According to the Seoul Metropolitan Police Agency, the hacker group utilized servers that they had rented from a domestic server rental company to hack into dozens of South Korean organizations, including defense companies. Also, the ransomware campaign acquired ransoms from a number of private sector victim firms.
Earlier this year, the law enforcement agency and the FBI jointly conducted an investigation to determine the scope of Andariel's hacking operations. This was prompted by reports from certain South Korean corporations regarding security problems that were believed to be the result of "a decline in corporate trust."
In an investigation regarding the origin of Andariel, it was found that it is a subgroup of the Lazarus Group. The group has stolen up to 1.2 terabytes of data from South Korean enterprises and demanded 470 million won ($357,000) in Bitcoin as ransom from three domestic and international organizations.
According to a study conducted by Mandiant, it was revealed that Andariel is operated by the North Korean intelligence organization Reconnaissance General Bureau, which gathers intelligence for the regime's advantage by mainly targeting international enterprises, governmental organizations, defense companies, and financial services infrastructure.
Apparently, the ransomware group is also involved in cybercrime activities to raise funds for conducting its operation, using specially designed tools like the Maui ransomware and DTrack malware to target global businesses. In February, South Korea imposed sanctions on Andariel and other hacking groups operating in North Korea for engaging in illicit cyber operations to fund the dictatorial regime's nuclear and missile development projects.
The threat actor has used a number of domestic and foreign crypto exchanges, like Bithumb and Binance, to launder the acquired ransom. Till now, a sum of 630,000 yuan ($89,000) has been transferred to China's K Bank in Liaoning Province. The hackers proceeded to redirect the laundered money from the K Bank branch to a location close to the North Korea-China border.
Seoul police noted that they have seized the domestic servers and virtual asset exchange used by Andariel to conduct their campaigns. Also, the owner of the account, that was used in transferring the ransom, has been detained.
"The Security Investigation Support Department of the Seoul Metropolitan Police Agency is actively conducting joint investigations with related agencies such as the U.S. FBI regarding the overseas attacks, victims and people involved in this incident, while continuing to investigate additional cases of damage and the possibility of similar hacking attempts," the agency said.
The police have warned businesses of the threat actor and have advised them to boost their cybersecurity and update security software to the latest versions. It has also been advised to organizations to encrypt any critical data, in order to mitigate any future attack.
Moreover, police are planning to investigate server rental companies to verify their subscribers’ identities and to ensure that the servers have not been used in any cybercrime activity.
The emergence of generative artificial intelligence (AI) technologies, such as ChatGPT, has caused regulators all around the world to establish rules and regulations governing their use. South Korea is rising to the occasion by trying to create normative frameworks for emerging AI technologies, to set a precedent for other countries in data protection and industry regulation.
Ko Hak-soo, chairman of Korea's Personal Information Protection Commission (PIPC), talked about South Korea's goal to develop AI rules and data protection on a worldwide scale in an exclusive interview with The Korea Herald.
Ko Hak-soo, who took over as PIPC head in October of the year prior, has been actively involved in discussions over data privacy and AI policies. Particularly, he has been selected for the United Nations' high-level advisory group on artificial intelligence, highlighting Korea's significance in worldwide AI governance.
Ko stressed South Korea's determination to be a global leader in establishing AI rules. While recognizing that the European Union and the United States have taken a leading role in regulating AI, he emphasized the importance of Korea forging its path, given its unique AI ecosystem, which offers one of the world's greatest AI scaleup conditions and is home to IT behemoths such as Naver and Kakao.
"We need to come up with more balanced normative systems while stepping up global cooperation in effectively responding to the technology," Ko went on to say.
Korea's AI landscape differs from other countries. With a strong AI scaleup environment and big tech businesses situated within its borders, Korea is well-positioned to make important contributions to the advancement of AI rules that balance industrial growth and personal data protection.
Ko stated that the nation's AI sector has been under discussion for over five years, illustrating Korea's proactive approach to addressing AI-related concerns. When it comes to coordinating national AI data strategy, the PIPC, as a central administrative agency, stands in an unparalleled position in Asia.
As generative AI technologies continue to revolutionize many sectors, South Korea has established itself as a leader in AI data regulation and protection. The actions of Ko Hak-soo and the PIPC highlight Korea's dedication to balancing business expansion with sensitive data protection, forging a path independent of that of the EU and the US.
South Korea is on course to become an important player in determining the future of AI policy and data protection globally, with upcoming global events and active involvement in international forums.
South Korean intelligence agency on Thursday said that South Korea has joined a cyber defense group under NATO (North Atlantic Treaty Organization), becoming its first Asian member community. ZDNet reports "South Korea had suffered numerous cyberattacks in the past with targets ranging from state-run nuclear research institutes to cryptocurrency companies, most of which were allegedly committed by North Korean hacking groups."
According to National Intelligence Service (NIS), South Korea, along with Luxembourg and Canada, have been added to the NATO Cooperative Cyber Defense Centre of Excellence (CCDCOE), a think tank from Tallinn, Estonia. It supports member countries and NATO with cyber defense research, exercises, and training. CCDCOE was founded in 2008 by NATO countries, on behalf of Estonia's initiative, as a response to the country suffering intense cyberattacks done by Russia.
With the inclusion of the three latest members, CCDCOE now has 32 members among which, 27 are sponsored members of NATO and 5 contributing members, which includes South Korea, which is not a part of NATO. NIS said that South Korea has been active since 2019 to become a member of CCDCOE to learn cyber defense expertise to safeguard the country's infrastructure backbone, and to plan out a global strategy. NIS is planning to send more staff to the center and increase the scope of joint training. Cyberattacks were making a massive impact on users and countries that need global cooperation to respond.
South Korea will work alongside CCDCOE members to formulate a robust cyber defense system. "Even prior to becoming an official member of the center, South Korea had taken part in CCDCOE's large-scale, live-fire cyber defense exercise, Locked Shields, where thousands of experts from member nations and partners jointly defended a fictional country against simulated cyberattacks," says ZDNet.