As Washington tightens its grip on North Korea’s crypto-funded nuclear weapons program, South Korea says it is ready to reconsider its own sanctions strategy.
summary
- South Korea may reconsider its sanctions approach after the United States took new actions targeting North Korea.
- The U.S. Treasury Department has imposed sanctions on multiple individuals and entities with ties to North Korea.
- South Korea will work closely with the United States to curb North Korea’s crypto-funded weapons development program.
In a recent interview, South Korean Vice-Minister of Foreign Affairs Kim Jin-ah told local media that “South Korea-US cooperation” is important to combat cryptocurrency theft by North Korean hackers, which could “fund North Korea’s nuclear and missile programs and pose a threat to our country’s digital ecosystem.”
For years, North Korea has used state-sanctioned hacking groups such as Lazarus and Kimsky to target the cryptocurrency sector with a wide range of complex attack vectors and to secretly funnel billions of dollars into Pyongyang’s weapons equipment.
To curb these operations, the United States has used sanctions and other enforcement measures to cripple the networks behind these programs and cut off the illicit revenue streams that fuel the regime’s weapons development.
You may also like: Cryptocurrency industry losses due to hacking fell by 23% in the first quarter
South Korea’s latest stance comes shortly after the United States, through the Treasury Department, announced new sanctions targeting what it called the main financial conduit for North Korea’s cryptocurrency laundering network.
“North Korea relies on a vast network of internationally based representatives of North Korean financial institutions that provide access to international markets and financial systems to support its weapons of mass destruction and ballistic missile programs,” the Treasury Department’s Office of Foreign Assets Control said.
Entities involved in the scheme include Korea Mangyongdae Computer Technology Company, which Treasury officials say operates IT worker cells from Chinese cities such as Shenyang and Dandong.
Yujong Credit Bank was identified as a key player in sanctions evasion that allowed North Korean workers to send money overseas, and also played a key role in money laundering between China and North Korea.
Treasury officials also named multiple individuals believed to be at the heart of the ransomware network, including two North Korean bankers, Jang Kuk-chul and Heo Jeong-seon, who are accused of managing more than $5 million in cryptocurrencies linked to ransomware operations and the proceeds of IT workers.
Five other sanctioned individuals with operations in Russia and China have ties to North Korean entities such as Korea Daesong Bank and Foreign Trade Bank, which finance officials say “facilitated the transfer of millions of dollars in U.S. dollars, Chinese yuan, and euros, using shell companies and local financial infrastructure to circumvent international regulations.”
South Korea coordinates with the US
According to South Korea’s Vice Minister of Foreign Affairs, “coordination between South Korea and the United States is important” to mitigate these digital threats.
Kim said, “South Korea is making joint efforts to curb illegal activities, and if it is truly necessary, we can consider reviewing sanctions.”
He added that South Korea could move forward after the US finishes “adjusting and reviewing the wording” of the joint fact sheet for the summit between President Lee Jae-myung and Donald Trump in late October, but before both sides confirm a coordinated response.
read more: Binance founder Qiao Changpeng targeted in possible government-backed hacking attempt
Discover more from Earlybirds Invest
Subscribe to get the latest posts sent to your email.
