The South Korean government has issued sanctions against four individuals and seven North Korean institutions, accusing them of financing "nuclear and missile development" through illegal cyber activities, including theft of cryptocurrency.
"This is the first time the South Korean government has imposed independent sanctions against North Korea in the cyber sector," said a warning of the Ministry of Foreign Affairs.
"Our goal is to raise awareness of the potential risks of trading virtual assets with North Korea by including virtual asset wallet addresses as identifying information for these sanctions targets."
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A couple of North Korean hacker groups are involved in the $100 million cryptocurrency heist of Horizon Bridge, according to the US Federal Bureau of Investigation.
A US blacklist Ethereal EUR/USD The wallet allegedly linked to the North Korean hacker group "Lazarus" was also involved in a $600 million hack last March.
The South Korean sanctions targeted individuals believed to have ties to Lazarus, including Park Jin-hyok of the Chosun Expo joint venture, which is suspected to be a front for the hacker group.
The seven institutions facing sanctions are accused of engaging in cyberattacks such as "hacking and theft of virtual assets" or training cyber experts, according to the notice.
Under South Korean regulations, trading cryptocurrency with a blacklisted entity is prohibited without prior permission from the Financial Services Commission.
The country's regulations also prohibit terrorist financing, including cryptocurrency transactions.
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