The South Korean government has sanctioned 15 North Korean individuals and one related institution for cryptocurrency hacking and earning foreign currency through IT contracting, which has been used to fund nuclear and missile development.
The South Korean Ministry of Foreign Affairs announced on Thursday that 15 individuals, including Park Heung Ryong, Kim Chul Min, and Kim Ryu Sung, who are affiliated with the 313 Bureau under the Munitions Industry Department of the Workers’ Party of Korea, would be sanctioned. These individuals have been residing overseas and conducting foreign currency-earning IT activities. The Munitions Industry Department is an institution that oversees North Korea’s weapons production and research and development, including ballistic missile programs and has been subject to UN Security Council sanctions since March 2, 2016. The 313 Bureau raises funds for nuclear and missile development through foreign currency earned by overseas IT workers and is also involved in developing software for the military sector.
Kim Chul Min reportedly remitted a significant amount of foreign currency to Pyongyang, which he had earned by disguising himself to work for companies in the United States and Canada. Kim Ryu Sung, who violated U.S. unilateral sanctions over several years, was indicted by a U.S. court on December 11, according to the Ministry of Foreign Affairs.
The Chosun Kumjong Economic Information Technology Exchange Company has dispatched numerous North Korean IT workers abroad, contributing a large sum of military funds to the North Korean regime.
These independent sanctions will become effective at midnight on December 30, following publication in the official gazette. Financial and foreign exchange transactions with sanctioned entities will require prior approval from the Financial Services Commission or the Governor of the Bank of Korea.
North Korea continues to earn illegal foreign currency through cryptocurrency theft, IT contract work overseas, hacking, and other malicious cyber activities. According to the global blockchain analysis company Chainalysis, North Korea’s global cryptocurrency theft amounted to approximately $1.3 billion last year.
A South Korean Ministry of Foreign Affairs official stated, “North Korean IT workers are known to be dispatched to China, Russia, Southeast Asia, and Africa, where they disguise their identities and secure contracts from companies worldwide. Some are also involved in information theft and cyberattacks.” The official added, “We will continue efforts to block illegal cyber activities in collaboration with the international community, maintaining a high level of vigilance.”
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