China investigates North Korean bank

(Baonghean.vn) - South Korea's JoongAng Daily reported on September 26 that China is investigating an official of a North Korean bank that is believed to have provided financial support to help Pyongyang purchase weapons and materials related to its controversial nuclear program.

China investigates North Korean bank with branch in the country. Photo: Getty Images

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

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, so the branch's deputy CEO is under investigation,” a source told JoongAng Daily.

Under UN sanctions imposed in March, the bank had to freeze the assets of all its overseas branches. However, the Dandong branch is still operating secretly on the 13th floor of the Hongxiang Group building, a Chinese company accused of dealing with North Korea, according to the newspaper.

A recent report by the Seoul Institute for Policy Studies said the US had identified $500 million worth of trade transactions between May 2011 and September 2015 between North Korea and the Hongxiang Group.

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 meeting of the United Nations Security Council on September 20, the two sides affirmed that joint efforts will include strengthening cooperation within the United Nations Security Council as well as law enforcement channels on North Korea.

Lam Vy

(According to Reuters)