US Offers Millions for North Korean Illicit Finance Network

Seven Accused of Funding Pyongyang’s Weapons Programs

The United States State Department is offering substantial rewards for information leading to the arrest and conviction of seven North Koreans involved in illicit activities. These individuals are accused of orchestrating schemes to generate revenue for the Pyongyang regime, notably through tobacco smuggling and other illegal operations aimed at circumventing international sanctions.

Hunt for Kim’s Financiers

The bounty, totaling up to $15 million, targets key figures allegedly facilitating North Korea’s acquisition of foreign currency. At the center of the operation is Sim Hyon-Sop, for whom a reward of up to $7 million is offered. Six alleged accomplices, including Myong Chol-min and Kim Se-un, each carry a reward of up to $3 million.

The remaining individuals, Ri Won-Ho, Kim Yong-Bok, Kim Chol-min, also known as “Jack,” and Ri Tong-Min, nicknamed “Elvis,” have bounties of up to $500,000 each.

Cyber Operations and IT Workers

Beyond financial smuggling, Sim and some of his associates are implicated in clandestine operations involving North Korea’s Information Technology (IT) sector. Pyongyang reportedly dispatches thousands of IT workers abroad to engage in fraudulent activities, generating funds that are crucial for its weapons of mass destruction initiatives. These workers are often deployed from countries like Russia and China.

According to the US State Department, these overseas networks grant North Korea access to critical technology and illicit financial channels. This infrastructure supports revenue generation for entities sanctioned by the United Nations and the United States, including the Department of Munitions Industry and the Ministry of Atomic Energy and Industry, both vital to the regime’s nuclear and missile programs.

As an example of its broader crackdown, the Treasury Department recently sanctioned the Korea Sobaeksu Trading Company and three North Koreans for their roles in these illicit income-generating schemes, including deploying IT personnel to Vietnam.

The US administration stated these actions underscore its commitment to confronting threats posed by North Korea. The efforts aim to protect American companies, the nation’s financial system, and its citizens from Pyongyang’s destabilizing activities.

North Korea’s illicit financial activities are extensive, with estimates suggesting that the country has generated billions of dollars through these methods over the past decade. For instance, between 2015 and 2017 alone, North Korea was believed to have generated approximately $3.7 billion through various illicit means, according to a UN report from 2018.