Parents of late US hostage chasing North Korean assets

SEOUL — The parents of a former U.S. hostage who died after being released from North Korea in a coma in 2017 have said they are committed to finding and shutting down illicit North Korean business assets around the world in efforts to hold its government accountable for widespread human rights abuses.

In a news conference in Seoul on Friday, Fred and Cindy Warmbier called for the Trump administration to raise North Korea’s human rights problems as it engages in negotiations to defuse the country’s nuclear threat.

“My mission would be to hold North Korea responsible, to recover and discover their assets around the world,” said Fred Warmbier, who was invited to a forum hosted by a Seoul-based group representing the families of South Koreans abducted by the North during the 1950-53 Korean War.

“We feel that if you force North Korea to engage the world from a legal standpoint, then they will have to ultimately have a dialogue. They are not going to come and have a dialogue with us any other way,” he said.

The Warmbiers have claimed that their college student son, Otto, was tortured by North Korea after being convicted in 2016 of trying to steal a propaganda poster and imprisoned for months.

The 22-year-old suffered severe brain damage and died shortly after being returned to the United States in a vegetative state in June 2017.

The North denied that it tortured or cruelly treated the University of Virginia student and accused Washington and Seoul of a smear campaign.

In December last year, a U.S. federal judge ordered North Korea to pay more than $500 million in a wrongful death suit filed by the Warmbiers over their son, although they are unlikely to collect on the judgment.

The Warmbiers are also pushing legal action seeking the closure of a hostel operated on the grounds of the North Korean embassy in Berlin and plan to go after other hostels the North operates in Europe.

source: newsinfo.inquirer.net

Kim, Moon discussed denuclearization; permanent peace on peninsula – Seoul

North Korean leader Kim Jong Un and South Korean President Moon Jae-in discussed denuclearization and a permanent peace on the Korean peninsula at their summit Friday.

“The two leaders had a sincere and frank dialogue over the denuclearization and the establishment of permanent peace of the Korean peninsula and development of inter-Korea ties,” said Moon’s spokesman Yoon Young-chan.
Wives to attend summit banquet

Meanwhile, Seoul also said the wives of Kim and Moon will join a banquet on Friday.


The banquet would follow the historic summit of the two leaders of the two Koreas.

The presence of the two first ladies – Ri Sol Ju and Kim Jung-sook – had previously been up in the air. /kga

source: newsinfo.inquirer.net

North Korean hackers expand from political to financial targets

SEOUL—The messages are alluring, the pictures are attractive. But the women seeking to beguile South Korean bitcoin executives could actually be hackers from North Korea in disguise, experts warn.

In the face of sanctions over its banned nuclear and ballistic missile programs, cash-strapped North Korea is deploying an army of well-trained hackers with an eye on a lucrative new source of hard currency, they say.

Its cyberwarfare abilities first came to prominence when it was accused of hacking into Sony Pictures Entertainment to take revenge for “The Interview,” a satirical film that mocked its leader, Kim Jong-un.

But Pyongyang has rapidly expanded from political to financial targets, such as the central bank of Bangladesh and bitcoin exchanges around the world, with Washington this week blaming it for the WannaCry ransomware that wreaked havoc earlier this year.

Shutdown

And a South Korean cryptocurrency exchange shut down on Tuesday after losing 17 percent of its assets in a hacking—its second cyberattack this year, with North Korea accused of being behind the first.

According to multiple South Korean reports citing Seoul’s intelligence agency, North Korean hackers approach workers at digital exchanges by posing as beautiful women on Facebook, striking online conversations and eventually sending files containing malicious code.

They also bombard executives with e-mails posing as job seekers sending resumés—with the files containing malware to steal personal and exchange data.

Moon Jong-hyun, director at Seoul cybersecurity firm EST Security, said North Korea had stepped up online honeytrap tactics targeting South Korea’s government and military officials in recent years.

“They open Facebook accounts and maintain the online friendship for months before backstabbing the targets in the end,” Moon told a cybersecurity forum, adding many profess to be studying at a US college or working at a research think tank.

Criminal enterprise

Simon Choi, director of Seoul cybersecurity company Hauri, has accumulated vast troves of data on Pyongyang’s hacking activities and has been warning about potential ransomware attacks by North Korea since 2016.

The United States has reportedly stepped up cyberattacks of its own against North Korea.

But Choi told Agence France-Presse (AFP): “The North’s hacking operations are upgrading from attacks on ‘enemy states’ to a shady, lucrative moneymaking machine in the face of more sanctions.”

Pyongyang’s hackers have showed interest in bitcoin since at least 2012, he said, with attacks spiking whenever the cryptocurrency surges—and it has soared around 20-fold this year.

US cybersecurity company FireEye noted that a lack of regulations and “lax antimoney laundering controls” in many countries make digital currencies an “attractive tactic” for North Korea.

Cryptocurrencies, FireEye said in a September report, were “becoming a target of interest by a regime that operates in many ways like a criminal enterprise.”

The company documented three attempts by Pyongyang to hack into Seoul cryptocurrency exchanges between May and July as a way to “fund the state or personal coffers of Pyongyang’s elite.”

In October, Lazarus, a hacking group linked with North Korea, launched a malicious phishing campaign targeting people in the bitcoin industry with a fake but lucrative job offer, according to US cybersecurity firm Secureworks.

Hacking attacks targeting digital currencies are only the latest in the long list of alleged online financial heists by North Korea.

North Korea is blamed for a massive $81-million cyberheist from the Bangladesh central bank in 2016, as well as the theft of $60 million from Taiwan’s Far Eastern International Bank in October.

Although Pyongyang has angrily denied the accusations—which it described as a “slander” against the authorities—analysts say the digital footprints left behind suggest otherwise.

Proceeds from such actions are laundered through casinos in the Philippines and Macau or money exchanges in China, said Lim Jong-in, a cybersecurity professor at Korea University in Seoul, making it “virtually impossible” to trace. —AFP

source: technology.inquirer.net

Asian shares droop, yen gains as Korean tensions rise

TOKYO - Asian shares slumped on Tuesday while the dollar remained off recent highs against the yen against the backdrop of rising tensions on the Korean Peninsula.

North Korea's foreign minister said on Monday that a weekend tweet by President Donald Trump counted as a declaration of war on North Korea and that Pyongyang reserved the right to take countermeasures, including shooting down US bombers even if they are not in its air space.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.2 percent in early trade, following losses on Wall Street.

Australian shares were up 0.1 percent, while South Korean shares were 0.3 percent down.

Japan's Nikkei stock index sagged 0.2 percent, pressured by a stronger yen.

"In addition to North Korea, the stronger yen is affecting shares today, and there's also Apple's poor performance, after the report that it told suppliers to reduce parts shipments," said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities.

Apple Inc shed 0.9 percent on Monday after it was reported the company had told suppliers to scale back shipments of parts for its upcoming iPhone X.

The dollar was slightly down against the yen at 111.70 and well shy of last week's two-month high of 112.725.

The yen tends to benefit during times of risk aversion due to Japan's net creditor status and the expectation that Japanese investors would repatriate assets when facing a crisis.

The euro edged up after tumbling on Monday following a severely diminished election victory for German Chancellor Angela Merkel that was accompanied by a surge in support for the far right.

Support for Merkel's conservatives unexpectedly slumped to its lowest since 1949 and the Social Democrats, partners in the outgoing coalition, said they would go into opposition.

The single currency was 0.1 percent higher at $1.1856 , while the dollar index, which tracks the greenback against a basket of six major rivals, was down 0.1 percent at 92.601.

Later on Tuesday, Federal Reserve Chair Janet Yellen is scheduled to speak on "Prospects for Growth: Reassessing the Fundamentals" at 1645 GMT.

On Monday, New York Fed President William Dudley said the US central bank is on track to gradually raise rates given factors depressing inflation are "fading" and the US economy's fundamentals are sound.

But Chicago Fed President Charles Evans said the Fed should wait until there are clear signs of faster wage and price growth before hiking rates again.

Crude oil prices gave back some of their gains after soaring more than 3 percent on Monday, with Brent hitting its highest in more than two years. Major producers said the global market was on its way to rebalancing, while Turkey threatened to cut oil flows from Iraq's Kurdistan region to its ports.

US crude eased 0.2 percent to $52.12 a barrel, after touching its highest levels since April on Monday. Brent crude edged up 0.1 percent to $59.10, after scaling its highest peak overnight since July, 2015. —Reuters

Wall Street edges up, shaking off healthcare, North Korea worries

NEW YORK - The S&P 500 closed slightly higher on Friday even though Apple was a drag, as worries about Washington's latest healthcare legislation proposal eased and investors shrugged off concerns about North Korea.

Investors in the broader market were also encouraged by a jump in the Russell 2000 small-cap index, which ended with a record high close.

After a volatile day the S&P's healthcare sector ended 0.1 percent higher as insurance stocks regained ground after Republican Senator John McCain said he opposed his Republican peers' latest effort to replace President Barack Obama's healthcare law.

The S&P technology sector managed to eke out a small gain as investors had more appetite for risk even with a decline of 1 percent in Apple shares on muted reactions to the iPhone maker's latest product launch.

"The removal of the healthcare overhang, the fact the North Korea market impact is dwindling and the move in the Russell 2000 has all the smart investors thinking that the grind higher continues," said Michael Antonelli, managing director, institutional sales trading at Robert W. Baird in Milwaukee.

The Dow Jones Industrial Average fell 9.64 points, or 0.04 percent, to 22,349.59, the S&P 500 gained 1.62 points, or 0.06 percent, to 2,502.22 and the Nasdaq Composite added 4.23 points, or 0.07 percent, to 6,426.92.

Some investors moved to safe-haven assets such as gold, after North Korea said it might test a hydrogen bomb over the Pacific Ocean in response to U.S. President Donald Trump's threat to destroy the reclusive country.

But others felt that the market would cope with the ongoing stand-off between the countries, which has been ratcheting up in recent months. "If you cry wolf enough it loses its impact in the end," Antonelli said.

Five of the 11 major S&P sectors ended the day lower and utilities led the decliners with a 0.7 percent loss. After falling as much as 0.5 percent, the healthcare sector ended 0.08 percent higher.

Earlier in the day concern about the Graham-Cassidy healthcare bill had wreaked havoc with insurers' stocks. UnitedHealth closed down 1.1 percent after falling as much as 3.6 percent earlier in the day.

The small telecom services index, with only four stocks, was the biggest percentage gainer with a 1.4 percent rise on consolidation speculation while the energy index rose 0.5 percent as oil futures settled higher.

T-Mobile gained 1 percent after Reuters reported that the cellphone network operator was close to agreeing tentative terms on a deal to merge with Sprint, whose shares jumped 6.1 percent.

The report also pushed up bigger rivals Verizon Communications and AT&T Inc, which could benefit from having one less competitor.

Advancing issues outnumbered declining ones on the NYSE by a 1.82-to-1 ratio; on Nasdaq, a 1.91-to-1 ratio favored advancers.

About 5.26 billion shares changed hands on U.S. exchanges compared with the 6.03 billion average for the last 20 sessions. — Reuters

Dollar clings to most of its gains as risk sentiment improves

TOKYO — The dollar held on to most of its gains on Tuesday, following a sharp rebound on improving investor risk sentiment as worries over North Korea and Hurricane Irma receded.

The dollar index, which tracks the greenback against a basket of six major rivals, was steady at 91.874, after it skidded to a 2-1/2-year low of 91.011 on Friday.

The euro was little changed at $1.1955 after shedding 0.7 percent overnight. The common currency reached $1.2092 on Friday, its highest since January 2015, as the dollar suffered a broad retreat.

Higher US Treasury yields also bolstered the dollar, as the benchmark US 10-year note yield rose to 2.135 percent from its close of 2.125 percent on Monday, and 2.061 percent on Friday.

"Some people said the dollar's fall and recovery was not strange, since US yields got so low," said Masashi Murata, currency strategist for Brown Brothers Harriman in Tokyo.

"But the market is still sensitive to risk-off news, maybe from North Korea, or from disappointing US economic data," he said. "So that's why the dollar is still struggling to find its way."

The dollar was steady at ¥109.39 after rallying 1.4 percent on Monday, its biggest one-day surge since mid-January.

It had slumped to a 10-month low of ¥107.320 on Friday, when Hurricane Irma threatened Florida and as financial markets braced for the possibility of another missile or nuclear test to mark North Korea's founding day on Sept. 9. The yen tends to benefit during times of economic and political uncertainty due to Japan's net creditor nation status.

But Pyongyang's anniversary passed without further tests, and Irma lost strength and was downgraded to a tropical storm after battering Florida over the weekend.

"Receding fear over Hurricane Irma and North Korea was a key factor behind the dollar's bounce. Market focus is likely to return to fundamentals, although there aren't many major events scheduled this week that could decide the direction for currencies," said Shin Kadota, senior strategist at Barclays in Tokyo.

Major US allies in Asia welcomed on Tuesday the UN Security Council's unanimous vote to step up sanctions on North Korea, with its profitable textile exports now banned and fuel supplies to the reclusive North capped after its sixth nuclear test.

The Swiss franc, often sought in times of global risk aversion along with the yen, was flat at 0.9560 per dollar. The franc had rallied to a two-year high of 0.9421 on Friday.

The pound edged up 0.1 percent to $1.3175 after losing 0.25 percent on Monday.

Sterling fared better against the euro, brushing a fresh one-month high of 90.83 pence, aided by speculation that the Bank of England may sound more hawkish on interest rates in defense of the currency at its policy meeting on Thursday.

The Australian dollar was 0.2 percent lower at $0.8015, extending its retreat from a two-year peak of $0.8125 scaled on Friday.

The Chinese yuan pulled further away from Friday's 21-month high against the dollar of 6.5432, after China's central bank on Monday lifted measures put in place to support the yuan when it came under selling pressure. — Reuters

Japan deploys missile defense over N. Korea threat to Guam—reports

TOKYO—Japan was on Saturday deploying its Patriot missile defense system after North Korea threatened to fire ballistic missiles over the country towards the US Pacific territory of Guam, reports said.

Regional tensions are mounting as Washington and Pyongyang ratchet up their war of words, with President Donald Trump warning Pyongyang would “truly regret” any hostile action against the US.

The defense ministry started deploying the Patriot Advanced Capability-3 (PAC-3) system in Shimane, Hiroshima and Kochi in western Japan, which Pyongyang warned could be along its missiles’ flight path, public broadcaster NHK said.

It was also to deploy the anti-missile system in neighboring Ehime, NHK said.

Television footage showed military vehicles carrying launchers and other equipment for the surface-to-air system entering a Japanese base in Kochi before dawn.

While immediate confirmation of the reports was not available, Japan has in the past vowed to shoot down North Korean missiles or rockets that threaten to hit its territory.

The government hopes to complete deployment of the system in western Japan by Saturday morning, Kyodo News said, quoting defense ministry officials.

Yoshihide Suga, Japan’s chief government spokesman, said earlier this week that Tokyo “can never tolerate” provocations from North Korea and the country’s military, will “take necessary measures.”

In 2009, a North Korean rocket passed over Japanese territory without incident or any attempt to shoot it down.

At the time North Korea said it was launching a telecommunications satellite, but Washington, Seoul and Tokyo believed Pyongyang was testing an intercontinental ballistic missile.

source: newsinfo.inquirer.net

Asian markets suffer as US-North Korea tension escalates anew

Asian markets fell again Wednesday as nervous traders shifted toward safe havens on concerns about North Korea’s latest saber-rattling, while technology firms suffered another torrid day of selling.

Washington confirmed Tuesday that Pyongyang’s latest rocket test was of a missile capable of reaching the United States, ratcheting up pressure in an already tense crisis on the Korean peninsula.

Dealers are now awaiting the next development after Russia and China issued a joint appeal to ease tensions while the United Nations Security Council will hold an emergency meeting later in the day.

The test came just as the US was preparing to celebrate Independence Day and days before a G20 summit, where it will likely top the agenda.

It was the latest provocation by North Korean leader Kim Jong-Un who is determined to develop a nuclear weapons program he says is needed to ward off invasion.

South Korea and the US on Wednesday launched a barrage of missiles simulating a precision strike against Pyongyang, in response to the provocation.

“Traders and investors may be wondering what reaction this latest missile test will get,” said Greg McKenna, chief market strategist at AxiTrader.

With caution flowing through trading floors, markets sank into negative territory.

Tokyo ended the morning 0.5 percent lower with the yen, considered a safe bet in times of turmoil and uncertainty, strengthening against the dollar which hurt Japan’s exporters.

Hong Kong slipped 0.1 percent a day after diving 1.5 percent, while Shanghai shed 0.2 percent. Sydney lost 0.3 percent, Singapore eased 0.1 percent and was marginally lower.

Wellington and Taipei were also in the red.

Traders were given few leads with European markets slightly down and Wall Street closed for the July 4 holiday.

Tech firms were again suffering as global central banks consider tightening monetary policy.

The sector has been a huge beneficiary of the years of cheap borrowing from lenders, sending their stock prices soaring but the prospect of an end to such largesse has led to profit-taking.

Hong Kong-listed Tencent extended Tuesday’s more than four percent loss, while AAC Technologies also retreated and Sony slipped in Tokyo.

However, energy companies continued to benefit from the recovery in oil prices although the black gold, which is up about 10 percent since hitting recent lows in mid-June, dipped slightly Wednesday in Asia.

Investors are awaiting the release Wednesday of minutes from the Federal Reserve’s June policy meeting and key US jobs data Friday. JPV

source: business.inquirer.net