1. Implementation of Catch-All Control in the Republic of Korea
Hyunwoo Seo
Assistant Director
Ministry of Trade, Industry & Energy
Republic of Korea

2. 1. Catch-all Control List Control Catch-all Control
▶ Applicable only for listed items
▶ If an item doesn’t meet the control parameter, transaction of such item falls outside the scope of list control.
▶ Applicable for non-listed items
▶ Focuses more on the end use, end user and the import country than the type of item
▶ Serves as a mechanism to strengthen export control by requiring exporters to obtain export license for items not specified on the control list

3. 1. Catch-all control
“PS will … ensure that their regulations require authorisation for the transfer of non-listed dual-use items … when the authorities of the exporting country inform the exporter that the items …are or may be intended…for a military end-use.
“If the exporter is aware that items … are intended…for military end-use,…must notify the authorities… which will decide whether or not …to make the export concerned subject to authorisation.
SOU on Control of Non-listed Dual-use Items (2003)
Military end-use refers to use in conjunction with an item controlled on the military list of the respective Participating State.
WA “List of Advisory Questions for Industry ” gives industry guidance to when suspicion should be raised and a contact with authorities might be needed

4. 2. Foreign Trade Act Catch-all license requirements
When exporter "knows” or “suspects” that the item may be intended for programs of concern
When exporter "is informed" by the government that the item may be intended for programs of concern
Animals, food, cotton, wood, drink …… and so on ……
Catch-all license requirements
Exemption items of catch-all license

5. 2. Foreign Trade Act 12 red flag indicators
The importer evades furnishing necessary information concerning the end use of goods.
The goods to be exported have nothing to do with the field of business of the end user.
There is substantial disparity in technical level between the goods to be exported and those of the importing country.
The end user has no career background of engaging in the field of business to which the goods are expected to be applied.
The end user has no expertise regarding the goods, nevertheless, insist on the exportation of the good.
The end user declines any service for installing, maintaining, or training for the goods.
…… and so on ……
12 red flag indicators

6. Administrative penalty
2. Foreign Trade Act
Penalty
Criminal penalty
Administrative penalty
▶ Imprisonment up to 7 years
▶ Fine up to 5 times the amount of illegal transaction
▶ Trade restriction on strategic items
up to 3yrs
▶ Order to take training courses
no less than 8hrs

7. 3. Catch-all license review process of MOTIE
“know” or “suspect” condition
Information sharing
Intelligence
Agency
Catch-all License application
Technical support (Classification)
Approval or
disapproval
Review
Ministry of Trade,
Industry & Energy
Korea Strategic Trade Institute
Ministry of Trade,
Industry & Energy
Exporter
Other cooperation
Ministry of Foreign Affairs

8. 3. Catch-all license review process of MOTIE
“informed” condition
Information sharing
Intelligence
Agency
Suspicious trade information
Review
(Company visit)
Technical support (Classification)
Approval or
disapproval
Ministry of Trade,
Industry & Energy
Korea Strategic Trade Institute
Ministry of Trade,
Industry & Energy
Outside Sources
Other cooperation
Ministry of Foreign Affairs

9. 4. Enforcement Case Violation of catch-all control
A small sized company in ROK transferred certain non-listed items to a foreign person several times between
The fact that the foreign person involved was on the UN sanctions list was found in the police investigation, recently.
Even though the items are not on the control list of export control regimes, there exists high risk of use in, or diversion to end-use of concern.
The police sent the case to the prosecutor’s office and the case is currently being examined by prosecutors.
Violation of catch-all control

10. 5. Recent Issue Unmanned Aerial Vehicle issue
DPRK UAVs turned out not to meet the control parameter of ECCN 9A012.a.2 according to our analysis. But it is now being used for military end-use.

11. Thank you!