"Power On Triggers DDoS Attack"…Manufacturer Exporting Illegal Set-Top Boxes Overseas Arrested

Five Manufacturing Officials Sent to Prosecution Without Detention
Exported 240,000 Units at Overseas Company Request
Malware Distributed During Update
DDoS Built-in at Shipment of About 90,000 Units

Employees of a manufacturing company who exported satellite broadcast receivers (set-top boxes) containing malicious programs at the request of illegal broadcasting transmission companies were arrested by the police. The manufacturing company is known to be a KOSDAQ-listed company with annual sales of around 30 billion KRW.

On the 28th, the National Police Agency announced that five people, including CEO A of the manufacturing company, and the company itself were sent to the prosecution without detention on charges of violating the Act on Promotion of Information and Communications Network Utilization and Information Protection.

A domestic manufacturing company listed on KOSDAQ supplied illegal set-top boxes equipped with malicious program distribution functions to illegal broadcasting transmission companies from 2019 until last September. Photo by the National Police Agency

They are accused of exporting about 240,000 satellite broadcast set-top boxes equipped with malicious program distribution functions to B company, an illegal broadcasting transmission company located overseas, from 2019 to September of this year.

B company was an illegal paid broadcasting operator in Europe and other regions, and in 2018 requested a domestic manufacturer to produce set-top boxes containing DDoS attack functions. The reason was that they suspected competitors of conducting DDoS attacks and wanted to retaliate.

Subsequently, the domestic manufacturer sold 240,000 satellite broadcast set-top boxes capable of distributing malicious programs in the form of updates to B company starting from January 2019.

After the police obtained intelligence through Interpol in July and began analyzing the equipment, it was revealed that about 140,000 previously manufactured set-top boxes were equipped with a function to automatically receive firmware updates. The structure was such that when consumers turned on the set-top box, it connected to the domestic company's server and automatically downloaded the program. It was also found that the approximately 98,000 units delivered afterward were sold with DDoS attack programs embedded from the time of product shipment.

The police judged the 6.1 billion KRW in sales revenue earned from exporting the equipment as criminal proceeds and applied for seizure and preservation against the domestic manufacturer earlier this month. They also obtained a provisional seizure order from the court for the relevant assets.

Regarding C, a person related to the illegal broadcasting transmission company, a wanted notice has been issued, and international cooperative investigations are underway through Interpol red notices and other means.

A police official stated, "Care should be taken when overseas companies request the production of products containing illegal elements," and added, "We plan to strictly respond to international cybercrime activities in cooperation with international organizations such as Interpol."

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