With Washington tightening the screws on North Korea’s crypto-funded nuclear weapons programme, South Korea says it’s open to rethinking its own sanctions playbook.
Summary
- South Korea may review its sanctions approach after the U.S. issued fresh actions targeting North Korea.
- The U.S. Treasury has sanctioned several individuals and entities with ties to North Korea.
- South Korea will coordinate closely with the U.S. to curb North Korea’s crypto-funded weapons program.
During a recent interview, South Korean Vice Foreign Minister Kim Ji-na told local media that “coordination between South Korea and the United States” is important to address cryptocurrency theft by North Korean hackers, which can be “used to fund North Korea’s nuclear and missile programmes and pose a threat to our digital ecosystem.”
North Korea has long used state‑sanctioned hacking groups like Lazarus and Kimsuky to target the cryptocurrency sector using a wide range of complex attack vectors that have quietly funnelled billions into Pyongyang’s weapons apparatus.
To curb these operations, the United States has used sanctions and other enforcement actions to cripple the networks behind these schemes and cut off illicit revenue streams that fuel the regime’s weapons development.
South Korea’s latest stance comes right after the U.S. unveiled a fresh batch of sanctions through its Treasury Department, targeting what it called key financial conduits in North Korea’s crypto laundering network.
“The DPRK relies on a vast network of internationally located representatives of DPRK financial institutions who provide access to international markets and financial systems […] in support of its WMD and ballistic missile programs,” the Treasury’s Office of Foreign Assets Control said.
Entities involved in the scheme included Korea Mangyongdae Computer Technology Company, which Treasury officials say operates IT worker cells from Chinese cities like Shenyang and Dandong.
Ryujong Credit Bank was identified as a key player in sanctions evasion that allowed remitting foreign currency earnings for North Korean workers abroad and also played a key role in laundering money between China and the DPRK.
Treasury officials also named several figures said to be central to the laundering network, including two North Korean bankers, Jang Kuk Chol and Ho Jong Son, who were accused of managing over $5 million in crypto linked to ransomware activity and IT worker revenues.
Five other sanctioned individuals operating across Russia and China had ties to DPRK institutions like Korea Daesong Bank and the Foreign Trade Bank, who Treasury officials say “helped transfer millions in U.S. dollars, Chinese yuan, and euros,” using shell companies and local financial infrastructure to bypass international restrictions.
South Korea will coordinate with the U.S.
According to the South Korean Vice Foreign Minister, “coordination between South Korea and the U.S. is important” to mitigate these digital threats.
“South Korea has been making joint efforts to curb illegal activities, and in that context, we can consider reviewing sanctions as a measure if they are really needed,” Kim said.
She added that South Korea may move forward once the U.S. is done “adjusting and reviewing the wording” of a joint fact sheet from a summit between President Lee Jae Myung and President Donald Trump held in late October, before both sides confirm their coordinated response.
Source: https://crypto.news/south-korea-open-to-revisiting-sanctions-on-north-korea-after-latest-u-s-crackdown/
