October 24, 2017

WSJ: Sun Sidong under FBI investigation

Previously, I’ve written about the C4ADS investigation that exposed the Sun Sidong network, and that network’s role in money laundering and arms smuggling for North Korea, most notably the seizure of the Jie Shun arms shipment in Egypt. Shortly after the release of C4ADS’s report, Treasury froze the assets of one of Sun’s companies, Dandong Zhicheng Metallic Materials, and the Justice Department filed a civil forfeiture suit against $4 million of its assets. Now, the Wall Street Journal reports that...
Categories Money Laundering/Sanctions
October 20, 2017

North Koreans fight a losing battle for the soil they till & the food they grow

With the greening of the trees each year in North Korea come annual predictions of famine due to weather conditions that, by some meteorological miracle, never cross the Demilitarized Zone and cause hunger in South Korea. This year, as with every year since 1999, the reality was not as bad as the dire predictions, but the situation is still bad: some of the Daily NK’s sources say that they’ve seen the bodies of people who (or so they believe) have...
Categories Famine & Food Aid/Resistance
October 18, 2017

Computer crime, bank fraud & money laundering: A preview of Kim Jong-un’s indictment

The Wall Street Journal is reporting that hackers employed by the government of North Korea have been implicated in yet another international bank fraud scheme using . This time, the victim is a bank in Taiwan, and the take was $60 million, all of it laundered through accounts in Cambodia, Sri Lanka, and the United States. In a blog post Tuesday, cybersecurity researchers at U.K. defense company BAE Systems PLC also implicated Lazarus in the Taiwanese theft, saying that tools...
Categories Cyberwar/U.S. Law
October 16, 2017

On North Korea sanctions, evidence of an inflection point

As I’ve mentioned previously, this has been a busy month for me, and a difficult one for keeping up with the many developments in North Korea sanctions enforcement. Over the last months, I’ve been keeping a tally of how those efforts are taking shape. The accumulating evidence now gives reason for guarded optimism that at last, the sanctions are starting to show significant effects. Financial. Treasury Undersecretary Sigal Mandelker sent the right message to the financial industry in her recent...
Categories Sanctions
October 11, 2017

How the U.S. fishing industry can do its part to disarm Kim Jong-un

Long-time readers know that I’ve had many uncomplimentary things to say about the Associated Press’s North Korea coverage. Its still-undisclosed agreements with the North Korean government to open a bureau in Pyongyang sacrificed journalistic ethics for a dubious dividend of access. Since opening its bureau in 2012, AP and its state-supplied North Korean stringers have reported a great deal of North Korean government propaganda and almost no actual news, while ignoring major news stories (to include a hotel fire, a...
Categories AP Watch/Human Trafficking/Media Criticism/Sanctions/U.S. Law
October 5, 2017

There is a North Korean resistance

A blog about North Korea never suffers from a shortage of material; rather, it is more likely to suffer from an insufficiency of time to curate such an abundance of material. A post that isn’t ready for publication when my train arrives at my stop may sit unfinished for hours, weeks, or even years. So it was last May, shortly after the assassination of Kim Jong-nam, when an intriguing video first emerged of Jong-nam’s son, Kim Han-sol, claiming that a group...
Categories Resistance
October 4, 2017

The deterrence of North Korea has already failed

First, the North Korea commentariat told us that the Yongbyon reactor might be for no more nefarious purpose than generating electricity (never mind that it was never connected to the electrical grid). Then, it told us that the North merely wanted aid and recognition by the United States, to better provide for the people it had so recently starved to death in heaps, the dust of whose loves and aspirations now fills a thousand forlorn and forgotten pits in the barren...
Categories Korean War II
September 21, 2017

Maximum Pressure Watch: Trump puts the squeeze on Kim Jong-un

Donald Trump hit Kim Jong-un with his first sanctions executive order today. (Update: Its official number is Executive Order 13810.) The new EO partially implements UNSCR 2371, UNSCR 2375, and the KIMS Act, which the President signed in August. As a strictly legal matter, this EO will not affect anyone’s interests immediately because Treasury didn’t announce any new designations. As a practical matter, however, we may already be seeing the effects of the clear seriousness of purpose that Trump has already shown. You...
Categories Money Laundering/Sanctions/Shipping sanctions
September 20, 2017

Save North Korean Refugees Day: This Friday, September 22nd

What sort of place could be so horrible that a family of five would choose to die together rather than be sent there? The answer, of course, is this place, or this one, or this one, or this. Here is the story of a family that made that choice. A North Korean family of five, including a former senior official of the Workers Party, committed suicide last week after they were caught by Chinese police and faced deportation to the...
Categories Refugees
September 19, 2017

Organized crime enters North Korea’s markets

From the perspective of North Korea’s poor, the era of Kim Jong-un has been a time of increasing state control over information and borders, but also a time when the state has taken a relatively (by North Korean standards, anyway) laissez-faire approach to market trade. There are exceptions, of course, including crackdowns on South Korean imports and on the Chinese mobile phones that could have made cross-border trade so much more efficient, but the general trend is for State Security Department...
Categories Capitalism
September 18, 2017

The State Department’s efforts to isolate Pyongyang are starting to pay off

The reviews of Rex Tillerson are in, and most of them aren’t good. We could have predicted this ten months ago; after all, most of the commentariat harbors center-left or pro-“engagement” views and it wasn’t going to agree with Trump’s policies anyway. Still, it’s hard for me to accept at face value the criticisms of those who have defended, to varying degrees, the self-evidently disastrous North Korea policies of Barack Obama and second-term G.W. Bush — policies that have more...
Categories Diplomacy/Sanctions
September 14, 2017

South Koreans like Moon Jae-in personally, but are uneasy with his North Korea policies

If Moon Jae-in and his inner circle are, in the pits of their souls, as extreme as I think they are, why hasn’t Moon moved forward with his plans to reopen Kaesong, or Kaesongograd? Probably because he can read a poll, such as this one from the center-left Korea Herald: A recent poll by Gallup Korea, conducted from Sept. 5, after the Sept. 3 nuclear weapons test by the North, shows a clear sign of hardening attitudes among South Koreans....
Categories An Alliance?/Korean Politics/Korean Society
September 13, 2017

Chinese banks are cracking down on N. Korean money laundering again. Will it last this time?

Several news sources are reporting that Chinese banks, particularly in China’s northeast, have started to freeze or close accounts held by North Korean individuals and businesses. The Daily NK, citing unnamed local sources, was the first to report this potentially important development. It says both large state-owned banks (such as the China Construction Bank) and regional banks (such as Pudong Bank) recently banned all North Koreans from opening new accounts and ordered the closure of existing accounts. It also quotes...
Categories Money Laundering/Sanctions
September 11, 2017

Moon Jae-in, Putin & Kaesong 2.0: Why the state of the U.S.-Korea alliance is not strong

Of the many reasons why the U.S. and South Korea failed to prevent North Korea from acquiring nuclear weapons, one of the most important is that, despite their nominal alliance, Washington and Seoul have been fundamentally misaligned on North Korea policy since Bill Clinton and Kim Young-Sam led their respective nations. The most important of these differences was their mutually canceling economic policies toward Pyongyang. As the U.S. moved (however slowly and haltingly) toward isolating Pyongyang economically to slow and...
Categories An Alliance?/Anti-Americanism/U.S. & Korea
September 8, 2017

Buzzfeed is out of its depth on Egypt and North Korea sanctions

If journalism can be reduced to its most fundamental purpose, that purpose is to tell the reader important things he does not know. Be mindful of this purpose as we review one example of the slapdash reporting one tends to see whenever North Korea intrudes into the headlines. As the Trump administration scrambles to respond to North Korea’s nuclear ambitions, it is trying to coax the country’s smaller trading partners, from Sudan to the Philippines, to ramp up the pressure...
Categories Arms Trafficking/Fiskings/Media Criticism/Sanctions
September 7, 2017

Sung-Yoon Lee: Nukes are Pyongyang’s “nonnegotiable means of isolating & exercising dominance over Seoul.”

Professor Lee raises, if ever so briefly, the standards of a newspaper that is simultaneously America’s most prestigious, and in terms of its North Korea coverage, easily its worst. But a nuclear North Korea is unlike a nuclear China or Russia. During the Cold War, neither Beijing nor Moscow faced an existential threat in the form of an alternate Chinese or Russian state. Pyongyang, on the other hand, has had to live with a far more prosperous and legitimate Korean...
Categories Korean War II
September 6, 2017

Some N. Koreans grow weary of a war that is forever imminent, as others yearn for it.

For the last 60 years, the people of North Korea have been told that they must sacrifice all their wants — and too many of their needs — for the sake of a holy war with Oceania that has always been imminent. Pyongyang’s media manipulation strategy shows the world’s most gullible journalists (and I mean you, Will Ripley) images of subjects who are (or who appear to be) united in fanatical, robotic devotion to the state’s war propaganda. Yet out in...
Categories Korean War II/Propaganda