North Korea has long captured the imagination of  Singaporeans — from the videos recounting the dramatic defections of North Koreans to the interesting fact that we actually have a North Korean embassy in Singapore.

Regardless, the Hermit Nation remains mostly a rather mysterious place and a topic that is a little out of reach for most Singaporeans.

North Korea just doesn't feel close enough for the average Singaporean to care about.

Until now, that is.

But first, we have to understand the background to this, and the current trade sanctions that are in place against North Korea and adhered to by pretty much everyone else in the world, including us.

Hah? What sanction? 

As a way to dissuade North Korea from weaponising itself after the first nuclear test in 2006, sanctions, in the form of Resolutions from the United Nations Security Council (UNSC), have been applied to the country.

Sanctions basically "impose prohibitions on activities relating to certain countries, goods and services, or persons and entities."

Now, because we are a member of the United Nations, Singapore implements the Resolutions adopted by the UNSC through our domestic laws.

Actions that contravene the UNSC sanctions are prohibited under Regulations 6(1)(b), 6(2)(c), 6(2)(d) of the Regulation of Imports and Exports Regulations (RIER).

And yes, there will be penalties for violating these regulations, if a person is convicted of that:

Except where otherwise provided, any person who is guilty of an offence under these Regulations shall be liable —

(a)

on the first conviction to a fine not exceeding $100,000 or 3 times the value of the goods in respect of which the offence was committed, whichever is the greater, or to imprisonment for a term not exceeding 2 years or to both; and

(b)

on the second or subsequent conviction to a fine not exceeding $200,000 or 4 times the value of the goods in respect of which the offence was committed, whichever is the greater, or to imprisonment for a term not exceeding 3 years or to both.

Criminal concerns aside, if the export of prohibited items to North Korea continues, this will allow North Korea to largely ignore the security sanctions placed on them. This effectively makes the UN's tools useless, and what comes next is the growth of their military power, and the consequent rise of North Korea's threat to the world.

So what's all this got to do with Singapore? 

According to Resolution 1718 from the UNSC, other than weaponry or materials that can be made into weapons,  the following items should not be imported from Singapore into North Korea for any purpose:

• cigars;
• wines and spirits;
• fur products;
• leather bags and clothes;
• perfumes and cosmetics;
• plasma televisions;
• personal digital music players;
• luxury cars;
• luxury motorboats and yachts;
• watches of metal clad with a precious metal;
• rugs, carpets and tapestries;
• works of art, collectors’ pieces and antiques;
• precious jewellery;
• musical instruments;
• aquatic recreational vehicles (including yachts and pleasure crafts);
• racing cars;
• snow mobiles;
• items of lead crystal;
• recreational sports equipment; and
• tableware and kitchenware of porcelain or china.

Food and medicine are permitted, perhaps on humanitarian grounds.

But, according to a year-long investigation by a South Korean news agency called NK News, which writes stories focused on North Korea, a few entities in our own backyard have been (or are alleged to be) helping North Korea by shipping prohibited goods there.

Last year,  Singaporean shipping firm Chinpo Shipping Company transferred funds which facilitated the passage of a North Korea-bound arms shipment. They were fined S$180,000.

In February this year, Pan Systems' Managing director Louis Low denied the claims that his company was related to the North Korean company Glocom after a report said that Glocom was supported by the Pyongyang branch of Singapore-based Pan Systems.

This time, another company has come under scrutiny.

OCN (Singapore) Pte Ltd, a Singapore-based trading company, has been singled out as being allegedly involved with Office 39, according to the independent and privately-owned news site.

Office 39 is a colloquial term to refer to a secretive organ of the ruling party apparatus, which keeps the North Korean elite stocked with fine cognac, among other luxury goods, and which also earns hard currency for the regime.

In its report, seen by Mothership, NK News procured information and evidence to back its allegations that OCN had been violating international sanctions to export luxury goods into North Korea.

According to NK News, OCN allegedly runs two small but high-end department stores in Pyongyang: the Puksae Shop and the Pothonggang Ryugyong Store, located near the 105-storey Ryugyong hotel. These are reportedly known as the “Singapore Shops” to expats.

Here are photos of the interior of the shops, which include brands like Mont Blanc, according to NK News:

Photos of the interior of the Puksae Shop, for instance, show several European and Japanese luxury liquor brands on offer, which, as mentioned earlier, are clear prohibited imports.

The report also alleges that OCN supplies Pyongyang's Koryo and Yanggakdo hotels with high-end alcohol and goods for sale. Here's a picture taken by NK News of the alcohol offering at one of the shops:

Evidence of an alleged Singaporean connection was also demonstrated by NK News in a photo at the Pothonggang Ryugyong Store, which shows the three-pin power socket we use in Singapore on sale, despite North Korea not actually using these types of power outlets (they're also used in other countries, such as Malaysia and the United Kingdom):

But the report claims, nonetheless, that the power sockets reinforce the idea that the North Korean elite are using imported electronics from Singapore.

Another of NK News' alleged piece of implicating evidence linking OCN to North Korea is seen in the photo below: the letters “OCN” are said to be printed on or affixed to the packaging of many of the products on sale.

In 2012, the description of OCN being a distributor for Pokka in North Korea was noticeably removed from some Pokka Coffee beverage cans. It doesn't put the company in a spot, however, other than demonstrating a link between the export and the company, as food and drink are not implicated by the trade sanctions.

And check out these other photos provided to us by NK News of brands we often see in Singapore, stocking the shelves at these two shops:

NK News said spokespersons for companies whose products have turned up in North Korea expressed surprise that they were there, naming Japanese music giant Yamaha, apart from Pokka Sapporo.

Here's the Yamaha logo with a whole range of its instruments on display at one of the two stores, again:

Richemont Luxury, a Singaporean subsidiary of Mont Blanc, insisted it had “no commercial relationship” with OCN and believes the products featured in the North Korean luxury stores could be counterfeit or came from "grey market activities."

So are the luxury stores related to the Singapore-based OCN?

The mystery deepens — and then gets confusing 

In Singapore, OCN Private Limited's building is located at Joo Chiat.

The building standing there is home to a host of different businesses and affiliates to OCN, all of which share the same address.

They also keep a low profile online, save for one called Lagun Sari Wedding & Catering Services Pte Ltd.

Here's a structure drawn up by NK News, based on its investigations:

Further proof of these firms' connection can be seen on the name card of an OCN employee, shown to Mothership by the folks from NK News:

And according to NK News, too, these firms are all traced back to one Ng Kheng Wah, who is understood to be the main director at OCN.

NK News said OCN declined to answer questions they had about OCN's apparent links to North Korea, so we decided to try.

We first wrote to Lagun Sari, the only company named in the article with listed contact information online, and reached an executive who said Ng was "the previous landlord" of the building Lagun Sari occupies, when we asked them about Lagun Sari's links to OCN.

But it was indeed via them that we reached the man himself — and from there, we had an even more interesting conversation.

OCN responds

Ng, 55, told Mothership that OCN did have the rights to distribute Pokka products to North Korea, and that they only stopped distributing them in North Korea when sanctions were tightened in 2011:

"We also never deny, we used to have Pokka distributorship to [North] Korea. With Pokka given to us. And the Japanese know also. Until when they fire the missile and the sanction grow tighter my distributorship been taken out in 2011. Then from then onwards we stop already. We didn’t do anything. And this NK News because it’s so want to get front news, he, because we’re so popular, honestly, we are very popular in [North] Korea, you go anywhere you see is Pokka drink with our company stated."

Ng stresses that he does not own Müller + Partner GmbH, a German-based shipping firm also alleged to have links to North Korea, though NK News' report did not assert that, only saying they have a working relationship.

Ng told us also that among the list of companies NK News said he was affiliated with, two of them — Lubritrade & OCN Marketing and OCN International — were closed down years ago.

A search on ACRA's directory confirms this — for Lubritrade, their last financial statements were fined in end 2006, suggesting that they had wound up by then or 2007:

While for OCN International, their last statements were filed a year later. The only live company remaining is listed as OCN (Singapore) Pte Ltd, which is the listing below this one:

It also does not initially list trade among its activities, unlike the two previous companies that were wound up — the phrase "general wholesale trade" only comes up as a secondary focus in the company's detailed financial statements filed, according to NK News.

Ng explained that Lubritrade was a former partner of his firm's, and they exported cigarettes to North Korea, but stopped after realising that their North Korean clients were not making payments in a timely fashion.

Ng also insisted that his company is way too small to be capable of what it is alleged of doing:

"Go to check to internet, [Müller + Partner] is one of the biggest shipping company in Germany, I believe it’s a billion dollar company. I control that? I wish, you know! ... But I don’t, then I look and think I also don’t know what is called Office 39.

Although I’m being business with them for quite some time in the early 2000, and late 90’s, I also don’t know why you know, until my lawyer 'oh this is one of the organisations in Korea, which is all those overseas earning the money, then they support the government' Oh, then I know. Actually, I don’t know what Office 39 also. My lawyer has enlightened me, you see.

...

Now I wish I own the OCN South Korea the TV Media also. There’s an OCN in South Korea also, did you know that? Now I tell you. And there is one public listing company, OCN also, in U.S. stock market. I also wish I owned it. But in Singapore this OCN is damn bloody small only."

When asked about his radio silence to NK News, Ng said his lawyers advised him not to respond to their questions as the allegations they make in their piece, he says, were false, and according to him, they have not been able to track the agency and its reporters down. Besides, he added, if he were really guilty of the activities he was accused of doing, the government would definitely have found him out by now:

"Before this, what the news is, is a fake one. Even my lawyer, are watching what you all have write, in the market now. I already engaged three lawyer to look into this case already.

...

If you have somebody working for the government stat board they know every damn thing. If this is true I can tell you they’ll invite me to drink coffee already. It’s just that I’m very frustrated with these people (NK News), no news, nothing, then I cannot track him down, that’s the worse part you know or not. If he was in Singapore I will all the way whack him down. But it’s just that he’s just a small little website to promote this kind of thing.

I refuse to talk to him because he damage me in this early 2000, no, in February because he said that link with this building. I don’t want to reply him at all. That one he just do it because I’m, you do already, spoil my rep, my business is nothing to do with down there already so it’s okay.

And then now, last week he tried to threaten me and also threaten Pokka. And Pokka lawyer write to him, we really indeed do the OCN but we stop at 2011, 11 or 12, I can’t remember already. But after that we have no business already... no exclusive to T Specialist, which is also my company, to China market only that’s all. And because of this one, we also don’t want to have conflict of interest."

Next steps?

Channel NewsAsia ran a statement in March from the Ministry of Foreign Affairs (MFA), saying that the government will do what is necessary to ensure that Singapore is in compliance with the UN Security Council Resolutions (UNSCRs) on North Korea, which will include the sanctions as mentioned.

In response to The Straits Times, the MFA also said it was aware of NK News's reports and allegations, but is not able to comment officially on anyone involved "so as not to prejudice any ongoing or future proceedings".

It also said, on behalf of other agencies like the Singapore Customs, that the government will investigate any wrongdoing by individuals or entities here.

But what do we make of this?

Along with Ng's statements, the only mutually agreed-upon fact between NK News's investigation and OCN's side of things is the fact that OCN did do business with North Korea in the past, but that was on the permitted export of food, or Pokka drinks, for that case, which Ng says has since 2011 ceased after OCN lost its distributor rights to North Korea.

Plenty still remains unsaid, but we'll bring you any updates that may come on this developing story.

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H/T: NK News/ NK Pro

Top photo courtesy of NK News/NK Pro