Seoul imposes sanctions on North Korean hackers, groups over crypto theft

The Korea Times

The Korea Times

North Korea

Tue, September 26, 2023 | 09:28

Seoul imposes sanctions on North Korean hackers, groups over crypto theft

Posted : 2023-02-10 16:36

Updated : 2023-02-11 16:45

This photo shows North Korean soldiers wearing face coverings while marching at a military parade in Pyongyang, North Korea, Wednesday, to mark the 75th founding anniversary of its military. South Korea on Friday imposed independent sanctions on four North Korean hackers and seven groups over cybercrimes they allegedly committed to help fund the regime's weapons program. Yonhap

Gov't targets regime's key funding source for weapons program

By Jung Min-ho

South Korea imposed independent sanctions, Friday, on four North Korean hackers and seven groups over cybercrimes they allegedly committed to help fund the regime's weapons program.

The names of the tech experts ― Park Jin-hyok, Cho Myung-rae, Song Rim and Oh Choong-song ― as well as organizations that have direct or suspected connections to the regime ― Chosun Expo Joint Venture, Lazarus Group, Bluenoroff, Andariel, University of Automation (formerly known as Mirim College), Lab 110 and the tech division under North Korea's Reconnaissance General Bureau (RGB) ― are on the list.

Those who wish to engage in financial transactions (cryptocurrency included) with anyone on that list are required to receive approval from the Bank of Korea governor or the Financial Services Commission in advance. Violators could be prosecuted under the law regarding the prevention of funding for the spread of weapons of mass destruction.

"This is South Korea's first independent sanction on North Korea in the area of [illicit] cyber activities, which is expected to raise awareness of the risk of virtual asset transactions with North Korea around the world," the Ministry of Foreign Affairs said in a statement. "Some of the people on the sanctions list have not been targeted in other countries."

Pyongyang is suspected of having engaged in ― and gotten away with ― cryptocurrency theft and other types of cybercrimes to finance its nuclear and missile programs, according to the investigative authorities in more than a dozen countries. A United Nations report revealed earlier this week by Reuters shows that North Korea-linked hackers stole a record amount of virtual assets worth at least $630 million last year, up sharply from $400 million in 2021.

Park, a computer programmer at the Chosun Expo Joint Venture, has long been wanted by the U.S. Federal Bureau of Investigation (FBI) for hacking into the computer network of Sony Pictures Entertainment in 2014 and the worldwide WannaCry ransomware cyberattack in 2017.

Cho, director of the computer technology research center under the RGB, is believed to be behind the development of the JML virus.

Song of Hapjanggang Trading Corporation is a software developer suspected of being engaged in creating and selling voice phishing smartphone applications.

Oh, an IT official at the Ministry of Defense, is suspected of taking part in projects at various foreign companies after being hired under a false identity.

Lazarus Group is accused of stealing $620 million from the non-fungible token-based online game, Axie Infinity, in one of the largest cyber theft cases in 2022.

The same day, the National Intelligence Service (NIS), the U.S. National Security Agency and the FBI issued a joint security advisory against North Korea's cybercrimes, saying hackers are trying to obtain cryptocurrency through malware attacks using fake domains.

"The agencies highly discourage paying ransoms as doing so does not guarantee files and records will be recovered and may pose sanctions risks," the advisory says.

During a meeting in Washington last week, Foreign Minister Park Jin and his U.S. counterpart Antony Blinken agreed to step up cooperation to fight against the North's cybercrimes among other illegal attempts to help fund its nuclear weapons development.

mj6c2@koreatimes.co.kr