The firm is a joint venture between the North Korean state and British-French citizen Michael Hay, who has been representing clients in the capital city of Pyongyang for the last 12 years. Hay, Kalb and Associates is a multidisciplinary legal practice, accounting firm and business consultancy established to help foreign organisations and non-profits do business in North Korea. A statement posted on Monday on the firm’s website cited ‘business and geopolitical principles’ as the reason behind the decision to cease operations.
Sanctions criticism
According to a statment, the decision was made only after ‘lengthy and thorough deliberation and an examination of the continuing deterioration of inter-regional relations pertaining to the Korean peninsula,' adding that recent sanctions against North Korea have been hurting ‘legitimate foreign investors’ in the country. The United Nations Security Council voted to tighten sanctions against North Korea in March following a nuclear weapons test undertaken by the state in January and a long-range rocket launch test in February. ‘There is still no credible, consistent evidence I see of DPRK companies hurting,’ Mr Hay commented in the statement. The firm’s suspension came into effect unofficially on Monday and will become official on 14 August, its twelfth anniversary.
Sources: Asian Legal Business; Law Gazette
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