North Korean Hacker Collaborates on Illegal Gambling Site, Arrested in South Korea
A man identified as Kim, who allegedly orchestrated the creation and distribution of illegal gambling websites in South Korea with North Korean hackers, has been confirmed to have been in contact with these hackers since 2009. According to prosecutors, Kim established a close relationship with North Korean hackers 16 years ago, which laid the groundwork for his recent criminal activities.
The indictment submitted by the Ministry of Justice to the office of National Assembly member Joo Jin-woo reveals that in January 2009, Kim received auto-programs created by hackers from North Korea's Reconnaissance General Bureau, who had hacked popular online RPG games in South Korea. He sold these programs to domestic users for 7 million won each. These auto-programs are designed to automate gameplay, allowing users to acquire in-game items without manual effort. During this time, Kim recognized that the hacker team was operating abroad, including in China, under the direction of North Korean authorities to generate foreign currency.
In January 2012, Kim was sentenced to 10 months in prison, suspended for two years, for his involvement in selling these auto-programs. However, in 2016, he decided to exploit North Korean hackers again for profit. He met with a North Korean hacker, referred to as A, in Yanji, China, and commissioned the development of four mobile gambling games, planning to design and supply a gambling site to South Korea. Although A returned to North Korea in August 2019, Kim continued to collaborate with successors introduced by A to develop and maintain a comprehensive gambling site.
The National Intelligence Service began an investigation in January 2023 after receiving intelligence, and in November of the same year, the Seoul Metropolitan Police Agency conducted a search of Kim's residence. Kim was arrested on April 30, and the Seoul Central District Prosecutors' Office charged him with violating the National Security Law and establishing a gambling house on May 26. Prosecutors estimate that the criminal proceeds sent through proxy accounts by Kim and the North Korean hackers amount to approximately 23.5 billion won, with about 30% (7 billion won) believed to have been transferred to the North Korean hackers, ultimately benefiting the North Korean regime. Kim reportedly earned around 1.28 billion won from maintenance fees and game money commissions from the gambling site.
Joo Jin-woo stated, "This case involves creating an illegal gambling site in collaboration with North Korean hackers, with profits flowing to North Korea. Such acts that jeopardize national security and involve remittances to North Korea must be punished severely."
