A KOREAN-born man living in Sydney has been accused of brokering sales and discussing the supply of weapons of mass destruction on behalf of North Korea.

Chan Han Choi, the first person to be charged under the Weapons of Mass Destruction Act, has been formally refused bail by Parramatta Bail Court.

The 59-year-old man did not appear before Magistrate Carl Milovanovic, and is scheduled to appear in Central Local Court next week.

He faces six charges relating to provision of services for weapons of mass destruction in North Korea after being arrested at his Eastwood home on Saturday night.

media_camera AFP officers arrest Choi Han Chan in Eastwood. Picture: Supplied

“As a result of extensive investigations, the AFP alleged the man was acting as an economic agent of North Korea through his facilitation of various exports from North Korea,” a statement from the AFP read.

“The AFP believes the man was generating income for the North Korean government.”

The man, who is of South Korean descent, has been living in Australia for the past 30 years and the AFP will allege he was involved in brokering the sale of missiles and missile componentry and expertise from North Korea and other international entities.

media_camera Choi Han Chan has been denied bail. He’s the first person in Australia to be charged under the Weapons of Mass Destruction Act. Picture: Supplied

The AFP allege in court documents Choi brokered the services, being the sale of missiles, knowing that it would assist a weapons of mass destruction program.

It’s alleged Choi brokered the sale of the missiles, a measurement system for the projectiles and “related expertise”, from Kim Jong-un’s regime to a man named Raymond Chao.

He is also accused of brokering the sale of coal produced in North Korea to entities in Vietnam and Indonesia, in violation of global sanctions against the regime.

media_camera North Korean leader Kim Jong-un. Picture: AFP

It’s alleged the offences occurred between August 5 and December 16 this year.

“This case is like nothing we have ever seen on Australia soil,” AFP Assistant Commissioner Neil Gaughan told reporters this morning.

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“Any individual who attempts to fly in the face of sanctions cannot and will not go unnoticed in Australia.

“This man was acting as a loyal agent for North Korea who believed he was acting to serve some higher patriotic purpose.

“I think at the end of the day he would sell whatever he could to make money back for the North Korean government.”

media_camera AFP’s national manager of organised crime and cyber Neil Gaughan at a press conference after the arrest. Picture: Jane Dempster/The Australian

There is no evidence any weapons or missile components ever came to Australia, however.

“This is black market 101,” Mr Gaughan said.

“We’re alleging all the activity occurred offshore ... the Australian public should be assured that police have acted to ensure no direct risk to our community.

media_camera The apartment complex where Choi was arrested.

“We’ll be alleging in court this man was brokering the sale of missile componentry and technical expertise from North Korea to other international entities — we believe this man participated in discussions about the sale of missile componentry from North Korea to other entities abroad as another attempt to raise revenue for the government of North Korea.

“The missile componentry assisted in the guidance of ballistic missiles.”

media_camera The AFP said further charges could be laid. Picture: Supplied

The maximum penalty for the offences is 10 years imprisonment.

Choi has been charged with six offences however the AFP has not ruled out further charges.

It will also be alleged he attempted to transfer coal from North Korea to entities in Indonesia and Vietnam.

Eastwood resident Geoff Cowdroy, 61, lives in the same apartment block as Choi.

Mr Cowdroy and his wife, Pat, said they were shocked to hear their “polite” neighbour had been arrested.

“He was quite nice, he seemed to be okay,” Mr Cowdroy told The Daily Telegraph. “He was very softly spoken.”

media_camera Geoff and Pat Cowdroy, who are neighbours of Choi.

Mr Cowdroy has lived in the Eastwood apartment block for 12 years.

He said he was not at home when Mr Choi was arrested, about 8.30am yesterday, but said there was no indication Choi was participating in alleged illegal activity.

“He (Mr Choi) just asked me what I was doing … just general talking,” Mr Cowdroy said of his conversations with the accused. “It’s a real shock, bloody oath.”

While he didn’t know Choi’s profession, Mr Cowdroy said he “seemed like a businessman”.

Another neighbour, who didn’t want to be identified, described Choi as a “good man”.

“When we met him he would always say hello and good morning. He was very polite,” she said.

It’s understood Choi has been living at his Eastwood apartment for about two years.

Another resident, Paul Barnes, 55, was in the building when police arrested Mr Choi.

“They took him back up to his room … and they spent probably the best part of half an hour here. When I left for work they were still here,” he said.

Mr Barnes said Mr Choi did not resist AFP officers when he was handcuffed.

“He wasn’t carrying on.”

media_camera Prime Minister Malcolm Turnbull. Picture: Tim Hunter

Prime Minister Malcolm Turnbull said the 59-year-old man is facing the “gravest of charges”.

“It is important for people to know, if they are assisting or thinking of assisting the North Korean regime in sanctions busting, the AFP will find you,” he said.

“These are very serious matters. North Korea is a dangerous, reckless criminal regime threatening the peace of the region.

Sydney man arrested for acting as North Korean agent Sydney man arrested for acting as North Korean agent

“It supports itself by breaching UN sanctions not simply by selling commodities like coal and other goods but also by selling weapons, by selling drugs, by engaging in cybercrime.

“I want to congratulate the Australian Federal Police for their investigative work and this is a very, very important arrest. These charges that are being laid are of the gravest nature.”