(S) ROK INVESTIGATION REVEALS ROK COMPANY DID NOT

S E C R E T SEOUL 000243 SIPDIS SIPDIS DEPT FOR ISN/MTR (JAMES MAYES) E.O. 12958: DECL: 02/05/2018 TAGS: PARM MTCRE PREL ETTC KS KN SUBJECT: (S) ROK INVESTIGATION REVEALS ROK COMPANY DID NOT SELL MACHINE TOOLS TO NORTH KOREA REF: SECSTATE 164879 Classified By: A/POL Brian D. McFeeters, Reasons 1.4 (b,d). ¶1. (S) On December 7, poloff delivered reftel demarche and nonpaper to Kim Jae-woo, Deputy Director, Disarmament and Nonproliferation Division of the Ministry of Foreign Affairs and Trade. On February 5, Kim conveyed the results of the ROKG investigation of the South Korean company Cheonun Precision Company Limited's trade of Taiwan-origin machine tools to South Korean companies in China. Kim said that Cheonun Precision Company Limited brokered the sale of seven (7) milling machines by the Taiwanese firm Dahlih in 2007. Two of these machines were sold to Ujon Company and five to Dongju Company, both South Korean companies in China. Kim said that the ROKG had confirmed that all of the machines were present on the compound of the companies in China. He said the investigation found no attempts or records of any machine tools re-exports to North Korea and stressed that the items were not controlled items. Kim noted that the MCV-720 model purchased by Dongju Company would be a controlled item if installed with a rotary table, but explained that the ROKG investigation determined Dongju had not purchased a rotary table. As a result, the ROKG investigation revealed a very low risk of divergence of dual-use equipment, Kim said. STANTON