By Hwang Doo-hyong
WASHINGTON, Nov. 18 (Yonhap) -- The United States Thursday blacklisted two more North Korean firms for their involvement in managing slush funds for the North Korean leadership and other economic activities banned under U.N. resolutions and U.S. domestic laws.

   The Department of the Treasury said in a statement that it "today designated Korea Daesong Bank and Korea Daesong General Trading Corporation pursuant to Executive Order 13551 for being owned or controlled by Office 39 of the Korean Workers' Party."

   "As a result of today's action, any assets of the designated entities that are within U.S. jurisdiction are frozen and U.S. persons are prohibited from conducting financial or commercial transactions with these entities," the statement said.

   U.S. President Barack Obama issued an Annex to the Executive Order 13551 in August to list Office 39 and several other North Korean entities and individuals for their involvement in weapons of mass destruction and other activities banned by U.S. presidential executive orders and U.N. resolutions.

   "Office 39 is a secretive branch of the government of the Democratic People's Republic of Korea (North Korea) that provides critical support to North Korean leadership in part through engaging in illicit economic activities and managing slush funds and generating revenues for the leadership," the statement said. "Korea Daesong Bank is involved in facilitating North Korea's illicit financing projects, and Korea Daesong General Trading Corporation is used to facilitate foreign transactions on behalf of Office 39."

   Executive Order 13551 was issued under U.N. resolutions imposed after North Korea's nuclear and missile tests early last year to target "individuals and entities facilitating North Korean trafficking in arms and related materiel; procurement of luxury goods; and engagement in certain illicit economic activities, such as money laundering, the counterfeiting of goods and currency, bulk cash smuggling and narcotics trafficking," according to the statement.

   In a related move, Air Force Gen. Claude Kehler expressed concerns over North Korea's nuclear and missile technology proliferation.

   "The proliferation of missile technology, I think, especially in those areas like North Korea and Iran, is especially disturbing," Kehler told a Senate Armed Services Committee hearing for his reappointment to commander of the U.S. Strategic Command. "My view, the number-one threat that we are facing these days is the proliferation of weapons of mass destruction in the hands of the regional actors that pose a threat."

   State Department spokesman Philip Crowley said that the Obama administration will continue to take measures to prevent North Korea from proliferating weapons of mass destruction.

   "What concerns us most significantly is North Korea's track record in terms of the proliferation of dangerous technology to other countries," he said. "We have taken over many, many years, many steps to try to minimize the proliferation risk that North Korea represents. And we will continue to sanction entities and individuals."

   The reinforced sanctions come after Obama ordered his administration in June to toughen sanctions on North Korea after the torpedoeing of a South Korean warship in March, which Seoul blames on Pyongyang. North Korea denies responsibility.

   The Cheonan's sinking further soured the atmosphere for the resumption of the six-party talks, which have already been on hold for nearly two years over U.N. sanctions on North Korea. Seoul and Washington demand Pyongyang apologize for the sinking and show a commitment to denuclearization.

   Washington has adopted a policy of strategic patience with a two-track approach in the hope that sanctions will pressure the isolated and impoverished North to reach out to the international community and abandon its nuclear weapons programs.

   Critics, however, say China is the fly in the ointment.

   China has been reluctant to go along with sanctions on North Korea, and remains a lifeline to the North by providing more than 80 percent of its fuel, food and other necessities.

   "Korea Daesong Bank and Korea Daesong General Trading Corporation are key components of Office 39's financial network supporting North Korea's illicit and dangerous activities," said Under Secretary for Terrorism and Financial Intelligence Stuart Levey in a statement. "Treasury will continue to use its authorities to target and disrupt the financial networks of entities involved in North Korean proliferation and other illicit activities."

   hdh@yna.co.kr
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