A closer look at Pyongyang’s modus operandi.
The assassination of North Korean Supreme Leader Kim Jong-un’s half-brother Kim Jong-nam in Kuala Lumpur last month kicked over a hornet’s nest of diplomats, zipping everywhere with threats, recriminations, and denials. The fact that Pyongyang tested multiple ballistic missiles on March 6, which splashed down in Japan’s exclusive economic zone, did precious little to alleviate international concerns. Among the more significant reactions buzzing about is the United States’ review of North Korea’s rumored involvement in the assassination — and whether this act justifies placing the Hermit Kingdom back on the list of state sponsors of terrorism.
While finding itself on the list for the first time since 2008 would be painful, the sting would pale in comparison to the deep wound the People’s Republic of China has inflicted upon Pyongyang when it announced it will not be buying coal from the country for the remainder of the year. Pyongyang is overtly reliant on coal exports to fuel its economy and finance its $800 million negative trade balance, and China buys 90 percent of the North’s exports. Of course, China’s move wasn’t quite so straightforward: just before issuing the ban, Beijing openly breached UN caps on monthly coal imports and bought almost 2 million metric tons (worth $188 million), providing Supreme Leader Kim with a much-needed cash infusion. For the record, according to the latest round of sanctions, North Korea is allowed to export just $400 million worth of coal a year.
But for all the talk of sanctions and vital revenue streams evaporating, Pyongyang doesn’t seem to be taking much notice. This year alone, North Korea tested multiple ballistic missiles, threatened to break ties with Malaysia , engaged in foreign political assassinations, and continued working on its nuclear program. How is the blacklisted regime able to finance all this?
Easily the largest operation carried out by North Korea’s secret criminal agencies has been hacking SWIFT, the industry standard allowing banks to process trillions of dollars every day in international transfers. Several reports have identified North Korean hacking group Lazarus (affiliated with Bureau #121) as complicit in high-profile breaches of the worldwide financial network.
