North Korea to grow its insurance sector despite international sanctions

Penalties imposed upon suspicion that insurance profits were used to fund development of nuclear weapons

North Korea to grow its insurance sector despite international sanctions

Insurance News

By Gabriel Olano

A state-run insurer in North Korea has vowed to expand its business and go against the United Nations’ sanctions against Pyongyang’s nuclear weapons and long-range missile programs.

The Korea National General Insurance Company made this announcement at its 70th anniversary commemoration, led by the company’s chief, Hong Myong-ryong.

Hong said that even the country’s insurance industry – which he said operated for humanitarian reasons – was affected by the UN’s sweeping sanctions. The ceremony’s attendees swore to “crush the enemies’ sanction plots” and further develop the insurance sector, according to ruling Workers’ Party official newspaper Rodong Sinmun.

The Korea National General Insurance Company reportedly brought in a huge amount of foreign currency through several reinsurance contracts in Europe, but was sanctioned by the UN in April 2016 in response to the North Korean government’s aggressive actions.

The European Union has also claimed that the Pyongyang-based insurer, along with its branches in the UK and Germany, could have used its profits to fund the government’s nuclear and missile arsenal, according to South Korean media outfit Yonhap.

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