US Sanctions Individuals and Entities Involved in North Korean IT Worker Schemes to Block Weapons Funding

On August 27 (local time), the U.S. Department of the Treasury designated one North Korean individual, two companies, and one Russian national for additional sanctions due to their involvement in dispatching North Korean IT personnel overseas to help fund weapons development.

On this day, the Office of Foreign Assets Control (OFAC) of the Treasury announced in a press release that the new sanctions list includes Kim Eungsoon, a North Korean national; Chosun Sinjin Trading Company; Shenyang Jin Fengli Network Technology Co., Ltd.; and Vitaly Sergeyevich Andreyev, a Russian national.

The Treasury Department explained that this measure is part of a coordinated U.S. government effort to counter North Korea's illegal foreign currency earning strategies. North Korea has been raising funds for weapons of mass destruction and missile development by sending IT personnel to work for overseas companies using forged documents or stolen identities. In some cases, these individuals have reportedly implanted malware to steal proprietary technologies and sensitive information from companies.

Andreyev is accused of converting cryptocurrency worth $600,000 into U.S. dollars and remitting it to North Korea in December of last year, working with Kim Eungsoon, a North Korean diplomat based in Russia.

Shenyang Jin Fengli Network Technology Co., Ltd. is a front company based in China, where affiliated North Korean IT personnel generated profits that were then transferred to North Korean companies. Chosun Sinjin Trading Company has been receiving instructions from North Korea related to North Korean IT personnel.

John Hurley, Deputy Assistant Secretary for Terrorist Financing and Financial Crimes at the Treasury Department, stated, "The North Korean regime continues to engage in fraudulent activities such as data theft and ransom demands targeting U.S. companies by exploiting overseas IT personnel," and added, "The Treasury Department will protect U.S. citizens and hold those involved accountable."

As a result of this action, all assets of the designated individuals and companies within the United States will be frozen, and all transactions with U.S. companies or individuals are strictly prohibited.