A SOUTH Korean-born Sydney man has been charged with acting as an economic agent for North Korea in Australia by allegedly attempting to broker sales for Pyongyang that included components used in ballistic missiles.

The Australian Federal Police (AFP) said 59-year-old naturalised Australian Chan Han Choi used encrypted communication to broker sales and discuss the supply of weapons of mass destruction worth tens of millions of dollars. His actions contravened both UN and Australian sanctions against North Korea, police said.

Police added the man was acting to generate income for Pyongyang by arranging the sale of computer software used in ballistic missiles to other “international entities”.

Australia’s premier Malcolm Turnbull said he had been briefed by AFP commissioner Andrew Colvin on the “very, very serious matter” and warned anyone thinking of assisting North Korea “the AFP will find you”.

He added: “North Korea is a dangerous, reckless, criminal regime threatening the peace of the region. 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 cyber crime.”

Despite international sanctions, cash-strapped North Korea last month test-fired its most powerful missile, which may be able to reach the US mainland.

Choi is facing six charges related to brokering the sale of North Korean missile componentry and expertise, and attempting to transfer coal from North Korea to “entities” in Indonesia and Vietnam.

Choi did not appear or apply for bail in a Sydney court on Sunday, and bail was formally refused.

Police also said the governments of Indonesia and Vietnam – or authorities in those countries – were not involved in the coal transfer attempt.

Choi is the first person charged under Australia’s Weapons of Mass Destruction Act and could face a maximum 10-year prison sentence.

The charges relate to alleged activity over the past year, but that allegations dated back to 2008.

Choi was arrested on Saturday and charged over two unsuccessful transactions. “But we estimate if these trades were successful we’re talking tens of millions of dollars,” said police assistant commissioner Neil Gaughan.