Execs in Japan busted for winning dev bids then outsourcing to North Koreans

Execs in Japan busted for winning dev bids then outsourcing to North Koreans

March 28, 2024 at 02:34AM

Two executives, Pak Hyon-il and Toshiron Minomo, are facing arrest warrants in Japan for allegedly establishing a business that outsourced work to North Korean IT engineers without the knowledge of Japanese customers. The police suspect ties to North Korea’s foreign currency acquisition activities and fraudulent financial practices. Hiring North Korean workers can pose cyber security risks and contribute to illegal activities. Japan and South Korea released guidance on avoiding hiring North Korean agents. There are warning signs to look out for, such as dodgy use of IP addresses and unnatural use of the Japanese language.

Based on the meeting notes, the key takeaways are as follows:

– Two executives, Pak Hyon-il and Toshiron Minomo, have been issued arrest warrants in Japan for charges related to outsourcing work to North Korean IT engineers without the knowledge or consent of customers. This action also violated Japan’s banking act.
– The executives are accused of filing and using false electronic notarized records to inflate Robast’s registered capital, leading to potential unemployment benefit fraud.
– Hiring North Korean IT contractors may pose serious risks, including potential malware and cyber security threats, as well as contributing foreign currency to North Korea’s activities in violation of sanctions.
– The US and South Korean authorities have released guidance on identifying North Korean agents, including threats to release proprietary source code and unusual behavior such as unavailability for drug tests or in-person meetings.
– The Japanese government has issued a warning about North Korean IT contractors posing as Japanese nationals, emphasizing the potential involvement in North Korea’s malicious cyber activities and nuclear and missile development.

These takeaways highlight the legal and security implications of outsourcing work to North Korean IT engineers, as well as the potential risks associated with hiring North Korean agents for IT-related tasks.

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