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South Korea May Review Sanctions After US Targets North Korea Crypto Laundering

South Korea May Review Sanctions on North Korea Following U.S. Cryptocurrency Laundering Sanctions Linked to Weapons Funding

  • South Korea may revise its sanctions policy on North Korea after U.S. sanctions linked Pyongyang’s crypto theft to weapons funding.
  • The U.S. Treasury sanctioned eight North Korean individuals and two entities for laundering cryptocurrency from cyberattacks.
  • Illicit crypto funds allegedly help finance North Korea’s nuclear and missile programs.
  • South Korea emphasizes coordination with the U.S. on digital threats related to North Korean cyber activities.

South Korea is exploring the option to review its sanctions against North Korea following recent U.S. actions that connect Pyongyang’s cryptocurrency theft to its weapons financing. This consideration arises amid heightened concerns over digital threats posed by North Korea’s cyber operations.

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In an interview with Yonhap News TV, Second Vice Foreign Minister Kim Ji-na said Seoul “can consider reviewing sanctions as a measure if they are really needed,” stressing the importance of joint efforts with the United States on this issue. Kim remarked that coordination is crucial when tackling cases of cryptocurrency theft by Pyongyang, as these stolen funds “can be used to fund North Korea’s nuclear and missile programs and pose a threat to our digital ecosystem,” adding that any sanctions review would be based on the situation’s context.

Earlier this week, the U.S. Treasury Department issued a new round of sanctions targeting eight North Korean individuals and two organizations involved in laundering cryptocurrency stolen through cyberattacks. The sanctions named state-run IT front Korea Mangyongdae Computer Technology Company (KMCTC) and DPRK-linked financial representatives in China and Russia. U.S. authorities allege these entities transferred illicit digital funds to support North Korea’s weapons development.

Among those sanctioned were KMCTC president U Yong Su, and bankers Jang Kuk Chol and Ho Jong Son, who were identified as key facilitators in laundering cryptocurrency linked to Ransomware and fraud schemes. Another sanctioned entity, Ryujong Credit Bank, reportedly assisted in repatriating earnings from North Korean IT workers deployed overseas.

Experts note that since North Korea’s nuclear test in 2016, sanctions have gradually intensified, and while new sanctions are likely, their overall impact may be limited due to longstanding global efforts. Analysts observe that South Korea has previously imposed independent sanctions following U.S. measures, reinforcing collective actions to restrict Pyongyang’s access to the global financial network.

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Vice Minister Kim also mentioned that the U.S. is finalizing a joint fact sheet on outcomes from a recent summit between President Lee Jae Myung and U.S. President Donald Trump, with ongoing reviews of the wording involved. The U.S. Treasury Department has been contacted for further comment.

For more details on the U.S. sanctions, see the U.S. Treasury Department press release.
For the interview with Vice Minister Kim Ji-na, refer to Yonhap News TV.

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