advantages and vigorously developed its import and export trade with North Korea.” (translated from Chinese).

Location of Dandong Earth Science and Technology Co., Ltd. taken from business listing website
Street view of Dandong Earth Science and Technology Co., Ltd. office location

Graphite Demand

Graphite is required for lithium-ion battery production and there is no substitute for it. It is also a good conductor of heat and electricity and so is therefore useful in electronic products. Global demand for graphite has been growing by over 20% a year, fueled by the constant production of cell phones, cameras and laptops. The mounting worldwide focus on electric vehicles and renewable energy means that demand will only increase further. A report by the World Bank Group predicts almost 500% rise in graphite supply would be needed by 2050, in the shift to a ‘low-carbon future’.

North Korea is no stranger to the graphite industry, exporting $4.65m in graphite in 2018, making it the 16th largest exporter of graphite in the world. China is also a big player in the industry, having been the largest producer and exporter of flake graphite for decades. Recently China has been importing more graphite, increasing imports by 22% between July 2020 and July 2021. China has a long record of circumventing sanctions in order to trade with North Korea, so illegal graphite imports will undoubtedly continue to rise as global demand surges along with trade routes reopening following the pandemic.

Where does the money go?

The high demand for graphite naturally leads to high prices- in 2019, the global price of graphite was $690 per metric ton, and prices have only increased since then thanks to new rounds of Chinese environmental inspections, demand growth and plant closures during the pandemic.

Sadly, it is unlikely the substantial income from illegal graphite exports will be used to help feed the North Korean population, who have been hit hard by border closures and food shortages. Kim Jong Un told citizens to prepare for another ‘Arduous March’ indicating the potential for another famine similar to that of the 1990’s, which killed up to 10% of the population. Despite this clear economic hardship, recent displays of military developments such as ballistic missile tests show that the North Korean regime is still funneling money towards the development of its weapons program whilst letting the citizens of North Korea starve! If you have any information regarding North Korean sanction evasion, please get in touch.

Whether working to smuggle luxury goods, refined petroleum, or its most lucrative export – coalthe DPRK’s maritime vessels have been a key component in the states notorious sanction evasion activities for years. Pyongyang Papers recently investigated a deal involving the sale of sand, dredged from the North Korean Yalu river, to its long established ally China. After further research by Pyongyang Papers, it seems the North Korean regime have been funding their nuclear and ballistic weapons program by selling sand for some time and on an immense scale!

C4ADS Expose

Between March and August 2019, Washington based think tank C4ADs tracked hundreds of vessels that were suspected of dredging sand in Haeju Bay before transporting it to China. These shipments involved at least one million tons of sand and were worth at least $22 million. C4ADS stated that the activity in Haeju demonstrates scale, and a level of sophistication unlike other known cases of north Korean sanctions evasion at sea. Providing renewed evidence of the DPRk’s evolving abilities to coordinate and execute complex operations with facilitators abroad.

When questioned by the UN Panel of Experts on its involvement in C4ADs’s expose, China responded that it attached great importance to the clues provided by the panel in relation to the smuggling of sand originating in the DPRK. However, unsurprisingly, the Chinese side could not trace the related vessels voyage a was unable to confirm that the sand had been transported to Chinese ports.

Despite China’s continued insistence of being an upstanding member of the UN in support of North Korean sanctions, their actions continue to suggest that this is not the case. Our sources have informed us of two further Chinese companies who are the recipients of illegally-sourced sand from the DPRK’s Yalu river.

Mining Agreement

Our sources have informed us that North Korean company Kwangyong Trading Corporation have facilitated a 10-year sand mining agreement with China Liaoning material Import and Export Co. Ltd, (辽宁鑫之烨物资进出口有限公司). This agreement is a blatant violation of the United Nations Security Council resolution 2397 (2017), which prohibits the sale of earth and stone (including sand) by North Korea. According to business listings China Liaoning was established in December 2020 and appears to have quickly moved onto illegal activity. The company is managed by Xie Zongxuan (谢宗烜) with its headquarters registered in Benxi City, Liaoning Province, around 100km from the North Korean border!

Modern civilization is built on different types of sand. Its a key ingredient in concrete, glass and the processors that power electronic devices. Approximately 50 billion tons of sand is consumed globally each year. More than any other natural resource on the planet except water. As the global leaders in construction, it is not surprising that China are in the market for sand supply deals of a long lasting nature.

Vessel Violations

The Yalu river is situated on the North Korea/China border between the cities of Sinuiju and Dandong. The river is the longest waterway on the Korea peninsula, measuring 795km, and so acts as a great source of sand for the North Koreans to mine and sell. The first entrance to the Yalu river is located near the southern section of Pidan-som island.

The Yalu river, situated on the North Korea/China border between the cities of Sinuiju and Dandong

A second Chinese company, China Hunchun Longchao Trading Co. Ltd, are also looking to enter into illicit sand dredging deals by partnering with a DPRK company named Jinmyong Trading Corporation, This wouldn’t be the first time Jinmyong Trading Corporation has been involved in sanctions breaking activity alongside China. The 2021 midterm panel of Experts report states that the DPRK acquired a vessel named the the Ming Zhou (IMO 8829878) following a joint venture involving Jinmyong Trading Corporation. This violates UN resolutions that prohibit the direct or indirect supply, sale or transfer of vessels old and new to the DPRK. despite this, the oppressive state has continued to expand its fleet through the addition of former foreign flagged tankers and cargo vessels since 2019.

Our sources have confirmed that the North Korean government notified the Chinese government of the two companies cooperation on the project!

China’s Lies

Pyongyang papers finds it ridiculous that China continues to deny any involvement or wrongdoing in sanctions breaking activity, when clearly this couldn’t be further from the truth. By undermining the sanctions and continuing to trade with North Korea, China is effectively funding the Kim regimes nuclear weapons program and completely disregarding the illegal, immoral and dangerous practices taken to do so. Pyongyang Papers believes that these deals may just be a tiny fraction of the activity currently taking place on the Yalu river. As always, if you have any information regarding sanctions evasion and North Korea, please get in touch.