Veteran UMNO secretary-general Datuk Mustapha Ya'akub has admitted his involvement in setting up a company, International Global System (M) Sdn Bhd (IGS), which was linked to Glocom company (Global Communications Co) selling battlefield radios from North Korea.

He said his involvement was strictly business following recommendation by the North Korean Embassy.

He told Bernama today that IGS was set up in 2005 with two partners from the republic whom he knew as 'Madam Ryang' and 'Madam Pyon' to market the products manufactured by Glocom, the military equipment company.

According to Mustapha, the company was later run by a North Korean man identified as Kim Chang-hyok, as its manager.

"I knew Glocom was a North Korean product but I didn't know that the country was sanctioned by the United Nations (UN).

"Our relationship was strictly business. I knew them after being introduced by the North Korean Embassy...according to the embassy, they were looking for partners to market their products in Malaysia," he said when contacted here.

Mustapha said he agreed to do business with them after finding that several communication products were then marketable in Malaysia and Asia.

"However, we decided to close down IGS after realising that all North Korean products were banned by the UN, and also upon advice by Bukit Aman police and the international trade and industry ministry.

"Subsequently, Chang-hyok and I set up another company, namely International Golden Services in 2012 but it didn't work out, so we closed it down," he said, adding that the last dealing he had with Chang-hyok was about a year ago.

Prior to this, an international media had quoted a UN report as saying Glocom, a front company run by North Korean intelligence agents in the federal capital here, had violated UN sanctions by selling the equipment.

The report also stated the company's name did not exist in Malaysia, and this was confirmed by Inspector-General of Police, Tan Sri Khalid Abu Bakar. -- Bernama