It was officially established in 1966 and was involved in business dealings and industrial espionage in Western countries.
[1] KoKo operated 180 front companies in the West and brought their hard currency profits to secret accounts in East Germany.
KoKo was involved in illegal arms deals with Iran, Third World regimes, and even the CIA; "selling" East German political prisoners to West Germany; purchasing of high technology products despite a Western embargo; selling antique artworks to the West; and importing luxury items for the top nomenklatura of the Socialist Unity Party.
[2] One of the closest Schalck's partners in the West was Bavarian Prime Minister Franz-Josef Strauss.
Koko was responsible, alongside IMES, for covertly acquiring gear needed for operators of Diensteinheit IX.