With Washington tightening the screws on North Korea’s crypto-funded nuclear weapons programme, South Korea is signaling openness to rethinking its own sanctions playbook.
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 crucial to addressing cryptocurrency theft by North Korean hackers. She emphasized that these stolen funds can be “used to fund North Korea’s nuclear and missile programmes and pose a threat to our digital ecosystem.”
North Korea has long employed state-sanctioned hacking groups like Lazarus and Kimsuky to target the cryptocurrency sector. Using a wide range of complex attack vectors, these groups have quietly funneled billions into Pyongyang’s weapons apparatus.
To curb these operations, the United States has leveraged sanctions and enforcement actions to dismantle the networks behind these schemes, cutting off illicit revenue streams that fuel the regime’s weapons development.
South Korea’s latest stance comes shortly after the U.S. Treasury Department unveiled a fresh batch of sanctions targeting what it described as 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 (OFAC) stated.
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. Ryujong Credit Bank was identified as a pivotal player in sanctions evasion, facilitating the remittance of foreign currency earnings for North Korean workers abroad and playing a key role in laundering money between China and the DPRK.
Treasury officials also named several individuals central to the laundering network, including two North Korean bankers, Jang Kuk Chol and Ho Jong Son. These individuals were accused of managing over $5 million in cryptocurrency linked to ransomware activity and IT worker revenues.
In addition, five other sanctioned individuals operating across Russia and China were connected to DPRK institutions like Korea Daesong Bank and the Foreign Trade Bank. According to Treasury officials, these figures “helped transfer millions in U.S. dollars, Chinese yuan, and euros,” utilizing shell companies and local financial infrastructure to bypass international restrictions.
South Korea will coordinate closely with the U.S.
According to Vice Foreign Minister Kim, “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,” she remarked.
Kim added that South Korea may move forward with revisions once the U.S. completes “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. Only after both sides confirm their coordinated response will any changes be implemented.
https://bitcoinethereumnews.com/tech/south-korea-open-to-revisiting-sanctions-on-north-korea-after-latest-u-s-crackdown/
