North Korea has a program that rewards its top hackers with benefits like nice apartments in Pyongyang and large cash bonuses, despite harsh working conditions. These hackers are crucial to the country’s cyber operations, including the recent Binance crypto hack that stole $6.3 billion. Leader Kim Jong Un has created a group of skilled hackers by selecting 200 promising middle school students each year to study computer engineering, according to defectors and analysts.
These chosen students often become part of the state’s cyber operations, which have evolved substantially, moving from running illegal gambling websites to executing significant cyber heists. A former North Korean trainer noted that the country systematically seeks out the brightest young talents, whether they desire to be hackers or not. Officially, North Korea has denied involvement in hacking incidents, such as the Binance breach, which blockchain firms have attributed to a group known as “TraderTraitor.”
North Korea established a cyber unit in 1998, and its significance grew under Kim Jong Un, who identified cyber warfare as a key part of the nation’s defense strategy along with nuclear weapons. Candidate selection starts early in middle school, with about 150 to 200 children chosen each year to focus on computer science. Top performers are later sent to prestigious universities and then to the military’s cyber unit as hackers, where they receive specialized training.
In addition to conventional subjects, they learn about cryptocurrency technologies and reverse-engineering foreign equipment. Those not selected as hackers are often trained for software development roles. Unlike South Korean students who may pursue careers in medicine, North Korea directs its brightest towards cyber and nuclear programs, providing them a certain future.
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Successful hackers enjoy additional perks, including trips abroad and the potential for salaries that could equal 30% of a heist’s profits. They may receive spacious living quarters and even have their families stay with them in Pyongyang, as high-achieving hackers can gain party membership and marry into elite families. However, this privileged group is small and comprises roughly 8,400 operatives in total, as per South Korean intelligence.
While the North Korean regime does not publicly acknowledge its hackers, it frequently highlights those with programming talent in state media. A key development in 2015 was the construction of scientists’ housing, reflecting the government’s investment in technology. Hackers are labeled as “scientists” or “researchers” in North Korea.
North Korean hacking groups, including Lazarus, have been implicated in numerous cyber thefts, such as the case involving the Ronin blockchain network. State support makes their hackers particularly dangerous, as they are shielded from consequences, allowing them to refine their strategies continually. Analysts observe that unlike other cybercriminals, North Korean hackers are unlikely to stop working even after failures, out of loyalty to the regime.
Reports from people who have interacted with North Korean IT workers describe them as well-organized and skilled in using AI for various tasks, including crafting resumes and forging identities. The hackers behind the Binance case reportedly used a fake job interview and hidden software to compromise computers.
Despite the perceived advantages, the life of a hacker in North Korea is hard, characterized by long hours, strict surveillance, and high-pressure targets. Workers may face punishment if they do not meet financial goals, leading to psychological stress and health issues. Yet analysts suggest that the success of these hackers could encourage North Korea to pursue even larger targets, reflecting an increasing ambition in their cyber operations.
With information from Reuters
