North Korea and Friends, Cyber War, Nerve Gas and WMD

Posted on May 15, 2017May 15, 2017 by Denise Simon

Hey, look over there –>

WikiLeaks Reveals ‘AfterMidnight’ & ‘Assassin’ CIA Windows Malware Frameworks

When the world was dealing with the threat of the self-spreading WannaCry ransomware, WikiLeaks released a new batch of CIA Vault 7 leaks, detailing two apparent CIA malware frameworks for the Microsoft Windows platform. Dubbed “AfterMidnight” and “Assassin,” both malware programs are designed to monitor and report back actions on the infected remote host computer running the Windows operating system and execute malicious actions specified by the CIA. Since March, WikiLeaks has published hundreds of thousands of documents and secret hacking tools that the group claims came from the US Central Intelligence Agency (CIA). This latest batch is the 8th release in the whistleblowing organization’s ‘Vault 7’ series.

‘AfterMidnight’ Malware Framework

According to a statement from WikiLeaks, ‘AfterMidnight’ allows its operators to dynamically load and execute malicious payload on a target system. The main controller of the malicious payload, disguised as a self-persisting Windows Dynamic-Link Library (DLL) file and executes “Gremlins” – small payloads that remain hidden on the target machine by subverting the functionality of targeted software, surveying the target, or providing services for other gremlins. Once installed on a target machine, AfterMidnight uses an HTTPS-based Listening Post (LP) system called “Octopus” to check for any schedu led events. If found one, the malware framework downloads and stores all required components before loading all new gremlins in the memory. According to a user guide provided in the latest leak, local storage related to AfterMidnight is encrypted with a key which is not stored on the target machine. A special payload, called “AlphaGremlin,” contains a custom script language which even allows operators to schedule custom tasks to be executed on the targeted system. More detail here.

Meanwhile….

North Korean hacking group is thought to be behind cyber attack which wreaked havoc across the globe

Technical clues suggest North Korean hacking group is behind cyber attack

Ransomware left the NHS crippled with operations cancelled over the weekend

The virus is now thought to have been released by the Lazarus Group

It has already been blamed for a string of hacks dating back to at least 2009

It includes the 2014 attack on Sony that left its network offline for weeks

Okay maybe….while other IT cyber professionals point to Russian thug hackers….

Rex Tillerson last month spoke about a quasi red line with North Korea….when is enough, enough? Well his answer was, ‘we will know it when we see it’.

Nonetheless, what more needs to be known about North Korea that the media is not reporting? Plenty…..

‘Unrestricted Warfare’ (超限战, literally “warfare beyond bounds”) is a book on military strategy written in 1999 by two colonels in the People’s Liberation Army, Qiao Liang (乔良) and Wang Xiangsui (王湘穗). Its primary concern is how a nation such as China can defeat a technologically superior opponent (such as the United States) through a variety of means. Rather than focusing on direct military confrontation, this book instead examines a variety of other means. Such means include using International Law (see Lawfare) and a variety of economic means to place one’s opponent in a bad position and circumvent the need for direct military action.[1] Go here for more information.

This already tells us and the Pentagon, to not trust China….right? So how can we place trust and the burden of dealing with North Korea on Beijing? We cant.

The RGB is the KGB….

The RGB is the North Korean Reconnaissance General Bureau….much like that of the KGB, now in Russia known as the FSB.

In 2015, North Korea spies infiltrated the United Nations agencies including the World Food Program which is a major supplier of food aid to North Korea. Somehow, the Obama White House and other government agencies neglected to take real action on that or even earnestly report it. Prior to that little event, in 2010, the U.S. Treasury via and Obama Executive Order targeted North Korea for proliferation and other illicit activities including arms trafficking, money laundering and smuggling narcotics.

Barack Obama, simply annexed a GW Bush Executive Order adding a few new items noted below:

President Obama also identified the following entities and individual for sanctions by listing them on the Annex to the Order:

·   The Reconnaissance General Bureau (RGB), North Korea’s premiere intelligence organization involved in North Korea’s conventional arms trade;

·       RGB commander Lieutenant General Kim Yong Chol;

·   Green Pine Associated Corporation, a North Korean conventional arms dealer subordinated to the control of the RGB; and

·   Office 39 of the Korean Workers’ Party, which provides critical support to North Korean leadership in part through engaging in illicit economic activities and managing the leadership’s slush funds.

The U.S. government has longstanding concerns regarding North Korea’s involvement in a range of illicit activities conducted through government agencies and associated front companies. North Korea’s nuclear and missile proliferation activity and other illicit conduct violate UN Security Council Resolutions 1718 and 1874, and these activities and their other illicit conduct violate international norms and destabilize the Korean Peninsula and the entire region. In signing this Order, President Obama has frozen the property and interests in property of the three entities and one individual listed on the Annex. This Order provides the United States with new tools to disrupt illicit economic activity conducted by North Korea.

As a matter of note, in recent days, Russia has stepped in to offer some diplomatic assistance dealing with North Korea as it appears China is dragging the diplomatic and political anchor dealing with the DPRK. Ah Russia again right? The in depth study is here on North Korea, It includes, history, terror attacks, cyber attacks, assassination attempts, raids and details on unrestricted warfare.

Just for some context, Russia and China have been aiding North Korea for decades…..but has the media done their work to expose this or the State Department? Nope…

Image result for north korea general o kuk ryol Courtesy

You see, General O Kuk ryol and Kim Jong Un both manage Unit 121. Unit 121, is part of the RGB and did the Sony hack, remember that? Well General O, is a graduate of the Mangyongdae Revolutionary School and the Kim Il sung University….but most importantly, he graduated also from Frunze Military Academy in 1962….where is that? Ah….Moscow, and at the time, it was the Soviet Union.

Frunze Military Academy in Devichie pole, Moscow

Strategy: Integrate their cyber forces into an overall battle strategy as part of a combined arms campaign. Additionally they wish to use cyber weapons as a limited non-war time method to project their power and influence.

Experience: Hacked into the South Korea and caused substantial damage; hacked into the U.S. Defense Department Systems. More here.

Meanwhile, we also have the Korea Computer Center…there are 9 production facilities and 11 regional centers. However, the KCC also has offices in China, Germany and Syria..further it should be noted that an estimated 10,000 North Korean IT developers operate in China, where it is common that $500.00 of their monthly salary goes back to the North Korean state.

So, we have Syria, Russia, China all colluding with North Korea….Iran is as well but the United Nations too? Yup…

FNC: For more than a year, a United Nations agency in Geneva has been helping North Korea prepare an international patent application for production of sodium cyanide — a chemical used to make the nerve gas Tabun — which has been on a list of materials banned from shipment to that country by the U.N. Security Council since 2006.

The World Intellectual Property Organization, or WIPO, has made no mention of the application to the Security Council committee monitoring North Korea sanctions, nor to the U.N. Panel of Experts that reports sanctions violations to the committee, even while concerns about North Korean weapons of mass destruction, and the willingness to use them, have been on a steep upward spiral.

Fox News told both U.N. bodies of the patent application for the first time late last week, after examining the application file on a publicly available WIPO internal website.

Information on the website indicates that North Korea started the international patent process on Nov. 1, 2015 — about two months before its fourth illegal nuclear test. The most recent document on the website is a “status report,” dated May 14, 2017 (and replacing a previous status report of May 8), declaring the North Korean applicants’ fitness “to apply for and be granted a patent.”

CLICK HERE FOR THE STATUS REPORT

During all that time, however, the U.N.’s Panel of Experts on North Korea “has no record of any communication from WIPO to the Committee or the Panel regarding such a serious patent application,” said Hugh Griffiths, coordinator of the international U.N. expert team, in response to a Fox News question.

The Panel of Experts has now officially “opened an investigation into this matter,” he said.

“This is a disturbing development that should be of great concern to the U.S. administration and to Congress, as well as the U.S. Representative to the U.N.,” William Newcomb, a member of the U.N. Panel of Experts for nearly three years ending in 2014, told Fox News.

Said an expert familiar with the sanctions regime: “It undermines sanctions to have this going on. The U.N. agencies involved should have been much more alert to checking these programs out.”

Questions sent last week to the U.S. State Department about WIPO’s patent dealings with North Korea had not been answered before this story was published.

For its part, a WIPO spokesperson told Fox News by email, in response to the question of whether it had reported the patent application to the U.N. sanctions committee, only that the organization “has strict procedures in place to ensure that it fully complies with all requirements in relation to U.N. Security Council sanction regimes.”

The spokesperson added that “we communicate with the relevant U.N. oversight committees as necessary.”

But apparently, help with preparing international patent applications for a sanctioned nerve gas “chemical precursor” does not necessarily count as grounds for such communication, if the Panel of Experts records are correct.

This is by no means the first time that WIPO, led by its controversial director general, Francis Gurry, has flabbergasted other parts of the U.N. and most Western nations with its casual and undeclared assistance, with potential WMD implications, to the bellicose and unstable North Korean regime.

And, as before, how the action is judged may depend upon razor-thin, legalistic interpretations of U.N. sanctions law on the one side vs. staggering violations of, at a minimum, common sense in dealing with the unstable North Korean regime, which among other things has never signed the international convention banning the development, production, stockpiling and use of chemical weapons.

While the patent process went on at WIPO, that regime has conducted five illegal nuclear tests — two in the past year, while the patent process was under way — and at least ten illegal ballistic missile launches since 2016, while issuing countless threats of mass destruction against its neighbors and the U.S.

In 2012, Fox News reported that WIPO had shipped U.S.-made computers and sophisticated computer servers to North Korea, and also to Iran, without informing sanctions committee officials.

The shipments were ostensibly part of a routine technology upgrade. Neither country could obtain the equipment on the open market, and much of it would have required special export licenses if shipped from the U.S.

The report kicked off an uproar, but after a lengthy investigation, the U.N. sanctions committee decided that the world organization’s porous restrictions had not been violated, while also noting WIPO’s defense that as an international organization, it was not subject to the rules aimed at its own member states.

Nonetheless, the investigators declared that “we simply cannot fathom how WIPO could have convinced itself that most Member States would support the delivery of equipment to countries whose behavior was so egregious it forced the international community to impose embargoes.”

The investigators also declared that “WIPO, as a U.N. agency, shares the obligation to support the work of other U.N. bodies, including the Sanctions Committees,” and that in response to the furor, WIPO had “implemented new requirements to check on sanctions compliance in advance of program implementation.”

There is no doubt about the banned nature of sodium cyanide — which can also be used to produce deadly cyanide gas, another weapon of mass destruction.

The chemical appears on a Security Council list of “items, materials, equipment, goods and technology” related to North Korea’s “other weapons of mass destruction programs” beyond nuclear weapons, which first appeared after U.N. Security Council resolution 1718 was approved in 2006.

CLICK HERE FOR THE LIST

That resolution, voted after North Korea conducted its first nuclear test, ordained that member states “prevent the direct or indirect supply, sale or transfer” to the regime known as the Democratic People’s Republic of Korea, or DPRK, of the listed items “which could contribute to DPRK’s nuclear-related, ballistic missile-related or other weapons of mass destruction-related programs.”

It also declared that “all member states shall prevent any transfers to the DPRK by their nationals or from their territories, or from the DPRK by its nationals or from its territory, of technical training, advice, services or assistance related to the provision, manufacture, maintenance or use of the items” listed.

Additionally, it demanded a freeze by U.N. member states or all “funds, other financial assets and economic resources” that could be used in the mass destruction-related programs.

CLICK HERE FOR RESOLUTION 1718

A subsequent Security Council resolution, 2270, in 2016 broadened things by declaring that “economic resources” referred to in Resolution 1718 “includes assets of every kind, whether tangible or intangible, movable or immovable, accrual or potential, which potentially may be used to obtain funds, goods or services” by DPRK.

This may open up another controversial aspect of the cyanide patent application, since, along with its mass-destructive uses, the chemical is considered the most common agent in the extraction of gold from ores and concentrates.

Further, according to the North Korean application to WIPO, the new process it wants to make ready for international patenting is a lower-cost process that produces ultra-high-grade product.

CLICK HERE FOR THE PROCESS APPLICATION DESCRIPTION

In WIPO’s response to Fox News, the agency’s spokesperson emphasized that “WIPO is not a patent-granting authority. Its role in handling these applications is to ensure that they conform to the procedural requirements” of the 152-member Patent Cooperation Treaty, or PCT, “and to publish them in accordance with the provisions of the treaty.” North Korea is a PCT signatory.

Translation: WIPO is merely a neutral, technical pass-through mechanism. As the spokesperson put it: “The decisions concerning whether or not to ultimately grant the patent are the sole purview of each jurisdiction where protection is being sought, in accordance with national law.”

While that may be true, it is also true, according to the WIPO website, that the U.N. agency gives those who use its services a lot of financially meaningful help.

That starts with the fact that by filing an international filing application with the agency, you have to pay only one fee rather than more than 150 to get an application acceptable in all PCT countries (which include the U.S. as one of the treaty’s biggest users).

WIPO also provides one-stop research on whether a patent overlaps with those elsewhere, and offers the possibility of widespread dissemination and publicity — i.e., stimulating demand, and thus at least the potential for sanctions-breaking in any subsequent licensing the North Korean patent.

Igniting controversy has been a characteristic of Director General Gurry’s reign — indeed, even before he first took WIPO’s top executive office in 2008.

In 2015, the U.N.’s watchdog Office of Internal Oversight Services (OIOS) was asked by WIPO’s own General Assembly chair to investigate Gurry for allegedly ordering, in 2008, break-ins of the offices of staffers to seek DNA evidence that they wrote anonymous letters against him. Gurry was WIPO’s No. 2 at the time.

A year later, after much byzantine maneuvering, a heavily redacted version of the report declared that “while there were indications that Mr. Gurry had a direct interest in the outcome of the DNA analysis, there is no evidence that he was involved in the taking of DNA samples.”

But the same document also found that Gurry had bent the organization’s rules and steered a sensitive cyber-security contract to a business acquaintance, , something alleged by one of Gurry’s former top deputies, James Pooley.

Under Gurry, WIPO also has been the only U.N. agency ever sanctioned by the U.S. State Department, on the grounds that it failed to adopt “best practices” in ethics and whistle-blower standards — a punishment first meted out by the pro-U.N. Obama administration in September 2015.

Among the whistle-blowers who say they were forced to leave WIPO during Gurry’s tenure for drawing attention to the agency’s previous computer shipments to North Korea is Miranda Brown, formerly Gurry’s senior strategic advisor.

Brown has repeatedly asked for her reinstatement at the WIPO, and just as often has been turned down by Gurry’s office.

N. Korea Missile Hwasong 12 Launch with Video

Posted on May 15, 2017May 15, 2017 by Denise Simon

Korean Central Television

A test-fire of new ground-to-ground medium long-range strategic ballistic rocket Hwasong-12 was successfully carried out on Sunday by scientists and technicians in the field of rocket research, who are bravely advancing toward a new goal to be proud of in the world, true to the far-sighted idea of Kim Jong Un, chairman of the Workers’ Party of Korea, chairman of the State Affairs Commission of the DPRK and supreme commander of the Korean People’s Army, for building a nuclear power.
Kim Jong Un guided the test-fire on the spot.
Looking at Hwasong-12, he expressed his satisfaction over the possession of another “Juche weapon”, a perfect weapon system congruous with the military strategic and tactical idea of the WPK and the demand of the present times.
The test-fire was conducted at the highest angle in consideration of the security of neighboring countries. The test-fire aimed at verifying the tactical and technological specifications of the newly-developed ballistic rocket capable of carrying a large-size heavy nuclear warhead.
According to the order of Kim Jong Un, the new rocket Hwasong-12 was launched at 04:58 on Sunday.
The rocket accurately hit the targeted open waters 787km away after flying to the maximum altitude of 2 111.5km along its planned flight orbit.
The test-fire proved to the full all the technical specifications of the rocket, which was newly designed in a Korean-style by defence scientists and technicians, like guidance and stabilization systems, structural system and pressurization, inspection and launching systems and reconfirmed the reliability of new rocket engine under the practical flight circumstances.
It also verified the homing feature of the warhead under the worst re-entry situation and accurate performance of detonation system.
Kim Jong Un hugged officials in the field of rocket research, saying that they worked hard to achieve a great thing. And he had a picture taken with officials, scientists and technicians who took part in the test-fire.
Highly appreciating again their devotion for manufacturing the Korean-style medium long-range strategic ballistic rocket, he gave a special thanks to them on behalf of himself.
He said with confidence that the successful test-fire of Hwasong-12, a demonstration of high-level defence science and technology of the DPRK, is of great and special significance for securing peace and stability in the Korean peninsula and the region and is the greatest victory of the Korean people.
He declared that the DPRK is a nuclear power worthy of the name whether someone recognizes it or not. He stressed the DPRK will keep strict control over those engaging themselves in nuclear blackmail with its nuclear deterrence which has been unimaginably and rapidly developed.
The U.S. massively brought nuclear strategic assets to the vicinity of the Korean peninsula to threaten and blackmail the DPRK, but the coward American-style fanfaronade militarily browbeating only weak countries and nations which have no nukes can never work on the DPRK and is highly ridiculous, he said, stressing that if the U.S. dares opt for a military provocation against the DPRK, we are ready to counter it.
The most perfect weapon systems in the world will never become the eternal exclusive property of the U.S., he said, expressing the belief that the day when the DPRK uses the similar retaliatory means will come. He continued that on this occasion, the U.S. had better see clearly whether the ballistic rockets of the DPRK pose actual threat to it or not.
If the U.S. awkwardly attempts to provoke the DPRK, it will not escape from the biggest disaster in the history, he said, strongly warning the U.S. not to disregard or misjudge the reality that its mainland and Pacific operation region are in the DPRK’s sighting range for strike and that it has all powerful means for retaliatory strike.
He gave the scientists and technicians in the field of rocket research the order to continuously develop more precise and diversified nukes and nuclear striking means, not content with the successes, and make preparations for more tests till the U.S. and its vassal forces make a proper choice with reason.

***

ATN: North Korea launched a missile in a test early in the morning of May 14, North Korean time. If the information that has been reported about the test are correct, the missile has considerably longer range than its current missiles.

Reports from Japan say that the missile fell into the Sea of Japan after traveling about 700 km (430 miles), after flying for about 30 minutes.

A missile with a range of 1,000 km (620 miles), such as the extended-range Scud, or Scud-ER, would only have a flight time of about 12 minutes if flown on a slightly lofted trajectory that traveled 700 km.

A 30-minute flight time would instead require a missile that was highly lofted, reaching an apogee of about 2,000 km (1,240 miles) while splashing down at a range of 700 km. If that same missile was flown on a standard trajectory, it would have a maximum range of about 4,500 km (2,800 miles).

New press reports are in fact giving a 2,000 km apogee for the test.

This range is considerably longer than the estimated range of the Musudan missile, which showed a range of about 3,000 km in a test last year. Guam is 3,400 km from North Korea. Reaching the US West Coast would require a missile with a range of more than 8,000 km. Hawaii is roughly 7,000 km from North Korea.

This missile may have been the new mobile missile seen in North Korea’s April 15 parade (Fig. 2). It appears to be a two-stage liquid-fueled missile.

Fig. 2 (Source: KCNA)

Fig. 1 The black curve is the lofted trajectory flown on the test. The red curve is the same missile flown on a normal (MET) trajectory.

No Cyber Policy, Doctrine, Protection, Result of Senate Hearing

Posted on May 11, 2017May 11, 2017 by Denise Simon

President Trump signed another executive order today. This one is on cyber security and protecting infrastructure. Read it here.

Image result for trump signs executive order BusinessInsider

No one wants to participate in the hard debate regarding cyber, where it is noted to be the highest threat for the homeland. At least the Trump White House is taking note, yet this executive order may not be enough or engage the private sector. It is gratifying however that some inside and outside experts are in fact having talks on an international basis with cyber experts. That is always a good thing.

At issue on this topic is the path forward and the estimated costs. Cyber is a battlespace where it should be noted it could cost what conventional military operations costs against adversaries and could take as long if not forever. All government infrastructure is dated, unprotected and there are no measures to correct in a priority ranking.

The other item of note, there is no legal or case law condition where the cyber attackers are prosecuted. Exactly why did Sony not sue North Korea? If there is no consequence, even ceremoniously, then expect more hacks. Of note, to sue and or sanction North Korea, China would have to be included, as the internet connectivity to North Korea is provided by China and further, China trained the hackers in North Korea….sheesh right?

Politico reports: The directive is Trump’s first major action on cyber policy and sets the stage for the administration’s efforts to secure porous federal networks that have been repeatedly infiltrated by digital pranksters, cyber thieves and government-backed hackers from China and Russia.

“The trend is going in the wrong direction in cyberspace, and it’s time to stop that trend and reverse it on behalf of the American people,” White House Homeland Security Adviser Tom Bossert told reporters during a Thursday afternoon briefing.

Cyber specialists say the order breaks little new ground but is vastly improved over early drafts, which omitted input from key government policy specialists. The final version, cyber watchers say, essentially reaffirms the gradually emerging cyber policy path of the past two administrations.

As part of the executive order’s IT upgrade initiative, administration officials will study the feasibility of transitioning to shared IT services and networks across the government. An estimated 80 percent of the $80 billion federal IT budget goes toward taking care of aging systems.

Senior Trump adviser Jared Kushner’s Office of American Innovation will play a significant role in the federal IT modernization effort, multiple people tracking the efforts have told POLITICO. Earlier this month, Trump signed an executive order creating the American Technology Council, with Kushner as director, to help coordinate that effort. More here.

*** Personally, it must be mentioned there is a problem with this operating out of the White House and certainly out of Jared Kushner’s office, he is way too tasked to be effective. Other professionals in the cyber realm agree, the matter of a ‘net’ command and operations that collaborate with the private sector should be it’s own command and separated from NSA.

There was a significant hearing today on The Hill while the FBI hearing was going on. Those on the witness panel included James Clapper, Jim Stavridis and Michael Hayden. The Senate Armed Services Committee hosted this session and it included high rate discussions including why there is no cyber doctrine, why there are no offensive measures and what the highest cyber threats are for the homeland.

China Gave Trump an Ultimatum to Deal with N. Korea?

Posted on May 7, 2017May 7, 2017 by Denise Simon

BEIJING – China urged the United States to sack the head of the U.S. Pacific Command in return for exerting more pressure on North Korea amid concerns over its growing nuclear and missile threats, a source close to U.S.-China ties said Saturday.

The Chinese leadership headed by President Xi Jinping made the request, through its ambassador in the United States, to dismiss Adm. Harry Harris, known as a hard-liner on China, including with respect to the South China Sea issue, the source said.

Adm. Harry Harris, head of the U.S. Pacific Command, addresses the Lowy Institute think tank in Sydney last December. | AFP-JIJI

China’s envoy to the United States, Cui Tiankai, conveyed the request to the U.S. side, to coincide with the first face-to-face, two-day meeting between President Donald Trump and Xi in Florida from April 6, but the Trump administration likely rejected it, the source said.

China is a longtime economic and diplomatic benefactor of North Korea.

As the head of Pacific Command, Harris, who was born in Japan and raised in the United States, plays a vital role in the security of the region.

He was responsible in ordering last month the dispatch of the USS Carl Vinson aircraft carrier to waters near off the Korean Peninsula in a show of force amid signs the North was preparing to test-fire another ballistic missile or conduct a sixth nuclear test.

The Trump administration has called for exerting “maximum pressure” on North Korea to prod it to give up its nuclear and missile programs. The administration has said all options — including a military strikes — remain on the table.

Harris has pushed for the U.S. deployment of the advanced Terminal High Altitude Area Defense (THAAD) anti-missile system to South Korea. China has opposed the deployment, saying it could undermine its security interests and the strategic balance of the region.

He has also called for continuing U.S. “freedom of navigation” operations in the contested South China Sea. Overlapping territorial claims, as well as land construction and militarization of outposts in disputed areas in the sea, remain a source of tension in the region.

According to the source, Cui also asked the Trump administration not to label China as a currency manipulator. As per the request, the United States did not label China as such, in light of Beijing’s role in helping Washington deal with the North Korean issue.

*** Related reading: 2013 Study Finds North Korea Has Indigenous Capabilities to Produce Nuclear Weapons

An example of the open-source evidence used for Kemp’s study: A 2011 image from a television broadcast in North Korea showing Kim-Jong Il inspecting a flow-forming machine located in an underground tunnel. This type of machine is able to produce centrifuge rotors for North Korea’s uranium-enrichment program.

***

Is the United States partners in the Asia Pacific region ready to deal with 5000 tunnels and an underground operation?

The entrance of an ‘intrusion tunnel’ under the DMZ between South and North Korea, Telegraph

North Korea’s Secret Strategy in a War with America: Go Underground

North Korea, one of the most secretive countries in the world, is no stranger to building underground military facilities. Whether a tunnel dug under the demilitarized zone designed to pass thousands of troops an hour, or bunkers to accommodate the regime’s leadership, North Korea has built extensive underground facilities designed to give it an edge in wartime.

One of the earliest examples of North Korean underground engineering was the discovery of several tunnels leading from North Korea under the demilitarized zone to South Korea. The first tunnel was located in 1974, extending one kilometer south of the DMZ. The tunnel was large enough to move up to two thousand troops per hour under the DMZ. A U.S. Navy officer and South Korean Marine corporal were killed by a booby trap while investigating the tunnel. Thanks to a tip from a North Korean defector, an even larger tunnel was discovered in 1978, a mile long and nearly seven feet wide.

Since then at least four tunnels have been discovered, with reinforced concrete slabs, electricity for lighting and fresh air generation, and narrow railway gauges to shuttle dirt and rock back to the tunnel entrance. Collectively, the four tunnels would have likely been able to move a brigade’s worth of troops an hour under South Korea’s defenses.

It’s difficult to determine how many tunnels exist. One report says that Kim Il-sung, the founder of the North Korean state and Kim Jong-un’s grandfather, ordered each of the ten frontline combat divisions to dig two tunnels. If completed, that would theoretically mean another dozen or so tunnels remain undiscovered. A former South Korean general, Han Sung-chu, claims there are at least eighty-four tunnels—some reaching as far as downtown Seoul. The South Korean government does not believe Han’s numbers—nor the claimed ability to reach Seoul—are credible. A forty-mile tunnel would reportedly generate a seven-hundred-thousand-ton debris pile, which has not been picked up by satellite. Despite the warnings, the last major tunnel was discovered in 1990 and South Korea seems to believe that the tunneling danger has passed.

If it has passed, it may be because North Korea has decided to tunnel in different ways. The North Korean People’s Liberation Army Air Force is believed to have three different underground air bases at Wonsan, Jangjin and Onchun. The underground base at Wonsan reportedly includes a runway 5,900 feet long and ninety feet wide that passes through a mountain. According to a defector, during wartime NK PLAAF aircraft, including MiG-29 fighters and Su-25 Frogfoot ground-attack aircraft, would take off from conventional air bases but return to underground air bases. This is plausible, as one would expect North Korean air bases to be quickly destroyed during wartime.

Another underground development is a series of troop bunkers near the DMZ. A North Korean defector disclosed that, starting in 2004, North Korea began building bunkers capable of concealing between 1,500 and two thousand fully armed combat troops near the border. At least eight hundred bunkers were built, not including decoys, meant to conceal units such as light-infantry brigades and keep them rested until the start of an invasion.

Other underground facilities are believed to have been constructed to shelter the North’s leadership. According to a South Korean military journal, the United States believes there are between six thousand and eight thousand such shelters scattered across the country. This information was reportedly gathered from defectors in order to hunt down regime members in the event of war or government collapse.

North Korea is believed to have hundreds of artillery-concealing caves just north of the DMZ. Known as Hardened Artillery Sites, or HARTS, these are usually tunneled into the sides of mountains. An artillery piece, such as a 170-millimeter Koksan gun or 240-millimeter multiple-launch rocket system, can fire from the mouth of the cave and then withdraw into the safety of the mountain to reload. These sites are used to provide artillery support for an invasion of South Korea or direct fire against Seoul itself. As of 1986, and estimated two hundred to five hundred HARTS were thought to exist.

According to a report by the Nautilus Institute, North Korea is also thought to have “radar sites in elevator shafts that can be raised up like a submarine periscope; submarine and missile patrol boat bases in tunnels hewn in rock; tunnels a kilometer or more in length for storing vehicles and supplies, or to hide the population of a nearby city.”

How would the United States and South Korea deal with these underground facilities in wartime? First, it would have to locate the facilities. These facilities are hard to spot via satellite, and gleaning information from defectors is perhaps the best way to learn about them in peacetime. Once war commences, signal intelligence will pick up radio transmissions from previously unknown underground locations, enemy troops will from concealed positions or tunnel entrances, and artillery counter-battery radars will fix the positions of HARTS. It is likely that, despite advance preparations, many of these positions will be a surprise to Washington and Seoul.

Once located, there are three ways of dealing with the sites. The first and safest way to deal with them is to bomb them from above. This presents the least risk to allied forces, but it will also prove difficult to determine whether air or artillery strikes have had good effect. The use of bombs or artillery shells may cause cave-ins that prevent allied forces from entering an underground complex and exploiting any intelligence found inside.

Another option is to simply station troops outside tunnels and shoot anyone who ventures outside. While also a safer option, an underground complex will always have multiple exits—the tunnels Kim Il-sung ordered his divisions to dig were to each have four or five exit points. The most thorough way to deal with the tunnels would be to enter them. This would be by far the most effective way to deal with regime holdouts, but also the most dangerous.

Pyongyang’s eventual defeat in any wartime scenario is a given, but its underground headquarters, fortifications and troop depots have the potential to not only enhance the Korean People’s Army’s ability to mount a surprise attack, but also to prolong the war, confounding the high-tech armed forces of its adversaries. Such underground shelters, wherever they are, will likely be the site of the endgame phase of the war, as the regime is driven underground by rapidly advancing allied forces. Only then will we discover the true extent of North Korea’s extensive underground empire.

China Hacked the FDIC, will Trump Sanction?

Posted on May 5, 2017May 5, 2017 by Denise Simon

Beyond not trusting Russia, the same holds true for Iran. But then there is China. Trump should never allow China to take the lead in handling North Korea. Anyway, back to hacking and covert hegemony in Latin America.

Problems uncovered after employees walk off job with thousands of SSNs on flash drives.

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China hacked FDIC, US officials covered it up, report says

China’s spies hacked into computers at the Federal Deposit Insurance Corporation from 2010 until 2013 — and American government officials tried to cover it up, according to a Congressional report.

The House of Representative’s Science, Space and Technology Committee released its investigative report on Wednesday.

It presents the FDIC’s bank regulators as technologically inept — and deceitful.

According to congressional investigators, the Chinese government hacked into 12 computers and 10 backroom servers at the FDIC, including the incredibly sensitive personal computers of the agency’s top officials: the FDIC chairman, his chief of staff, and the general counsel.

When congressional investigators tried to review the FDIC’s cybersecurity policy, the agency hid the hack, according to the report.

Investigators cited several insiders who knew about how the agency responded. For example, one of the FDIC’s top lawyers told employees not to discuss the hacks via email — so the emails wouldn’t become official government records.

FDIC Chairman Martin Gruenberg is being summoned before the Congressional committee on Thursday to explain what happened.

The FDIC refused to comment. However, in a recent internal review, the agency admits that it “did not accurately portray the extent of risk” to Congress and recordkeeping “needs improvement.” The FDIC claims it’s now updating its policies.

Given the FDIC’s role as a national banking regulator, the revelation of this hack poses serious concern.

The FDIC’s role is to monitor any bank that isn’t reviewed by the Federal Reserve system. It has access to extremely sensitive, internal information at 4,500 banks and savings institutions.

The FDIC also insures deposits at banks nationwide, giving it access to huge loads of information on Americans.

“Obviously it’s indicative of the Chinese effort to database as much information as possible about Americans. FDIC information is right in line with the deep personal information they’ve gone for in the past,” said computer security researcher Ryan Duff. He’s a former member of U.S. Cyber Command, the American military’s hacking unit.

“Intentionally avoiding audits sounds unethical if not illegal,” he added.

Congressional investigators discovered the hacks after finding a 2013 memo from the FDIC’s own inspector general to the agency’s chairman, which detailed the hack and criticized the agency for “violating its own policies and for failing to alert appropriate authorities.”

The report also says this culture of secrecy led the FDIC’s chief information officer, Russ Pittman, to mislead auditors. One whistleblower, whose identity is not revealed in the report, claimed that Pittman “instructed employees not to discuss… this foreign government penetration of the FDIC’s network” to avoid ruining Gruenberg’s confirmation by the U.S. Senate in March 2012.

David Kennedy, a computer security expert and former analyst at the NSA spy agency, worries that federal agencies are repeatedly hiding hacks “under the blanket of national security.”

“With such a high profile breach and hitting the top levels of the FDIC, it’s crazy to me to think that this type of information wasn’t publicly released. We need to be deeply concerned around the disclosure process around our federal government,” said Kennedy, who now runs the cybersecurity firm TrustedSec.

This same committee, led by Republican Congressman Lamar Smith of Texas, has previously criticized the FDIC for minimizing data breaches.

Several cybersecurity experts — who have extensive experience guarding government computers — expressed dismay at the alleged cover-up.

“It’s incumbent upon our policymakers to know about these data breaches so we can properly evaluate our defenses. Trying to hide successful intrusions only makes it easier for the next hacker to get in,” said Dan Guido, who runs the cybersecurity firm Trail of Bits.

*** China’s Great Leap Into Latin America

U.S. President Donald Trump’s opposition to the North American Free Trade Agreement and his withdrawal from the Trans-Pacific Partnership have led some critics to claim that the United States is turning its back to regional trading partners, and that Trump is thus freeing up China to make inroads into Latin America. But China’s presence in the Western Hemisphere is already well-established, having predated Trump’s election by almost 20 years. Beijing’s involvement in the region is subject to the ebb and flow of the region’s economic and political changes, but it stems from the needs both of China and corresponding Latin American capitals.

But if China’s position has long since become a fixture in the hemisphere, it is equally true that U.S. policymakers have been remarkably complacent over the years as the growing Chinese presence has necessarily impacted not only the region, but U.S. political, economic, and security interests. That needs to change.

China’s interest in Latin America is both economic and strategic. It was the accelerating Chinese economy’s voracious appetite for raw materials that keyed its entry to the region, a land of plenty when it comes to natural resources. Iron, soybeans, copper, and oil make up the bulk of Chinese imports from the region. In turn, securing access to Latin American markets for the export of Chinese manufactured products became a priority as well.

Economic Push

The numbers are staggering. China joined the World Trade Organization in 2001, and its bilateral trade with Latin America and the Caribbean has since skyrocketed, from $15 billion in 2001 to $288.9 billion in 2013 — an increase of almost 2000 percent. That number now represents 6 percent of China’s total foreign trade, an increase from 2.7 percent in 2000. (Some 13 percent of Latin America’s trade is now done with China, up from negligible levels in 2000.)

In the past decade, China’s two biggest development banks have provided $125 billion to Latin America — more than the combined total lending of the World Bank and the Inter-American Development Bank. China is now Latin America’s largest creditor. In addition, between 2000 and 2015, Chinese leaders visited the region more than 30 times.

Last November, Chinese President Xi Jinping made his third trip to the region since 2013, announcing a plan to double bilateral trade and to increase investment stock value by 150 percent over the next decade.

Not Just Economics

China also has significant geopolitical interests. It wants to project power and influence in an area long considered to be within the U.S. sphere of influence — no doubt a response to what Beijing considers U.S. efforts to contain and encircle China in Asia by cultivating allied and friendly governments.

Critical to China’s aspirations as a growing global power as well is what it calls global governance reform. In translation, that means Beijing uses its growing trade and financial might to challenge the architecture of the U.S.-dominated post-World War II order and alter it along lines more favorable to China. Beijing sees developing its own alliances through trade and loans as an important way to counterbalance U.S. influence and to secure support in multilateral forums on such important issues to Beijing as human rights, climate change, and economic governance.

It bears noting that China considers its principal regional economic and political interlocutor to be the Community of Latin America and Caribbean States, an organization established by the late Venezuelan firebrand Hugo Chavez that purposefully excludes the United States and Canada.

Finally, it is no coincidence that of the 22 countries that diplomatically recognize Taiwan, 12 are in Latin America and the Caribbean. China wants specifically to erode this support for Taipei. As a Chinese white paper on Latin America and the Caribbean in 2008 put it succinctly, “the One China principle is the political basis for the establishment and development of relations between China and Latin America.”

Changing Times

Chinese demand for commodities keyed its entry into the region and helped produce one of Latin America’s fastest periods of growth in decades, but the times are changing. Lackluster global economic growth and the cooling Chinese economy (which has contributed to the end of the global commodity boom) have resulted in a drop in Chinese imports from and exports to Latin America in recent years. Indeed, over the past year regional revenues from commodity exports to China dropped some 40 percent.

Latin America is also changing politically. China’s initial push into the Western Hemisphere was facilitated by the rise to power of a host of leftist populist governments — a phenomenon collectively referred to as the Pink Tide. Many leaders, foremost among them Venezuela’s Hugo Chavez, were determined to distance themselves from the United States and from institutions perceived to be allied with Washington. These leaders were happy to align themselves with China, which adheres to a supposed policy of non-interference in countries’ internal affairs. That equally suited a number of Latin American governments, which proceeded to undermine democratic institutions and the rights of their citizens.

However, with the bust in oil prices and other commodities exposing the economic dysfunction of the populist model, frustrated voters are shifting their support to more pragmatic, market-friendly governments. These governments can be expected to operate in a more sober and transparent manner, and to be more respectful of democratic institutions, eschewing the opaque, behind-the-scenes deals that China previously thrived on. With less opportunity to present itself as the buyer or lender of last resort, China will find itself needing to adapt to a more challenging and competitive environment.

Beijing seems to be adjusting well: China’s evolving economic strategy is now one of diversification, with an emphasis less on traditional industries such as mining and energy extraction and more on sectors such as infrastructure (including energy, airports, seaports, and roads), construction, telecommunications, manufacturing, finance, agriculture, tourism, and even the space sector.

Implications for the United States

China’s authoritarianism, global designs, and disregard for international norms and practices raise serious questions about the impact of its engagement in the Western Hemisphere on the promotion of democracy, human rights, and the rule of law. In recent congressional testimony, U.S. Southern Commander Adm. Kurt Tidd put it like this:

For Russia, China, and Iran, Latin America is not an afterthought. These global actors view the Latin American economic, political, and security arena as an opportunity to achieve their respective long-term objectives and advance interests that may be incompatible with ours and those of our partners. Their vision for an alternative international order poses a challenge to every nation that values non-aggression, rule of law, and respect for human rights — the very same principles that underlie the Inter-American system of peace and cooperation. Some of what they’re doing — while not a direct military threat — does warrant examination. Even seemingly benign activities can be used to build malign influence.

This was certainly evident in recent years, with China providing anti-American governments with an alternative source of trade, investment, and finance outside conventional institutions that ordinarily require some conditionalities on good governance, transparency, anti-corruption efforts, human rights, and the rule of law. In some cases, it didn’t create major problems. In others, such as Venezuela ($65 billion in Chinese loans) and Ecuador ($11 billion), Beijing bankrolled authoritarianism and human rights abuses, undercutting U.S. efforts to promote its policy agenda in the Americas and setting the stage for the chaos now underway in Venezuela.

Yet it is not as though the United States can block or impede Chinese trade and investment in the hemisphere. It is also important to keep things in perspective: U.S. trade with Latin America is still three times larger than China’s. Nor can China match our proximity, cultural and familial ties, and long shared history. The best response therefore to the Chinese presence in the Western Hemisphere is to do what the United States does best: compete.

The situation is best approached as a strategic competition in which the United States employs its comparative advantages and the above described strengths to secure its role as the preferred partner of choice for our Latin American neighbors. China may have the cash advantage, but it cannot compete with the United States in terms of the aforementioned, nor in the agreements shared throughout the Western Hemisphere on rules-based behavior, transparency, and a belief in economic opportunity, strong institutions, and the rule of law. The United States also boasts a 50-year record of promoting sustainable long-term regional development and humanitarian projects, a commitment to corporate social responsibility, and — not to put too fine a point on it — laws that prohibit bribery and other corrupt practices that often undermine the public’s faith in their systems.

This is in contrast to the Chinese presence, where cultural differences, radically divergent value systems, and different ways of doing business often impair mutual understanding and trust. China also has a poor record on human rights, anti-corruption practices, and environmental and labor conventions. (In many cases, Chinese construction companies import Chinese workers, spurring local resentments over lost employment opportunities.)

On the economic front, many economists worry that China’s demand for raw materials harkens back to Latin America’s bad old days of too much dependence on commodity exports. Neither do they see purchasing Chinese manufactured goods in return as being conducive to long-term development. Again, in contrast, the United States provides meaningful value-added, job-creating investment in the region while purchasing the sort of manufactured goods that generate more jobs.

Game On

Whatever professions of a win-win economic situation for all, or of China’s benign intent, China’s position in Latin America affects the U.S. agenda and regional stability — and Beijing has the resources and motivation needed to adapt to changing circumstances and to remain such a regional fixture for the foreseeable future. That is why U.S. complacency is not an option. Competition need not be hostile, just determined. In particular, the Trump administration has an excellent opportunity to press the U.S. advantage by drawing closer to regional heavyweights Brazil and Argentina, who are attempting to shake off the legacies of years of statist economics. These are countries where China has been particularly active. Each now has a market-friendly president desperate to produce economic growth and draw foreign investment.

A reinvigorated U.S. engagement with the hemisphere will reap significant benefits for the U.S. economy. It will create new investment opportunities, including in the energy sector, but it will also drive up the cost of doing business for Beijing. That China continues to expand its presence in other regions such as Asia and Africa is one thing, but encroaching in our own neighborhood more directly impacts the U.S. national interest. It’s time for America to pay closer attention.