South Koreas System of Export Control on Strategic Items and Its Effective Enforcement Policy to Facilitate Economic Cooperation between South and North Korea

Abstract

Because of the heightened concerns over terrorism and national security raised by the attacks of September 11, 2001 in the United States (U.S.), multilateral export control regimes tightened export controls of dual-use items for national security. Multilateral export control regimes initiated by the U.S. seek to prevent the proliferation of nuclear, chemical, biological, and conventional weapons. South Korea is a party to all relevant nonproliferation regimes (NSG, AG, MTCR) and the Wassenaar Arrangement. South Korea introduced Catch-all controls to its export control system in January 2003, and established the Strategic Items Control Division (SICD) within the Ministry of Commerce, Industry and Energy (MOCIE) in February 2004. In August 2004, the Strategic Trade Information Center (STIC) opened as a nongovernmental organization to serve as a consultation or information center regarding the export of strategic items and to assist private sector compliance with export control regulations. South Koreas export control regulations on strategic items include the Foreign

Trade Act (FTA: Articles 21, 54, 56, 58), Enforcement Decrees of FTA (Articles 39-45) and the Public Notice of Export/Import (consisted of 68 Articles and 25 Annexes). They have been revised to reflect the changes in the multilateral export control regimes, and apply to exports and re-exports of civilian and dual use items (products, software, technology). Violations of the export control regulations may be subject to both criminal and civil penalties. Thus, South Korea has the legal and administrative systems to comply with and implement multilateral export control regimes and the Security Council Resolution

1540 (on nonproliferation of WMD). Multilateral and national export control regimes have played an important role to combat against terrorism and the proliferation of WMD. However, multilateral and national export control system may impede the expansion of economic cooperation between South and North Korea. With a view to carrying out successfully economic cooperation with North Korea, a strategy to enhance the effectiveness of export control system should be reviewed. In this context, this article proposes some policies to administer effectively the export control system for successful economic cooperation between South and North Korea.