Seoul Aims to Target North Korea’s Illicit Crypto Assets with New Cyber Bill

South Korea is preparing to enhance its cybersecurity measures to thwart North Korean cyberattacks, particularly those related to cryptocurrencies.

Reports indicate that senior government officials consider cryptocurrency a significant enabler of Pyongyang’s illicit weapons programs, citing a perceived lack of action during the previous administration.

The upcoming legislation aims to address the misuse of digital assets obtained by North Korean hackers, a focus that was not included in the National Intelligence Service’s draft from the prior year.

Intelligence assessments reveal that North Korean hackers stole approximately $1.28 billion in digital currencies in 2022 through methods such as ransomware, scams, and other cyberattacks, highlighting the urgent need for effective countermeasures.

Yoon Han-hong, a member of the National Policy Committee from the People Power Party, noted that North Korean hackers have likely funneled around $52.46 million through South Korean exchanges over the last four years.

Anne Neuberger, US Deputy National Security Advisor for Cyber and Emerging Technology, stated that nearly half of the funding for North Korea’s missile program is derived from digital theft and cyber operations. This correlates with a rise in the country’s missile tests, indicating a simultaneous increase in cyber and military activities.

Chainalysis, a blockchain analytics firm, supported these claims, revealing that North Korea has illicitly acquired over $3 billion through cybercrime in the past five years. Moreover, United Nations sanctions experts have connected North Korea’s theft of funds to its ongoing nuclear and missile programs.

This initiative from South Korea coincides with heightened scrutiny by the US Federal Bureau of Investigation (FBI) on North Korean hacking activities. In August, the FBI identified six wallets linked to the Lazarus Group, a notorious North Korean hacking collective, containing approximately $40 million in Bitcoin.