China investigates North Korean bank.

(Baonghean.vn) - The South Korean newspaper JoongAng Daily reported on September 26 that China is investigating an official at a North Korean bank who allegedly provided financial support to Pyongyang to purchase weapons and materials related to its controversial nuclear program.

China is investigating a North Korean bank with a branch in the country. (Photo: Getty Images)

According to the report, Chinese authorities are investigating an official of Kwangson Banking Group, which has a branch in Dandong city (Liaoning province).

In 2009, the bank was accused by the US of financing entities that supplied Pyongyang with equipment that could serve military and civilian purposes.

"The head of this bank branch, Ri Il Ho, has temporarily returned to North Korea, therefore the branch's deputy executive director is under investigation," a source told JoongAng Daily.

Under UN sanctions imposed last March, the bank was required to freeze assets at all its overseas branches. However, according to the report, the bank's branch in Dandong continued to operate clandestinely on the 13th floor of the Hongxiang Group building – a Chinese company accused of having dealings with North Korea.

A recent report by the Institute for Policy Studies in Seoul indicated that the U.S. has identified $500 million in trade transactions between North Korea and the Hongxiang Group between May 2011 and September 2015.

The Chinese Foreign Ministry has not commented on this information.

The United States and China have agreed to strengthen cooperation to achieve denuclearization on the Korean Peninsula. During talks between US President Barack Obama and Chinese Premier Li Keqiang on the sidelines of the annual UN Security Council meeting on September 20th, both sides affirmed that their joint efforts would include increased cooperation within the UN Security Council as well as law enforcement channels regarding North Korea.

Lam Vy

(According to Reuters)