Director of 3 firms which supplied luxury goods to North Korea jailed 3 weeks
SINGAPORE 12 October 2020— A director of three companies which supplied luxury goods to North Korea was jailed for three weeks on Monday (12 October).
Chong Hock Yen’s three firms, SCN Singapore, Sindok Trading and Laurich International – all in the business of wholesale trade – were fined $120,000, $10,000 and $10,000 respectively.
All three had supplied luxury items to four entities in North Korea: a department store chain called Bugsae Shop, Korea Jangsaeng Trading Corporation (Pyongyang), MG Corporation and New Hope Joint Venture Corporation (Pyongyang). These items include perfumes, cosmetics and watches.
The bulk of the items were supplied by SCN to Bugsae Shop, which was owned by Li Ik, a North Korean. Chong, 60, supplied the goods via air and sea shipment through China, and by hand at airports, on 43 occasions. He knew that he was in breach of the UN (Sanction — Democratic People’s Republic of Korea) Regulations 2010.
Payments to Chong’s companies were made through fronting firms incorporated in various countries.
Between late 2014 and early 2017, Li Hyon – Li Ik’s son – served as a liaison between Li Ik and SCN, and facilitated SCN’s supply of luxury goods to North Korea.
He was the only one who could contact his father when the latter was in North Korea. Li Hyon, who studied in Singapore prior to 2014, also brought items across the border to Bugsae Shop on three occasions.
Chong admitted to conspiring with SCN, Li Ik, his secretary Lam Hon Lan and Li Hyon to supply luxury goods valued at some $265,696 to North Korea on eight occasions between 2011 and 2016, in breach of regulations. The total value of goods provided, including charges that were taken into consideration, is over $575,000. He earned a profit of about $122,117.
SCN admitted to supplying luxury items to North Korea on six occasions between 2011 and 2015, while Sindok and Laurich each admitted to supplying the items on one occasion in 2013 and 2015 respectively.
Li Hyon was previously jailed four weeks for his role in supplying luxury goods to North Korea.
Meet the team of industry experts behind ComsureFind out more
Keep up to date with the very latest news from ComsureFind out more
View our latest imagery from our news and workFind out more
Think we can help you and your business? Chat to us todayGet In Touch
As well as owning and publishing Comsure's copyrighted works, Comsure wishes to use the copyright-protected works of others. To do so, Comsure is applying for exemptions in the UK copyright law. There are certain very specific situations where Comsure is permitted to do so without seeking permission from the owner. These exemptions are in the copyright sections of the Copyright, Designs and Patents Act 1988 (as amended)[www.gov.UK/government/publications/copyright-acts-and-related-laws]. Many situations allow for Comsure to apply for exemptions. These include 1] Non-commercial research and private study, 2] Criticism, review and reporting of current events, 3] the copying of works in any medium as long as the use is to illustrate a point. 4] no posting is for commercial purposes [payment]. (for a full list of exemptions, please read here www.gov.uk/guidance/exceptions-to-copyright]. Concerning the exceptions, Comsure will acknowledge the work of the source author by providing a link to the source material. Comsure claims no ownership of non-Comsure content. The non-Comsure articles posted on the Comsure website are deemed important, relevant, and newsworthy to a Comsure audience (e.g. regulated financial services and professional firms [DNFSBs]). Comsure does not wish to take any credit for the publication, and the publication can be read in full in its original form if you click the articles link that always accompanies the news item. Also, Comsure does not seek any payment for highlighting these important articles. If you want any article removed, Comsure will automatically do so on a reasonable request if you email firstname.lastname@example.org.