On May 16th, the U.S. Department of State, the U.S. Department of the Treasury, and the Federal Bureau of Investigation (FBI) released a joint advisory to the international community warning that the Democratic People’s Republic of Korea has engaged in illicit fundraising efforts to support their burgeoning nuclear program. According to the advisory, North Korean IT workers have contracted freelance tech work in order to earn revenue for the nuclear program. Up to 90% of workers’ wages are held by the DPRK, which brings in the government millions of dollars in revenue annually. The report states that the U.S. condemns any facilitation of activities that support the North Korean nuclear weapons program. Additionally, the joint statement warns that those who employ or facilitate the employment of North Korean IT professionals may be subject to financial sanctions, fines, and imprisonment. 

The advisory issued by the U.S. follows admonishments by the People’s Republic of China (PRC) and Russia for the U.S.’s perceived lack of “openness” towards the DPRK. China’s Ambassador Zhang Jun stated that the U.S. needs “to show more sincerity and flexibility” in its dealings with the DPRK. Russian-North Korean relations have strengthened in light of the Russian-Ukraine crisis, as North Korean officials have wholly endorsed the invasion of Ukraine. DPRK newspaper The Rodong Sinmun was quoted stating that: “We are sending our full support and showing solidarity to the justified struggle of the Russian people to protect the autonomy and security of the country and to defend national interests” and that, “The strengthening of friendship between the two countries has contributed to ensuring peace and security in Northeast Asia and in the world, and to establishing an international order based on independence and justice.” During a meeting of the UNSC regarding increasing sanctions levied against the DPRK, Russia’s deputy UN ambassador Anna Evstigneeva stated that “Unfortunately, so far the council has only tightened restrictions ignoring the positive signals from North Korea.”

The U.S. Department of State, Treasury, and the FBI should be commended for their collaboration on collaborating on the advisory report and for presenting a united front against cyber deception. The usage of stolen identities, forged documents, and forced labor by the DPRK are incredibly problematic, and their application of ascertained funds to their nuclear program is highly concerning. As the U.S. has suffered political and economic costs as a result of increased sanctions against North Korea, it is a worthwhile venture to ensure that sanctions are as efficient and effective as possible. Targeting gaps in the system and loopholes in the sanctions regime garners a net benefit to the future of U.S. diplomacy and economic statecraft. 

As previously stated, this advisory report was released after the UNSC meeting held on May 11th. U.S. Ambassador Linda Thomas-Greenfield urged the necessity of the council to invoke Security Council Resolution 2397, which fell on the deaf ears of Russian and Chinese diplomats. The U.S. and portions of the international community have grown increasingly concerned about the progression of the North Korean nuclear weapons program in light of increased DPRK ballistic missile launches.

While the released advisory report is a great start, the U.S. will need to provide support to tech companies and independent contractors to ensure that proper precautions are taken to ensure that employers are not duped by mechanisms such as VPNs. This may involve cooperation with countries such as India which also have large tech firms that engage in independent contracting. Similar to bilateral agreements on terrorist financing, the U.S. should engage in bilateral agreements banning contracting North Korean workers and their companies. Additionally, the U.S. should cooperate with the UN officer of counter-terrorism’s cybersecurity team to develop a streamlined method of determining when identities are being faked by North Korean nationals.