The U.S. Treasury Department has imposed sanctions on a network of individuals and front companies linked to North Korea’s Ministry of National Defense.
These entities have been accused of generating revenue through illegal remote IT work schemes, which fund the country’s weapons programs and support destabilizing activities, including Russia’s war in Ukraine.
According to Acting Under Secretary of the Treasury Bradley T. Smith, North Korea relies heavily on thousands of overseas IT workers to finance its regime. To counter this, the Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned two North Korean front companies—Korea Osong Shipping Co. and Chonsurim Trading Corporation—as well as their leaders, Jong In Chol and Son Kyong Sik.
A Chinese company, Liaoning China Trade, which supplied electronics to North Korea’s Department 53, has also been sanctioned.
Impact of Sanctions
The sanctions freeze all U.S.-linked assets of the targeted individuals and companies and prohibit American citizens and organizations from engaging in transactions with them. U.S. financial institutions and foreign entities found aiding these sanctioned parties may also face penalties.
In addition, the U.S. State Department is offering up to $5 million for information disrupting the activities of two other North Korean front companies—Yanbian Silverstar and Volasys Silverstar. Over the past six years, these companies have reportedly generated $88 million through fraudulent remote IT work.
