One of the major obstacles to the Democratic People’s Republic of Korea, or North Korea’s ballistic missile development, is lack of funding.
Nearly two decades ago, the DPRK conducted its first nuclear tests. Subsequently, in an effort to hinder North Korea’s development of weapons of mass destruction, a number of countries and international entities, including the United States, imposed sanctions against North Korea’s government as a means choking off its revenue stream.
Today the North Korean government generates income through a number of illicit operations. One such scheme involves two DPRK-controlled companies: China-based Yanbian Silverstar and Volasys Silverstar, located in the Russian Federation.
Beginning around 2018, North Korean workers associated with these two entities used false and stolen identities of U.S. and other persons to conceal their identities and overseas locations to secure employment as remote information technology specialists with U.S. companies and nonprofit organizations. In this way, they circumvented the sanctions and generated at least $88 million throughout the six-year run of the conspiracy.
Yanbian Silverstar and Volasys Silverstar collectively employed at least 130 North Korean IT workers. Once they were discovered and their employment terminated by U.S. companies, these IT workers used their insider knowledge and coding skills to extort money from their former employers by threatening to release sensitive information online.
The U.S. Department of State’s Rewards for Justice Program is offering a reward of up to $5 million for information that leads to the disruption of the financial mechanisms of persons engaged in certain activities that support North Korea.
Rewards for Justice is seeking information on North Korean information technology workers, managers, and support staff associated with Yanbian Silverstar Network Technology Co., Ltd and Volasys Silverstar. They include Chief Executive Officer of both IT companies Jong Song Hwa; Kim Ryu Song, president of Yanbian Silverstar; and Volasys Silver Star president Ri Kyong Sik; along with numerous senior and mid-level managers and IT workers.
The United States has identified this illicit operation and its leadership and disrupted the scheme. Nonetheless, we realize that it’s just the tip of the iceberg. North Korean IT workers continue to pose a sophisticated and persistent threat to the U.S., other countries, and people and businesses around the world. We will remain vigilant and work with our partners to identify and eliminate further such threats.
