The New Zealand manufacturer of a plane that ended up in North Korea says the aircraft, now owned by a Chinese company, was promoting that company's tourism operations.
Foreign Affairs officials are investigating how it ended up in North Korea because New Zealand bans exports to the country.
Pacific Aerospace chief executive Damien Camp said the plane was owned and operated by Chinese firm FreeSky Aviation.
"It's still operating on the Civil Aviation China register and just happens to be at the air show to promote that company's tourism work. It's been doing a bit of flying in North Korea, evidently. They put the North Korean flag on the tail to get some effect at the show. And it certainly got that.
"They [the Chinese company] are aware now of the issues that this could create for us ... and the client has reiterated that any markings associated with Korea are going to be removed now that the air show has finished and CAAC - Aviation China - registration marks will be reapplied."
Mr Camp said that aircraft type had only ever been sold for commercial operations such as skydiving, surveying, agricultural work and passenger and freight operations, and does not have any direct military application or capacity for weaponry to be attached.
Pacific Aerospace had produced more than 700 planes and it was hard to track the location of every one of them after they were sold, he said.
Two New Zealanders also took part in skydiving at the show according to a UK tour company that organises trips to the event.
Tour guide Charles Kennedy of London-based Juche Travel Services told Morning Report he did not know whether they were tourists or or part of an international sky dive display team.
Mr Kennedy said at least 15,000 North Koreans attended the show.