Treasury sanctions clandestine IT worker network funding the DPRK’s weapons programs

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned the Korea Sobaeksu Trading Company and three associated individuals—Kim Se Un, Jo Kyong Hun, and Myong Chol Min—for their involvement in the evasion of U.S. and United Nations (UN) sanctions and efforts to generate revenue clandestinely for the Democratic People’s Republic of Korea (DPRK) government, including through fraudulent information technology (IT) worker schemes.  This action to counter the DPRK’s wide-ranging revenue generation schemes is part of a collaborative effort with the Departments of Justice, Homeland Security, and State; the Federal Bureau of Investigation; and Homeland Security Investigations. 

“The DPRK relies on front companies like Korea Sobaesku Trading Company and key facilitators to procure materials and generate revenue for the regime’s illegal nuclear and ballistic missile programs,” said Director of OFAC Bradley T. Smith.  “Our commitment is clear: Treasury, as part of a whole-of-government effort, will continue to hold accountable those who seek to infiltrate global supply chains and enable the sanctions evasion activities that further the Kim regime’s destabilizing agenda.”

Alongside Treasury, the Department of Justice has unsealed indictments against seven DPRK nationals for the criminal avoidance of sanctions under the International Emergency Economic Powers Act involving the illicit trafficking of counterfeit cigarettes. The Department of State has announced reward offers ranging from up to $500,000 to up to $7 million under the Transnational Organized Crime Rewards Program for information leading to these individuals’ arrest and/or conviction.  

Read more at Treasury Department