On October 29, a hacking incident at Binance, the world's largest cryptocurrency exchange, is estimated to have resulted in losses of $6.3 billion, approximately 8.4 trillion won. This marks the largest cryptocurrency theft in history. Two days later, the FBI officially announced that the hacking was carried out by the North Korean hacking group 'TraderTraitor.' North Korea's cyber attacks have reached a level that threatens the international financial order.
This is not just a foreign issue. In a police investigation in 2024, it was confirmed that North Korean hacking groups infiltrated over ten domestic defense companies to steal technical data. Last month, it was revealed that North Korean IT personnel had disguised their identities to gain employment at domestic firms. Artificial intelligence (AI) is also being utilized in these attacks. According to Microsoft, North Korean hackers have created over 100 phishing documents targeting South Koreans using AI. The methods and scale of these attacks are evolving simultaneously.
The international community has warned that North Korea is using the stolen virtual assets to fund its nuclear and missile development. This implies that money stolen from financial markets could return as funding for military threats. North Korea's hacking is not merely a financial crime; it is a national security issue.
Is the Lee Jae-myung administration adequately responding to North Korea's hacking? International cooperation is essential to prevent cyber attacks. However, at the fifth meeting of the South Korea-U.S.-Japan working group on North Korean cyber threats held in Washington in June, the National Intelligence Service was excluded for the first time, reportedly at the request of the United States.
Signs of a rift in South Korea-U.S. intelligence cooperation were detected earlier. In March, when Jeong Dong-young, the Minister of Unification, publicly mentioned North Korea's uranium enrichment facilities, the U.S. immediately raised concerns. Subsequently, some intelligence sharing regarding North Korea was restricted. Minister Jeong argued that the information was already public, and President Lee defended this stance. However, on October 29, Lee Jong-seok, the head of the National Intelligence Service, acknowledged during a parliamentary audit that restrictions on sharing certain satellite imagery information still remain. While the National Intelligence Service stated that there are no issues in other areas of cooperation, the fact remains that there have been disruptions in the crucial South Korea-U.S. intelligence cooperation needed to respond to North Korean hacking.
A more significant issue is the differing perceptions within the Lee Jae-myung administration regarding North Korea policy. During a National Security Council meeting on October 1, Foreign Minister Park Jin proposed independent sanctions against North Korea's illegal cyber activities, but Minister Jeong opposed this. He claimed during the parliamentary audit that “the policy of peaceful coexistence and sanctions cannot coexist.”
Minister Jeong judged that there is insufficient correlation between landmine explosion incidents and cyber sanctions. However, if the two are unrelated, the hacking issue can be sanctioned separately. Peaceful coexistence cannot be a reason to absolve North Korea of its illegal actions. Dialogue and sanctions are not mutually exclusive.
Efforts to reduce military tensions and secure channels for dialogue are necessary. In fact, following the cessation of loudspeaker broadcasts, North Korea also halted its noise broadcasts toward the South. However, North Korea has rejected proposals for inter-Korean dialogue and is expanding its nuclear and missile capabilities. Cyber attacks are also ongoing. If the adversary's attitude does not change while our government's proactive measures are merely repeated, we must evaluate the effectiveness and limitations of that policy.
North Korean hackers do not wait for dialogue. They infiltrate companies, seek vulnerabilities in financial networks, and launder stolen funds. The Lee Jae-myung administration must also respond. Has South Korea-U.S. intelligence cooperation been restored to normal? How effectively has North Korea's illegal funding been curtailed? How is the policy of peaceful coexistence responding to the actual changes in the security environment?
While peaceful coexistence may be a goal of North Korea policy, it cannot replace the principles of national security. President Lee referred to the incident where South Korean soldiers were injured due to a North Korean landmine explosion as an “unfortunate accident.” Minister Jeong argued that landmines are “defensive weapons,” claiming that the term “attack” is difficult to establish. If the threat from North Korea is a “reality,” but the government's response remains confined to the “justification of peaceful coexistence,” how will the safety of the nation's assets and security be protected?
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.