U.S. Department of the Treasury building. Yonhap News. 

The U.S. Department of the Treasury on the 27th (local time) added one North Korean individual, two companies, and one Russian individual to its sanctions list for their involvement in illicit money-making activities by placing IT personnel in U.S. companies to fund North Korea's weapons development.

The Treasury Department's Office of Foreign Assets Control (OFAC) announced this in a press release.

The new North Korean sanctions targets include ▲ Kim Ung-sun ▲ Korea Sinjin Trading Company ▲ Shenyang Geumpungri Network Technology Co., LTD.

Vitaly Sergeevich Andreev, a Russian national, was also included in the sanctions list.

"The North Korean regime continues its scheme of stealing data or demanding ransoms through its overseas IT personnel targeting U.S. companies," said John Hall, Under Secretary of the Treasury for Terrorism and Financial Intelligence.

He added, "The Treasury Department is committed to protecting the American people from these schemes and holding those involved accountable."

The Treasury Department explained that this action is part of a whole-of-government effort to counter North Korea's extensive revenue-generating strategies.

North Korea is funding its weapons of mass destruction and missile programs with revenue generated through its overseas IT workers, in violation of U.S. and UN sanctions.

The Treasury Department explained that these IT workers obtain employment in overseas companies, including in the United States, using fraudulent documents or stolen identities.

Cases have also been identified where some workers have planted malware on the networks of overseas companies they are employed by, stealing the company's proprietary technology or sensitive data.

Andreev, who was sanctioned, previously supported fund transfers to Chinyoung Information Technology Cooperation Company (hereinafter referred to as Chinyoung), which was previously sanctioned by the United States.

Chinyoung is affiliated with North Korea's Ministry of National Defense and employs IT personnel operating in Russia and Laos.

The Treasury Department confirmed that Andreev engaged in several financial transactions, including cashing out approximately $600,000 worth of cryptocurrency into dollars and transferring it in December of last year, along with Kim Ung-sun, a North Korean diplomat stationed in Russia.

Shenyang Geumpungri Company is a shell company in China for Chinyoung and employs North Korean IT personnel. This company has generated over $1 million for Chinyoung and Korea Sinjin Trading Company since 2021.

Sinjin Trading Company is an entity under North Korea's Ministry of National Defense (formerly the People's Armed Forces Ministry), and it played a role in directly receiving instructions from North Korea regarding the North Korean IT personnel dispatched overseas by Chinyoung.

As a result of the Treasury Department's action, all assets within the United States belonging to the sanctioned individuals and companies will be frozen, and companies in which they own 50% or more ownership will also be automatically subject to sanctions.

U.S. companies or individuals are also prohibited from transacting with them without a license, and violations can result in civil or criminal penalties.

Yonhap News