Prosecutors have indicted a South Korean man in his 50s. He led a criminal network that created and sold illegal gambling websites. He did this with help from North Korean hackers working under the Munitions Industry Department’s 313 Bureau.
A few days ago, the Seoul Central District Prosecutors’ Office indicted a man surnamed Kim. He was charged with violating the National Security Act by operating illegal gambling sites. He also violated the Act on Regulation and Punishment of Criminal Proceeds Concealment.
Kim secretly contacted hackers from the 313 Bureau who were active in China. With their help, he opened a total of 16 illegal gambling sites between 2022 and 2024. He then sold the domestically. Kim also consulted the North Korean hackers for troubleshooting issues that happened during the operation of the websites.
The North Korean hackers not only made the gambling websites for Kim, they also provided automated advertisement macro programs to promote the sites online.
Investigators confirmed that Kim exchanged 1,181 messages with two North Korean hackers over two months—between October and November 2023. He used Telegram and other platforms on his mobile phone to communicate.
Kim operated and sold illegal gambling sites in South Korea from March 2021 to August 2024, using this support. He earned an estimate of 23.5 billion won or $17.2 million by site maintenance fees and commissions on gambling credits.
The 313 Bureau oversees North Korea’s IT strategy. It typically sets up front companies in places like Dandong, China, to generate foreign currency by creating illegal software on consignment.
Kim transferred at least 7 billion won to the North Korean hackers from the 23.5 billion won he earned. Prosecutors suspect that the hackers transferred the money to the North Korean regime. It was then used by Kim Jong-un as ruling funds.
