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Cablegate: Blue Lantern Level 3: Pre-License End-Use Check

VZCZCXYZ0003
RR RUEHWEB

DE RUEHUL #1980 2820506
ZNR UUUUU ZZH
R 080506Z OCT 08
FM AMEMBASSY SEOUL
TO RUEHC/SECSTATE WASHDC 1882
INFO RUCPDOC/DEPT OF COMMERCE WASHDC 1842
RUEAIIA/CIA WASHINGTON DC
RHMFIUU/FBI WASHINGTON DC
RUEKJCS/SECDEF WASHINGTON DC
RUEPINS/HQ BICE INTEL WASHINGTON DC

UNCLAS SEOUL 001980

SIPDIS

STATE FOR PM/DTCC-BLUE LANTERN COORDINATOR

E.O. 12958: N/A
TAGS: AU ETTC KOMC KS
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK
ON APPLICATION 050120453

REF: A) STATE 95391

1. Per reftel, Post contacted Yeonhab Precision and the
Defense Acquisition Program Administration (DAPA) by email
And phone. A site visit was not possible due to resource
constraints.

2. Mr. Lee Kwan-young at Yeonhab Precision informed Post
that the company was established in 1980. The firm's main
products are cable assemblies, such as wire harnesses,
cable connectors, electronic equipment and interconnection
wires. The company has been a DAPA-listed manufacturer of
defense items since 1995.

3. Since its foundation Yeonhab Precision has been headed
by Mr. Kim In-sool, President and CEO. Its other principal
officers are Duck-soo KIM, Senior Executive Vice President,
who has more than 10 years of professional experience at
the Korea Engineering Consulting Corporation, and Chang-koo
LEE, a retired ROK Army Colonel and head of Yeonhab's
Research and Development Center.

4. Yeonhab Precision's main clients include ROK Army, Navy
and Air Force located in Nonsan, Jinhae and Daejeon in
Korea, respectively. The company maintains overseas sales
agents in the United States, Australia, Japan and Europe.
More information on the company can be found at
www.yeonhab.co.kr.

5. Yeonhab Precision maintains computerized database
systems that record its sales and a highly restricted and
secured warehouse to store all sensitive items.

6. Yeonhab Precision also confirmed to Post that the items
in question will be assembled into power distribution boxes
that will be incorporated into the Korean Amphibious
Assault Vehicle (KAAV) produced by Samsung Techwin, a DAPA-
registered company.

7. Mr. Hong Ik-sun, Assistant Deputy Director of the
Special Weapons Contract Team at DAPA confirmed that the
completed KAAV will be delivered to the end-user the ROK
Marine Corps. The completed KAAVs are scheduled for
delivery from 2008-2010. Based on Post's conversation with
DAPA officials, Yeonhab Precision is a long standing
supplier and reliable recipient of USML items.

8. Post will separately send copies of the supporting
documents and photos of the Yeonhab Precision warehouse by
email. The company is fully aware of the importance of the
restrictions on USML items.

STEPHENS

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