U.S. imposes sanctions on firms and individuals funding North Korea weapons

The U.S. Department of the Treasury has imposed new North Korea IT sanctions, targeting individuals and companies accused of channeling illicit funds into Pyongyang’s weapons programs. The Office of Foreign Assets Control (OFAC) announced the measures on August 27, citing evidence of IT workers abroad funneling money back to the regime.

The sanctions list includes Kim Ung Sun, Korea Sinjin Trading Company, and Shenyang Geumpungri Network Technology Co., LTD in China. A Russian national, Vitaliy Sergeyevich Andreyev, was also added to the list. OFAC stated these individuals and entities played key roles in generating revenue for North Korea’s defense sector.

According to Treasury officials, North Korean IT workers used false documents and stolen identities to secure jobs at foreign companies, including U.S. firms. Some embedded malicious code in company networks to steal proprietary data. These operations provided critical funding for Pyongyang’s weapons and missile development.

John Hurley, Treasury’s Assistant Secretary for Terrorist Financing and Financial Crimes, said the regime continues to exploit overseas IT workers to steal data and extort ransom. He emphasized the department’s commitment to protecting U.S. companies and holding offenders accountable.

Officials described the action as part of a broader, multi-agency effort to counter North Korea’s revenue-generating schemes. Despite international sanctions, Pyongyang has continued to finance its weapons programs through overseas IT labor.

Treasury linked Andreyev to earlier sanctioned firm Chinyoung Information Technology Cooperation Company, which hires IT workers in Russia and Laos. Andreyev allegedly worked with diplomat Kim Ung Sun in 2023 to convert $600,000 in cryptocurrency into U.S. dollars.

The Chinese company Shenyang Geumpungri was identified as a front for Chinyoung. Since 2021, it has generated over $1 million for Chinyoung and Korea Sinjin Trading. The latter operates under North Korea’s Ministry of Defense and relays instructions for overseas IT staff.

The sanctions freeze all U.S. assets of the designated individuals and firms. Any companies owned 50% or more by them are also blocked. U.S. persons and businesses are prohibited from engaging in transactions with the listed parties without authorization. Violations could lead to civil or criminal penalties.

OFAC also updated its Specially Designated Nationals and Blocked Persons List (SDN List) with these names. The department reiterated that the designations aim to disrupt North Korea’s attempts to evade sanctions and finance weapons development.

BY MOOYOUNG LEE  [lee.mooyoung@koreadaily.com]