The U.S. Treasury Department sanctioned five individuals and one entity on Thursday for helping North Korea finance its weapons programs through arms sales to Myanmar’s military regime.
The action targets overseas representatives of two UN-designated North Korean agencies who generate illicit revenue for Pyongyang’s ballistic missile and nuclear weapons development.
The sanctions disrupt a weapons pipeline between North Korea and Myanmar’s military junta, which has relied on airstrikes against civilian targets since seizing power in a 2021 coup. Treasury officials say cutting off this funding stream weakens North Korea’s ability to develop weapons that threaten the United States and its allies.
“North Korea’s unlawful weapons programs are a direct threat to America and our allies,” Under Secretary for Terrorism and Financial Intelligence John K. Hurley said in a statement. “We will continue to dismantle the financial networks that sustain them.”
At the center of the sanctions is Royal Shune Lei Company Limited, a Burmese arms procurement firm. The company first brokered weapons deals with North Korea’s primary arms dealer, Korea Mining Development Trading Corporation (KOMID), in 2022.
Since late 2023, Royal Shune Lei employees have traveled to China for meetings with KOMID representatives. They coordinated sales of aerial bomb guidance kits, bombs, and airborne monitoring equipment for Myanmar’s air force.
The Treasury designated Royal Shune Lei CEO Tin Myo Aung and employee Kyaw Thu Myo Myint for facilitating these transactions. The company’s director, Aung Ko Ko Oo, also faces sanctions.
Kim Yong Ju, deputy KOMID representative in Beijing, worked with the Burmese officials to arrange weapons sales. He helped coordinate weapons samples for testing before finalizing orders.
The sanctions also target Nam Chol Ung, an intelligence officer representing North Korea’s Reconnaissance General Bureau. Since 2013, Nam has operated multiple companies and restaurants across Laos and Thailand to launder money for Pyongyang.
His network includes import-export companies that smuggle North Korean tobacco products throughout Southeast Asia. Nam has also forged trade contracts for importing goods into North Korea.
Treasury’s action blocks all U.S. property belonging to the designated individuals and entities. American citizens cannot conduct business with them, and foreign banks risk secondary sanctions for facilitating their transactions.
The sanctions come as Myanmar’s military continues aerial attacks on civilian infrastructure. Airstrikes have destroyed schools, religious sites, and hospitals, resulting in numerous civilian deaths since the 2021 coup.
KOMID, also known as “221 General Bureau,” serves as North Korea’s principal exporter of ballistic missile components and conventional weapons. The Reconnaissance General Bureau orchestrates military and intelligence operations for the regime.
Both agencies maintain offices worldwide, establishing front companies to disguise foreign currency earnings. These funds are then channeled back to support North Korea’s weapons programs.
Treasury emphasized that sanctions aim to change behavior, not punish indefinitely. The department provides a process for designated individuals to petition for removal from sanctions lists.