Yasin Gungor
24 July 2025•Update: 24 July 2025
ISTANBUL
The US Treasury Department sanctioned a North Korean trading company and three individuals on Thursday for evading sanctions and generating revenue for Pyongyang through "fraudulent information technology (IT) worker schemes."
The Office of Foreign Assets Control (OFAC) designated the Korea Sobaeksu Trading Company and three associated individuals --Kim Se Un, Jo Kyong Hun and Myong Chol Min -- for their involvement in sanctions evasion activities.
"OFAC's action today designates a network that has facilitated the movement of overseas IT workers and procurement for the DPRK's nuclear program," said the Treasury Department statement.
The agency said North Korea dispatches IT workers worldwide to generate revenue in violation of US and UN sanctions. The workers typically "use fraudulent documents, stolen identities, and false personas to obfuscate their identities and infiltrate legitimate companies," including those in the US and allied countries.
The North Korean government withholds most wages earned by IT workers, generating hundreds of millions of dollars to support the regime's weapons of mass destruction and ballistic missile programs, it said.
Enforcement actions
As a result of the sanctions, all property and interests of designated persons in the US or under US control are blocked and must be reported to OFAC. Moreover, entities owned 50% or more by blocked persons face similar restrictions.
"Treasury ... will continue to hold accountable those who seek to infiltrate global supply chains and enable the sanctions evasion activities that further the (North Korean leader) Kim (Jong Un) regime's destabilizing agenda," said OFAC Director Bradley Smith.
Meanwhile, the Justice Department unsealed indictments against seven North Korean nationals for criminal sanctions avoidance involving illicit cigarette trafficking. The State Department announced rewards up to $7 million for information leading to arrests related to the revenue generation schemes.
In addition, Christina Marie Chapman, a US citizen, is set to be sentenced for her involvement in a scheme involving North Korean IT workers that deceived more than 300 American companies, including Fortune 500 firms, said the State Department.
