The United States unveiled sanctions targeting six North Korean bankers and two entities across Russia, China, and the United Arab Emirates for their alleged involvement in funneling funds towards North Korea’s weapons development initiatives.
Who is sanctioned?
Acting in tandem with South Korea, the U.S. Treasury Department identified the individuals as Yu Pu Ung, Ri Tong Hyok, Han Chol Man, O In Chun, Jong Song Ho, and Jon Yon Gun.
Role of North Korean Bankers in Sanctions Evasion
The North Korean regime utilizes representatives from state-owned entities and banks stationed overseas to gain access to the international financial system. These representatives, based in China and Russia, play a crucial role in coordinating payments and generating revenue for North Korea.
One key figure in these illicit financial activities is Yu Pu Ung, who is adept at employing various schemes to avoid detection. Yu Pu Ung, along with Ri Tong Hyok, represents Tanchon Bank in China, a financial institution linked to the Korea Mining Development Corporation (KOMID), a U.S. and UN-designated entity involved in the sales of ballistic missiles. Yu Pu Ung also uses funds from North Korean IT groups to supply WMD-related materials to munitions organizations in North Korea.
Another individual, Han Chol Man, based in Shenyang, China, represents the U.S. and UN-designated Kumgang Bank. Han Chol Man has facilitated over $1 million in payments between China and North Korea for several North Korean banks.
O In Chun, based in Russia, represents the U.S. and UN-designated Korea Daesong Bank, operated by the U.S.-designated Office 39, which the North Korean government uses for illicit economic activities. O In Chun has worked to unfreeze funds on behalf of a bank subordinate to the U.S. and UN-designated Munitions Industry Department (MID).
Jong Song Ho, also based in Russia, represents the U.S.-designated Jinmyong Joint Bank and has been involved in the exportation of North Korean coal. Jong Song Ho was involved in developing coal briquette factories in North Korea to facilitate the regime’s scheme of exporting coal to earn foreign currency.
Sanctioned Companies – Subsidiaries of Chinyong
The sanctioned entities include Alis LLC, headquartered in Vladivostok, Russia, and Pioneer Bencont Star Real Estate, based in the UAE. Both entities were flagged as subsidiaries of Chinyong Information Technology Cooperation Co, an entity reportedly linked to North Korea’s military.
The Treasury Department underscored Chinyong’s prior sanctioning in May 2023, citing its utilization of a network of companies and representatives to oversee North Korean IT workers stationed in Russia and Laos.
This move coincides with the launch of a joint U.S.-South Korean task force aimed at curbing North Korea’s access to illicit oil, amid concerns regarding the efficacy of international sanctions on Pyongyang in the wake of a stalemate at the United Nations Security Council.
Despite years of global sanctions, North Korea’s nuclear and missile programs persist, prompting skepticism among analysts about the effectiveness of existing sanctions frameworks.
