SINGAPORE - For almost two years, two men behind companies registered in Singapore illegally sold and exported more than $1 million worth of alcoholic beverages and Pokka drinks to North Korea.

Court documents showed they did this via Dalian, China, using the firms 123 Holdings and 123 Duty Free.

On Thursday, 41-year-old Wang Jung Chung, a joint director at 123 Holdings and the sole director for 123 Duty Free, was sentenced to eight weeks’ jail.

See Swee Hian, 61, who was an export director employed by 123 Holdings, was jailed for four weeks.

They had each pleaded guilty to two charges of breaching United Nations sanctions and two charges of exporting prohibited goods to North Korea. Five similar charges were taken into consideration for each of their sentences.

123 Holdings was also fined $60,000 on two counts of breaching UN sanctions, with another three similar charges taken into account, and 123 Duty Free was fined $30,000 on two counts of exporting prohibited goods to North Korea, with another three similar charges taken into account.

The court heard that 123 Holdings had sold more than $720,000 worth of wines and spirits, while 123 Duty Free sold more than $340,000 worth of Pokka drinks. Both sales to North Korea were illegal.

The companies exported beverages, which included milk coffee, strawberry and melon milk, whisky, vodka, champagne and wine.

The offences had come to light when Singapore Customs was investigating other entities for suspected export of prohibited goods to North Korea.

Investigations showed that See was representing 123 Holdings at a trade fair in North Korea in 2015 when he met a North Korean official who introduced himself as Doctor Mun.

Court documents did not provide more details of this individual.

Doctor Mun later visited Singapore and contacted See, who took him to meet Wang.

At a meeting, Doctor Mun told Wang to set up a company called Silver Moon Holdings in Singapore.

Silver Moon was to purchase beverages from 123 Holdings, which would then be exported to North Korea via Dalian.

In December 2016, Doctor Mun bought $171,000 worth of spirits from 123 Holdings through Silver Moon. He also purchased $205,000 worth of spirits from 123 Holdings through Silver Moon in April 2017.

Wang and See knew this was illegal, as the law prohibited exports of luxury items, including alcoholic beverages, to North Korea.

Investigations showed that sometime before 2017, See had also become acquainted with a North Korean named Hyon in Malaysia.

Hyon had purchased Pokka drinks intended for North Korea from 123 Holdings since 2017, with the drinks shipped to Dalian before being exported to North Korea.

The sale of non-alcohol drinks to North Korea was not illegal until November 2017, when a trade prohibition on all commercially traded goods that are imported, exported, transhipped or brought in transit from or to North Korea came into effect.

Wang and See were aware of the trade prohibitions, but continued to supply Hyon with the Pokka drinks as they were concerned about their storage costs, expiry dates of the drinks and their cashflow.

In May 2018, Hyon bought $77,000 worth of Pokka drinks from 123 Duty Free through a company called Liaoning Jinhui Trading.

Hyon bought another $114,000 worth of Pokka drinks from 123 Duty Free through Liaoning Jinhui in June 2018.

Wang profited from these illegal exports as a director of both 123 Holdings and 123 Duty Free. See earned a commission of 30 per cent of the profit margins, which amounted to about $6,000.

See has since handed over this amount, which was above his normal salary, to Singapore Customs.

The court heard that after See and Wang were charged, banks refused to assist them and the two companies, and distributors of the beverages also refused to work with 123 Duty Free and 123 Holdings again.

See began serving his sentence on Thursday, but Wang has deferred his sentence to May 15 as he is currently working for another drink distributor and will be attending a trade fair at Marina Bay Sands as part of his work.

For each charge of breaching UN sanctions, Wang and See could have been jailed for up to 10 years and fined up to $500,000.