[Editorial] North Korean Hacking Threatens National Security; International Cooperation and Legislation Must Be Expedited

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The theft of $6.3 billion (approximately 8.4 trillion won) from Binance, the world's largest cryptocurrency exchange, in just 20 minutes is shocking. The U.S. Federal Bureau of Investigation (FBI) has pointed to North Korea as being behind the attack. The amount stolen is more than 12 times North Korea's overseas exports last year, which totaled $470 million. North Korea is believed to operate a hacker force of around 8,000 people. We must treat this incident as a warning that threatens both people's assets and national security, and expedite international cooperation and protective legislation.

North Korea has used hacking not only to steal information but also to obtain foreign currency while evading sanctions. A U.S. blockchain analytics firm said that North Korea is believed to have been responsible for 89% of cryptocurrency stolen in hacks worldwide this year. In a recent report, Microsoft (MS) assessed that North Korea has reached the point of using artificial intelligence (AI) in its hacking operations. North Korea launders the stolen cryptocurrency and pours the proceeds into developing nuclear weapons and missiles. On October 29, it unveiled suicide drones, and on October 31, it tested a cluster warhead for tactical ballistic missiles. To deter military threats, we must first cut off the channels through which funds for weapons development are stolen, laundered and converted into cash.

A permanent system for international cooperation is needed to achieve this. Cryptocurrency can pass through multiple countries and trading networks in an instant, making recovery difficult if a country acts alone to trace it. Law enforcement agencies, exchanges, issuers and analytics firms in each country must promptly share suspicious wallet addresses and coordinate efforts to block and freeze transactions. Investment in personnel and technology capable of tracing the flow of funds to the end, even when addresses change, is also essential.

Legislation to prevent such losses must also be expedited. The current Act on the Protection of Virtual Asset Users focuses on preventing unfair trading and protecting users' assets, limiting its ability to stop organized, state-level intrusions and cross-border money laundering. First, lawmakers must accelerate the enactment of the Digital Asset Basic Act, for which the government has yet to finalize a bill. The security standards of cryptocurrency exchanges should be raised to the level required of financial institutions, and they should be required to maintain sufficient reserves and the ability to compensate customers to protect their assets. The law should also specify liability for damages and the obligation to report incidents.

This content was produced with the assistance of AI translation services.