Regarding allegations that Korea National Oil Corporation (KNOC) is involved in violations of sanctions imposed by the U.N. and the U.S. against North Korea, the corporation said, "It is groundless."
Recently, a media outlet reported that a logistics company, whose biggest shareholder is KNOC, has shipped 640,000 tons of oil products to vessels suspected of illegally transferring oil products to North Korea on 100 occasions.
The Chosun Ilbo recently reported, "It was found that a large portion of oil delivered to domestic and foreign vessels by Oilhub Korea Yeosu Co. (OKYC) was continuously transferred to North Korean vessels in international waters between 2017 and 2018. This raises suspicions that it is unclear why the OKYC shipped oil to the suspected vessels."
Seven domestic and foreign companies such as China Aviation Oil (CAO), SK Energy, and GS Caltex are participating in OKYC as major shareholders. KNOC is the largest shareholder with a 29 percent stake.
The reason why OKYC was suddenly cited as a company that violated sanctions against North Korea stems from the fact that ships sanctioned by the United Nations and others entered and departed the port.
In response, KNOC said on May 7 that OKYC is a private company that carries out the leasing of oil tanks, and that the entry into the port and shipment of certain ships are not related to KNOC or other shareholders.
"We will continue to make efforts to prevent OKYC from being involved in any illegal activities such as violation of sanctions against North Korea by banning ships subject to sanctions and requiring customers to take active preemptive measures such as sending the list of sanction ships to customers through the exercise of shareholder rights such as participation in the board of directors of OKYC," KNOC said.
