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South Korea Signals Sanctions Review After U.S. Targets North Korea’s Crypto Laundering

A pending joint fact sheet will guide Seoul’s next steps in addressing crypto theft linked to weapons funding.

Overview

  • Second Vice Foreign Minister Kim Ji-na said Seoul could revisit its sanctions policy if necessary and emphasized close coordination with Washington.
  • The U.S. Treasury sanctioned eight individuals and two entities for laundering stolen digital assets, naming Korea Mangyongdae Computer Technology Company and Ryujong Credit Bank.
  • Treasury identified facilitators including KMCTC president U Yong Su and bankers Jang Kuk Chol and Ho Jong Son, alleging the networks helped move funds tied to cyberattacks.
  • North Korea denounced the U.S. actions as evidence of “wicked” hostility and warned it would take unspecified countermeasures.
  • Analysts and industry observers say any South Korean follow-up could tighten compliance for crypto platforms and cross-border channels, with networks linked to China and Russia under scrutiny.