Treasury Sanctions Key Facilitators Behind North Korea’s Illicit Financial Activities and Military Support to Russia

WASHINGTON - The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) today sanctioned nine individuals and seven entities that have provided financial and military support to the Democratic People's Republic of Korea (DPRK). Also, today, the U.S. Department of State sanctioned three targets related to the DPRK's ballistic missile program. These actions reflect the DPRK's escalating provocation and hostile military posturing that exacerbate global tensions and destabilize regional peace and security.

On October 31, 2024, the DPRK conducted an intercontinental ballistic missile (ICBM) test, the first since December 2023. Again, on November 5, 2024, the DPRK fired at least seven short-range ballistic missiles off the eastern coast of the peninsula. Revenues generated through foreign-based workers and state-owned entities fuel these launches and further development of the DPRK's WMD and ballistic missile programs.

The DPRK has also supplied Russia with critical military support for its war on Ukraine. Since October, it has supplied Russia with more than 11,000 troops-which are now training for deployment against Ukraine-and sent significant quantities of missiles and ammunition to the Russian military to replenish its dwindling stockpiles.

"The Kim regime's continued provocative actions-including its most recent ICBM test and its deepening military support to Russia-undermine the stability of the region and sustain Putin's continued aggression in Ukraine," said Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence Bradley T. Smith. "The United States remains committed to disrupting the illicit procurement and facilitation networks that enable these destabilizing activities."

FINANCIAL FACILITATORS

Golden Triangle Bank (GTB) is one of the largest financial institutions in the DPRK's Rason Special Economic Zone. As a state-owned company of the DPRK government, the GTB is used by foreigners to exchange foreign currency into local currency for use within the DPRK. GTB is being designated pursuant to Executive Order (E.O.) 13810 for operating in the financial services industry in North Korea.

Korea Mandal Credit Bank (KMCB) is a financial institution headquartered in Pyongyang, DPRK which maintains a network of representatives who operate throughout China. KMCB has facilitated the procurement of supplies for entities that support the DPRK's WMD program, including the U.S.-designated Munitions Industry Department (MID). MID was designated in August 2010, pursuant to E.O. 13382 for its support to DPRK's WMD programs. KMCB is being designated pursuant to E.O. 13810 for operating in the financial services industry in North Korea.

Choe Chol Ryong (Choe) is a representative of the U.S.-designated Korea Kwangson Banking Corporation (KKBC) in Dandong, China. In that capacity, Choe has been involved in bulk cash smuggling between China and the DPRK. KKBC was previously designated in August 2009, pursuant to E.O. 13382 for providing financial services in support of multiple organizations that were identified as WMD proliferators. KKBC is also on the United Nations Security Council resolution (UNSCR) 1718 Sanctions List. Choe is being designated pursuant to E.O. 13382 for being owned or controlled by, or acting or purporting to act for or on behalf of, directly or indirectly, the KKBC.

Kim Myong Jin (Kim) is a representative of the U.S.-designated Korea Daesong Bank (KDB) in Beijing, China. Kim serves as a primary financial representative for the DPRK and plays a key role in facilitating Pyongyang's illicit financial activities outside of the DPRK. OFAC designated KDB in 2010, pursuant to E.O. 13551 for being owned or controlled by Office 39. Since 2019, Kim has coordinated deposits worth several hundred thousands of U.S. dollars from China to the DPRK. OFAC is designating Kim pursuant to E.O. 13551 for acting or purported to act for or on behalf of, directly or indirectly, Korea Daesong Bank, a person whose property and interests in property are blocked pursuant to E.O. 13551.

MILITARY SUPPORT

Ri Chang Ho (Ri)is the head of the DPRK Reconnaissance General Bureau (RGB), and one of the DPRK generals known to be accompanying the thousands of DPRK troops deployed to Russia in support of Russia's war in Ukraine. As the head of the RGB, Ri has conducted revenue generating activities and securing funds in support of the DPRK's WMD activities. In January 2015, OFAC designated the RGB pursuant to E.O. 13687 for being a controlled entity of the Government of North Korea; RGB was previously listed in the annex to E.O. 13551 in August 2010. Ri is being designated pursuant to E.O. 13687 for being an official of the Government of North Korea.

Ju Chang Il (Ju) is the director of the DPRK Workers' Party of Korea's (WPK) Propaganda and Agitation Department (PAD). The PAD engages in or is responsible for censorship by the Government of North Korea and is also the primary agency responsible for both newspaper and broadcast censorship. In March 2016, OFAC added the PAD to the Specially Designated Nationals and Blocked Persons (SDN) List pursuant to E.O. 13722 for being an agency, instrumentality, or controlled entity of the Government of North Korea.Ju is being designated pursuant to E.O. 13687 for being an official of the WPK.

Kim Yong Bok is a senior general of the OFAC-designated Korean People's Army. He is one of the DPRK generals known to be accompanying DPRK troops deployed to Russia. Kim Yong Bok is being designated pursuant to E.O. 13687 for being an official of the Government of North Korea.

Pak Jong Chon (Pak) is a DPRK-based Vice-Chair of the WPK Central Military Commission. In his role, he takes part in public events that are involved in the DPRK's ballistic missile program, including weapons factory tour, submarine launch, and an official visit to Russia. Pak is being designated pursuant to E.O. 13687 for being an official of the WPK.

Im Song Jin (Im) is a professor of physics at Kim Il Sung University. Im is being designated pursuant to E.O. 13810 for being a North Korean person, including a North Korean person that has engaged in commercial activity that generates revenue for the Government of North Korea or the WPK.

Kim Geum Cheol is the president of Kim Il Sung Military University, the DPRK's premier institution of military education. Kim Geum Cheol is being designated pursuant to E.O. 13687 for being an official of the Government of North Korea.

Ro Kwang Chol (Ro) is the current DPRK Minister of National Defense, having assumed the position in October 2024. Ro is being designated pursuant to E.O. 13687 for being an official of the WPK.

RUSSIAN COMPANIES SHIPPING PETROLEUM TO DPRK

Vostok Trading LLC (Vostok), DV Ink LLC (DV Ink), and Novosibirskoblgaz LLC are Russia-based foreign trade companies that have shipped thousands of tons of oil and gas to the DPRK beginning in 2022 and continuing through at least April 2024. Vostok, DV Ink, and Novosibirskoblgaz LLC are being designated pursuant to E.O. 13810 for engaging in at least one significant importation from or exportation to North Korea of any goods, services, or technology. Additionally, Vostok, DV Ink, and Novosibirskoblgaz LLC are being designated pursuant to E.O. 14024 for operating or having operated in the transportation sector of the Russian Federation economy.

Sibregiongaz, AO is the Russia-based parent company and 100% owner of Novosibirskoblgaz LLC. Sibregiongaz, AOis being designated pursuant to E.O. 14024 for operating or having operated in the transportation sector of the Russian Federation economy.

Okryu Trading Company (Okryu) is a DPRK-based foreign trade company that has received thousands of tons of oil shipments from Russia. Okryu is being designated pursuant to E.O. 13810 for operating in the transportation industry in North Korea.

These actions were also undertaken in the spirit of the North Korea Sanctions and Policy Enhancement Act of 2016, including as amended by the Otto Warmbier North Korea Nuclear Sanctions and Enforcement Act of 2019 within the FY 2020 National Defense Authorization Act (P.L. 116-92).

SANCTIONS IMPLICATIONS

As a result of today's action, all property and interests in property of the designated persons described above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC, or exempt, OFAC's regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons.

Financial institutions and other persons that engage in certain transactions or activities with the sanctioned entities and individuals may expose themselves to sanctions or be subject to an enforcement action. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any designated person, or the receipt of any contribution or provision of funds, goods, or services from any such person. In addition, foreign financial institutions that conduct or facilitate significant transactions or provide any service involving Russia's military-industrial base run the risk of being sanctioned by OFAC. For additional guidance, please see the updated OFAC advisory, "Updated Guidance for Foreign Financial Institutions on OFAC Sanctions Authorities Targeting Support to Russia's Military-Industrial Base," as well as OFAC Frequently Asked Questions (FAQs) 1146-1157.

Non-U.S. persons are also prohibited from causing or conspiring to cause U.S. persons to violate U.S. sanctions, wittingly or unwittingly, as well as engage in conduct that evades U.S. sanctions. OFAC's Economic Sanctions Enforcement Guidelines provide more information regarding OFAC's enforcement of U.S. sanctions, including the factors that OFAC generally considers when determining an appropriate response to an apparent violation.

The power and integrity of OFAC sanctions derive not only from OFAC's ability to designate and add persons to the SDN List, but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC's Frequently Asked Question 897 here. For detailed information on the process to submit a request for removal from an OFAC sanctions list, please click hereClick here for more information on the individuals and entities designated today.

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