The U.S. added individuals and companies to the sanctions list for illegally financing North Korea's weapons development by employing information technology (IT) personnel in American corporations.
The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) announced on the 27th that it had added one North Korean individual, two North Korean corporations, and one Russian individual to the sanctions list.
The new targets for sanctions specifically include North Korea ▲Kim Eung-soon ▲Chosun Sinjin Trading Company ▲Shenyang Geumpungri Network Technology Co., Ltd. Also included on the sanctions list is Vitaly Sergeyevich Andreev, a Russian national.
John Hurley, Deputy Minister of the U.S. Department of the Treasury, said, "The North Korean regime continues to target U.S. corporations by employing overseas IT personnel to steal data or demand ransom," and noted, "The Treasury is committed to protecting American citizens from such tactics and holding those responsible accountable."
North Korea is funding its weapons of mass destruction and missile programs with revenue generated from overseas IT personnel. This violates U.S. and United Nations sanctions. IT personnel are reported to be employed by foreign corporations in the U.S. and elsewhere using false documents or disguises. In particular, some of the IT personnel are said to have planted malware in the networks of foreign corporations they were employed at, stealing confidential information.
Among the new sanctions targets, Andreev of Russian nationality previously facilitated the transfer of funds to the North Korean Chin Young Information Technology Development Corporation, which has been sanctioned by the U.S. The Chin Young Corporation is linked to the North Korean Ministry of Defense and hires overseas IT personnel. Andreev has also conducted several financial transactions, including converting cryptocurrency to dollars and transferring funds with North Korean diplomat Kim Eung-soon in Russia.
Shenyang Geumpungri Company is a shell company of the Chin Young Corporation located in China. Sinmin Trading Company is an enterprise under North Korea's Ministry of Defense, tasked with directly delivering instructions related to IT personnel dispatched overseas by the Chin Young Corporation.
As a result of the sanctions by the Treasury, the assets of these individuals and corporations in the U.S. will be frozen. Corporations that are owned 50% or more by them will automatically be subject to sanctions. Transactions with these parties are not permitted without authorization, and violations may result in civil and criminal penalties.