The number of wealthy South Koreans with paper shell companies overseas to avoid taxes has been a hot topic in South Korea and now unsurprisingly we find out that the North Koreans were doing the same thing with their money:
A North Korean ran a shell company in a tax haven region, an independent South Korean online news outlet said Thursday in its latest revelation of a list that included three paper companies believed to be linked with Pyongyang.
It is the first time that the Korea Center for Investigative Journalism (KCIJ) has released the name of a North Korean. Since May, the center has revealed 18 high-profile South Koreans out of 245 South Koreans who had set up ghost companies in tax haven regions.
Mun Kwang-nam was registered as one of two directors of Larivader Solutions Inc. set up in the British Virgin Islands on Nov. 19, 2004, the KCIJ said on its website.
Mun’s address was registered as “2 Kin Mal Dong, Mao Lang Bong District Pyong Yang Republic of Korea,” the non-profit news organization said, citing its analysis of documents obtained from Commonwealth Trust Ltd., which helps people establish paper companies in safe havens.
The online news outlet said Valentine Kharitonova was registered as another director and a shareholder of Larivader Solutions, which it said existed at least until October 2009.
The non-profit organization set up by former journalists did not give any further details on Mun and Kharitonova.
It said the shipping address, and billing and invoice address were registered as Russian Federation and 29 A Anna Komnini Street, respectively, suggesting the paper company may have done business in Russia.
The findings are based on a joint investigative journalism project by the KCIJ and the Washington-based International Consortium of Investigative Journalists (ICIJ), in which the KCIJ has taken part since April. [Yonhap]
You can read the rest at the link, but I would not be surprised if the Kharitonova guy is a Russian mafia figure. It is has been well documented North Korea’s connections with international criminal groups that aid them in their various illegal activities to raise money for the Kim regime. This paper company could be a way that ill gotten money is held and then transferred to the Russian mafia or vice versa.