South Korea has imposed sanctions on North Korean Intelligence Chief Ri Chang Ho and seven other North Koreans who are believed to finance North Korea’s nuclear weapons and conventional missile programs and are responsible for its illegal cyber activities. Ri Chang Ho was subject to sanctions imposed by the South Korean Ministry of Foreign Affairs on December 27, 2023, under the policy of “earning foreign currency through illegal cyber activities and technology theft.”.[i]
The ministry claimed that Ri’s activities “contributed to generating revenue for the North Korean regime and funding for its nuclear and missile activities.” Ri heads the agency, which is believed to be the parent organization of North Korean hacker groups that have previously faced sanctions, namely Kimsuky, Lazarus and Andariel. These groups are using increasingly sophisticated techniques to target North Korea’s foreign aerospace and defense companies and steal record amounts of crypto assets, according to a United Nations (UN) report.[ii]
Pyongyang is currently subject to international sanctions over its nuclear bomb and ballistic missile programs, under which President Kim Jong Un continues his military modernization plan and acquires increasingly advanced weapons. Recently, Seoul, Tokyo and Washington launched new trilateral initiatives to address North Korea’s cybercrime, cryptocurrency and money laundering activities. These activities are believed to finance the country’s nuclear and missile programs.[iii]
Besides Ri, Seoul has sanctioned seven other North Koreans. These people are banned from buying and selling foreign currency and making financial transactions with South Korean citizens without permission from Seoul. Analysts note that these measures are mostly symbolic, given the limited trade between the two countries.[iv]
Seoul said it had imposed sanctions on 83 individuals and 53 organizations related to Pyongyang’s weapons programs since October last year. North Korea has recently increased its nuclear and military threats. In fact, Pyongyang successfully launched a reconnaissance satellite on its third attempt in November and tested its most advanced ground-fired Hwasong-18 ballistic missile for the third time in December.[v]
Kim said that 2023 is “a year of great turnaround and change” and is also “of great importance”. Pyongyang’s new weapons include a spy satellite, and Kim has stated that these weapons have firmly placed North Korea “in the position of a military power”.[vi]
South Korea’s sanctions against North Korean Intelligence Chief Ri Chang Ho and seven other North Korean officials are a response to North Korea’s efforts to finance its nuclear and missile programs through its cyber activities. This action offers an important perspective in terms of regional security dynamics and cyber security issues.
The Intelligence Unit, headed by Ri Chang Ho, is known as the main organization of North Korea’s cyber attack groups. These groups, such as Kimsuky, Lazarus and Andariel, which have previously faced sanctions, have carried out cyber attacks that attracted attention in the international arena and increased North Korea’s financial resources by stealing crypto assets. These sanctions of South Korea show that it is approaching cyber activities seriously.
Another important point highlighted by these sanctions is the international community’s efforts to reduce North Korea’s nuclear and missile programs. North Korea attaches great importance to its nuclear weapons and ballistic missile programs in order to increase its military capacity within the framework of President Kim Jong Un’s modernization plans. This situation poses a significant threat to regional stability and security and attracts the attention of the international community.
The focus of sanctions on cybercrime, cryptocurrency and money laundering activities highlights the tripartite initiatives taken between South Korea, Japan and the USA to protect regional security and financial stability. These countries aim to limit the resources North Korea obtains through cybercrime and, in this way, try to weaken its capacity to finance its nuclear weapons and missile programs.
As a result, these sanctions appear to make a significant contribution to regional security dynamics, cybersecurity concerns, and the international fight against North Korea’s nuclear ambitions. However, regional cooperation and international efforts need to be further strengthened for such actions to be effective.
[i] “South Korea Sanctions North Korean Spy Chief over Illicit Cyber Activities”, Al Jazeera, https://www.aljazeera.com/news/2023/12/27/south-korea-sanctions-north-korean-spy-chief-over-illicit-cyber-activities, (Access Date: 27.12.2023).
[ii] “South Korea Sanctions North Korean Spy Chief over Illicit Cyber Activities”, The Times of India, https://m.timesofindia.com/world/rest-of-world/south-korea-sanctions-north-korea-spy-chief-for-illicit-cyber-activities/amp_articleshow/106305792.cms, (Access Date: 27.12.2023).
[iii] The same source.
[iv] “South Korea Sanctions North Korean Spy Chief over Illicit Cyber Activities”, Al Jazeera, https://www.aljazeera.com/news/2023/12/27/south-korea-sanctions-north-korean-spy-chief-over-illicit-cyber-activities, (Access Date: 27.12.2023).
[v] The same source.
[vi] The same source.
