UN Security Council North Korea Sanctions Committee: "North Korea Stole Cryptocurrency Worth 2.3 Trillion Won Last Year"

The United Nations Security Council (UNSC) Panel of Experts on North Korea sanctions released a report on the 27th (local time) revealing that the amount of cryptocurrency stolen by North Korea last year exceeded $1.7 billion (approximately 2.3 trillion KRW).

According to the panel, the scale of cryptocurrency stolen by hackers from North Korea's Reconnaissance General Bureau last year surged to three times that of the previous year. The panel analyzed that North Korea prioritized cryptocurrency theft to fund its development of weapons of mass destruction.

The panel pointed out, "North Korea is increasingly using more sophisticated cyber techniques to extract funds and information," adding, "Companies in the fields of cryptocurrency, defense, energy, and healthcare have become targets."

[Image source=Yonhap News]

Earlier, the Security Council banned the overseas dispatch of North Korean workers at the end of 2019 to block North Korea's foreign currency earnings. However, North Korea continues to obtain funds through sanctions violations, such as dispatching IT workers to China and Laos.

Additionally, regarding North Korea's weapons of mass destruction program, the panel reported that although there were no nuclear tests, activities continued to be detected at related facilities such as the Punggye-ri nuclear test site. The panel particularly noted that while focusing on ballistic missile development, satellite launches have also continued. This is because North Korea is pursuing solid-fuel intercontinental ballistic missile (ICBM) and tactical nuclear weapon capabilities according to the five-year weapons development plan announced in 2021, the panel explained.

The panel predicted that if North Korea succeeds in launching a fully operational reconnaissance satellite, it will be closer to achieving the five-year weapons development plan. According to the panel, North Korea's development of various types of missiles appears to be a strategy to enhance its nuclear capabilities and secure nuclear retaliatory capabilities.

Furthermore, North Korea is still using complex sanctions evasion methods to import refined petroleum products and export coal and other goods. Although the officially reported supply of refined petroleum to North Korea to the sanctions committee is only 30% of the annual cap of 500,000 barrels, North Korean vessels transported refined petroleum products 46 times using 25 ships. The panel analyzed that assuming the North Korean ships were loaded to 90% of their carrying capacity, they likely exceeded the annual cap as early as last May.

North Korea has been found to use methods such as disabling or jamming Automatic Identification System (AIS) signals to transfer illegally exported coal and other goods at sea to Chinese vessels. The panel also confirmed the use of false vessel information transmissions. Although North Korea is prohibited from purchasing new or used transport ships or tankers under UN Security Council Resolution 2397 of 2017, it acquired 14 vessels between January and May this year, 10 of which were confirmed to be owned by Chinese companies.

Meanwhile, the newly published report covers the status of the Security Council's sanctions implementation on North Korea from the end of January to the end of July this year. Since it compiles existing cases, most of the cryptocurrency hacking and weapons of mass destruction development cases involving North Korea included in the report have already been publicly disclosed. The panel, which revealed in the previous report that it had begun investigating allegations that North Korea exports military communication equipment and ammunition, added that the investigation is ongoing.

A Ministry of Foreign Affairs official stated, "This report serves to raise awareness of North Korea's sanctions evasion methods and alert governments and agencies worldwide," adding, "We will closely communicate with the international community to faithfully implement sanctions against North Korea."

This content was produced with the assistance of AI translation services.