SEOUL RESPONSE: BLUE LANTERN LEVEL 3 LICENSE

UNCLAS SEOUL 000583

SIPDIS

SIPDIS

STATE FOR PM/DTCC-BLUE LANTERN COORDINATOR

E.O. 12958: N/A
TAGS: AU ETTC KOMC KS
SUBJECT: SEOUL RESPONSE: BLUE LANTERN LEVEL 3 LICENSE
05-050031252

REF: A) STATE 20251


1. Per reftel, post contacted the Defense Acquisition Program
Administration (DAPA) and the Republic of Korea Air Force (ROKAF) by
email, phone and fax.


2. Following several communications in March, DAPA Helicopter
Project Team Major Nam Ki-jin confirmed that the 6th Group of the
Materials Management Office of the Maintenance Squadron at ROKAF
ordered the items listed in license 05-050031252. Major Nam
reported that the power supplies are used in multifunctional radar
systems in the HH 60 helicopter (not HJ 60 as referenced in the
incoming cable) that use the Vicor power supplies.


3. Major NAM also reported that it has no direct dealings with UR
Holding or Galileo Avionica. DAPA only has direct contact with Il
Gwang Gong Young Corporation, the exclusive local agent in Korea for
Elbit (Israeli company),both are DAPA registered. DAPA has done
business with Il Gwang Gong Young for more than 25 years. Mr. Choi
Joong-Shik, Executive Director of Il Gwang Gong Young, informed Post
that it is well aware of USML export or re-export restrictions.


4. Mr. Ehud Wiener of Elbit Corporation confirmed to Mr. Choi of Il
Gwang Gong Young that three out of the five power supply sets were
delivered to DAPA in September 2007 and early March 2008. Elbit
technicians are assembling the radar for the ROKAF HH 60 helicopter
at the Korea Aerospace Industries (KAI) factory. The process should
be completed by the end of 2008. DAPA informed Post that KAI has no
role in this transaction except for providing space to assemble the
radar systems. The remaining parts are slated for delivery to DAPA
in late March and later in 2008.


5. Based on Post's investigation the transaction chain is as
follows:

(1)Vicor Corporation (US Manufacturer)
=> (2) UR Holding (Foreign Intermediate Consignee for Galileo
Avionica)
=> (3) Galileo Avionica (Foreign Consignee)
=> (4) Elbit (Assembles radar systems for the ROKAF HH60
helicopter)
=> (5) Korea Aerospace Industries (Provides space for Elbit
technicians to assemble the radar systems in the HH 60 helicopter.)
=> (6) Il Gwang Gong Young Corporation (Deals directly with DAPA on
behalf of Elbit.)
=> (7) Helicopter Project Team at DAPA (Involved in the procurement
of the parts for the ROKAF HH60 helicopter.)
=> (8) 6th Group of Materials Management Office/Maintenance
Squadron/ROKAF (End-user)


6. Post also discovered that the foreign end-user contact
information incorrectly cites the Government of South Korea, Air
Force, Section of Global Security Organization, Cheongwon County
Road, 121-885 Seoul, South Korea provided in State 00020251. The
correct foreign end-user contact information is:

6th Group/Materials Management Office/Maintenance Squadron/ROKAF
Wontong-ri, Naesu-eup, Cheongwon County,
North Cheongchung Province,
Republic of Korea


7. Post appreciates the assistance provided by Milan and DTCC
concerning this case.

VERSHBOW