China - DPRK Missile Procurement Network

OFAC sanctioned a network of six individuals and five entities based in the People’s Republic of China (PRC), involved in the procurement of items supporting the Democratic People’s Republic of Korea’s (DPRK) ballistic missile and space programs.

Russia has vetoed the renewal of the UN Panel of Experts tasked with monitoring for violations of DPRK-related UNSCR sanctions, making it easier for the DPRK and other actors to evade UN sanctions. The July 24  action "reaffirms that the relevant UNSCRs remain in full force and reiterates the United States’ commitment to countering sanctions evasion and strengthening efforts for enforcement," according to a Treasury statement.

“The DPRK’s continued development and proliferation its of ballistic missile technologies—in violation of UN sanctions—is both irresponsible and destabilizing for both the region and the international community,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson. “The United States remains committed to using our tools to enforce these international sanctions, including disrupting the illicit procurement networks that provide key inputs for these technologies and holding accountable those who seek to enable these activities.”

 This action builds on OFAC’s June 15, 2023 designation of Choe Chol Min, a Beijing-based representative of the DPRK’s Second Academy of Natural Sciences (SANS). SANS was designated by the U.S. Department of State in 2010 for materially contributing to the DPRK’s WMD programs; it was also designated for a UN asset freeze on March 7, 2013.

SANS has subordinate defense-related procurement and proliferation entities that it uses to obtain commodities and technology to support the DPRK’s defense research and development programs.

DPRK PROCUREMENT OF FOREIGN ITEMS

The DPRK’s ballistic missile and space programs rely on foreign-sourced materials and components that it cannot produce domestically. To procure these materials and components, the DPRK uses an extensive network of procurement agents overseas, including officials who operate from DPRK diplomatic missions or trade offices, as well as third-country nationals.

The DPRK also leverages foreign-incorporated companies to purchase items in support of its ballistic missile and weapons production. These companies consolidate and repackage items for onward shipment to the DPRK, concealing the true end-user from the manufacturers and distributors of the items. 

SANS representative Choe Chol Min has worked with DPRK weapons trading officials, PRC nationals, and other associates to purchase and procure a range of items, including items known to be materials used in the production of DPRK ballistic missiles. Choe Chol Min received procurement requests from the DPRK and coordinated with associates to fulfill those orders.

Shi Qianpei is a Chinese national and key facilitator for Choe Chol Min. Shi Qianpei worked with Choe Chol Min to procure various items, including metal sheets that are known to be used in the production of North Korean missiles, according to the North Korea Ballistic Missile Procurement Advisory. 

Choe Chol Min also worked to procure sensitive electronics through Shi Qianpeii,and his family and associates.

. As late as 2023, Shi Qianpei fulfilled procurement requests from Choe Chol Min for electronic devices, including the acquisition of items likely intended to support the DPRK space and satellite program. 

Included in the sanctions action are companies used by Shi Qianpei and his associates to procure items and materials on behalf of Choe Chol Min.

Han Dejian and Yidatong were previously sanctioned by the U.S. Department of State on May 20, 2024 pursuant to the Iran, North Korea, and Syria Nonproliferation Act (INKSNA).

INKSNA provides for the imposition of measures on entities or individuals for the transfer to or acquisition from Iran, Syria, or North Korea of equipment or technology controlled under multilateral export control lists or otherwise having the potential to make a material contribution to the proliferation of WMD or cruise or ballistic missile systems.