Treasury Sanctions Key Participants Behind North Korea’s Illegal Financial Operations and Military Support for Russia

On December 16, 2024, the U.S. Department of Treasury imposed sanctions on nine individuals and seven entities that provide military & financial support to the ‘Democratic People’s Republic of Korea (DPRK)’ and also sanctioned three targets linked to North Korea’s ballistic missile program.

The sanctions target entities & individuals that generate revenue through illegal means, including state-owned enterprises & foreign labor that directly fund North Korea’s ballistic missile program & nuclear program.

As per Tresury’s press release, DPRK initiated an intercontinental ballistic missile’ (ICBM) test on 31st October 2024. Further, on 5 November 2024, multiple short-range ballistic missile launches to the eastern coast of the peninsula resulted in regional tensions and proved to be a threat to international security.

DPRK also provides military support to Russia’s war against Ukraine, including the deployment of more than 11,000 troops and the supply of ammunition & missiles that are now used to train the army against Ukraine.

Sanctions Imposed on Financial Facilitators and Military Support

Golden Triangle Bank (GTB) is the largest DPRK bank operating in the ‘Rason Special Economic Zone’ under Executive Order 13810, which exchanges foreign currency with locals within the country and is specifically used by foreigners.

Korea Mandal Credit Bank (KMCB) – a North Korean financial institute that oversees a representative network working in China.

Choe Chol Ryong is the ‘U.S.-designated Korea Kwangson Banking Corporation (KKBC)’ in Dandong, China. Choe is sanctioned because it was involved in the smuggling of bulk cash between DPRK & China.

Kim Myong Jin is designated Korea Daesong Bank (KDB in China, and it is sanctioned to facilitate Pyongyang’s illegal financial activities outside of DPRK.

Ri Chang Ho – the DPRK Reconnaissance General Bureau (RGB) head. He is sanctioned because he was involved in sending thousands of DPRK troops to Russia to support the Ukraine war.

Ju Chang II is the director of the ‘DPRK Workers’ Party of Korea (WPK) and the Agitation Department (PAD)’, the agency responsible for both broadcast censorship & newspapers.

Kim Yong Bok is a ‘senior Korean People’s Army (KPA) general’ and famous for accompanying troops used during the Russia-Ukraine war.

Pak Jong Chon is a DPRK-based ‘Vice Chair of the WPK’ Central Military Commission. Pak was involved in several high-profile events related to North Korea’s missile development, including submarine launches, official visits to Russia, and tours of weapons factories.

Im Song Jin is a physics professor at ‘Kim II Sung University’ and was sanctioned by the U.S. for supporting the DPRK.

Kim Geum Cheol is the president of ‘Kim II Sung Military University’, the DPRK’s military education institute, and was designated by the U.S. for his role as a high-ranking official in the North Korean government.

Ro Kwang Chol, the DPRK minister of national defense, was sanctioned because he was a WPK official.

Vostok Trading LLC, Novosibirskoblgaz LLC, and DV Ink LLC (DV Ink) are Russian companies that shipped thousands of tons of gas & oil to the DPRK from 2022 to at least April 2024.

Okryu Trading Company is a DPRK-based ‘ foreign trade company’ that has already received tons of oil shipments from Russia.

Sibregiongaz, AO is the Russia-based parent company & owner of Novosibirskoblgaz LLC, and it is sanctioned for operating in the transportation sector of the ‘Russian Federation Economy.’

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Impact of Treasury’s Sanctions

These sanctions will restrict the DPRK from accessing the international financial systems & conduct illegal activities. The U.S. generally prohibits dealing with designated individuals, and non-U.S. individuals are also prohibited from conspiring to cause U.S. persons to violate U.S. sanctions, or show risk to U.S. jurisdictions for executing financial transactions with designated individuals.

All assets of the sanctioned individuals and entities within the U.S. or in control or possessions of the U.S. individuals are frozen and must be reported to OFAC. Any entities owned indirectly or directly by 50% or more of a blocked person are also subjected to these sanctions.

According to a press release, OFAC warned businesses and financial institutions involved with sanctioned entities that they could be penalized and could be subjected to any enforcement action.

Lastly, the goal of imposing sanctions is to bring positive change in the economy and should not be considered as punishment.