SEOUL, September 3 — A recent report by the South Korean National Strategy Institute has revealed that the North Korean government has accumulated nearly $6.3 billion in illegal income through various illicit means, including cyberattacks, from 2017 to 2023.
The report, released on September 3, indicates that the North Korean regime has employed a range of illegal activities to bolster its coffers. The income was derived from cybercrime, the export of IT workers and laborers to Russia and China, and the smuggling of coal, among other activities.
Illicit Activities and Earnings
According to the report, the largest chunk of the illegal income, amounting to $2.15 billion, came from the smuggling of coal. This was followed by the export of labor to Russia and China, which generated $1.75 billion, and cybercurrency earnings, which brought in $1.35 billion.
The North Korean government’s reliance on illegal activities to generate income is not new. However, the report highlights the significant scale of these operations over the past seven years. The findings were compiled by analyzing data from the South Korean government, foreign governments, and specialized institutions.
Cyberattacks and Illicit Earnings
Cyberattacks have emerged as a major source of income for North Korea. The regime has been accused of conducting sophisticated cyber operations to steal cryptocurrencies and other digital assets. These attacks have targeted financial institutions, exchanges, and individuals around the world, often using advanced techniques to avoid detection.
The report also estimates that North Korea earned approximately $5.4 billion by providing military equipment to Russia. This includes an estimated 93.75 million rounds of 152mm artillery shells, 18.75 million rounds of 122mm artillery shells, and several KN-23 and KN-24 missiles. These arms sales were calculated based on data from the South Korean Defense Ministry, the White House, and the State Department in the United States, as well as Ukraine’s Defense Ministry.
Trade Deficit and Illegal Earnings
Despite a legal trade deficit of $8.25 billion over the past seven years, the inclusion of illegal earnings significantly reduces this deficit to $1.97 billion. This indicates the extent to which North Korea’s economy relies on illicit activities to maintain its operations.
The report also notes that North Korea’s illegal activities are often conducted in secrecy, making it difficult to accurately assess the full scale of its earnings. However, the findings underscore the urgency of addressing these activities and the need for international cooperation to curb North Korea’s illegal economic practices.
International Response
The report’s findings are likely to fuel international calls for stricter sanctions and enforcement measures against North Korea. The United Nations and other international bodies have previously condemned North Korea’s illegal activities, but enforcement remains a significant challenge due to the regime’s secretive nature and its ability to adapt to sanctions.
The report also highlights the importance of enhancing cybersecurity measures to protect against North Korea’s cyber threats. As the country continues to develop its cyber capabilities, the international community must remain vigilant and proactive in safeguarding against these threats.
Conclusion
The North Korean regime’s reliance on illegal activities to generate income is a matter of serious concern. The report by the South Korean National Strategy Institute serves as a stark reminder of the lengths to which North Korea will go to maintain its economic stability. The findings call for a concerted international effort to address these illegal practices and ensure that North Korea is held accountable for its actions.
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