N. Korea sells illegal gambling websites to S. Korean criminal organization

The National Intelligence Service has uncovered a scheme wherein North Korea’s foreign currency-earning operators created thousands of illicit online gambling platforms and subsequently sold them to a criminal organization in South Korea. These North Korean operators strategically planted malicious codes within the websites, enabling the extortion of personal information from users who accessed these platforms. Collaborating with the police, the NIS investigates the Korean criminal ring that amassed substantial profits, estimated in the trillions of won, by commissioning the development of thousands of gambling websites from the North Korean entity and subsequently selling them.

The NIS has revealed that Gyonghung Information Technology, situated in Dandong, China, operates under Bureau 39 overseen by the North Korean Workers’ Party, specifically tasked with generating and overseeing secret funds earmarked for Kim Jong Un. Bureau 39 belongs to the Reconnaissance General Bureau, the North Korean state apparatus focusing predominantly on overseas activities, particularly those pertaining to South Korea.

The NIS has disclosed that the North Korean operative group conducted its activities in a dormitory of an apparel factory in Dandong, China, known as “Geumbonghwang Apparel Limited Company.” The group illicitly created online gambling websites and subsequently sold them to South Korean criminal organizations. “Under the leadership of its leader Kim Gwang Myong, 15 members, including individuals such as Jeong Ryu Song and Jeon Kwon Uk, undertook the development of various software, including gambling websites designed to appeal to both adults and teenagers, and subsequently cashed in on these websites. “Each member of the organization sent around 500 dollars to the North Korean government every month,” the NIS said.

Disguised as Chinese developers, the group purportedly garnered 5,000 dollars for each illicit online gambling website they crafted for the South Korean criminal ring. Additionally, they received a monthly wage of 3,000 dollars for the maintenance and administration of these websites. The group further benefited from an additional commission ranging from 2,000 to 5,000 dollars for an upsurge in website users. The North Korean entity utilized the managerial authority to collect personal information from users. By planting malicious code within a program designed to automatically place bets, it extracted personal information from users.

The NIS revealed that the South Korean criminal ring persisted in transactions despite being aware that their counterpart was North Koreans. The NIS explained that due to considerably lower costs, which was 30 to 50% less, of creating illicit websites, compared to South Korean and Chinese developers, the South Korean criminal organization chose to maintain their dealings with the North Korean entity.


고도예 기자 yea@donga.com