Man who supplied luxury goods to North Korea has jail term doubled

A director of three companies that supplied prohibited luxury goods worth almost $576,000 to North Korea has had his jail term doubled from three weeks to six weeks, after an appeal by the prosecution.

The fines handed down to the companies were also more than doubled or tripled by the High Court on Monday.

Singaporean Chong Hock Yen, 61, was the sole decision-maker of the three local companies - SCN Singapore, Sindok Trading and Laurich International.

Between December 2010 and November 2016, the companies supplied perfumes, cosmetics, watches and musical instruments to North Korea, grossing a total profit of more than $122,000.

Under Singapore law, enacted to give effect to United Nations sanctions, anyone in the Republic is barred from supplying or selling designated items to entities in North Korea.

In raising Chong's jail term, High Court judge Aedit Abdullah said: "A more substantial sentence is called for, given that there was substantial harm to Singapore's standing and reputation, and the criminal activity occurred over a few years.

"Planning was present, indicating a higher degree of culpability. The fact that substantial profits were made should also push the sentence upwards."

Prosecutors had highlighted that Singapore came under increased scrutiny by the international community as a result of Chong's offences.

Justice Abdullah also said the fines imposed by the lower court on the companies were too low and did not distinguish between the punitive and disgorging aspects of monetary punishment.

The judge raised the fine imposed on SCN from $120,000 to $311,000, which comprised $200,000 as the punitive component and $111,000 as disgorgement of profits.

The fine meted out to Sindok was increased from $10,000 to $23,000, with $15,000 as the punitive component and $8,000 as disgorgement of profits.

Laurich's fine was raised from $10,000 to $30,000, with a punitive component of $27,000 and $3,000 as disgorgement of profits.

Sindok is now known as BSS Global, while Laurich is now known as Gunnar Singapore.

Chong pleaded guilty in 2020 to eight counts of engaging in a conspiracy to supply luxury items to North Korea.

Another 35 similar charges were considered in sentencing.

His companies supplied luxury items to four entities in North Korea - Bugsae Shop, Korea Jangsaeng Trading Corporation (Pyongyang), MG Corporation and New Hope Joint Venture Corporation (Pyongyang).

SCN supplied the bulk of the goods to Bugsae Shop by air and sea through China and by hand at airport check-ins. Payment was made through offshore front companies.

In 2014, the maximum fine for flouting the sanctions was raised from $100,000 to $500,000 for individuals, and to $1 million for companies. The maximum jail term for individuals was doubled from five years to 10 years.