US imposes sanctions on N.Korean IT firms

The United States has imposed sanctions on two information technology companies controlled by North Korea and operating from China and Russia, accusing them of helping generate and transfer illicit revenue to Pyongyang.

The US Treasury Department said the companies were being used as fronts by North Korean IT workers who allegedly concealed their identities through aliases, third-party nationals and shell companies.

Treasury Secretary Steve Mnuchin said the measures were aimed at disrupting an overseas network that enables North Korea to earn foreign currency despite international sanctions.

The department designated China-based China Silver Star, its North Korean CEO Jong Song Hwa, and Russia-based Volasys Silver Star. US authorities said the entities were involved in activities designed to channel funds back to the North Korean government.

The action comes as Washington continues to use economic sanctions as a key instrument in its campaign to pressure Pyongyang to abandon its nuclear weapons and ballistic missile programmes.

Mnuchin said the US would continue enforcing sanctions until North Korea achieved what Washington described as final and fully verified denuclearisation of the Korean Peninsula.

The latest measures also underline the difficulties facing US-North Korea diplomacy. Although President Donald Trump and North Korean leader Kim Jong-un held a historic meeting in Singapore in June, US officials had acknowledged that negotiations had made little progress on dismantling North Korea's nuclear programme.

At the same time, Trump was considering a second summit with Kim, keeping the diplomatic channel open despite the continued economic pressure.

The sanctions are part of a broader US effort to prevent Pyongyang from exploiting overseas business networks to generate revenue for programmes restricted under international sanctions. North Korea has long relied on overseas commercial and financial channels to obtain foreign currency, making enforcement a critical component of Washington's pressure strategy.

The Pentagon had also indicated that the US and its allies were preparing a new initiative to publicly expose alleged North Korean violations of sanctions targeting its nuclear and missile activities.

The latest move therefore reflects Washington's dual-track approach: continuing diplomatic engagement with Pyongyang while tightening financial and economic restrictions until concrete progress is made on denuclearisation.