The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on the Korea Sobaeksu Trading Company and three individuals associated with it — Kim Se Un, Jo Kyong Hun, and Myong Chol Min — for their role in circumventing U.S. and United Nations (UN) sanctions and their efforts to generate illicit revenue for the government of the Democratic People’s Republic of Korea (DPRK), including through fraudulent IT worker schemes.
Sobaeksu Trading Company, a North Korean-based trading firm, serves as a front for the U.S.-designated Munitions Industry Department, which oversees the DPRK’s nuclear program and is involved in the development of ballistic missiles. The Munitions Industry Department has previously utilized Sobaeksu to send teams of IT professionals abroad, including to Vietnam, to generate revenue. Additionally, Sobaeksu has been involved in nuclear procurement activities on behalf of the Munitions Industry Department.
Kim Se Un, a representative of Sobaeksu, has also used various subordinate companies to support Sobaeksu’s revenue generation activities. These companies operate from Vietnam and employ additional North Korean IT professionals to facilitate IT development outside of the DPRK.
Jo Kyong Hun is a leader of the Sobaeksu IT team in North Korea, working with Kim Se Un on cryptocurrency and other financial matters related to revenue generation for IT projects.
Myong Chol Min is a trade representative for multiple North Korean companies, working closely with Kim Se Un to facilitate business transactions and avoid sanctions to generate revenue for the DPRK.
