The South Korean government is preparing to introduce a bill aimed at monitoring and freezing North Korean cryptocurrency and virtual assets used to finance illicit weapons programs, according to multiple government sources.
An earlier version of this bill was initially announced by the National Intelligence Service (NIS) in November but was sent back for further revision by President Yoon Suk Yeol. The President requested the inclusion of “practical measures to bolster national security,” as revealed by anonymous administration insiders in conversation with the JoongAng Ilbo.
This revised bill follows 10 months of consultations between various South Korean government ministries, intended to strengthen the existing sanctions against North Korea.
Addressing Cybersecurity Concerns
A top government official, who wished to remain anonymous, stated that the new bill shows the president’s belief that South Korea’s online security needs urgent improvement. This decision comes after the previous administration, led by Moon Jae-in, didn’t pay enough attention to this issue to avoid upsetting North Korea.
The updated bill has measures to track and stop North Korea from using stolen virtual coins and cryptocurrency, which they got through hacking. The original bill from the National Intelligence Service (NIS) didn’t have these measures.
South Korean intelligence found that North Korea stole a huge amount, about 1.7 trillion won (around $1.28 billion), worth of Bitcoin and Ethereum in 2022 by hacking.
Laundered Assets and Escalating Tensions
Representative Yoon Han-hong of the conservative People Power Party (PPP) highlighted during the National Assembly’s government audit that around $52.46 million in virtual assets from North Korean hacking groups’ crypto wallets had likely been laundered after entering South Korean cryptocurrency exchanges over the past four years.
Recent data from blockchain analysis company Chainalysis reveals that North Korean hackers have stolen more than $3 billion over the last five years. This significant financial gain has coincided with a surge in missile tests by the North Korean regime, which conducted over 90 cruise and ballistic missile launches in the previous year, including a successful solid-fuel intercontinental ballistic missile test in April.
Cyberattacks Funding North Korea’s Missiles
Around half of North Korea’s missile program has been funded through cyberattacks and cryptocurrency theft, according to Anne Neuberger, the U.S. deputy national security adviser for cyber and emerging technology, as of May. UN Security Council sanctions experts have previously accused North Korea of using cyberattacks to finance its nuclear and missile programs.
Enhanced Cybersecurity Measures
In addition to the new cybersecurity bill, the Yoon administration plans to establish a national cybersecurity committee directly under the president’s control. This committee, led by the chief of the National Security Office and including the NIS director as a member, will have the authority to prohibit the manufacturing, importing, and sale of products that interfere with cybersecurity.
The NIS conducted an investigation in April to determine if government ministries and public institutions were inadvertently using information technology products subject to sanctions, with a particular focus on products from Chinese and Russian companies like Huawei.
These measures represent South Korea’s efforts to bolster its online defenses against foreign hacking attempts.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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