A ringleader who collaborated with North Korean hackers to create and distribute illegal gambling websites in South Korea has been sentenced to prison in the appeals court.
On Wednesday, the Seoul High Court’s Criminal Division 7, presided over by Judge Koo Hoe-geun, upheld the lower court’s decision, sentencing Kim, 56, to five years in prison and five years of disqualification. The court also ordered a fine of approximately 12.47 billion KRW (about 8.2 million USD).
The appellate court affirmed the first trial’s verdict, which found Kim guilty on all charges, and rejected appeals from both the prosecution and the defense.
The lower court had previously stated that commissioning North Korean developers to create domestic gambling sites and accepting payment for such activities poses a significant risk to national security and the democratic order of South Korea. The court emphasized that illegal online gambling inflicts substantial harm on society.
Kim is accused of contracting two hackers from North Korea’s Ministry of National Defense’s 313 Bureau (formerly known as the Korean Computer Center) to develop gambling websites between October and November 2023. He allegedly communicated with them 1,181 times via Telegram and other platforms for error checks, violating the National Security Law regarding unauthorized contact with North Korea.
During the same period, Kim reportedly received a gambling solution promotion program from another hacker affiliated with North Korea’s Reconnaissance General Bureau’s 5th Division (Overseas Intelligence Division). He is also charged with distributing 71 related domains to 16 domestic gambling site operators for profit, effectively opening illegal gambling spaces.
The 313 Bureau is known to oversee North Korea’s information technology (IT) strategy, securing contracts for illicit software services through its Chinese branch. This unit not only acquires foreign currency but also serves as a potential base for cyber operations against South Korea. The 5th Division is responsible for managing overseas operatives.
Additionally, Kim faces charges of acquiring criminal proceeds amounting to 1.28 billion KRW (approximately 842,000 USD) from gambling site distribution activities using a proxy account from November 2022 to August 2024, violating the Act on the Regulation of Criminal Proceeds.
Prosecutors estimate that the illegal profits funneled through the organization’s proxy accounts over a period of three years and five months totaled around 23.5 billion KRW (about 15.45 million USD). They believe that approximately 30% of these funds were channeled to North Korean hackers, ultimately benefiting the regime.