Following the introduction of new U.S. penalties on North Korean people and businesses for illegal cyber operations, second Vice Foreign Minister Kim Ji-na stated on Thursday that South Korea is willing to reassess sanctions against North Korea when needed.
The next steps
“In cases of cryptocurrency theft by Pyongyang, coordination between South Korea and the U.S. is important, as it can be used to fund North Korea’s nuclear and missile programs and pose a threat to our digital ecosystem,” Kim said during an interview with Yonhap News TV.
“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,” Kim added.
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Her comments followed Washington’s announcement on Tuesday (U.S. time) that it had sanctioned eight North Koreans and two organisations for their role in money laundering through illegal cyber activity.
Kim further stated that internal cooperation is now taking place in the United States with reference to a joint fact sheet on the results of President Lee Jae Myung and U.S. President Donald Trump’s summit last week.
The plan in action
The actions are aimed at DPRK-affiliated individuals in China and Russia who are purportedly in charge of front firms and accounts that were used to repatriate earnings from North Korean IT workers working outside.
Senior analyst Ryan Yoon of Tiger Research claims that the action is an extension of the restrictions that were put in place following North Korea’s nuclear test in 2016.
“Since then, small-scale sanctions have continued to be imposed,” Yoon said, adding that while further actions are likely, their economic impact may remain limited. “This has been happening for decades,” he noted.
Seoul’s intention to work with Washington to combat North Korea’s cyber operations, which continue to be a major source of illegal revenue for its nuclear aspirations, is highlighted by the increased scrutiny.
North Korea’s actions
Several other significant cryptocurrency thefts, including those that targeted Bybit, the Ronin Bridge, Harmony, WazirX and several DeFi systems, have also been connected to North Korea.
Law enforcement throughout the world is reacting. Recently, the US Department of Justice took action to confiscate more than $7.7 million worth of digital assets associated with North Korean IT personnel employed by blockchain companies.
Co-founder of Binance Changpeng Zhao, often known as CZ, shared a screenshot of a Google security notice on X(Twitter). He questioned why he kept receiving the message and speculated that it may be the work of North Korea’s Lazarus organisation.
North Korea’s cyber tactics are still developing. Operatives connected to Lazarus allegedly established US-based shell corporations in April in order to disseminate malware to cryptocurrency developers.
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