Individual Charged in South Korea for Alleged Involvement with Gambling Websites Tied to North Korea
A South Korean man, identified by the surname Kim, has been indicted for operating a network of illegal online gambling sites with the support of North Korean hackers. As reported by Korea Joongang Daily, authorities in the Seoul Central District Prosecutors' Office have accused Kim of violating the National Security Act, engaging in unlawful gambling operations, and concealing criminal earnings.
The investigation revealed that Kim worked in coordination with hackers affiliated with North Korea's 313 Bureau, a unit within the Munitions Industry Department known for cyber operations and generating foreign currency through illicit activities. The hackers, active in China, assisted Kim in launching, managing, and eventually selling 16 gambling websites to domestic operators. Their services extended beyond technical support, offering automated marketing tools to bolster the platforms' online presence.
South Korean authorities tracked communication between Kim and two North Korean hackers through encrypted messaging applications. During a two-month period in late 2023, they exchanged over 1,100 messages. The partnership generated profits for Kim, primarily by collecting maintenance fees and commissions from users purchasing gambling credits. Officials estimate that Kim earned 23.5 billion won (approximately $17.2 million) between March 2021 and August 2024, with at least 7 billion won ($5 million) transferred to the North Korean operatives.
Kim allegedly relocated to China to avoid detection while growing his gambling enterprise. In early 2023, South Korea's National Intelligence Service received intelligence linking a South Korean national residing in China to the distribution of illegal gambling services targeting users in South Korea. Kim was arrested upon returning to South Korea in November 2023 and was officially detained on May 7.
Investigators are currently focusing on the wider network involved in the operation and any financial connections to North Korea. The government has pledged to intensify efforts in combating online gambling and cybercrime, particularly when such activities pose a threat to national security. The 313 Bureau, which operates front companies in cities like Dandong, China, plays a central role in North Korea's IT strategy, deploying skilled operatives to create digital tools for illicit enterprises that generate revenue for the regime.
The government will continue investigating the broader network involved in the operation and any potential financial links to North Korea. This case serves as a stark reminder of the interconnectedness of illicit gambling networks and cybercriminal activities and highlights the ongoing battle against these threats to national security.
Cybersecurity authorities are intensifying their efforts to examine the role of technology in the illegal online gambling operation led by Kim, given the use of encrypted messaging applications for communication with North Korean hackers.
This case underscores the need for government agencies to monitor the intersection of politics, general-news, crime-and-justice, and technology, as cyber operations by rogue entities like North Korea's 313 Bureau can pose significant threats to national security.
