U.S. Sanctions North Korean Operatives and Companies in Laos and China Over IT Worker Scheme
Sanctioned entities linked to North Korea’s weapons programs and illicit global operations
The United States has imposed sanctions on two North Korean nationals and several companies in Laos and China for orchestrating a global scheme that deceived American companies into hiring North Korean IT workers. These workers funneled their earnings back to North Korea, funding its weapons programs, the U.S. Treasury Department announced on Thursday.
The sanctions target Department 53 of North Korea's Ministry of the People’s Armed Forces, a key player in arms trading and revenue generation. Front companies Korea Osong Shipping and Chonsurim Trading Corporation in Laos were identified for employing North Korean IT workers. Jong In Chol, president of Chonsurim Trading, and Son Kyong Sik, chief representative of Korea Osong Shipping in China, were personally sanctioned.
Additionally, Liaoning China Trade Industry, a Chinese firm supplying IT equipment to North Korea, was sanctioned for supporting these illicit operations. U.S. officials revealed that North Korea withholds up to 90 percent of overseas workers' wages, contributing hundreds of millions of dollars annually to its weapons programs, including weapons of mass destruction and ballistic missiles.
Bradley Smith, Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence, emphasized the commitment to disrupting these networks that support North Korea’s illegal arms development and its backing of Russia’s war in Ukraine.
---
The sanctions target Department 53 of North Korea's Ministry of the People’s Armed Forces, a key player in arms trading and revenue generation. Front companies Korea Osong Shipping and Chonsurim Trading Corporation in Laos were identified for employing North Korean IT workers. Jong In Chol, president of Chonsurim Trading, and Son Kyong Sik, chief representative of Korea Osong Shipping in China, were personally sanctioned.
Additionally, Liaoning China Trade Industry, a Chinese firm supplying IT equipment to North Korea, was sanctioned for supporting these illicit operations. U.S. officials revealed that North Korea withholds up to 90 percent of overseas workers' wages, contributing hundreds of millions of dollars annually to its weapons programs, including weapons of mass destruction and ballistic missiles.
Bradley Smith, Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence, emphasized the commitment to disrupting these networks that support North Korea’s illegal arms development and its backing of Russia’s war in Ukraine.
---
