Tag Archives: South Korea

After Trump criticism, China denies selling oil illicitly to North Korea

: A Chinese flag is seen in front of the Friendship bridge over the Yalu River connecting the North Korean town of Sinuiju and Dandong in China's Liaoning Province on April 1, 2017.

By Philip Wen and David Brunnstrom

BEIJING/WASHINGTON (Reuters) – China on Friday denied reports it has been illicitly selling oil products to North Korea after U.S. President Donald Trump said he was not happy that China had allowed oil to reach the isolated nation.

Trump said on Twitter the previous day that China had been “caught” allowing oil into North Korea and that would prevent “a friendly solution” to the crisis over North Korea’s nuclear and missile programs that it conducts in defiance of heavy U.N. Security Council sanctions.

“I have been soft on China because the only thing more important to me than trade is war,” Trump said in a separate interview with The New York Times.

South Korea’s Chosun Ilbo newspaper this week quoted South Korean government sources as saying that U.S. spy satellites had detected Chinese ships transferring oil to North Korean vessels about 30 times since October.

U.S. officials have not confirmed details of this report.

Chinese Foreign Ministry spokeswoman Hua Chunying told reporters she had noted recent media reports including suggestions a Chinese vessel was suspected of transporting oil to a North Korean vessel on Oct. 19.

“The Chinese side has conducted immediate investigation. In reality, the ship in question has, since August, not docked at a Chinese port and there is no record of it entering or leaving a Chinese port,” Hua said.

She said she was not aware if the vessel had docked at the port in other countries but the relevant media reports “did not accord with facts”.

“China has always implemented U.N. Security Council resolutions pertaining to North Korea in their entirety and fulfils its international obligations. We never allow Chinese companies and citizens to violate the resolutions,” Hua said.

“If, through investigation, it’s confirmed there are violations of the U.N. Security Council resolutions, China will deal with them seriously in accordance with laws and regulations.”

In the New York Times interview, Trump explicitly tied his administration’s trade policy with China, North Korea’s lone major ally, to its perceived cooperation in resolving the North Korea standoff.

“When I campaigned, I was very tough on China in terms of trade. They made — last year, we had a trade deficit with China of $350 billion, minimum. That doesn’t include the theft of intellectual property, O.K., which is another $300 billion,” Trump said, according to a transcript of the interview.

“If they’re helping me with North Korea, I can look at trade a little bit differently, at least for a period of time. And that’s what I’ve been doing. But when oil is going in, I’m not happy about that.”

An official with the U.S. State Department said the U.S. government was aware of vessels engaged in such activity involving refined petroleum and coal.

“We have evidence that some of the vessels engaged in these activities are owned by companies in several countries, including China,” the official said, speaking on condition of anonymity.

The United States says the full cooperation of China, North Korea’s neighbor and main trading partner, is vital to the success of efforts to rein in North Korea, while warning that all options are on the table, including military ones, in dealing with it.

China has repeatedly said it is fully enforcing all resolutions against North Korea, despite suspicion in Washington, Seoul and Tokyo that loopholes still exist.

‘EVADING SANCTIONS’

South Korea said on Friday it had seized a Hong Kong-flagged ship suspected of transferring oil to North Korea.

A senior South Korean foreign ministry official said the ship, the Lighthouse Winmore, was seized when it arrived at a South Korean port in late November.

“It’s unclear how much oil the ship had transferred to North Korea for how long and on how many occasions, but it clearly showed North Korea is engaged in evading the sanctions,” the official told Reuters.

South Korea’s customs service concluded that the Lighthouse Winmore had loaded about 14,000 tons of Japanese refined petroleum products in South Korea on Oct. 11, reportedly bound for Taiwan, the official said.

But instead, it transferred as much as 600 tons to the North Korea-flagged Sam Jong 2 on Oct. 19 in international waters between China and the Korean peninsula, on the order of its charterer, Billions Bunker Group Corp., based in Taiwan, the ministry official said.

It was not immediately possible to find contact information for the company.

A spokesman for Taiwan’s presidential office, Alex Huang, said the company was not incorporated in Taiwan.

“As a responsible member of international society, Taiwan will continue to fully comply with all U.N. sanctions against North Korea, in order to support peace and stability in the region,” he said in a statement.

The Hong Kong government said it was “liaising with the Korean parties concerned to obtain further information about the incident, and will take appropriate actions as necessary”.

Employees at the office of Lighthouse Ship Management, the ship’s registered manager, in the Chinese port city of Guangzhou, declined to comment and said they had no knowledge of the situation.

China’s foreign ministry spokeswoman said she did not have any information about the matter.

Both ships were among 10 vessels that the United States had proposed that the U.N. Security Council should blacklist for transporting banned items from North Korea, documents seen by Reuters this month showed.

China and Russia subsequently asked for more time to consider the U.S. proposal.

Ship tracking data in Thomson Reuters Eikon shows that the Lighthouse Winmore has mainly been doing supply runs between China and Taiwan since August.

Prior to that, it was active between India and the United Arab Emirates. In October, when it allegedly transferred petroleum products to the North Korean ship, the Lighthouse Winmore had its tracking transponder switched off.

The Trump administration has led a drive to step up global sanctions on North Korea in response to its efforts to develop nuclear-tipped missiles capable of hitting the United States.

The U.N. Security Council last week unanimously imposed new sanctions on North Korea for a recent intercontinental ballistic missile (ICBM) test, seeking to further limit its access to refined petroleum products and crude oil.

The U.S.-drafted U.N. resolution seeks to ban nearly 90 percent of refined petroleum exports to North Korea by capping them at 500,000 barrels a year.

It also caps crude oil supplies to North Korea at 4 million barrels a year and commits the Security Council to further cuts if North Korea conducts another nuclear or intercontinental ballistic missile test.

In September, the Security Council put a cap of 2 million barrels a year on refined petroleum products exports to North Korea.

(Additional reporting by Hyonhee Shin and Josh Smith in Seoul, Venus Wu and Tyrone Siu in Hong Kong and Brenda Goh in Shanghai; Writing by Ben Blanchard; Editing by Robert Birsel and Nick Macfie)

Trump says ‘disappointed’ China allowing oil into North Korea

U.S. President Donald Trump gives a thumbs-up to reporters as he boards Air Force One for travel to Palm Beach from Joint Base Andrews, Maryland, U.S., December 22, 2017

WASHINGTON (Reuters) – U.S. President Donald Trump on Thursday said he was “very disappointed that China is allowing oil to go into North Korea” and that such moves would prevent “a friendly solution” to the crisis over Pyongyang’s nuclear program.

“Caught RED HANDED – very disappointed that China is allowing oil to go into North Korea. There will never be a friendly solution to the North Korea problem if this continues to happen!” Trump wrote in a post on Twitter.

China earlier on Thursday said there had been no U.N. sanction-breaking oil sales by Chinese ships to North Korea after a South Korea newspaper said Chinese and North Korean vessels had been illicitly linking up at sea to get oil to North Korea.

(Reporting by Susan HeaveyEditing by Chizu Nomiyama)

U.S. sanctions North Korean missile experts, Russia offers to mediate

People watch a television broadcast of a news report on North Korea firing what appeared to be an intercontinental ballistic missile (ICBM) that landed close to Japan, in Seoul, South Korea, November 29, 2017

By David Brunnstrom and Denis Pinchuk

WASHINGTON/MOSCOW (Reuters) – The United States announced sanctions on two of North Korea’s most prominent officials behind its ballistic missile program on Tuesday, while Russia reiterated an offer to mediate to ease tension between Washington and Pyongyang.

The new U.S. steps were the latest in a campaign aimed at forcing North Korea – which has defied years of multilateral and bilateral sanctions – to abandon a weapons program aimed at developing nuclear-tipped missiles capable of hitting the United States.

“Treasury is targeting leaders of North Korea’s ballistic missile programs, as part of our maximum pressure campaign to isolate (North Korea) and achieve a fully denuclearized Korean Peninsula,” Treasury Secretary Steven Mnuchin said in a statement.

The move followed new United Nations sanctions announced last Friday in response to North Korea’s Nov. 29 test of an ICBM that Pyongyang said put all of the U.S. mainland within range of its nuclear weapons. Those sanctions sought to further limit North Korea’s access to refined petroleum products and crude oil and its earnings from workers abroad.

North Korea declared the U.N. steps to be an act of war and tantamount to a complete economic blockade.

The standoff between the United States and North Korea has raised fears of a new conflict on the Korean peninsula, which has remained in a technical state of war since the 1950-53 Korean War ended in an armistice, not a peace treaty.

The United States has said that all options, including military ones, are on the table in dealing with North Korea. It says it prefers a diplomatic solution, but that North Korea has given no indication it is willing to discuss denuclearization.

LEADING EXPERTS

The U.S. Treasury named the targeted officials as Kim Jong Sik and Ri Pyong Chol. It said Kim was reportedly a major figure in North Korea’s efforts to switch its missile program from liquid to solid fuel, while Ri was reported to be a key official in its intercontinental ballistic missile (ICBM) development.

The largely symbolic steps block any property or interests the two might have within U.S. jurisdiction and prohibit any dealings by U.S. citizens with them.

With their ruling Workers Party, military and scientific credentials, the men are two of three top experts considered indispensable to North Korea’s rapidly developing weapons programs.

Photographs and television footage show that the men are clearly among North Korean leader Kim Jong Un’s favorites. Their behavior with him is sharply at variance with the obsequiousness of other senior aides, most of whom bow and hold their hands over their mouths when speaking to the young leader.

Ri is one of the most prominent aides, and likely represents the Workers Party on the missile program, experts say.

Born in 1948, Ri was partly educated in Russia and promoted when Kim Jong Un started to rise through the ranks in the late 2000s.

Ri has visited China once and Russia twice. He met China’s defense minister in 2008 as the air force commander and accompanied Kim Jong Il on a visit to a Russian fighter jet factory in 2011, according to state media.

Kim Jong Sik is a prominent rocket scientist who rose after playing a role in North Korea’s first successful launch of a rocket in 2012.

He started his career as a civilian aeronautics technician, but now wears the uniform of a military general at the Munitions Industry Department, according to experts and the South Korean government.

Many other details, including his age, are not known.

KREMLIN OFFER

On Tuesday, the Kremlin, which has long called for the United States and North Korea to negotiate, said it was ready to act as a mediator if the two sides were willing for it to play such a role.

“Russia’s readiness to clear the way for de-escalation is obvious,” Kremlin spokesman Dmitry Peskov told reporters.

Asked to comment on the offer, a spokesman for the U.S. State Department, Justin Higgins, said the United States “has the ability to communicate with North Korea through a variety of diplomatic channels”, and added:

“We want the North Korean regime to understand that there is a different path that it can choose, however it is up to North Korea to change course and return to credible negotiations.”

Russian Foreign Minister Sergei Lavrov, who made a similar offer on Monday, told U.S. Secretary of State Rex Tillerson in a phone call on Tuesday that “Washington’s aggressive rhetoric” and beefing up of its military presence in the region had heightened tension and was unacceptable, his ministry said.

Lavrov underscored the need for “the fastest move to the negotiating process from the language of sanctions”, it said.

Another U.S. State Department spokesman, Michael Cavey, said Washington remained open to talks, but the onus was on North Korea “to take sincere and meaningful actions toward denuclearization and refrain from further provocations.”

South Korea’s Unification Ministry forecast on Tuesday that North Korea would look to open negotiations with the United States next year while continuing to seek recognition as a de facto nuclear power.

The United States has stressed the need for all countries, especially Russia, and China – North Korea’s main trading partner – to fully implement sanctions, including by cutting off oil supplies.

According to Chinese customs data, China exported no oil products to North Korea in November, apparently going above and beyond U.N. sanctions imposed earlier in the year.

China also imported no North Korean iron ore, coal or lead in November, the second full month of those trade sanctions, the data showed.

China has not disclosed its crude exports to North Korea for several years, but industry sources say it still supplies about 520,000 tonnes, or 3.8 million barrels, a year to the country via an aging pipeline.

North Korea also sources some of its oil from Russia.

Trade between North Korea and China has slowed through the year, particularly after China banned coal purchases in February.

Chinese exports of corn to North Korea in November also slumped, down 82 percent from a year earlier to 100 tonnes, the lowest since January. Exports of rice plunged 64 percent to 672 tonnes, the lowest since March.

(Reporting by Denis Pinchuk and Vladimir Soldatkin in Moscow; Additional reporting by Susan Heavey in Washington; Writing by Polina Ivanova; Editing by Alistair Bell and James Dalgleish)

North Korean defectors may have been exposed to radiation, says South

A North Korean flag flies on a mast at the Permanent Mission of North Korea in Geneva October 2, 2014.

By Yuna Park

SEOUL (Reuters) – At least four defectors from North Korea have shown signs of radiation exposure, the South Korean government said on Wednesday, although researchers could not confirm if they were was related to Pyongyang’s nuclear weapons program.

The four are among 30 former residents of Kilju county, an area in North Korea that includes the nuclear test site Punggye-ri, who have been examined by the South Korean government since October, a month after the North conducted its sixth and most powerful nuclear test, Unification Ministry spokesman Baik Tae-hyun told a news briefing.

They were exposed to radiation between May 2009 and January 2013, and all defected to the South before the most recent test, a researcher at the Korea Atomic Energy Research Institute, which carried out the examinations, told reporters.

North Korea has conducted six nuclear bomb tests since 2006, all in tunnels deep beneath the mountains of Punggye-ri, in defiance of U.N. Security Council resolutions and international condemnation.

The researcher cautioned that there were a number of ways people may be exposed to radiation, and that none of the defectors who lived had lived in Punggye-ri itself showed specific symptoms.

A series of small earthquakes in the wake of the last test – which the North claimed to be of a hydrogen bomb – prompted suspicions that it may have damaged the mountainous location in the northwest tip of the country.

Experts warned that further tests in the area could risk radioactive pollution.

After the Sept. 3 nuclear test, China’s Nuclear Safety Administration said it had begun emergency monitoring for radiation along its border with North Korea.

And in early December, a state-run newspaper in China’s Jilin province, which borders North Korea and Russia, published a page of “common sense” advice on how readers can protect themselves from a nuclear weapons attack or explosion.

Cartoon illustrations of ways to dispel radioactive contamination were also provided, such as using water to wash off shoes and using cotton buds to clean ears, as well as a picture of a vomiting child to show how medical help can be sought to speed the expulsion of radiation through stomach pumping and induced urination.

(Writing by Josh Smith; Editing by Nick Macfie)

North Korea likely to pursue talks, South says in rosy New Year forecast

South Korean soldiers patrol along a barbed-wire fence near the militarized zone separating the two Koreas, in Paju, South Korea, December 21, 2017

By Haejin Choi

SEOUL (Reuters) – South Korea predicted on Tuesday that North Korea would look to open negotiations with the United States next year in an optimistic outlook for 2018, even as Seoul set up a specialized military team to confront nuclear threats from the North.

The U.N. Security Council unanimously imposed new, tougher sanctions on reclusive North Korea on Friday for its recent intercontinental ballistic missile test, a move the North branded an economic blockade and act of war.

“North Korea will seek negotiation with United States, while continuing to pursue its effort to be recognized as a de facto nuclear-possessing country,” South Korea’s Unification Ministry said in a report, without offering any reasons for its conclusion.

The Ministry of Defence said it would assign four units to operate under a new official overseeing North Korea policy, aimed to “deter and respond to North Korea’s nuclear and missile threat”.

Tensions have risen over North Korea’s nuclear and missile programs, which it pursues in defiance of years of U.N. Security Council resolutions, with bellicose rhetoric coming from both Pyongyang and the White House.

U.S. diplomats have made clear they are seeking a diplomatic solution but President Donald Trump has derided talks as useless and said Pyongyang must commit to giving up its nuclear weapons before any talks can begin.

In a statement carried by the official KCNA news agency, North Korea said the United States was terrified by its nuclear force and was getting “more and more frenzied in the moves to impose the harshest-ever sanctions and pressure on our country”.

China, the North’s lone major ally, and Russia both supported the latest U.N. sanctions, which seek to limit the North’s access to refined petroleum products and crude oil and its earnings from workers abroad, while on Monday Chinese Foreign Ministry spokeswoman Hua Chunying called for all countries to ease tension.

On Tuesday, Beijing released customs data indicating China exported no oil products to North Korea in November, apparently going over and beyond U.N. sanctions.

China, the main source of North Korea’s fuel, did not export any gasoline, jet fuel, diesel or fuel oil to its neighbor last month, data from the General Administration of Customs showed.

China also imported no iron ore, coal or lead from North Korea in November.

In its 2018 forecast, South Korea’s Unification Ministry said it believed the North would eventually find ways to blunt the effects of the sanctions.

“Countermeasures will be orchestrated to deal with the effects, including cuts in trade volume and foreign currency inflow, lack of supplies, and reduced production in each part of the economy,” the report said.

The latest round of sanctions was prompted by the Nov. 29 test of what North Korea said was an intercontinental ballistic missile that put the U.S. mainland within range of its nuclear weapons.

The Joongang Ilbo Daily newspaper, citing an unnamed South Korean government official, reported on Tuesday that North Korea could also be preparing to launch a satellite into space.

Experts have said such launches are likely aimed at further developing the North’s ballistic missile technology, and as such would be prohibited under U.N. resolutions.

The North Korean Rodong Sinmun newspaper said on Monday saying that “peaceful space development is a legitimate right of a sovereign state”.

North Korea regularly threatens to destroy South Korea, the United States and Japan, and says its weapons are necessary to counter U.S. aggression.

The United States stations 28,500 troops in the South, a legacy of the 1950-53 Korean War, and regularly carries out military exercises with the South, which the North sees as preparations for invasion.

(Additional reporting by Muyu Xu and Ryan Woo in Beijing; Writing by Josh Smith; Editing by Nick Macfie)

South Korea says delay in military drills aimed only at ensuring peaceful Olympics

South Korean and U.S. Marines take part in a winter military drill in Pyeongchang, South Korea, December 19, 2017. REUTERS/Kim Hong-Ji

By Josh Smith

SEOUL (Reuters) – South Korean officials said on Wednesday a proposed delay in military drills with the United States was aimed at ensuring a peaceful 2018 Winter Olympics, not ending the North Korean missile crisis, as relations with China suffered new setbacks.

South Korean President Moon Jae-in is seeking to soothe relations with North Korea, which is pursuing nuclear and missile programmes in defiance of U.N. sanctions, and with China, the North’s lone major ally, before the Games begin in South Korea in February.

China, which hosted years of on-again-off-again six-party talks to try to end the North Korea standoff, resumed some blocks on group tours to South Korea, industry sources said, and rebuked Seoul for firing warning shots at Chinese fishing boats

On Tuesday, Moon, who visited China last week, said he had proposed postponing major military drills with the United States until after the Games, a move his office said was designed to reassure athletes and spectators.

“This is confined to our efforts to host a peaceful Olympics,” an official from the presidential Blue House said. “We are only talking about the exercises which are supposed to take place during the Olympics and Paralympics.”

North Korea sees the regular joint exercises as preparation for war, while China is still angry about the deployment of a U.S. anti-missile system, commonly known as THAAD, by South Korea, whose powerful radar it fears could see deep inside its territory.

The South argues it needs THAAD to guard against the threat posed by North Korea, which regularly threatens to destroy South Korea, Japan and the United States.

For a graphic on North Korea’s missile launches, click http://tmsnrt.rs/2j2S5T3

The proposed delay in drills was discussed during a summit last week between Moon and Chinese President Xi Jinping, after the proposal had already been submitted to the Americans, the Blue House official said.

China and Russia have proposed a “freeze for freeze” arrangement under which North Korea would stop its nuclear and missile tests in exchange for a halt to the exercises. However, the official denied the proposed delay had anything to do with the freeze idea.

U.S. Secretary of State Rex Tillerson said in Ottawa on Tuesday he was unaware of any plans to “alter longstanding and scheduled and regular military exercises”.

North Korea has stepped up its missile and nuclear tests at an unprecedented rate this year, and any new provocation from the North would “inevitably have an impact” on the exercises, the Blue House official said.

“It is a display of the president’s strong message that North Korea must not conduct any provocation (during the Olympics),” the official told reporters.

South Korean and U.S. Marines take part in a winter military drill in Pyeongchang, South Korea, December 19, 2017. REUTERS/Kim Hong-Ji

South Korean and U.S. Marines take part in a winter military drill in Pyeongchang, South Korea, December 19, 2017. REUTERS/Kim Hong-Ji

“BIOLOGICAL EXPERIMENTS”

Japan’s Asahi newspaper reported on Wednesday, citing an unidentified person connected to South Korean intelligence, that North Korea was conducting biological experiments to test the possibility of loading anthrax-laden warheads on its intercontinental ballistic missiles.

The Asahi report said the U.S. government was aware of the tests, which were meant to ascertain whether the anthrax bacteria could survive the high temperatures that occur during warheads’ re-entry from space.

Reuters was unable to verify the report independently.

In a statement released by state media, North Korea’s Ministry of Foreign Affairs called reports it was developing biological weapons “nonsense” designed to provoke nuclear war.

The United States has given China a draft resolution for tougher U.N. sanctions on North Korea and is hoping for a quick vote on it by the U.N. Security Council, a Western diplomat said on Tuesday, however Beijing has yet to sign on.

When asked about the U.S. resolution at a press briefing on Wednesday, Chinese Foreign Ministry spokeswoman Hua Chunying would only say that China always takes a responsible and constructive attitude towards Security Council talks on North Korea.

The United States has also called on the Security Council to blacklist 10 ships for circumventing sanctions on North Korea. Hua said China had received the proposal from the United States.

WARNING SHOTS

China has resumed at least some restrictions on group tours into the South, South Korea’s inbound travel agency said. The restrictions were first in place last year as part of China’s retaliation over THAAD deployment.

“I was told from my boss this morning that our Chinese partners (based in Beijing and Shandong) said they won’t send group tourists to South Korea as of January,” the official from Naeil Tour Agency told Reuters by phone.

One source in China said the reason for reinstating the ban was to rein in overly aggressive tour operators who had been rolling out package deals to South Korea too quickly in the eyes of authorities.

Foreign ministry spokeswoman Hua told reporters she had not heard of a tourism ban, but she reiterated that Moon’s visit to Beijing was successful and that China has an open attitude towards exchanges and cooperation in all areas.

Beijing has never officially confirmed restrictions on tourism.

Three representatives at Beijing travel agencies told Reuters that they were not currently organising group tours to South Korea. One confirmed that the tourism administration had issued the notice, while a third said: “At the moment we have no group trips to South Korea.”

A travel agency in the northern province of Shandong also said it could not organise group trips. Three others said they could, but with restrictions such as on the number of people.

South Korea’s coast guard said on Wednesday it had fired around 250 warning shots on Tuesday to chase away a fleet of 44 Chinese boats fortified with iron bars and steel mesh that were fishing illegally in South Korean waters.

“The Chinese fishing boats sought to swarm around and collide with our patrol ship, ignoring the broadcast warnings,” the coast guard said in a statement.

China, which has in the past lodged diplomatic protests to South Korea over the use of force by its coast guard, expressed “serious concern” about the latest clash.

(For a graphic on rocket science, click http://tmsnrt.rs/2t6WEPL)

(Reporting by Dahee Kim, Hyonhee Shin, Heekyong Yang and Yuna Park in SEOUL, Tim Kelly in TOKYO, Adam Jourdan in SHANGHAI, and Pei Li, Gao Liangping and Ben Blanchard in BEIJING; Editing by Paul Tait and Nick Macfie)

Japan, South Korea urge China to do more to halt North Korea’s weapons programs

Japan, South Korea urge China to do more to halt North Korea's weapons programs

By Kiyoshi Takenaka

TOKYO (Reuters) – U.S. allies Japan and South Korea urged China to do more to get North Korea to end its nuclear and missile programmes, Japanese Foreign Minister Taro Kono said on Tuesday amid a tense standoff between North Korea and the United States.

Reclusive North Korea has boasted of developing a missile capable of carrying a nuclear warhead and reaching the mainland United States in defiance of U.N. Security Council resolutions and international condemnation, including from its lone major ally, China.

“We agreed that it is necessary to ask China to play even more of a role,” Kono said after talks with South Korean Foreign Minister Kang Kyung-wha.

Kono said China was implementing Security Council resolutions on North Korea but said it could do more, including adding “pressure” on Pyongyang.

North Korea has regularly threatened to destroy the United States, Japan and South Korea and has fired missiles over Japan in recent tests. China routinely says it is meeting its Security Council obligations on North Korea and urges “all sides” in the dispute to pursue dialogue.

The United States has also pressured China and other nations to cut trade and diplomatic ties with North Korea as part of international efforts to dry up Pyongyang’s illegal cash flows that could fund its weapons programmes.

The U.S. Navy’s top officer said on Tuesday said that vessels from eastern Pacific could be brought forward to reinforce U.S. naval power in Asia as Washington contends with increased threats in the region.

North Korea has defended its weapons programmes as necessary to counter U.S. aggression and sees the military drills the United States holds with South Korea and Japan as preludes to invasion. The United States stations 28,500 troops in the South, a legacy of the 1950-53 Korean War.

China and Russia have proposed that the United States and South Korea stop major military exercises in exchange for North Korea halting its weapons programmes.

U.S. President Donald Trump and North Korean leader Kim Jong Un have exchanged bellicose rhetoric in recent weeks, with Trump threatening to destroy North Korea if provoked, while U.S. diplomats have stressed the importance of diplomacy.

Trump on Monday unveiled a new national security strategy, again saying Washington had to deal with the challenge posed by North Korea.

Japan and South Korea are seeking to boost cooperation over North Korea, despite lingering tension between them over the issue of “comfort women”, a Japanese euphemism for women – many of them Korean – forced to work in Japanese military brothels before and during World War Two.

Researchers say a series of recent cyber attacks has netted North Korean hackers millions of dollars in virtual currencies like bitcoin, with more attacks expected as international sanctions drive the country to seek new sources of cash.

North Korea’s government-backed hackers have been blamed for a rising number of cyber attacks, including the so-called WannaCry cyber attack that crippled hospitals, banks and other companies across the globe this year.

(Additional reporting by Josh Smith in Seoul and Jeremy Wagstaff in Singapore; Writing by Linda Sieg and Nick Macfie)

North Korean hackers behind attacks on cryptocurrency exchanges

A coin representing the bitcoin cryptocurrency is seen on computer circuit boards in this illustration picture

SEOUL (Reuters) – South Korea’s spy agency said North Korean hackers were behind attacks on cryptocurrency exchanges this year in which some 7.6 billion won ($6.99 million) worth of cryptocurrencies were stolen, a newspaper reported on Saturday.

The cyber attacks attributed to North Korean hackers also included the leaking of personal information from 36,000 accounts from the world’s busiest cryptocurrency exchange Bitthumb in June, South Korea’s Chosun Ilbo reported, citing the country’s National Intelligence Service (NIS).

Attacks also included the theft of cryptocurrencies from accounts at exchanges Yapizon, now called Youbit, and Coinis in April and September, it said.

The 7.6 billion won of stolen cryptocurrencies are now worth about 90 billion won ($82.7 million), Chosun Ilbo reported. It also cited the NIS as saying North Korean hackers had also demanded 6 billion won ($5.5 million) from Bitthumb in return for deleting the leaked personal information.

Another cyber attack on about 10 cryptocurrency exchanges by North Korean hackers in October, using emails containing malware, was thwarted by the Korea Internet Security Agency (KISA), the newspaper reported.

The NIS found that the malware used in hacking the exchanges was made with the same method as malware used in hacking Sony Pictures and the central bank of Bangladesh in 2014 and 2016 respectively, the Chosun Ilbo reported.

The NIS also said emails used in the attacks used North Korean internet addresses, according to the Chosun Ilbo.

The NIS declined to comment. Representatives for KISA, Bitthumb, Youbit and Coinis could not be reached for comment.

($1 = 1,087.9500 won)

(Reporting by Joyce Lee and Heekyong Yang; Editing by Paul Tait)

South Korea conducts anti-terror drills ahead of Winter Games

South Korea conducts anti-terror drills ahead of Winter Games

PYEONGCHANG, South Korea (Reuters) – Set to host the Winter Olympics in February, South Korea conducted a series of security drills on Tuesday to prepare against terror attacks ranging from a hostage situation, a vehicle ramming a stadium and a bomb-attached to a drone.

Police and firemen were among around 420 personnel participating in the exercise, held in front of the Olympic Stadium at Pyeongchang, just 80 km (50 miles) from the heavily fortified border with North Korea.

During the simulated drills, members of a SWAT team shot down a drone with a bomb attached that was flying toward a bus carrying athletes.

In another part of the mock exercise a terrorist took hostage athletes on a bus, and tried to ram the vehicle into the stadium before being gunned down by police. Officers in gas masks also removed a chemical bomb.

Anxiety on the Korean Peninsula has been rising in recent months due to a series of missile tests by North Korea as it continues its pursuit of nuclear weapons in defiance of U.N. sanctions and warnings from the United States.

“Please keep in mind that accidents always happen where no one has expected,” South Korean Prime Minister Lee Nak-yon said.

“Please check until the last minute whether there are any security loopholes.”

Lee did not mention North Korea, but South Korea’s Defense Ministry on Friday flagged risks that North Korea could resort to terrorist or cyber attacks to spoil international events.

Some 5,000 armed forces personnel will be deployed at the Winter Games, according to South Korean government officials and documents reviewed by Reuters.

Pyeongchang’s organizing committee for the 2018 Games (POCOG) has also hired a private cyber security company to guard against a hacking attack from the North, tender documents show.

To minimize the risk of provoking an aggressive North Korean reaction during the games, South Korea has asked Washington to delay regular joint military exercises until after the Olympics, the Financial Times reported. A spokesman for South Korea’s defense ministry said on Tuesday that nothing has been decided.

(Reporting by Choi Jiwon and Hyunjoo Jin; Editing by Simon Cameron-Moore)

Japan, U.S., South Korea to hold missile tracking drill amid North Korea crisis

North Korean leader Kim Jong Un gives field guidance to various units in Samjiyon County, in this photo released by North Korea's Korean Central News Agency (KCNA) in Pyongyang

TOKYO (Reuters) – The United States, Japan and South Korea will hold two days of missile tracking drills starting on Monday, Japan’s Maritime Self-Defence Force said, as tensions rise in the region over North Korea’s fast-developing weapons programmes.

The United States and South Korea conducted large-scale military drills last week, which the North said made the outbreak of war “an established fact”.

North Korea has fired missiles over Japan as it pursues nuclear weapons and ballistic missiles in defiance of U.N. sanctions and international condemnation. On Nov. 29, it test-fired an intercontinental ballistic missile which it said was its most advanced yet, capable of reaching the mainland United States.

This week’s exercises will be the sixth drills sharing information in tracking ballistic missiles among the three nations, the defence force said.

It did not say whether the controversial THAAD system would be involved. The installation of the U.S. Terminal High Altitude Area Defense system in South Korea has angered China, which fears its powerful radar could look deep into China and threaten its own security.

North Korea’s missile test last month prompted a U.S. warning that North Korea’s leadership would be “utterly destroyed” if war were to break out. The Pentagon has mounted repeated shows of force after North Korean tests.

The United States has also pressured China and other nations to cut trade and diplomatic ties with North Korea, as part of international efforts to dry up Pyongyang’s illegal cash flows that could fund its weapons programmes.

On Sunday, South Korea said it would impose new unilateral sanctions on 20 institutions and a dozen individuals in North Korea, barring any financial transactions between those sanctioned and any South Koreans.

“This unilateral sanction will prevent illegal funds flowing to North Korea and contribute to reinforce international communities’ sanctions against North Korea,” South Korea’s finance ministry said in a statement.

The move is largely symbolic as trade and financial exchanges between the two Koreas have been barred since May 2010 following the torpedoing of a South Korean warship, which the North denied.

Japanese Defence Minister Itsunori Onodera said the ministry plans to include 730 million yen ($6.4 million) to help build a new missile interceptor system, the Aegis Ashore, in its next fiscal year budget request, public broadcaster NHK reported.

North Korea regularly threatens to destroy South Korea, Japan and the United States and says its weapons programmes are necessary to counter U.S. aggression. The United States stations 28,500 troops in the South, a legacy of the 1950-53 Korean War.

($1 = 113.4800 yen)

(Reporting by Kaori Kaneko, additional reporting by Haejin Choi in SEOUL, Editing by Nick Macfie)