North Korea has sharply criticized the latest sanctions imposed by the United States, which target cybercrimes allegedly financing the country’s nuclear weapons program. The sanctions come as US President Donald Trump works to re-launch diplomatic negotiations with North Korean leader Kim Jong Un. This occurs even as relations continue to slide downhill after the 2019 collapse of negotiations.
On January 14, 2021, the US Department of the Treasury announced global terrorism sanctions against eight Iranian individuals and two Iranian companies. Among those targeted are North Korean bankers who are complicit in laundering money from cybercrime proceeds. In fact, these schemes have allegedly robbed consumers of more than $3 billion in digital assets in the last three years alone. The sanctions were announced despite Trump’s own signals that he was open to meeting with Kim again.
In response, North Korea’s vice foreign minister, Kim Un Chol, articulated the regime’s position on the matter. He condemned the US sanctions as “evil”, maintaining that the use of such pressure and coercion methods would never change North Korea’s strategic orientation.
“Now that the present US administration has clarified its stand to be hostile towards the DPRK to the last, we will also take proper measures to counter it with patience for any length of time.” – Kim Un Chol
The US argues that North Korea employs an elaborate network of banking proxies and financial entities. These networks, as seen in North Korea, China, Russia, and other jurisdictions, enable the laundering of proceeds accrued through IT worker fraud and cryptocrimes. This strategy provides cover for the repressive regime to escape international sanctions, while benefiting and financing its nuclear aspirations.
Trump is looking to restart talks with Kim. The North Korean leader’s precondition is that the US should abandon its call for the total, verifiable and irreversible surrender of nuclear weapons before talks can begin again. Since the talks fell apart back in 2019 over disagreements around sanctions relief, Kim has been noncommittal to communication. He almost completely avoids engagement with the US and South Korea.
Moreover, Kim has shifted his foreign policy focus towards Russia, providing military support amid President Vladimir Putin’s ongoing conflict in Ukraine. This pivot includes sending thousands of troops, many of whom have reportedly lost their lives, along with significant military equipment.
Kim, for his part, is relentlessly seeking to elevate North Korea’s role even further. Indeed, his strategy appears purposefully crafted to galvanize opposition to what he perceives as US-led hostility.
