http://www.reuters.com/article/2014/12/19/us-sony-cybersecurity-northkorea-idUSKBN0JX0JW20141219


For North Korea's cyber army, long-term target may be telecoms, utility
grids

By Ju-min Park and *Jack Kim*
<http://blogs.reuters.com/search/journalist.php?edition=us&n=jack.kim&;>

SEOUL Fri Dec 19, 2014 5:57am EST

[image: A world map, with the Korea peninsula marked in red, is seen as a
hotel receptionist talks on the phone in Rason city, northeast of
Pyongyang, August 29, 2011. REUTERS/Carlos Barria]

A world map, with the Korea peninsula marked in red, is seen as a hotel
receptionist talks on the phone in Rason city, northeast of Pyongyang,
August 29, 2011.

SEOUL (Reuters) - The hacking attack on Sony Pictures may have been a
practice run for North Korea's elite cyber-army in a long-term goal of
being able to cripple telecoms and energy grids in rival nations, defectors
from the isolated state said.

Non-conventional capabilities like cyber-warfare and nuclear technology are
the weapons of choice for the impoverished North to match its main enemies,
they said.

Obsessed by fears that it will be over-run by South Korea and the United
States, North Korea has been working for years on the ability to disrupt or
destroy computer systems that control vital public services such as
telecoms and energy utilities, according to one defector.

"North Korea's ultimate goal in cyber strategy is to be able to attack
national infrastructure of South Korea and the United States," said Kim
Heung-kwang, a defector from the North who was a computer science professor
and says he maintains links with the community in his home country.

"The hacking of Sony Pictures is similar to previous attacks that were
blamed on North Korea and is a result of training and efforts made with the
goal of destroying infrastructure," said Kim, who came to the South in
2004.

The North's most successful cyber-attack to date may be the hacking at Sony
Corp that led to the studio cancelling a comedy on the fictional
assassination of North Korean leader Kim Jong Un.

Although not officially accused by Washington, U.S. government sources said
on Wednesday that investigators had determined the attack was "state
sponsored" and that North Korea was the government involved.

"They have trained themselves by launching attacks related to electronic
networks," said Jang Se-yul, a defector from North Korea who studied at the
military college for computer sciences before escaping to the South six
years ago, referring to the North’s cyber warfare unit.

For years, North Korea has been pouring resources into a sophisticated
cyber-warfare cell called Bureau 121, run by the military's spy agency and
staffed by some of the most talented computer experts in the country, he
and other defectors have said.

Most of the hackers in the unit are drawn from the military computer school.

"The ultimate target that they have been aiming at for long is
infrastructure," Jang said.

ATTACKS ON THE SOUTH

In 2013, South Korea blamed the North for crippling cyber-attacks that
froze the computer systems of its banks and broadcasters for days.

More than 30,000 computers at South Korean banks and broadcast companies
were hit in March that year, followed by an attack on the South Korean
government's web sites.

An official at Seoul's defense ministry, which set up a Cyber Command four
years ago, said the North's potential to disrupt the South's infrastructure
with cyber-attacks is an emerging threat but declined to give details.

South Korea's intelligence agency declined to comment on networks that
remain vulnerable to North Korean hacking. Its national police, which runs
an anti-cyber crimes operation, also did not have comment.

But officials at the country's gas utility and the operator of 23 nuclear
reactors that supply a third of the electricity for Asia's fourth largest
economy said contingency plans are in place to counter infiltration.

“We have been more vigilant since last year’s hacking on banks," an
official at the state-run Korea Hydro & Nuclear Power Co Ltd said. "We have
separated networks for internal use from the outside."

An official for Korea Gas Corp, the world's largest corporate buyer of
liquefied natural gas, said it has been working with the National
Intelligence Service against potential cyber threats.

But highlighting the vulnerability to hacking, the network of Korea Hydro &
Nuclear Power was recently compromised, resulting in the leak of personal
information of employees, the blueprints of some nuclear plant equipment,
electricity flow charts and estimates of radiation exposure on local
residents.

Preliminary investigations have found no evidence that the nuclear reactor
control system was hacked but an added layer of alert against cyber
infiltration has been ordered for major energy installations, the Industry
and Energy Ministry said on Friday.

Although North Korea diverts much of its scarce resources to the military,
its outdated Soviet-era tanks, planes and small arms are at a stark
disadvantage to next-generation capabilities of its adversaries.

It has, however, invested significant time and money in its asymmetric
warfare capabilities, which include a vast fleet of mini-submarines and
thousands of state-sponsored hackers.

"When you look at military capabilities, there are various aspects like
nuclear and conventional. But with the economic environment and
difficulties (the North) faces, there is bound to be limitation in raising
nuclear capabilities or submarines or conventional power," said Lim
Jong-in, dean of the Korea University Graduate School of Information
Security in Seoul.

"But cyber capability is all about people...I believe it is the most
effective path to strengthening the North's military power."




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