North Korea Sanctions Overview
In a bid to curb North Korea's illicit activities, the United States has intensified its efforts against the country's weapons of mass destruction (WMD) and ballistic missile programs, as reflected in the latest updates of the North Korea Sanctions and Policy Enhancement Act (NKSPEA).
The U.S. government is cracking down on North Korea's various illegal revenue schemes such as cryptocurrency theft, illicit IT labor, counterfeit goods trafficking, and oil smuggling. Particular attention is on North Korean cyber operations that impersonate U.S. remote IT workers to manipulate companies worldwide, funneling funds to North Korea’s prohibited weapons programs.
Key updates include the sanctioning of individuals like Song Kum Hyok, a member of Kim Jong Un's spy agency accused of masterminding a large-scale IT worker scheme, and Gayk Asatryan, founder of a Russia-based network that contracts North Korean IT workers. Associated entities that funnel money to North Korea have also been sanctioned.
The legislation also includes provisions to recapture prior tax credits if payments are made to prohibited foreign entities within 10 years of property service. This implies enhanced enforcement mechanisms that could impact assets associated with sanctioned activities, especially regarding investments and property tied to sanction violations.
The U.S. government is offering rewards up to $15 million for information leading to arrests or convictions of key North Korean nationals involved in sanction violations. Additionally, the coordinated actions across State, Justice, and Treasury departments underscore a policy enhancement to disrupt North Korea’s financial networks and transnational criminal activities supporting its destabilizing weapons programs.
International relations between South Korea and North Korea (DPRK) have improved since March 2018, which may lead to increased economic activity between the two countries. However, the U.S. sanctions, primarily imposed by the UN and the U.S., still prohibit economic cooperation, trade of various goods such as machinery, military equipment, vehicles, industrial machinery, electrical equipment, minerals, food, wood, and textiles, and activities like opening bank accounts and bank branches for EU members.
The UN sanctions also prohibit cooperation in terms of technical and scientific activities between the UN and the DPRK. The U.S. sanctions cover a larger number of individuals and businesses than the UN sanctions due to North Korean cyber attacks against the U.S.
These updates reinforce the U.S. commitment to counter North Korea's sanctions evasion and weaponization efforts comprehensively. The improved relations may also result in more economic activity with other countries and make North Korea more appealing for entrepreneurs, but the continued sanctions present challenges for any significant economic growth.
[1] "North Korea Sanctions and Policy Enhancement Act," U.S. Department of the Treasury, accessed June 2025, [2] "U.S. Sanctions North Korean Cyber Hackers," U.S. Department of the Treasury, accessed June 2025,
- The U.S. government's move to limit North Korea's illegal revenue streams extends beyond weapons of mass destruction (WMD) and ballistic missile programs, targeting cryptocurrency theft, IT labor, counterfeit goods trafficking, oil smuggling, and cyber operations in small-business and entrepreneurship sectors.
- In tandem with efforts against North Korea's WMD programs, policy-and-legislation updates have been implemented to recapture prior tax credits for investments linked to prohibited foreign entities (such as North Korea) within a 10-year period, augmenting general-news coverage on enforcement mechanisms and sanction-violations.
- The ongoing war-and-conflicts between North Korea and various nations have led to extensive sanctions, not only from the U.S. but also the UN. These sanctions prohibit economic cooperation, trade, and bank transactions, making it difficult for businesses, including small-business owners, to form partnerships and conduct commerce with North Korea.
- Crime-and-justice aspects pertaining to North Korea include the offering of rewards up to $15 million for information leading to arrests or convictions of key nationals involved in sanction-violations, as well as the coordinated actions across State, Justice, and Treasury departments to disrupt North Korea’s financial networks and transnational criminal activities.
- Despite improved international relations between South Korea and North Korea (DPRK), the ongoing sanctions present challenges for any significant economic growth, as even minor activities like opening bank accounts or bank branches for EU members are still prohibited by the U.S. sanctions. The impact of sanctions on both politics and business sectors will continue to be subjects of general-news, policy-and-legislation, and crime-and-justice discussions.
