U.S. imposes sanctions on North Korean nationals, firms exploiting IT sector to fund WMDs

The U.S. Department of the Treasury has announced sanctions against two North Korean nationals and four entities involved in generating illicit revenue to fund North Korea’s weapons of mass destruction (WMD). This action highlights the U.S. government’s continued efforts to curb these activities and disrupt networks supporting the regime.

On January 16, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced sanctions targeting Department 53 of the Ministry of the People’s Armed Forces, Korea Osong Shipping Company, Chonsurim Trading Corporation, Liaoning China Trade Industry Company, Jong In Chol, and Song Kyong Sik.

Korea Osong Shipping Company and Chonsurim Trading Corporation were identified as front companies for Department 53, with Chonsurim operating a North Korean IT delegation in Laos. Jong In Chol is the head of Chonsurim Trading Corporation, while Song Kyong Sik serves as the representative of Korea Osong Shipping in Shenyang, China.

According to the Treasury Department, Department 53 is a DPRK weapons-trading entity subordinate to the DPRK Ministry of National Defense. In addition to selling advanced conventional weapons and military grade communications equipment, Department 53 generates revenue using front companies in a variety of industrial sectors, including IT and software development.

Liaoning China Trading Co., based in China, was cited for supplying equipment such as laptops and other tools needed by North Korean IT workers to Office 53.

The Treasury stated that North Korea deploys thousands of highly skilled IT workers around the world to evade U.S. and UN sanctions. These workers’ wages—up to 90% of their earnings—are confiscated by the North Korean government, generating billions of dollars annually to fund WMD programs.

“The DPRK continues to rely on its thousands of overseas IT workers to generate revenue for the regime, to finance its illegal weapons programs, and to enable its support of Russia’s war in Ukraine,” said Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence Bradley T. Smith. “The United States remains resolved to disrupt these networks, wherever they operate, that facilitate the regime’s destabilizing activities.”

Under the new sanctions, assets belonging to the designated individuals and entities in the U.S. will be frozen, and U.S. persons, including citizens, permanent residents, and businesses, are prohibited from conducting transactions with them. Furthermore, foreign entities that engage in transactions with these designated parties may face secondary sanctions from the U.S. government.

BY YOUNGNAM KIM [kim.youngnam@koreadaily.com]