During a recent interview, South Korean Vice Foreign Minister Kim Ji-na emphasized the importance of close coordination with the United States to counter cryptocurrency theft by North Korean hackers. Such illicit activities, she warned, can be used to fund Pyongyang’s nuclear and missile programs and pose “a threat to our digital ecosystem.”
North Korea has long relied on state-backed hacking groups such as Lazarus and Kimsuky, which deploy sophisticated cyberattacks against the cryptocurrency industry to secretly channel billions of dollars into the country’s weapons development efforts.
To curb these operations, the United States has imposed sanctions and taken enforcement actions aimed at dismantling the financial and technical networks behind North Korea’s laundering schemes.
U.S. targets North Korea’s financial conduits
South Korea’s latest remarks follow the U.S. Treasury Department’s announcement of new sanctions targeting what it described as key financial intermediaries in North Korea’s crypto-laundering operations.
According to the Office of Foreign Assets Control (OFAC), “the DPRK relies on a vast network of internationally based representatives of North Korean financial institutions who provide access to global markets and financial systems […] in support of its WMD and ballistic missile programs.”
Among the entities sanctioned was the Korea Mangyongdae Computer Technology Company, accused of running IT worker cells in Chinese cities such as Shenyang and Dandong. The Ryujong Credit Bank was also identified as a major conduit for sanctions evasion, helping remit foreign currency earnings from overseas North Korean workers and facilitating money laundering between China and the DPRK.
Treasury officials named several individuals allegedly central to the network, including Jang Kuk Chol and Ho Jong Son, two North Korean bankers accused of managing over $5 million in cryptocurrency linked to ransomware operations and IT worker revenues.
Five additional individuals based in Russia and China were sanctioned for ties to DPRK institutions like the Korea Daesong Bank and the Foreign Trade Bank, accused of transferring millions in U.S. dollars, Chinese yuan, and euros through shell companies and local intermediaries to evade restrictions.
Seoul signals readiness to align with Washington
Vice Minister Kim Ji-na said South Korea would continue to work closely with the U.S. to counter these digital threats.
“Coordination between South Korea and the United States is essential,” she said. “South Korea has been taking joint steps to combat illegal activities, and in that context, we can consider reviewing sanctions if necessary.”
Kim added that Seoul’s next steps will likely come after Washington finalizes revisions to a joint fact sheet from the late-October summit between President Lee Jae Myung and President Donald Trump, which will outline the allies’ coordinated response.
