South Korea investigates company sanctioned by US over ties to Russia

A South Korean-based company sanctioned by the United States over alleged ties to Russia is now under investigation by local authorities, a South Korean foreign ministry official said on February 25.

Daesung International Trading, a company based in the southeastern city of Gimhae, was one of 93 entities previously blacklisted by the US Department of Commerce’s Bureau of Industry and Security on February 23 for export restrictions.

“Regarding this company, we have shared information with the US in advance and our relevant authorities are also currently conducting an investigation,” the South Korean Foreign Ministry official said, noting that Seoul plans to continue to closely cooperate with Washington and other key governments in enforcing sanctions against Moscow following the war in Ukraine.

According to a South Korean government official, the head of Daesung International Trading is a Pakistani national.

The South Korean Trade Ministry said it and the country's customs agency are looking into the company's alleged violations of laws such as the Foreign Trade Act. Following the investigation, the South Korean government plans to punish and penalize the company if any violations of the law are found.

World - South Korea investigates company sanctioned by US for ties to Russia — South Korean President Yoon Suk-yeol and US President Joe Biden at the White House, April 26, 2023. Photo: Bloomberg

The investigation into Daesung International Trading is not an isolated effort. It is part of a broader, coordinated effort by the United States and its allies to enforce sanctions against Russia. It sends a clear message to the international community about the consequences of facilitating or participating in activities that undermine global sanctions.

The move also underscores the delicate balance that countries must maintain in trade and international relations. The outcome of this investigation will not only affect the company itself and its leadership, but could also impact the dynamics of international trade and diplomacy, especially between South Korea, the United States and Russia.

Washington's sanctions were announced on the eve of the second anniversary of the Kremlin's military operation in Ukraine and after the death of opposition figure Alexei Navalny in a Russian prison.

Additionally, February 24, the two-year anniversary of the conflict in Ukraine, is also the day some additional South Korean trade restrictions on Russia take effect.

Items that can be used for military purposes, such as heavy construction machinery, rechargeable batteries, aviation components and cars with engine capacities of over 2,000 cc, are among 682 items that will be subject to export restrictions to Russia and ally Belarus from February 24, bringing the total number of items on Seoul's export control list to 1,159, according to the South Korean Trade Ministry .

Minh Duc (According to Yonhap, BNN Breaking, TASS)

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