The United States Department of the Treasury's Office of Foreign Assets Control (OFAC) has sanctioned two Air Koryo (JS, Pyongyang) agents for their alleged involvement in arms trafficking.

Ri Sok is the North Korean carrier's agent in Dandong, a border city in China, who has allegedly been involved in transporting electronic parts on behalf of the North Korean Ministry of Rocket Industry (MORI). While OFAC did not specify whether Ri was directly involved in the MORI-run ballistic missiles programme, both the ministry and the Munitions Industry Department (MID) are sanctioned, which prevents them from legally importing any goods.

In turn, Yan Zhiyong is a logistics manager with Air Koryo and was allegedly involved in trafficking goods for the Reconnaissance General Bureau, North Korea's intelligence office, via a Beijing-registered front company.

Air Koryo was designated by OFAC in early 2016. The carrier is the sole commercial airline operating in North Korea. While its primary activity is, nominally, the commercial transport of passengers and cargo, OFAC alleges it also carries military parts for the regime, including Scud-B missile systems.