"North Korea Covers 40% of Weapons Development Funds by Stealing Cryptocurrency"… South Korea and US Collaborate on North Korea Response

'North Korea Virtual Asset Laundering Prevention Symposium' in New York
North Korea's Annual Virtual Currency Theft Scale 1.33 Trillion KRW
Hacking and Laundering Methods Becoming More Intelligent and Sophisticated... Public-Private Joint Response

"North Korea funds 40% of its weapons of mass destruction development through cryptocurrency theft. Such acts of cryptocurrency theft by North Korea pose a significant threat to global security."

Lee Jun-il, Director General of the Korean Peninsula Policy Bureau, Ministry of Foreign Affairs

On the 27th (local time), Lee Jun-il, Director of the Korean Peninsula Policy Bureau at the Ministry of Foreign Affairs, attended the "Korea-US Joint Public-Private Symposium on Blocking North Korean Virtual Asset Laundering" held at the New York Hilton Hotel, co-hosted by South Korea and the United States, and stated, "North Korea is the country that hacks the most cryptocurrency worldwide."

Director Lee diagnosed, "North Korea attacks not only the United States and South Korea but also countries it considers friendly," adding, "They find any means to secure funds." He also called for cooperation from private companies to block North Korea’s increasingly sophisticated and elaborate efforts in cryptocurrency hacking, laundering, and cashing out.

He emphasized, "We are working to establish a trilateral consultative body among South Korea, the United States, and Japan and cooperate with the industry to prevent North Korea’s malicious cyber activities," and added, "Support from the private sector is crucial to solving this issue."

According to the U.S. Department of State, North Korea stole over $1 billion (approximately 1.33 trillion KRW) in cryptocurrency in 2023. Earlier, the UN Panel of Experts on North Korea Sanctions reported in March that North Korea’s cryptocurrency theft in the previous year was $750 million (about 1 trillion KRW), but the U.S. government’s estimate was significantly higher.

Seth Bailey, U.S. Department of State Special Representative for North Korea

Seth Beale, U.S. Department of State Deputy Special Representative for North Korea, said, "One-third of the world’s cryptocurrency theft last year was attributed to North Korea," and added, "This year, North Korea’s cryptocurrency theft is expected to exceed $1 billion." He pointed out, "North Korea has previously funded its weapons development programs through illegal means, but cryptocurrency is a relatively new revenue source, and the actual damage caused is incalculable."

Deputy Representative Beale urged, "We are cooperating with South Korea, Japan, and like-minded countries, and the government is preparing new measures," emphasizing, "Cooperation from the private sector is necessary to block North Korea’s actions."

At this symposium, now in its third year, South Korea and the United States shared the current status of North Korea’s increasingly sophisticated virtual asset theft methods and discussed ways to prevent them through cooperation with the private sector. About 300 participants from over 100 organizations across more than 40 countries attended. According to the government, North Korea’s virtual asset theft amounted to 17 cases totaling $750 million in 2023. This figure far exceeds twice North Korea’s annual export revenue ($330 million, approximately 440 billion KRW).

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