Zokwang Trading Explained

Zokwang Trading
Type:State-owned
Foundation:1974
Industry:Import-export
Context:north
Hangul:조광무역
Hanja:朝光貿易
Rr:Jogwang Muyeok
Mr:Chogwang Muyŏk
Text:Also spelt Chokwang, Jokwang, Zowkwang, or misspelt as Zok Wang[1]

Zokwang Trading Company is a North Korean state-run import-export business based in Zhuhai, China.[2] It is reportedly controlled by Room 39, a secret department of the government of North Korea.[3]

Zokwang Trading is not on the official list of North Korean companies published by Naenara, the official web portal of the North Korean government.

History

Zokwang Trading was founded in 1974 in Macau, then under Portuguese administration, soon after Portugal recognised North Korea, following the Carnation Revolution, in which a left-wing government came to power.[4] It functioned as North Korea's de facto consulate in Macau, issuing documents and visas.[5]

In a 2006 intelligence report, Zokwang was described as a local unit of a North Korean company called Daesung Chongguk, officially involved in the machinery and textiles trade and allegedly coordinating opium trafficking, which was using Macau "as a base to move counterfeit dollars and to try to procure components for its weapons systems".[6]

North Korean government officials and other sources state that the company engages in legitimate business transactions, purchasing cigarettes, food, liquor, televisions, and luxury goods for shipment to Pyongyang, but police long had suspicions about Zokwang's activities.[7] One of its officers, An Gun-ho, was identified as a senior counterintelligence officer of North Korea's Ministry of Political Security.[8]

North Korea was also alleged to have used Macau as a base for planning the 1983 Rangoon bombing, an assassination attempt on South Korean President Chun Doo-hwan, in which 21 people were killed, but the vice-president of Zokwang Trading, Kim Chol Jun, denied allegations of espionage.[9]

Kim Hyon-hui, one of the agents who carried out the bombing of 1987 Korean Air Flight 858, claimed to have spent several months training at Zokwang Trading's office while living in Macau.[10] In her autobiography, The Tears of My Soul, she wrote that, while living there, she learned Cantonese so that she and other North Korean agents could pose as local Chinese residents.[11]

In 1994, the United States government also made accusations that Zokwang Trading were engaged in arms sales and other illegal technology transfer.[12] Later that year, five employees of the company were arrested after trying to pass US$250 000 in counterfeit notes.[13]

Before they were arrested, they had deposited US$100 000 in counterfeit notes, and had attempted to deposit a further US$150 000 before US banks in Hong Kong raised the alarm, but as they had diplomatic passports, they were later released.[14]

Zokwang Trading held accounts with two Macau banks Banco Delta Asia and Seng Heng.[15] In 2005, these were frozen at the request of US financial regulators.[16] The funds were released in 2007.[17]

During 2006, Zokwang moved across the border to Zhuhai.[18]

Notes and References

  1. http://www.upi.com/Archives/1994/06/06/North-Korea-denies-food-report/1264770875200/ North Korea denies food report
  2. http://english.chosun.com/site/data/html_dir/2005/12/19/2005121961013.html N.Korean Firms Abandon Macau
  3. http://english.chosun.com/site/data/html_dir/2010/06/22/2010062201162.html Kim Jong-il Restores Special Department to Swell Coffers
  4. https://books.google.com/books?id=JPkMAQAAMAAJ&q=Zokwang+Trading Great Leader, Dear Leader: Demystifying North Korea Under the Kim Clan
  5. http://www.scmp.com/article/516764/north-korean-company-no-stranger-controversy North Korean company is no stranger to controversy
  6. http://www.scmp.com/week-asia/geopolitics/article/2093189/how-macau-became-north-koreas-window-world-and-its-nexus How Macau became North Korea's window to the world... and its nexus for weapons and drugs trafficking
  7. http://archives.cnn.com/1999/ASIANOW/east/macau/stories/macau.north.korea/index.html Will China end North Korea's illegal activities in Macau?
  8. https://books.google.com/books?id=sXrrAAAAIAAJ&q=Zokwang+Trading Terrorism, the North Korean connection
  9. https://www.nytimes.com/1987/08/16/world/macao-called-new-center-of-north-korean-spying.html Macao Called New Center of North Korean Spying
  10. http://www.scmp.com/article/325411/north-koreas-macau-based-trading-venture-opens-its-doors-deny-reports-espionage-and North Korea's Macau-based trading venture opens its doors to deny reports of espionage and shady deals
  11. https://books.google.com/books?id=yNnZAAAAIAAJ&q=%22practice+our+Cantonese%22 The Tears of My Soul
  12. http://www.asiapacificms.com/articles/northkorea/ North Korea: Coming in from the Cold
  13. https://books.google.com/books?id=mdyJS5iD9wYC&dq=Zokwang&pg=PA157 North Korea: The Paranoid Peninsula: A Modern History
  14. https://www.wsj.com/articles/SB105813345248381600 In North Korea, Secret Hoard Of Cash Props Up a Regime
  15. https://www.wsj.com/articles/SB112612365849834354 U.S. Probes Banks' North Korea Ties
  16. http://www.macaubusiness.com/news/economy-finance/special-report-korea-meltdown.html SPECIAL REPORT: Korea Meltdown
  17. https://www.wsj.com/articles/SB117627790709466173 How U.S. Used a Bank To Punish North Korea
  18. https://web.archive.org/web/20060527185935/http://www.atimes.com/atimes/Korea/HE26Dg02.html North Korea's creepy-crawly capitalism