**South Korea Open to Rethinking Sanctions Amid US Crackdown on North Korea’s Crypto-Funded Weapons Program**
With Washington intensifying pressure on North Korea’s cryptocurrency-funded nuclear weapons program, South Korea has expressed openness to revisiting its own sanctions strategy.
In a recent interview with local media, South Korean Vice Foreign Minister Kim Ji-na emphasized the importance of “coordination between South Korea and the United States” to address cryptocurrency theft conducted by North Korean hackers. She highlighted that these stolen crypto assets “can be used to fund North Korea’s nuclear and missile programmes and pose a threat to our digital ecosystem.”
### North Korea’s Crypto-Enabled Weapons Financing
North Korea has long deployed state-sanctioned hacking groups, such as Lazarus and Kimsuky, to infiltrate the cryptocurrency sector. Using a variety of sophisticated attack methods, these groups have funneled billions of dollars quietly into Pyongyang’s weapons development operations.
To combat these activities, the United States has implemented sanctions and other enforcement measures aimed at disrupting the networks underpinning these illicit schemes. These efforts are designed to sever the financial channels that fuel North Korea’s weapons programs.
### U.S. Targets North Korea’s Financial Handlers
South Korea’s recent statements follow a fresh round of U.S. sanctions announced by the Treasury Department. These sanctions target key financial conduits in North Korea’s cryptocurrency laundering network.
“The DPRK relies on a vast network of internationally located representatives of DPRK financial institutions who provide access to international markets and financial systems… in support of its WMD and ballistic missile programs,” said the Treasury’s Office of Foreign Assets Control (OFAC).
Among the entities targeted is the Korea Mangyongdae Computer Technology Company, which reportedly operates IT worker cells from Chinese cities including Shenyang and Dandong.
Another major player identified is Ryujong Credit Bank, which has been instrumental in evading sanctions by facilitating remittance of foreign currency earnings for North Korean workers abroad. The bank also played a central role in laundering money between China and North Korea.
Treasury officials named several individuals pivotal to the laundering network. Two North Korean bankers, Jang Kuk Chol and Ho Jong Son, were accused of managing over $5 million in cryptocurrency linked to ransomware activities and IT labor revenues.
Additionally, five other sanctioned individuals operating across Russia and China were tied to DPRK institutions such as Korea Daesong Bank and the Foreign Trade Bank. According to the Treasury, these actors “helped transfer millions in U.S. dollars, Chinese yuan, and euros” using shell companies and local financial infrastructures to bypass international sanctions.
### South Korea Ready for Closer Coordination with U.S.
Vice Foreign Minister Kim reiterated that coordination with the U.S. is vital to mitigating these increasing digital threats. “South Korea has been making joint efforts to curb illegal activities,” she said. “In that context, we can consider reviewing sanctions as a measure if they are really needed.”
Kim also mentioned that South Korea may take further action once the U.S. completes “adjusting and reviewing the wording” of a joint fact sheet from a summit held in late October between President Lee Jae Myung and President Donald Trump. Only after these steps will both sides confirm their coordinated response.
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This evolving partnership reflects a growing recognition of the vital role that international cooperation plays in combating North Korea’s illicit funding streams and ensuring regional security in the digital age.
https://crypto.news/south-korea-open-to-revisiting-sanctions-on-north-korea-after-latest-u-s-crackdown/