North Korea’s Digital Warfare, US Government Contracts, and Conflict Renewables
In the past few months, we have seen plenty of examples of state-sponsored cyber-terrorism. This week, we have a look at North Korea’s digital warfare.
A new report shows that the US’s top national security startups receive awards from government contracts equaling less than half of what VCs have invested.
But first, with the green transition the world is rushing to switch to EVs and solar panels, without thinking enough about how this affects the oil and metal-producing countries.
The Big Story
North Korea’s Digital Warfare
In recent years, South Korea has experienced an increase in cyberattacks from North Korea. In 2023, public institutions faced an unprecedented surge in cyberattacks, with daily attempts reaching 1.62 million, 80% of them planned by North Korea. The real numbers are likely to be much higher.
The escalation and sophistication of the attacks are connected to North Korea’s employment of AI such as ChatGPT. In February 2024, Microsoft disclosed that North Korean hackers had used OpenAI’s Large Language Models to identify and research potential hacking targets and automatically generate phishing pages. AI technologies dramatically reduce the time and effort required for cyber operations.
Beyond state infrastructure and companies, North Korean cyber operations have focused on financial gain and sanctions evasion. The theft of virtual assets has become a lucrative venture and the UN estimates that North Korea illicitly obtained three billion dollars worth of cryptocurrencies to fund its weapons programs between 2017 and 2023.
North Korea also involves tech workers with concealed identities and fake resumes to get employment at global technology development companies overseas. They then send the salaries home and steal information or launch attacks. The UN is estimating that more than 4,000 North Koreans have jobs in Western tech companies.
Source: Shutterstock
The hackers are also stealing research data. Following Kim Jong Un’s visits to navy units in July and August 2023, hackers breached four South Korean shipbuilding companies. Following Kim’s announcement of bolstering unmanned aerial vehicle production in October 2023, North Korean hackers stole engine data from South Korean drone companies.
Anne Neuberger, the US Deputy National Security Advisor for Cyber and Emerging Technologies, has recognised North Koreans as “some of the most creative and innovative in leveraging emerging tech.”
South Korea’s response has been to revamp its National Cybersecurity Strategy, emphasising proactive defence mechanisms and boosting international collaboration. AI plays a crucial role in predictive threat intelligence. In May, South Korea hosted the AI Seoul Summit and in March, the Summit for Democracy. South Korea has also been actively participating in UN discussions on creating norms for digital conduct during peacetime.
Silicon Valley Wins Few Government Contracts
The total amount of awards received by the US’s top national security startups is less than half of what venture capitalists have invested, according to a report released by Silicon Valley Defense Group.
The top 100 venture capital-backed national security startups have raised a combined $53 billion in private funding since their inception with $11 billion coming in the past 12 months. Collectively, they have earned $22 billion in revenue from federal awards, with $6 billion from the DefenSe Department. Traditional defence contracts receive hundreds of billions in awards every year in the US.
The effect of techno-patriotism in combination with the idea that AI will be the future of wars has led to an increase in venture capital investments in defence. From 2021 until mid-June, the sum was $130 billion, according to PitchBook.
The report raises the issue of what sort of returns venture capitalist can expect from their investments, and whether the US government is playing an innovation theatre.
“Startups are either purposely being kept out, or the DOD has just not figured out how to take advantage of them,” said Tara Murphy Dougherty, chief executive of defence software company Govini.
In the News
In the News
Bridging Technology And Peace: The Role Of Digital Innovations In Environmental Peacebuilding
The United Nations Environment Programme (UNEP) report explores how digital technologies like AI, blockchain, and GIS can support environmental peacebuilding by enhancing resource management and decision-making. These tools promote transparency, collaboration, and effective governance, helping to prevent conflicts. However, the report also highlights risks such as data security, misinformation, and the digital divide. It recommends a human-centred, participatory approach to ensure the sustainable and responsible use of digital innovations in fragile and conflict-affected areas.
Read more at Dev Discourse.
Will S. Korea Join AUKUS Pillar 2 in Face of Deepening Russia-NK Ties?
As South Korea evaluates its role in the AUKUS alliance, rising ties between Russia and North Korea could drive it closer to the security pact's Pillar 2, focusing on advanced defence technologies. South Korea's strategic position and technological prowess are seen as crucial in bolstering the alliance, especially against the backdrop of increased military cooperation between Moscow and Pyongyang.
Read more at Korea Times.
The Robots of War
The U.S. Army's use of robots in Afghanistan highlights the potential and limitations of military automation. Robots range from bomb-detecting and disposal units to surveillance drones and autonomous sentries. While some robots have proven lifesaving, others struggle with Afghanistan's harsh terrain, illustrating the gap between lab-developed prototypes and battlefield realities.
Read more at Reuters.
Defense AI Startup Helsing Raises $487M Series C, Plans Baltic Expansion to Combat Russian Threat
Helsing has raised $487 million in a Series C round to expand its presence in the Baltics and enhance its AI capabilities for military defence. The funding, led by General Catalyst, will support projects in Estonia and other NATO eastern flank countries to counter Russian aggression. The company aims to leverage AI for better battlefield decisions and advanced weaponry.
Read more at Tech Crunch.
Involve Peacemakers When Developing AI, Tech Giants Urged
At a multi-religious conference in Hiroshima, leaders called on tech companies to include peacemakers in the development of AI to mitigate risks and promote ethical use. Sheikh Al-Mahfouz bin Bayyah of the Abu Dhabi Peace Forum emphasised the need for a human-centred approach to AI, aligning with the Rome Charter for AI ethics and ensuring technology serves peace and civilisation.
Read more at The Star.
Granta Autonomy Raises €1M for Ukraine-Tested Defence Tech
Granta Autonomy, a defence tech startup, has secured €1 million in funding to advance its AI-driven technologies tested in Ukraine. The investment will help the company scale its operations and enhance its autonomous systems, which are designed to improve military efficiency and effectiveness in conflict zones.
Read more at Tech Eu.
