BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK

S E C R E T STATE 097027 SIPDIS - NOFORN C O R R E C T E D COPY CAPTION AND DELETING CLASSIFICATION OF SENSITIVE SIPDIS SEOUL FOR HEATHER GRELL E.O. 12958: DECL: 09/08/2023 TAGS: ETTC KOMC KS SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON LICENSE 050121644 REF: 07 AFOSIREGIO 5221612 Classified By: David C. Trimble, for reasons 1.4(a),(b),and (d) ¶1. (U) This is an Action Request. See paragraphs 2 - 4. ¶2. (U) The Department's Office of Defense Trade Controls Compliance (PM/DTCC) requests Post's assistance in conducting a pre-license check on license 050121644 for the export of electronic detonators to Korea. Post is requested to complete this Blue Lantern check within 30 days. Lack of response to a Blue Lantern check will affect pending and future licenses involving parties to this license. ¶3. (S/NF) Reason for Request: Suspicion of South Korean national Richard Hwang of Vic-K International (applicant) arose in 2007, when intelligence reporting (REFTEL) indicated that Mr. Hwang sought to procure a uniquely designed infrared camera on behalf of the Korean Agency for Defense Development. Mr. Hwang's request was identical to that of another company known by the United States intelligence community to be a front-company for the People's Republic of China (PRC). This gave rise to questions as to the whether Mr. Hwang and/or Vic K-International was working on behalf of the PRC. This request is for post to confirm that the defense articles listed below are, in fact, being used to fulfill a contract between foreign consignee, Hanwha International, and Government of the Republic of Korea and will not be diverted to a thrid party. ¶4. (U) Action Request: Post is requested to establish the bona fides of these transactions by making appropriate inquires to authorities at the Korean Defense Acquisition Program Administration and Hanwha International. Post should acquire a signed contract from both Hanwha International and the Defense Acquisition Program Administration (DAPA) to compare, and verify that the defense articles listed below are to be used pursuant to the terms of said contract. Post should also verify the quantities needed to satisfy the agreement between Hanwha International and DAPA, and report any discrepancy from the quantity listed below. In its reply, Post may also comment on any other information pertinent to these transactions such as security of facilities, end-use, and concerns about the entities involved. ¶5. (U) Details of license applications: DTC Case: 050121644 QUANTITY/COMMODITY: 200 M69 Electric Detonator & Assembly License Value: USD $23,900 SELLER: Vic K-International Corp 9600 Long Point Suite 222 Houston, TX 77055 FOREIGN CONSIGNEE: Hanwha International Corp 23 Floor Hanwha Building #1 Jangkyodong, Chungku Seolu, Korea Purchase Order lists Don Kim in the United States as the POC Tel: 609.655.2500 x 775 Email: don0404@hanwha-usa.com FOREIGN END-USER: Defense Acquisition Program Administration 2-15 Yongsandong-2ka-ku Seoul, Korea PURPOSE: Foreign consignee, Hanwha International, procured M69 electronic detonators from another US company for integration into the Korean Army's 105mm artillery fuse. The detonators previously acquired are assessed as having inconsistent quality so the foreign consignee is attempting to procure new detonators under this license application for the purposes of comparing the quality and effectiveness of the two manufacturers' products. ¶6. (U) Submitted in support of the license application were the following documents (PM/DTCC will fax documentation to Posts upon request): DSP-83 signed by Chang-Seong Ko (Hanwha International) and Hyeon-Soo Lee (Defense Acquisition Program Administration) Purchase Order No. 1080501086 dated 05/13/2008 (lists Don Kim as the POC in the United States tel: 609.655.2500 x 775) ¶7. (U) Please slug reply for PM/DTCC - BLUE LANTERN COORDINATOR and include the words "Blue Lantern" and the case number in the subject line. POC is Kyle M. Ballard, Phone: 202-663-1929; Email: BallardKM@state.gov; SIPRNET: BallardKM@state.sgov.gov. The Blue Lantern Guidebook (ref) is available as a PDF file in the Bunche Library's E-Book Collection on the DOS Intranet: http://virtuallibrary.state.gov/ BlueLanternGuidebook2006%2520 final .pdf ¶8. (U) Department is grateful for Post's assistance in this matter. RICE