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Cablegate: Response to Blue Lantern Level

VZCZCXYZ0003
RR RUEHWEB

DE RUEHUL #1056 1440421
ZNR UUUUU ZZH
R 230421Z MAY 08
FM AMEMBASSY SEOUL
TO RUEHC/SECSTATE WASHDC 0132
INFO RUCPDOC/USDOC WASHDC 6923
RUEKJCS/SECDEF WASHINGTON DC
RUEPINS/HQ BICE INTEL WASHINGTON DC

UNCLAS SEOUL 001056

SIPDIS

STATE FOR PM/DTCC-BLUE LANTERN COORDINATOR

E.O. 12958: N/A
TAGS: AU ETTC KOMC KS
SUBJECT: RESPONSE TO BLUE LANTERN LEVEL
3: POST-SHIPMENT END-USE CHECK LICENSE
050064399

REF: A) STATE 044518

1. Per reftel, post contacted the
Republic of Korea Air Force (ROKAF) and
Kyongju Aerospace Electrical Systems
(KAES) by email and phone. Due to
resource constraints, a site visit was not
conducted.

2. Mr. Kim Ki-Sang, Warrant Officer at
ROKAF Logistics Command confirmed to Post
that Kyongju Aerospace Electrical Systems
(KAES) conducts overhaul maintenance of
the F-5 aircraft. Moreover, Mr. Kim
confirmed that KAES is an official DAPA
defense supplier to ROKAF and is fully
aware of its obligation to comply with
the provisions of USML articles.

3. Since 2004 KEAS has been a DAPA-
registered company. In 2008 the Ministry
of Knowledge Economy (MKE) ? formerly the
Ministry of Commerce, Industry and Energy
renewed KAES' export license recognizing
it as a reliable recipient of USML items.

4. Mr. Lee In-Seok, Executive Director
(previously the General Manager) at KAES
reported that it has had dealings
with DAPA/ROKAF and other major DAPA-
registered defense suppliers, such as
Samsung Techwin and other DAPA-registered
defense suppliers since 2000.

5. KAES has received the actuator (P/N:
1608199-1), but has not delivered it to
ROKAF because it is being incorporated
into the F-5 engine that is scheduled for
delivery to ROKAF Logistics Command in
June 2009. The signed contract between
ROKAF and KAES regarding the maintenance
of the F-5 aircraft will be sent
separately by email.

6. The major products sold by KAES are
the main generator systems for aircrafts,
mainly the T-50 (a domestically-
developed jet fighter), fuel pump motors
and ventilators. Its main
customers include DAPA, Korea Aerospace
Industries, Samsung Techwin, Hanhwa,
Hyundai Rotem and Doosan Infracore -- all
DAPA-registered defense material
suppliers. Since 2000 KAES has supplied
motors to DAPA and provided overhaul
maintenance services to ROKAF.

7. KAES informed Post that it maintains a
business management team (similar to an
accounting division) within the company
that records its sales.

VERSHBOW

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