South Korea has revealed it seized a Hong-Kong registered ship last month suspected of supplying oil to the North in breach of international sanctions.
Officials said the Lighthouse Winmore had secretly transferred 600 tons of refined oil to a North Korean ship.
The revelations came as China denied claims by President Trump that it had allowed oil shipments to the North.
A UN Security Council resolution bans ship-to ship transfers of any goods destined for Pyongyang.
On Thursday the US president tweeted he was "very disappointed" with China, which he said had been "caught red-handed". He was responding to a South Korean report that suggested Chinese ships had been spotted selling oil to North Korean ships at sea in recent weeks.
The Chinese government swiftly rejected the president's claim, saying it was "not consistent with the facts".
"China has never allowed Chinese enterprises nor individuals to violate UN Security Council resolutions imposed on the DPRK," foreign ministry spokesperson Hua Chunying said.
But instead of going to Taiwan it transferred the oil to a North Korean ship and three other vessels in international waters, South Korean officials were quoted as saying.
The Lighthouse Winmore remains in South Korea, the authorities told the BBC Korean service.

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