U.S. Imposes Sanctions on North Korean Trading Firm, Three Individuals

(MENAFN) In a decisive move on Thursday, the US Treasury Department imposed sanctions on a North Korean trading firm and three individuals, accusing them of evading international sanctions and funding Pyongyang's nuclear ambitions through deceptive IT worker schemes.

The Treasury's Office of Foreign Assets Control (OFAC) blacklisted the Korea Sobaeksu Trading Company and three individuals—Kim Se Un, Jo Kyong Hun, and Myong Chol Min—for their roles in facilitating the illicit financial operations.

"OFAC's action today designates a network that has facilitated the movement of overseas IT workers and procurement for the DPRK's nuclear program," the Treasury Department stated.

The sanctions are part of ongoing efforts to crack down on North Korea’s use of IT professionals to generate revenue through fraudulent practices. These workers often deploy fake documents, stolen identities, and deceptive personas to infiltrate legitimate businesses in the US and allied nations. According to the Treasury, these operations violate both US and UN sanctions.

North Korean authorities reportedly seize a significant portion of the wages earned by these workers, which are then funneled into funding the country’s weapons of mass destruction and missile development programs.

Impact of Sanctions
As part of the sanctions, the assets of the designated individuals and company are now blocked in the US, and any property under US jurisdiction must be reported to OFAC. Additionally, entities owned 50% or more by the sanctioned individuals are subject to the same restrictions.

"Treasury ... will continue to hold accountable those who seek to infiltrate global supply chains and enable the sanctions evasion activities that further the (North Korean leader) Kim (Jong Un) regime's destabilizing agenda," said OFAC Director Bradley Smith.

Broader Enforcement Actions
In parallel, the Justice Department unsealed indictments against seven North Korean nationals linked to an illicit cigarette trafficking ring, aiming to circumvent sanctions. The State Department also announced a reward of up to $7 million for information leading to arrests of those involved in the revenue-generation schemes.

Meanwhile, Christina Marie Chapman, a US citizen, is poised to be sentenced for her role in a scheme involving North Korean IT workers that defrauded over 300 American companies, including multiple Fortune 500 firms.

This coordinated enforcement underscores the US's commitment to intensifying pressure on North Korea's sanctioned activities.

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