The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) has sanctioned the Korea Sobaeksu Trading Company and three individuals, Kim Se Un, Jo Kyong Hun, and Myong Chol Min. These sanctions are in response to their involvement in evading U.S. and United Nations sanctions and generating revenue for North Korea through fraudulent IT worker schemes.
"The DPRK relies on front companies like Korea Sobaesku Trading Company and key facilitators to procure materials and generate revenue for the regime’s illegal nuclear and ballistic missile programs," said Director of OFAC Bradley T. Smith. "Our commitment is clear: Treasury, as part of a whole-of-government effort, will continue to hold accountable those who seek to infiltrate global supply chains and enable the sanctions evasion activities that further the Kim regime’s destabilizing agenda."
The Department of Justice is also unsealing indictments against seven North Korean nationals for criminal avoidance of sanctions related to counterfeit cigarette trafficking. Additionally, the Department of State is offering rewards ranging from $500,000 to $7 million for information leading to arrests or convictions under the Transnational Organized Crime Rewards Program.
North Korea sends teams of skilled IT workers globally to generate revenue through illicit trade activities, violating U.S. and UN sanctions. These workers use fraudulent documents and identities to infiltrate legitimate companies worldwide. The DPRK government retains most wages earned by these workers, funding its weapons programs.
Further details about these tactics can be found in a January 23, 2025 Public Service Announcement by the FBI.
OFAC's action designates a network facilitating overseas IT worker movement and procurement for North Korea's nuclear program. The Korea Sobaeksu Trading Company operates as a front company for North Korea's Munitions Industry Department.
Kim Se Un has used subordinate companies to support Sobaeksu's activities outside North Korea. OFAC designated him under Executive Order 13382 for supporting Sobaeksu financially or materially.
Jo Kyong Hun worked with Kim Se Un on financial issues related to IT projects' revenue generation. He was designated under Executive Order 13382 for providing support to Sobaeksu.
Myong Chol Min facilitated business deals avoiding sanctions for DPRK revenue generation and attempted tobacco imports into North Korea. He was designated under Executive Order 13810 for engaging in commercial activity generating revenue for North Korea or its ruling party.
As a result of these actions, all property within U.S jurisdiction linked to these individuals or entities is blocked. Transactions involving them are prohibited unless authorized by OFAC.
Violations may lead to civil or criminal penalties on both U.S. and foreign persons involved in such transactions.
OFAC emphasizes that its goal with sanctions is not punishment but behavioral change consistent with international law standards.
For more information on today's designations visit [link].
