Tag Archives: North Korea

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)

China halts oil product exports to North Korea in November as sanctions bite

A North Korean iron ore mine, near the North Korean town of Musan is seen in this general view taken May 11, 2013.

By Ryan Woo and Muyu Xu

BEIJING (Reuters) – China exported no oil products to North Korea in November, Chinese customs data showed, apparently going above and beyond sanctions imposed earlier this year by the United Nations in a bid to limit petroleum shipments to the isolated country.

Tensions have flared anew over North Korea’s ongoing nuclear and missile programmes, pursued in defiance of years of U.N. resolutions. Last week, the U.N. Security Council imposed new caps on trade with North Korea, including limiting oil product shipments to just 500,000 barrels a year.

Beijing also imported no iron ore, coal or lead from North Korea in November, the second full month of the latest trade sanctions imposed by U.N.

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

November was the second straight month China exported no diesel or gasoline to North Korea. The last time China’s jet fuel shipments to Pyongyang were at zero was in February 2015.

“This is a natural outcome of the tightening of the various sanctions against North Korea,” said Cai Jian, an expert on North Korea at Fudan University in Shanghai.

The tightening “reflects China’s stance”, he said.

Chinese Foreign Ministry spokeswoman Hua Chunying said she didn’t know any details about the oil products export situation.

“As a principle, China has consistently fully, correctly, conscientiously and strictly enforced relevant U.N. Security Council resolutions on North Korea. We have already established a set of effective operating mechanisms and methods,” she said at a regular briefing on Tuesday, without elaborating.

Since June, state-run China National Petroleum Corp (CNPC) [CNPET.UL] has suspended sales of gasoline and diesel to North Korea, concerned that it would not get paid for its goods, Reuters previously reported.

Beijing’s move to turn off the taps completely is rare.

In March 2003, China suspended oil supplies to North Korea for three days after Pyongyang fired a missile into waters between the Korean Peninsula and Japan.

It is unknown if China still sells crude oil to Pyongyang. Beijing has not disclosed its crude exports to North Korea for several years.

Industry sources say China still supplies about 520,000 tonnes, or 3.8 million barrels, of crude a year to North Korea via an aging pipeline. That is a little more than 10,000 barrels a day, and worth about $200 million a year at current prices.

North Korea also sources some of its oil from Russia.

TOTAL TRADE LESS THAN $400 MILLION

Chinese exports of corn to North Korean 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.

Trade between North Korea and China has slowed through the year, particularly after China banned coal purchases in February. In November, China’s trade with North Korea totalled $388 million, one of the lowest monthly volumes this year.

China has renewed its call on all countries to make constructive efforts to ease tensions on the Korean peninsula, urging the use of peaceful means to resolve issues.

But tensions flared again after North Korea on Nov. 29 said it had tested a new intercontinental ballistic missile that put the U.S. mainland within range of its nuclear weapons.

Meanwhile Chinese exports of liquefied petroleum gas to North Korea, used for cooking, rose 58 percent in November from a year earlier to 99 tonnes. Exports of ethanol, which can be turned into a biofuel, gained 82 percent to 3,428 cubic metres.

 

(Reporting by Muyu Xu and Ryan Woo; Additional reporting by Meng Meng, Hallie Gu, Christian Shepherd and Ben Blanchard; Editing by Kenneth Maxwell and Tom Hogue)

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)

U.S. blames North Korea for ‘WannaCry’ cyber attack

U.S. blames North Korea for 'WannaCry' cyber attack

(In 13th paragraph of Dec. 18 item, corrects to indicate that a separate attack was launched in June that affected FedEx computers)

By Dustin Volz

WASHINGTON (Reuters) – The Trump administration has publicly blamed North Korea for unleashing the so-called WannaCry cyber attack that crippled hospitals, banks and other companies across the globe earlier this year.

“The attack was widespread and cost billions, and North Korea is directly responsible,” Tom Bossert, homeland security adviser to President Donald Trump, wrote in a piece published on Monday night in the Wall Street Journal.

“North Korea has acted especially badly, largely unchecked, for more than a decade, and its malicious behavior is growing more egregious,” Bossert wrote. “WannaCry was indiscriminately reckless.”

The White House was expected to follow up on Tuesday with a more formal statement blaming Pyongyang, according to a senior administration official.

The U.S. government has assessed with a “very high level of confidence” that a hacking entity known as Lazarus Group, which works on behalf of the North Korean government, carried out the WannaCry attack, said the official, who spoke on condition of anonymity to discuss details of the government’s investigation.

Lazarus Group is widely believed by security researchers and U.S. officials to have been responsible for the 2014 hack of Sony Pictures Entertainment that destroyed files, leaked corporate communications online and led to the departure of several top studio executives.

North Korean government representatives could not be immediately reached for comment. The country has repeatedly denied responsibility for WannaCry and called other allegations about cyber attacks a smear campaign.

Washington’s public condemnation does not include any indictments or name specific individuals, the administration official said, adding the shaming was designed to hold Pyongyang accountable for its actions and “erode and undercut their ability to launch attacks.”

The accusation comes as worries mount about North Korea’s hacking capabilities and its nuclear weapons program.

‘PATTERN OF MISBEHAVING’

Many security researchers, including the cyber firm Symantec , as well as the British government, have already concluded that North Korea was likely behind the WannaCry attack, which quickly unfurled across the globe in May to infect more than 300,000 computers in 150 countries.

Considered unprecedented in scale at the time, WannaCry knocked British hospitals offline, forcing thousands of patients to reschedule appointments and disrupted infrastructure and businesses around the world.

The attack originally looked like a ransomware campaign, where hackers encrypt a targeted computer and demand payment to recover files. Some experts later concluded the ransom threat may have been a distraction intended to disguise a more destructive intent.

A separate but similar attack in June, known as NotPetya, hit Ukraine and other nations and caused an estimated $300 million in damages to international shipper FedEx.

Some researchers have said they believed WannaCry was deployed accidentally by North Korea as hackers were developing the code. The senior administration official declined to comment about whether U.S. intelligence was able to discern if the attack was deliberate.

“What we see is a continued pattern of North Korea misbehaving, whether destructive cyber attacks, hacking for financial gain, or targeting infrastructure around the globe,” the official said.

WannaCry was made possible by a flaw in Microsoft’s Windows software, which was discovered by the U.S. National Security Agency and then used by the NSA to build a hacking tool for its own use.

In a devastating NSA security breach, that hacking tool and others were published online by the Shadow Brokers, a mysterious group that regularly posts cryptic taunts toward the U.S. government.

The fact that WannaCry was made possible by the NSA led to sharp criticism from Microsoft President Brad Smith and others who believe the NSA should disclose vulnerabilities it finds so that they can be fixed, rather then hoarding that knowledge to carry out attacks.

Smith said WannaCry provided “yet another example of why the stockpiling of vulnerabilities by governments is such a problem.”

U.S. officials have pushed back on those assertions, saying the administration discloses most computer flaws that government agencies detect.

Last month, the White House published its rules for deciding whether to disclose cyber security flaws or keep them secret as part of an effort to be more transparent about the inter-agency process involved in weighing disclosure.

(Reporting by Dustin Volz; Editing by Jonathan Weber and Peter Cooney)

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)

While focus is on North Korea, China continues South China Sea buildup: think tank

While focus is on North Korea, China continues South China Sea buildup: think tank

By David Brunnstrom

WASHINGTON (Reuters) – While attention in Asia has been distracted by the North Korean nuclear crisis in the past year, China has continued to install high-frequency radar and other facilities that can be used for military purposes on its man-made islands in the South China Sea, a U.S. think tank said on Thursday.

Chinese activity has involved work on facilities covering 72 acres (29 hectares) of the Spratly and Paracel islands, territory contested with several other Asian nations, according to the Asia Maritime Transparency Initiative of Washington’s Center for Strategic and International Studies. The report cited satellite images.

The United States and its allies oppose China’s building of artificial islands in the South China Sea and their militarization, given concerns Beijing plans to use them to deny access to strategic routes.

“It’s completely normal for China to conduct peaceful construction and build essential defense equipment on its own sovereign territory,” China’s foreign ministry spokesman Lu Kang told a regular press briefing on Friday, in response to a question about the report.

“We believe certain people who have ulterior motives are making mountains out of molehills and stirring up trouble.”

The report said that in the last several months China had constructed what appeared to be a new high-frequency radar array at the northern end of Fiery Cross Reef in the Spratlys.

Subi Reef had seen tunnels completed that were likely for ammunition storage and another radar antenna array and radar domes, the report said.

Construction on Mischief Reef included underground storage for ammunition and hangars, missile shelters and radar arrays.

Smaller-scale work had continued in the Paracel Islands, including a new helipad and wind turbines on Tree Island and two large radar towers on Triton Island.

It said the latter were especially important as waters around Triton had been the scene of recent incidents between China and Vietnam and multiple U.S. freedom-of-navigation operations, which the U.S. navy has used to assert what it sees as its right to free passage in international waters.

Woody Island, China’s military and administrative headquarters in the South China Sea, saw two first-time air deployments “that hint at things to come at the three Spratly Island air bases farther south,” the report said.

At the end of October, the Chinese military released images showing J-11B fighters at Woody Island for exercises, while on Nov. 15, AMTI spotted what appeared to be Y-8 transport planes, a type that can be configured for electronic surveillance.

The Pentagon has conducted several patrols near Chinese-held South China Sea territory this year, even as it has sought China’s help in northeast Asia to press North Korea to give up its nuclear weapons program.

On Tuesday, U.S. Secretary of State Rex Tillerson reiterated a call for a “freeze” in China’s island building and said it was unacceptable to continue their militarization.

(Reporting by David Brunnstrom; Additional reporting by Sue-Lin Wong in BEIJING; Editing by James Dalgleish)

China says war must not be allowed on Korean peninsula

China says war must not be allowed on Korean peninsula

By Ben Blanchard

BEIJING (Reuters) – War must not be allowed to break out on the Korean peninsula and the issue must be resolved through talks, Chinese President Xi Jinping said on Thursday, while U.N. Secretary-General Antonio Guterres warned of the danger of “sleepwalking” into conflict.

Xi made his comments to visiting South Korean President Moon Jae-in just days after U.S. Secretary of State Rex Tillerson offered to begin direct talks with North Korea without pre-conditions.

But the White House said on Wednesday that no negotiations could be held with North Korea until it improved its behavior. The White House has declined to say whether President Donald Trump, who has taken a tougher rhetorical line toward North Korea, approved Tillerson’s overture.

Russian President Vladimir Putin said Tillerson’s offer of direct contacts with North Korea was “a very good signal”, while warning that a U.S. strike on the North would have catastrophic consequences.

North Korea tested its most advanced intercontinental ballistic missile on Nov. 29, which it said could put all of the United States within range, in defiance of international pressure and U.N. sanctions.

While South Korea and China share the goal of getting North Korea to give up its nuclear weapons and stop testing increasingly sophisticated long-range missiles, the two have not seen eye-to-eye on how to achieve this.

Meeting in Beijing’s Great Hall of the People, Xi told Moon that the goal of denuclearising the Korean peninsula must be stuck to, and that war and chaos cannot be allowed to happen, state media said.

“The peninsula issue must in the end be resolved via dialogue and consultation,” Xi was cited as saying.

China and South Korea have an important shared interest in maintaining peace and stability, and China is willing to work with South Korea to prevent war and promote talks, Xi added.

China would support North and South Korea to improve relations as this was good for easing tension, he said.

Xi’s warm tone followed nearly a year of tense relations between the two countries.

‘DRAMATIC CIRCUMSTANCES’

China has been furious about the deployment of the U.S.-made Terminal High Altitude Area Defence (THAAD) anti-missile system in South Korea, saying its powerful radar can see far into China and will do nothing to ease tension with North Korea.

China and South Korea agreed in late October that they would normalize exchanges and move past the dispute over THAAD, which froze trade and business exchanges, and Moon has been keen to put the dispute behind them.

Xi reiterated China’s position on THAAD and said he hoped South Korea would continue to “appropriately handle” the issue.

Guterres, speaking to reporters in Tokyo after meeting Japanese Prime Minister Shinzo Abe, said Security Council resolutions on North Korea’s nuclear and missile programs must be fully implemented by Pyongyang and other countries.

“It is very clear that the Security Council resolutions must be fully implemented, first of all by North Korea, but by all other countries whose role is crucial to … achieve the result we all aim at, which is the denuclearization of the Korean peninsula,” Guterres said.

He added that Security Council unity was also vital “to allow for the possibility of diplomatic engagement” that would allow denuclearization to take place.

“The worst possible thing that could happen is for us all to sleepwalk into a war that might have very dramatic circumstances,” Guterres said.

He said he expected a meeting of the U.N. Security Council on Friday would deliver a strong expression of unity and the need for diplomacy to resolve the issue.

Japan says now is the time to keep up maximum pressure on North Korea, not start talks on its missile and nuclear programs.

China and Russia, however, have welcomed Tillerson’s overture.

Russian President Vladimir Putin said a strike on North Korea by the United States would have catastrophic consequences and that he hoped to work with Washington eventually to resolve the crisis on the Korean peninsula.

Russia does not accept North Korea’s nuclear status, Putin told an annual news conference. But he also said that some of Washington’s past actions had provoked North Korea into violating a 2005 pact to curb its nuclear program.

“We believe the two sides should now stop aggravating the situation,” Putin said.

North Korea justifies its weapons programs as necessary defense against U.S. plans to invade. The United States, which has 28,500 troops in South Korea, a legacy of the 1950-53 Korean war, denies any such intention.

(Additional reporting by Linda Sieg in TOKYO,; Denis Pinchuk in MOSCOW and Christine Kim in SEOUL; Writing by Robert Birsel; Editing by Clarence Fernandez)