ROKG IMPLEMENTATION OF UNSCR 1718: TEXT OF REPORT

C O N F I D E N T I A L SEOUL 003899

SIPDIS

SIPDIS

E.O. 12958: DECL: 11/13/2016
TAGS: PREL PGOV PHUM KS KN
SUBJECT: ROKG IMPLEMENTATION OF UNSCR 1718: TEXT OF REPORT
TO SANCTIONS COMMITTEE


1. (SBU) SUMMARY: The Ministry of Foreign Affairs and
Ministry of Unification jointly announced at 1500 on November
13 the ROKG "Report of the Republic of Korea on the
Implementation of United Nations Security Council Resolution
1718 (2006)." The twelve-page report (see text below)
comprises an introduction (section I),a description of the
ROK's existing export control system including measures
focused on the DPRK (sections II and III),and a main section
describing actions taken or to be taken to enforce paragraph
8 of UNSCR 1718 (section IV). Based on a preliminary review,
the report appears to encompass relatively minor changes to
existing ROK procedures and regulations in response to UNSCR

1718. It states that the Ministry of Unification is still
drawing up its list of luxury goods whose trade will be
restricted.


2. (C) COMMENT: In a meeting with CDA before the ROKG's
announcement on UNSCR 1718, Dr. Park Sun-won, Secretary to
the President for National Security Strategy, said that he
understood that from the USG point of view the steps the ROKG
was taking in line with UNSCR 1718 would be seen as
insufficient. He stressed, however, that South Korea's
unilateral actions to date (outside of UNSCR 1718) toward the
North in response to the missile tests were significant:
South Korea had suspended suspended provision of 380 million
USD worth of rice and fertilizer, the transfer of railroad
and road materials and equipment, the provision of light
industrial materials valued at 80 million USD, and halted
implementation of a riverbank sand mining project. Park
insisted that the aggregate value of all of these suspended
projects with the North exceeded the impact of steps that
either Japan or China had taken in response to UNSCR 1718.
That argument -- that the ROKG's post missile-launch actions
were large enough that there was little left to do after the
October 9 nuclear test -- is familiar, but Park also hinted
(on a strictly confidential basis) that the ROKG will this
week announce a major change in its human rights policy
toward North Korea that would represent a significant change
in North-South policy. We await that announcement with
interest. END SUMMARY AND COMMENT.


3. (U) Begin Text:

Report of the Republic of Korea on the Implementation
of United Nations Security Council Resolution 1718 (2006)


I. Introduction

The government of the Republic of Korea (ROK) is committed to
faithfully
implementing United Nations Security Council Resolution
(UNSCR) 1718 and to
rendering full cooperation to the Committee established
pursuant to OP 12 of the
Resolution.

Prior to the adoption of UNSCR 1718, the ROK government
already had in place a
range of legislative and executive measures that ensure
compliance with the
requirements of UNSCR 1718. In addition, it has been
conducting a thorough
review of its policies with a view to identifying further
steps that may be needed to ensure full implementation.

For that purpose, the ROK government established an
Inter-Ministerial Task FORCE
comprising 14 ministries and government agencies co-chaired
by the Deputy
Minister for Policy Planning and International Organizations
of the Ministry of
Foreign Affairs and Trade and the Deputy Minister for
Unification Policy and Public Relations of the Ministry of
Unification. Beginning with its first meeting on 24 October,
the Task FORCE has convened on a regular basis to collect
information on the various measures that the respective
ministries and agencies are taking in relation to UNSCR 1718
as well as to identify loopholes in the implementation system
and find ways to better implement UNSCR 1718.

II. Export Control System of the Republic of Korea
The Republic of Korea is a member of all international
non-proliferation and export control regimes relating to
nuclear, chemical and biological weapons, missiles and
conventional weapons, such as the Nuclear Suppliers Group
(NSG),the Missile Technology Control Regime (MTCR),the
Australia Group (AG),the Zangger Committee (ZC) and the
Wassenaar Arrangement (W A). Through participation in these
multilateral regimes the ROK has been implementing strict
export and import controls over WMD, missiles, other weapons
and related materials in conformity with international
standards.

(omitted: Table 1. ROK's Membership in Export Control
Regimes)

Major laws and regulations on export controls include the
Foreign Trade Act,
Technology Development Promotion Act, Atomic Energy Act,
Defence Industry Act,
South-North Exchanges and Cooperation Act, and their related
regulations. The
Combined Notice of Export/Import of Strategic Items and
Technologies covers all
controlled items from the five multilateral export control
regimes, and provides for detailed export control
regulations, specification of controlled items, and
guidelines for catch-all controls.

(omitted: Table 2. Export Control-related Laws)

The ROK government established its export control system for
strategic items in

1992. The system has been strengthened and expanded over the
years. Since
January 2003, the catch-all system, which controls the export
of non-controlled
items and technologies that could be used for the development
of weapons of mass
destruction, has been in force. Furthermore, a comprehensive
revision of the
Foreign Trade Act was undertaken in September 2003, and the
Combined Notice of
Export/Import of Strategic Items and Technologies was wholly
amended in October
2004 so as to fully meet international levels.

In light of the increasing importance of the issue worldwide,
the Ministry of Commerce, Industry and Energy (MOCIE)
established the Strategic Items Control Division in February
2004 to reinforce the export control of strategic items.

Furthermore, the Strategic Trade Information Center (STIC),a
special organization affiliated with the Korea International
Trade Association, was established in August 2004 to assist
companies in the conduct of business related to strategic
items. The STIC is entrusted by the government with the task
of conducting preliminary reviews of strategic items. The
Center operates an on-line Strategic Trade Information System
jointly with MOCIE to assist companies in exercising
voluntary export controls by providing relevant information
on-line regarding preliminary reviews, export licensing
procedures, global trends and domestic regulations governing
strategic items.

To strengthen the controls on sensitive technology, the
Ministry of Science and
Technology is currently revising the Technology Development
Promotion Act and
its related decree to provide a legal basis for controlling
intangible technology transfers (ITT). The revision is
expected to come into FORCE by June 2007.

III. Export Control with regard to the DPRK

ROK nationals are generally prohibited from supplying and
transferring
commodities as well as weapons to the Democratic People's
Republic of Korea
(DPRK) based on the National Security Act which has been in
force since
December 1948.

However, since 1990 the ROK government has allowed
commodities to be taken out
to the DPRK with the permission of the Minister of
Unification when deemed
necessary for the promotion of mutual exchanges and
cooperation between South
and North Korea. In order to regulate related procedures, the
South-North
Exchanges and Cooperation Act and its related decree and
regulation were enacted
in August 1990.

Pursuant to the South-North Exchanges and Cooperation Act,
its related decree and regulation, the approval of the
Minister of Unification is required to take controlled items
out to the DPRK. If a person obtains approval to take out
strategic items to the DPRK in a fraudulent or dishonest
manner or takes them out without approval, he or she is
subject to imprisonment of up to three years or a fine of up
to ten million won, which is equivalent to US$ 11,000.

For non-listed items, the ROK government has applied
catch-all controls. For
example, in 2005 it refused to approve the transfer of 26
items, including fermenters and freeze-drying equipment,
requested by the DPRK in relation to their efforts to prevent
the spread of Avian Influenza, in light of the possibility of
the conversion of the items for WMD use.

Furthermore, the ROK government has imposed stricter customs
control on items
taken out to the DPRK. The Public Notice on Customs Clearance
in South-North
Trade gives clear guidance in this regard.

IV. Implementation

(omitted: citation of text of UNSCR 1718 OP 8(a))

(Action taken and/or to be taken)

-Controlled Items

To control the items specified in UNSCR 1718, the Ministry of
Unification is
revising its Public Notice of the List of Goods for Approval
for Taking-to or
Bringing-from the DPRK, and the Public Notice on the List of
Goods Banned for
South-North Visitors and the Disposal of Such Goods. The
Ministry of Construction and Transportation will also
incorporate the controlled items under UNSCR 1718 into the
list of prohibited items in the Guidelines on Approval of
Aircraft Passing through the Territorial Airspace under the
Aviation Act.

The Ministry of Unification is also drawing up a list of
luxury goods. Once the list is finalized, the Ministry will
revise the above-mentioned Public Notices.

The main items brought in from the DPRK to the ROK are
currently agricultural
and fishery products, and metal products, while those taken
to the DPRK are
principally textile goods, and agricultural and fishery
products.

-Strengthened Customs Clearance Procedure
Following the adoption of UNSCR 1718, the ROK government is
in the process of
strengthening the customs clearance procedure under the
Public Notice on Customs
Clearance in South-North Trade in order to ensure that no
controlled items will be taken out to the DPRK. In this
regard, emphasis will be put on those commodities taken to
the DPRK through land routes.

-Prevention of Supply, Sale or Transfer by ROK Nationals

In order to prevent trade in items prohibited by UNSCR 1718,
the Ministry of
Unification will strictly enforce the requirement of prior
permission for nationals of the ROK wishing to contact a
national or an entity of the DPRK or visit the DPRK.

Under the South-North Exchanges and Cooperation Act, to
contact any DPRK
national, an ROK national must report to the Minister of
Unification in advance
indicating the details of that contact. A national of the ROK
or the DPRK must
obtain permission from the Minister of Unification to visit
the other side.

The Ministry of Commerce, Industry and Energy (MOCIE) is
presently in the
process of revising the Foreign Trade Act in order to have
the brokering of
controlled items subject to the prior approval of the
government.

Additionally, the persons and entities to be designated by
the 1718 Committee
pursuant to OP 8(d) will be added to the MOCIE's Database
List of Persons and
Entities Not Suitable for Export of Strategic Items.

-Prevention of Supply, Sale or Transfer through ROK Territory

There is no AIR route that allows airplanes to fly from or to
the DPRK through any part of the territorial airspace of the
Republic of Korea. An aircraft which arrives from or departs
for the DPRK, suspected of carrying controlled items pursuant
to UNSCR 1718, will not be allowed to fly through the
territorial airspace of the ROK.

Regarding a vessel of a third country which is in the
territorial waters of the ROK and suspected of carrying
controlled items as designated by OP 8(a) of UNSCR
1718, the ROK government will take relevant action according
to the Territorial
Sea and Contiguous Zone Act.

(omitted: citation of UNSCR 1718 OP 8(c))

(Action taken and/or to be taken)

The ROK government is currently revising the Regulation on
South-North
Economic Cooperative Projects and the Regulation on
South-North Socio-Cultural
Cooperative Projects to prevent any transfers of technical
training, advice, services or assistance related to the
provision, manufacture, maintenance or use of the items in OP
8(a)(i) and OP 8(a)(ii).

The ROK government will reinforce its review process with
regard to the
requirement of prior permission for ROK nationals wishing to
contact a national or entity of the DPRK or visit the DPRK
under the South-North Exchanges and
Cooperation Act.

Prior to their departure for the DPRK, the Ministry of
Unification briefs visitors on activities prohibited during
their stay in the DPRK.

(omitted: citation of UNSCR 1718 OP 8(d))

(Action taken and/or to be taken)

The ROK government has drafted a new integrated public notice
and is ready to take necessary action in accordance with OP
8( d) of UNSCR 1718 once the 1718
Committee or the Security Council designates the persons or
entities under OP 8(d).

(omitted: citation of UNSCR 1718 OP 8(e))

(Action taken and/or to be taken)

-DPRK Nationals

For ROK nationals, contact with DPRK nationals or visits to
the DPRK are
generally prohibited under the National Security Act. For
nationals of the DPRK,
the ROK government controls entry into the territory of the
ROK through the
review of applications for a visit permit.

ROK nationals crossing the border to the DPRK and DPRK
nationals crossing
over to the ROK with the visit permits are subject to border
screening procedures
under the South-North Exchanges and Cooperation Act.

-Foreigners

The ROK government will revise the Entry Control List of the
Immigration Control
Act so that foreigners to be designated as persons stipulated
in OP 8(e) are denied entry into or transit through the
territory of the Republic of Korea.

(omitted; citation of UNSCR 1718 OP 8(f))

(Action taken and/or to be taken)

-Inspection of Land Cargo

The ROK government has been inspecting cargo going to or
coming from the
DPRK in accordance with the Public Notice on Customs
Clearance in South-North
Trade.

Following the adoption of UNSCR 1718, emphasis will be put on
those
commodities taken to the DPRK through land routes.

-Inspection of Sea Cargo

As a peace regime has not yet been established on the Korean
Peninsula following
the end of the Korean War, the ROK government does not
recognize the right of
innocent passage in its territorial waters for DPRK vessels,
either commercial or non-commercial, except for those granted
permission under the South-North
Agreement on Maritime Transportation (hereinafter referred to
as "the Agreement").

Maritime transportation between the ROK and the DPRK is
currently governed by
the above-mentioned bilateral Agreement which entered into
force on August 1,

2005. Through the Agreement, the ROK and the DPRK have
designated sea lanes
between some ports of the two sides, allowed vessels of one
side to navigate in the sea lanes with prior permission from
the other side, and given commercial vessels of the other
side the same treatment in their ports as they grant to their
own vessels. The sea lanes thus designated in the Annex to
the Agreement lie well beyond the outer limits of either
side's territorial seas except for the Jeju Channel between
the Korean Peninsula and Jeju Island, where a sea lane of
approximately 41 miles cuts through the territorial waters of
the Republic of Korea.

Pursuant to the Annex to the Agreement, DPRK vessels which
plan to navigate
through the maritime areas under ROK control shall submit an
Application Form
for Navigation (indicating the names of the crew and
passengers as well as a list of the cargo) to the ROK
maritime authorities three days prior to their departure
(Article 1 (1) of the Annex). During their passage through
the waters under ROK control, such DPRK vessels shall not
engage in, inter alia, transportation of "weapons or any
parts thereof' or "undermine peace, public order or security
of the other Party by acts irrelevant to the navigation"
(Article 2 (6) of the Annex). Pursuant to the Agreement, any
vessel in breach of Article 2 (6) of the Annex, refusing to
respond to radio enquiries or suspected of fleeing or
undertaking any unauthorized deviation from designated sea
lanes may be subject to such measures as stopping, boarding
or inspecting for verification by the maritime authorities
(Article 2 (8) of the Annex). If the vessel in question is
found to have violated the Annex, the maritime authorities
may caution the vessel, take corrective actions, or demand
that the vessel leave the sea lane immediately (Article 2 (9)
of the Annex).

Bearing in mind the letter and spirit of UNSCR 1718, the ROK
government is
committed to not granting a navigation permit under the
South-North Agreement on
Maritime Transportation to any DPRK vessel carrying on board
or suspected of
carrying any items prohibited under UNSCR 1718.

Consistent with the Agreement and its Annex, the ROK
authorities stand ready to
take any necessary steps, including stopping, boarding, and
inspecting of any
DPRK vessel passing through ROK-controlled maritime areas
which has been
granted a permit under the Agreement but is suspected of
breaching the Agreement, in particular by shipping weapons or
their parts. If the ship is found to be carrying weapons
and/or their parts, or is in any other violation of the
Agreement, the ROK authorities will take all necessary
measures as appropriate to the specific circumstances, in
accordance with the Agreement.

End Text
STANTON