How hacking became a key weapon for sanctions-hit North Korea

The FBI has blamed North Korea for a US$6.3 billion theft from cryptocurrency exchange Binance, drawing renewed attention to the country’s expanding cyber operations. Analysts say hacking has become a major source of income for Pyongyang as international sanctions restrict its access to money, materials and technology, and may help fund weapons programmes.

South Korea’s military estimates North Korea’s cyber force has about 8,400 personnel, around 20 per cent more than two years ago. A South Korean defence analyst said the stolen sum would equal roughly one-sixth of North Korea’s annual national income, while the country’s exports last year totalled about US$420 million to US$430 million. North Korea denies involvement; Binance says it has replaced 90 per cent of the stolen amount and will cover the rest so users do not bear the cost.