Time to talk about the invisible cyber war underway between, well, everybody in the world. Let’s begin with The Democratic People’s Republic of Korea (DPRK) or as it is usually known, North Korea. We’ll need some basic information. To begin with, it is a poor country of about 25 million citizens and a GDP of about $35B. Contrast that with South Korea, which this satellite photo dramatically demonstrates. South Korea has a population of over 50 million with 60 times the GDP – S1.8T. Despite having a very low per capita income it has the second largest army in the world, when counting all reserves and militia.
North Korea’s regular (standing) army is about the same size as the US. North Korea is about militarism, period. Its brutal dictatorial government by the Kim dynasty has created an essentially dysfunctional economy with severe shortages and minimal trade.
This graphic shows their meager and unusual exports. In the last decade the desperate need for hard currency and economic growth has spawned a burgeoning cyberwarfare capability. Exploiting their growing hacking skills, cybercrime against banks, and economic institutions now generate about 8% of their economy. This growth is possible by training military personnel as hackers who scour the internet for weaknesses.
For example, last May, North Korea hackers temporarily brought Britain’s massive National Health Service to a halt that was thwarted by luck by a lone hacker. It almost stole a billion dollars from the Federal Reserve recently by hacking the Bangladesh National Bank. If not for a simple spelling error, they would have pulled it off, but they still got away with over $80M. Cyberwarfare is an ideal weapon for North Korea for several reasons. You don’t need massive resources. It is virtually anonymous.
NK hackers used New Zealand computer systems to launch malware attacks. Experts have trouble locating any good hacker, but North Korea’s internet is restricted to high officials and the military, so they are effectively firewalled. Even if attack sources are pinpointed, there are no foreign bank accounts to freeze or economic sanctions that have not already been applied. Worst of all, they are getting better faster than expected. Their recent exploits with cryptocurrency are latest example.
North Korea is just one of the most notorious cyberwarfare combatants. Next week I’ll talk about why this matters to U.S. agriculture.
