The antisubversion law may be applied to a pro-Pyongyang group of Korean residents in Japan because of its alleged involvement in suspected illicit transfers of funds to North Korea, a senior Public Security Investigation Agency official said Friday.

Shotaro Tochigi, the agency's deputy chief, told a Diet committee the agency is looking into the allegations with the possibility of applying the law against the General Association of Korean Residents in Japan (Chongryun).

Tochigi was responding to questions by Masaharu Nakagawa, a lawmaker of the main opposition Democratic Party of Japan, at Friday's session of the House of Representatives Financial Affairs Committee.

Nakagawa inquired about suspicions that Chongryun used Chogin credit unions, which mainly served pro-Pyongyang Koreans in Japan, to channel money to North Korea through means such as opening bogus deposit accounts. The credit unions have since gone bankrupt.

The Subversive Activities Prevention Law is aimed at controlling activities by groups that try to achieve their goals through violent means or conduct activities that threaten peace and security.