North Korean IT Technicians: Tools in Pyongyang's Dirty Work

It is well known that North Korea has been actively seeking foreign currency. It needs foreign funds to pay for its nuclear and missile development and to circumvent economic sanctions. Did you know, however, that a significant part of this effort involves IT technicians? These North Korean workers rank among the country's top earners.

On September 6, Osaka Prefectural Police charged an 85-year-old man with violating the Foreign Exchange and Foreign Trade Act. He had illegally exported clothing to North Korea. Payment for the clothing was reportedly made with foreign currency earned by North Korean IT technicians.

Who Are These IT Technicians?

According to the United Nations Security Council, North Korea has from 3,000-10,000 IT technicians. They work both domestically and abroad, including in China and Russia.

These technicians frequently falsify identification documents, hiding their North Korean identities to register on crowdsourcing websites. There they offer freelance IT services at rates well below the market average. Often they are hired as cheap labor to take on app and software development projects.

The low cost of North Korean IT technicians is particularly attractive to the industry. A South Korean source explains that while American freelance IT technicians charge about $100 USD per hour, North Korean technicians charge only $20 to $80 per hour. "In some cases, [their North Korean handlers] force them to work nearly around the clock. They get only a break for sleep," the source added.

Concealing Their Identities

How do North Korean IT technicians conceal their identities? Katsuhisa Furukawa, an international affairs analyst and former United Nations expert panel member, explains. In some cases, he says, they use names borrowed from collaborators. In other cases, they hijack the accounts of real individuals on business-focused social networks. Reports also indicate that there are multiple collaborators within Japan.

Furukawa also explains the risk. In recent years, he says, North Korea has been using internal information gathered by its IT technicians to carry out cyberattacks through hacker units.

This suggests that the country's efforts to acquire foreign currency rest on two main pillars: IT technicians and hacker groups.

Cyberattacks: Source of Half Its Foreign Currency

In March, the UN Security Council reported that North Korea earns approximately 50% of its foreign currency through cyberattacks. Hacker groups linked to North Korea operate globally, especially targeting cryptocurrency-related companies.

The Security Council has expressed concern. It thinks that from 2017-2023, North Korea may have amassed $3 billion (around ¥450 billion JPY) just through cyberattacks.

For private companies, also, the covert activities of North Korean IT technicians pose a significant risk of technology leaks. Also in March, Japan's National Police Agency issued a warning to businesses and organizations. In it, they explicitly highlighted the traits of North Korean IT technicians.

Furukawa emphasized, "There may be cases where North Korean IT technicians have infiltrated companies or government agencies. Heightened awareness is critical."

(Read the report in Japanese.)

Authors: Fumiya Suzuki, Mari Arikawa