TWO vessels detained by South Korea over allegedly transferring oil products to North Korea in breach of UN sanctions are reported to be owned by Chinese shipping companies.

On December 20, South Korean authorities seized a Panama-flagged vessel KOTI at Pyeongtaek-Dangjin port. In late November, the Hong Kong-flagged Lighthouse Winmore was also held for inspection, said a spokesperson at South Korea’s Ministry of Foreign Affairs.

Both vessels are believed to have transferred oil products to North Korea in violation of international sanctions. The spokesperson declined to give further details. 

KOTI’s owner is Dalian Grand Ocean Shipping Management Co, based in the Chinese city of Dalian, Liaoning Province, according to data from the Asia-Pacific Port State Control. 

The owner of Lighthouse Winmore, held at the South Korea’s Yeosu port since November 24, is Lighthouse Ship Management, headquartered in the Chinese city of Guangzhou, Guangdong Province, data from the World Shipping Register shows. 

China has been under the media spotlight since South Korean newspaper Chosun Ilbo reported that spy satellites from the US had spotted Chinese ships making oil sales to North Korean vessels in the West Sea on about 30 occasions since October.

The satellite images appeared to show large Chinese and North Korean vessels illegally trading oil in a part of the West Sea closer to China than South Korea, Chosun Ilbo reported.

China’s Ministry of Foreign Affairs dismissed the media report, saying the Chinese government had been comprehensively, accurately, faithfully and strictly implementing the UN Security Council’s North Korea-related resolutions.

The Chinese ministry added if there is solid evidence proving there is any violation of the UN Security Council resolutions on the Chinese side, China would deal with the issue in accordance with laws and regulations.

Resolution 2375, adopted in September last year, bans member countries from ship-to-ship transfers of any goods for North Korea. Resolution 2397, meanwhile, allows the UN member country to arrest and inspect any vessel suspected of engaging in prohibited activities with North Korea.

Trafigura link

Separately, Bloomberg reported the cargo on board Lighthouse Winmore was originally owned by Trafigura, citing the South Korean government.

In an email statement, the trading giant said it sold the cargo on a free-on-board basis to Hong Kong-based Global Commodities Consultants and the stated destination for the cargo was Taiwan.

Trafigura did not own or charter Lighthouse Winmore, nor did the company order the shipment of oil to North Korea, according to the statement.

“The contractual terms for the sale by Trafigura prohibited the on-sale of the cargo in breach of sanctions,” Trafigura said.

“Trafigura conducts its business so as to comply with applicable sanctions and has had no involvement in the final destination of this cargo.”