(S) ROK RESPONSE: EFFORTS BY IRAN'S MISSILE

S E C R E T SEOUL 001533

SIPDIS

SIPDIS

DEPT FOR EAP AND ISN/MTR JAMES MAYES

E.O. 12958: DECL: 05/18/2017
TAGS: MTCRE PARM PREL ETTC KS IR
SUBJECT: (S) ROK RESPONSE: EFFORTS BY IRAN'S MISSILE
PROGRAM TO PROCURE SOUTH KOREAN MACHINE TOOLS

REF: STATE 58225

Classified By: POL M/C Joseph Y. Yun. Reasons 1.4 (b,d).


1. This is an action request. Post requests that Department
provide information requested by the ROKG in para 3.


2. (S) Kim Jae-woo, Deputy Director of the Disarmament and
Nonproliferation Division of the Ministry of Foreign Affairs
and Trade (MOFAT),told poloff that Insung International
Corporation had submitted an export license application to
the Ministry of Commerce, Industry, and Energy (MOCIE),but
that the application had been returned to the company for
insufficient documentation. Kim said that MOCIE did not
review the substance of the incomplete license application,
but expects that Insung will submit a second application
soon. Kim noted that MOCIE's initial reaction to the
nonpaper provided was that the machine tools in question do
not fall within the list of strategic items that cannot be
exported, but may be considered under the "catch-all" item
list.


3. (S) Kim said that once Insung submits the second
application, MOCIE will request that the ROK Embassy in
Tehran conduct an end-use investigation. However, due to
limited manpower in Iran, the ROKG requests that the United
States provide as much information as possible to target the
end-use investigation. Kim passed along MOCIE's request for
the following:

-- information on the end-user (Ghavifekr Technical and
Industrial Group): Is it under normal operation? What are
their main manufacturing products and business projects?
What are their major lines of business?
-- information on the intended end-use of the items mentioned
and the specific reasons for importation (replacement of
deteriorated parts, additional installation for business
expansion, etc.)
-- information on the business relationship between the
end-user and Shaid Bakeri Industrial Group
-- information on the business relationship between the
end-user and Kalayab Kar Import-Export Co. Ltd.


4. (C) Kim also added that in this instance, as in the
multiple previous U.S. requests to block export licenses, the
ROKG could much more easily comply with the request if the
United States were to add the compan(ies) in question to
their nonproliferation "watchlist." As it stands, any
request to apply the "catch-all" list to potential Korean
companies' exports is very difficult to accomplish, Kim said.
VERSHBOW