The United States escalated its efforts to combat North Korea’s illicit weapons program by imposing new sanctions on six individuals and two entities involved in generating revenue and facilitating financial transactions for the authoritarian regime. The Treasury Department revealed that these sanctions target agents of North Korean banks and companies employing North Korean IT workers abroad, particularly in Russia and China.
The sanctioned individuals include representatives of Tanchon Bank and Korea Daesong Bank, which are key financial arms of North Korea’s weapons-related entities. Yu Pu Ung and Ri Tong Hyok, based in China, are linked to Tanchon Bank, while O In Chun, based in Russia, represents Korea Daesong Bank. These banks play integral roles in financing North Korea’s unlawful weapons development programs, including ballistic missiles and conventional arms trading.
Additionally, Han Chol Man and Jong Song Ho, based in China and Russia respectively, along with Jon Yon Gun, connected to a UAE real estate company, were also sanctioned for their involvement in facilitating illicit financial activities for the North Korean regime.
The two entities targeted by the sanctions, Limited Liability Company Alis in Vladivostok and Pioneer Bencont Star Real Estate in the UAE, are subordinate to Chinyong, an IT firm responsible for managing North Korean IT workers deployed illegally in Russia and Laos.
South Korea joined in the sanctions, imposing penalties on four individuals and the two entities. This joint action underscores the commitment of both countries to disrupt North Korea’s efforts to fund its illegal weapons programs and destabilizing activities.
Brian Nelson, the under secretary of the Treasury for Terrorism and Financial Intelligence, emphasized the importance of these measures in safeguarding the international financial system and preventing North Korea from financing its weapons programs. The coordinated efforts between the United States and South Korea signal a unified stance against North Korea’s illicit activities and underscore the determination to enforce sanctions aimed at curbing its proliferation of weapons of mass destruction.
The imposition of new sanctions on North Korean individuals and entities coincides with mounting evidence suggesting that Pyongyang has been able to circumvent a U.N. Security Council resolution limiting its oil imports, largely due to its deepening ties with Russia.
In response to the escalating issue of North Korea’s oil smuggling operations, which have intensified as part of a weapons agreement between Pyongyang and Moscow, Seoul and Washington initiated a new task force on Tuesday aimed at countering these illicit activities.
Simultaneously, the U.S.-South Korea Working Group on DPRK Cyber Threats convened this week to address the growing concern of North Korea’s cyber-enabled revenue generation for its weapons programs. According to U.S. State Department spokesman Matthew Miller, the group’s objective is to disrupt the North’s ability to finance its unlawful weapons of mass destruction (WMD) and ballistic missile programs through cyber activities.
The significance of such efforts is underscored by estimates from the U.N. Security Council’s Panel of Experts, which revealed that Pyongyang funds approximately 40% of its WMD program through illicit cyber means. The panel’s annual report, released this month, highlighted that North Korea orchestrated 58 suspected cyberattacks on cryptocurrency-related companies between 2017 and 2023, yielding approximately $3 billion in revenue for the regime.
These developments reflect the ongoing challenges posed by North Korea’s illicit activities and underscore the urgent need for coordinated international efforts to disrupt its revenue streams and prevent further proliferation of weapons of mass destruction. By targeting both conventional and cyber-enabled revenue sources, the United States and its allies seek to deprive North Korea of the resources necessary to advance its dangerous weapons programs and promote peace and stability in the region.