Nihon Keizai: "North Korea Confirmed to Smuggle Coal to China"

[Asia Economy Reporter Park Byung-hee] On the 29th, Japan's Nihon Keizai reported that North Korea is suspected of smuggling coal exports to China based on satellite images and Automatic Identification System (AIS) analysis. Nihon Keizai claimed that China violated the UN sanctions imposed in 2017 banning North Korean coal imports, and that North Korea is using the revenue from coal sales to develop missiles.

Nihon Keizai released satellite images of Nampo Port in North Korea dated August 8, 2021, reporting that a North Korean cargo ship docked at Nampo Port on that day departed the next day and arrived at Yantai, Shandong Province, China on the 13th. According to expert analysis cited by the newspaper, the cargo ship, approximately 165 meters long and 26 meters wide, is identified as the North Korean vessel "Taepyeong 2," and it is estimated to have been loaded with coal while anchored at Nampo Port. The ship reportedly stayed at Yantai Port until the 26th, during which time it is presumed to have unloaded coal.

The newspaper obtained AIS records from Refinitiv in the UK and investigated the routes of over 180 vessels related to North Korea over the past 18 months, reporting that more than 50 of these ships entered Chinese ports primarily handling coal.

The UN Security Council strengthened sanctions against North Korea in 2017 and prohibited member states from importing North Korean coal. Coal is one of North Korea's major export products. Just before the UN sanctions were implemented in 2016, North Korea's coal export value was approximately 1.1 billion USD, accounting for 40% of the country's total exports.

Nihon Keizai suggested that China is likely continuing to purchase North Korean coal through smuggling, and that North Korea is using coal revenue to develop missiles. It added that coal prices have tripled this year due to a sharp rise in energy prices. The report also pointed out that North Korea has launched at least 28 missiles by June this year, the highest number ever recorded.