SASSI Annual Conference 2006

1
SASSI Annual Conference 2006

• Koreas Experiences
• on
• Export Control
• 16-17 November 2006
• Poong Eil Juhn, Ph.D.
• Senior Advisor
• Korea Atomic Energy Research Institute

2
Koreas National Nuclear Energy Policy

• Basic Principle
• Promoting Peaceful Uses of Nuclear Energy
• Securing Nuclear Safety
• Goals
• To provide a stable electricity supply through
  the development of nuclear energy
• To achieve self-reliance on nuclear technology
• To make the nuclear industry one of the major
  export industries through international
  cooperation

3
Koreas Commitment on International
Co-operation and Non-proliferation for
Peaceful Uses of Nuclear Energy

• International Co-operation
• Joining IAEA in Aug. 1957 as a Charter Member
• Bilateral Agreements with 19 countries, in 2006
• Non-proliferation Commitments
• NPT signed in 1968 ratified in June 1975
• Full Scope Safeguard Agreement with IAEA in 1975
• Convention on Physical Protection ratified in
  April 1982
• Zangger Committee joined as a Member in 1995
• NSG joined as a Member in 1995
• CTBT signed in 1996 ratified in 1999
• Additional Protocol signed in 1999 ratified in
  2004

4
Koreas Membership in
Export Control Regimes

• Nuclear Suppliers Group(78), prevention of
  illegal transfer of nuclear related items
• - Current members 45
• - Koreas membership since 1995
  
• Australia Group(85), prevention of illegal
  transfer of biological and chemical weapon
  related items
• - Current members 40
• - Koreas membership since 1996
• Missile Technology Control Regime(87),
  prevention of illegal transfer of missiles
  related items
• - Current members 34
• - Koreas membership since 2001
• Wassenaar Arrangement(96), prevention of illegal
  transfer of conventional weapon related items
• - Current members 40
• - Koreas membership since 1996

5
Koreas Export Control
Related Regulations

• Foreign Trade Act
• - Regulate for industrial/NSG dual use
  items
• - Agency Ministry of Commerce, Industry
  and Energy
• Technology Development Promotion Act
• - Regulate for sensitive technologies
• - Agency Ministry of Science and
  Technology
• Atomic Energy Act
• - Regulate NSG Trigger list items
• - Agency Ministry of Science and
  Technology
• Defense Industry Act
• - Regulate munitions and munitions software
• - Agency Ministry of Defense

6
Koreas Experiences on Export Control for
Potential Dual Use Industrial Items

• In 2002
• - Export Licenses applied 370
• - Licenses issued 370 - Licenses
  rejected none
• In 2003
• - Export Licenses applied 491
• - Licenses issued 477 - Licenses
  rejected 7
• In 2004
• - Export Licenses applied 493
• - Licenses issued 462 - Licenses
  rejected 5
• In 2005
• - Export Licenses applied 582
• - Licenses issued 552 - Licenses
  rejected 2
• Source Strategic Trade Information System
  (www.sec.go.kr)

7
Penalties / Administrative Sanctions
against Unlawful Export Attempts

• Those who received an export license using
  forged documents or in other unlawful ways, or
  those who exported strategic items to regions
  subject to export control without obtaining an
  export license shall be sentenced up to 5 years
  in prison or shall be fined up to 3 times the
  value of exported or imported goods.

8
Examples of Unlawful Export Attempts

• Example 1 (Korea Economic News Paper on 24
  April 06)
• - In Dec 2003, Korean Government was informed
  by IAEA inspector that D company illegally
  exported 4 Balancing Machines to Libyan Arab
  Jamahiriya.
• - The court decided in Jan 2005 that D company
  could not export any strategic items for a period
  of 1 year.
• Example 2 (Moon Wha News Paper on 9 May 06)
• - In June to September 2003, W company tried
  to export about 107 tons of Sodium Cyanide to NK
  via China, which is not a member of WA.
• - The court decided in January 2004 that the
  person who did an attempt, got sentenced for 18
  months in prison and
• W company got a penalty, not to export any
  strategic items for a period of 1 year.

9
Thank You Very Much