North Korean ‘loyal agent’ busted in Australia trying to ‘broker secret missile deals worth tens of millions’

UNDERCOVER Aussie cops have arrested a North Korean "agent" accused of attempting to broker black market missile deals on behalf of the rogue state.

The 59-year-old man was charged with alleged breaches of US and Australian sanctions and of breaking a laws covering the sale of weapons of mass destruction.

The police allege he attempted to broker the transfer of coal from North Korea to Vietnam and Indonesia and to sell missiles, missile components and expertise from Pyongyang to international groups.

The Sydney man was identified by the Australian Broadcasting Corporation and other media as Chan Han Choi, who they said had been living in Australia for more than 30 years and was of Korean descent.

The man was arrested in the Sydney suburb of Eastwood on Saturday.

He came to the attention of authorities earlier this year, the Australian Federal Police (AFP) said and had been monitored since then.

"This man was a loyal agent of North Korea, who believed he was acting to serve some higher patriotic purpose," AFP Assistant Commissioner Neil Gaughan told reporters.

"This case is like nothing we have ever seen on Australian soil," he said.

Police beleive the man tried to broker the sale of missile components, including software for the guidance systems of ballistic missiles, as well as trying to sell coal to third parties.

Gaughan said the trade could have been worth "tens of millions of dollars" if successful.

Cash-strapped North Korea has come under a new round of stricter United Nations sanctions this year after pressing ahead with its missile and nuclear programmes in defiance of international pressure.

Tensions have risen dramatically on the Korean peninsula because of the North's ballistic missile launches and its recent sixth and most powerful nuclear test.

Pyongyang claimed that its latest intercontinental ballistic missile launch in November had the range to reach all of the United States.

US Secretary of State Rex Tillerson urged North Korea on Friday to carry out a "sustained cessation" of its weapons testing to allow talks about its missile and nuclear programmes.

However, the North has shown little interest in talks until it has the ability to hit the US mainland with a nuclear-tipped missile, which many experts say it has yet to prove.

Gaughan said the man had been in touch with high-ranking North Korean officials but no missile components ever made it to Australia.

He also said there was no indication officials in Indonesia or Vietnam had been involved in the attempted coal sales.

"This is black market 101," Gaughan said.

"We are alleging that all the activity occurred offshore, and was purely another attempt for this man to trade goods and services as a way to raise revenue for the government of North Korea," he said.

The man faces up to 18 years in jail if convicted. He did not apply for bail and will next face court on Wednesday.