07 Nov
07Nov

On November 7, 2025, South Korea indicated it is considering a review of its own sanctions measures following the latest round of designations by the U.S. Treasury Department. This signals an intent by Seoul to coordinate with Washington to take complementary actions against illicit digital finance networks allegedly tied to the Democratic People's Republic of Korea (DPRK).


U.S. Action Targets DPRK Cyber Networks

The U.S. Treasury's new designations named eight individuals and two entities accused of laundering proceeds from cyberattacks and fraud. The U.S. asserted that these networks were responsible for moving stolen digital assets, with the illicit funds allegedly supporting the DPRK's nuclear weapons program.

Key entities named in the U.S. action include:

  • Korea Mangyongdae Computer Technology Company (KMCTC), a state-run IT front.
  • Ryujong Credit Bank.
  • Individuals named include U Yong Su, Jang Kuk Chol, and Ho Jong Son.

South Korea's Response

South Korean Vice Foreign Minister Kim Ji-na confirmed that Seoul "can consider reviewing sanctions as a measure if they are really needed," emphasizing the vital need for U.S.-Korea coordination.

This statement suggests Seoul's readiness to potentially implement targeted measures. Analysts anticipate that South Korea might consider options such as:

  • Adopting targeted asset restrictions.
  • Tightening compliance requirements for local cryptocurrency exchanges.
  • Issuing new advisory guidance to banks.

Experts believe Seoul will likely prioritize a measured combination of legal actions and enhanced monitoring to increase the cost of illicit finance without causing undue diplomatic friction or harming legitimate cross-border flows.

The move reinforces ongoing pressure on these illegal financial channels, though immediate short-term operational impact may be limited, with long-term effectiveness dependent on sustained enforcement efforts.

November 2025, Cryptoniteuae

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