CSC News Table of Contents
The recent North Korea IT sanctions imposed by the U.S. Treasury aim to curb illicit activities funding weapons programs in the Democratic People’s Republic of Korea (DPRK).
These sanctions highlight the troubling exploitation of skilled IT professionals by the DPRK to generate revenue for weapons of mass destruction (WMD) programs.
According to the U.S. Department of the Treasury, these workers’ incomes contribute hundreds of millions annually to the regime.
Key Takeaway to North Korea IT Sanctions:
- North Korea IT Sanctions: The U.S. Treasury’s actions disrupt networks fueling DPRK’s WMD and missile programs by targeting IT workers and their enablers globally.
The Network Behind North Korea IT Sanctions
The sanctions announced on January 16, 2025, by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), target two individuals and four entities linked to the DPRK.
These entities employ highly skilled IT workers who use aliases to secure freelance contracts in fields like software development and mobile app creation.
Up to 90% of their earnings are confiscated by the regime, funding WMD and ballistic missile development.
Entities and Individuals Sanctioned
The following entities and individuals are central to this operation:
| Entity/Individual | Role in the Network |
|---|---|
| Department 53 | Oversees IT worker operations and weapons trading activities. |
| Korea Osong Shipping Co. | Manages IT workers in Laos and facilitates cryptocurrency-related projects. |
| Chonsurim Trading Corp. | Directs IT workers in Laos to undertake global software development projects. |
| Liaoning China Trade | Supplies Department 53 with electronics enabling IT worker activities. |
| Jong In Chol | Leads Chonsurim’s Laos IT delegation, generating revenue for munitions. |
| Son Kyong Sik | Oversees operations in Shenyang, China, and ensures compliance with the DPRK’s revenue directives. |
Revenue Generation Through IT Work
North Korea’s IT workers operate covertly, using false identities to secure contracts worldwide. Their work includes:
- Developing cryptocurrency platforms.
- Building mobile applications and websites.
- Undertaking software engineering projects for international clients.
Despite their skill, these workers’ efforts primarily benefit the DPRK regime, funding activities that threaten global security.
The Role of China in Supporting DPRK Operations
Entities like Liaoning China Trade Industry Co., Ltd., based in Shenyang, supply critical equipment such as computers and network devices to DPRK operations.
This collaboration facilitates IT worker activities abroad, further entrenching the regime’s control.
Sanctions’ Implications
Under the new sanctions:
- Assets of the designated individuals and entities within U.S. jurisdiction are frozen.
- Transactions involving these parties are prohibited unless explicitly authorized by OFAC.
- Violations can result in severe penalties, including fines and imprisonment.
These measures aim to cut off revenue streams enabling the DPRK’s destabilizing activities.
Historical Precedent of IT Exploitation
This isn’t the first time North Korea’s IT activities have raised alarms. In 2021, reports revealed cyberattacks targeting cryptocurrency exchanges, resulting in significant financial losses.
These attacks underscore the regime’s reliance on digital avenues to bypass sanctions.
Future Implications of the Sanctions
Looking ahead, these sanctions signal increased scrutiny of North Korea’s global operations. Governments and corporations must remain vigilant to prevent exploitation by DPRK networks.
Enhanced international collaboration will be essential in countering these threats and ensuring compliance with sanctions.
About the U.S. Department of the Treasury
The U.S. Department of the Treasury works to strengthen national security by combating illicit finance and enforcing sanctions.
Rounding Up
The North Korea IT sanctions reflect a strong commitment to disrupting illicit networks fueling the DPRK’s WMD programs.
By targeting IT worker operations, the U.S. aims to cut off critical funding channels while safeguarding global security.
FAQs
What are North Korea’s IT sanctions?
- These sanctions target networks employing IT workers to fund DPRK weapons programs.
Who is affected by the sanctions?
- Two individuals and four entities linked to the DPRK’s IT operations have been sanctioned.
How do IT workers generate revenue for the DPRK?
- They secure freelance contracts globally and remit up to 90% of their earnings to the regime.
What is the goal of these sanctions?
- To disrupt revenue streams supporting North Korea’s WMD and missile programs.
What can businesses do to comply with sanctions?
- Conduct thorough due diligence to avoid engaging with sanctioned individuals or entities.
