Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa Bay news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Charlotte news in your inbox

Catch up on the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Sarah Grillo/Axios

As North Korea tries to rev up its economy, it may shift its hacking efforts from financial thievery to stealing intellectual property, China-style. That's according to a contested new theory from cybersecurity firm CrowdStrike.

Why it matters: North Korea is already one of the "big four" hacking threats — along with China, Russia and Iran — but it currently focuses on cash theft to fill its sanctions-drained coffers. Though experts are mixed on the likelihood Pyongyang's hackers would switch to the model China used to build its domestic industries, most seem to think it's a threat worth keeping an eye on.

The theory works like this:

  • North Korea's long-held strategy, known as the byungjin line, had emphasized parallel development of nuclear and economic might. Now, the only goal is the latter — the Kim regime declared victory on the former last April.
  • North Korea's chief resource right now, beyond its heavily sanctioned mineral deposits, is a giant corps of state-sanctioned cyber criminals.
  • "North Korea will want to leapfrog its way into the global economy," said Adam Meyers, vice president of intelligence at CrowdStrike. "Vietnam is frequently mentioned as the model North Korea would follow to build a sustainable economy. But China would be on the table, too."

While CrowdStrike isn't seeing any current intellectual property theft, Meyers suggested a shift (if one is coming) could happen in the next two years.

  • Depending on the continuation of sanctions, there aren't too many ways to spur economic growth in North Korea, noted Meyers — there are no viable sources of external investment.

Yes, but: North Korea lacks the infrastructure for the kinds of high-tech manufacturing that China succeeded with. Despite the finest 1970s-era Soviet manufacturing technology, North Korea doesn't have the equipment to mass-produce cheap, modern products, even if it stole the know-how to make them.

  • Also, "they’re making a fair amount of money through hard currency, and they'd have to reassign those resources to do this," noted a skeptical Adam Segal, director of the digital and cyberspace policy program at the Council on Foreign Relations.
  • Segal views North Korean IP theft as a technically possible but remote chance.

What they're saying: Other experts thought the possibility was, at least, something to monitor.

  • Robert Manning, an Atlantic Council resident senior fellow with previous stints at the Office of the Director of National Intelligence and State Department, said he wouldn't be surprised by the development. But he cautioned that any intellectual property theft would probably skew toward goods that are easy to fabricate.
  • That would include products like pharmaceuticals and pirated movies rather than the consumer, telecommunications and computer memory chip products China appropriated.
  • Of course, North Korea might steal more complex secrets and sell them to other nations, Manning said.
  • Jenny Town, an analyst for the Stimson Center and managing editor of its North Korea-focused 38 North blog, said the shift CrowdStrike is predicting is something to watch out for.
  • "It has been dangerous in the past to underestimate North Korea on these things," Town said.

The big picture: With a summit between President Trump and North Korean leader Kim Jong-un slated for next week, the isolated regime's international situation is more in flux than it has been for decades.

Go deeper

Updated 56 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Eniola Odetunde/Axios

Dave Lawler, author of World
1 hour ago - World

Biden holds first phone call with Putin, raises Navalny arrest

Putin takes a call in 2017. Photo: Handout/Anadolu Agency/Getty

President Biden on Tuesday held his first call since taking office with Vladimir Putin, pressing the Russian president on the arrest of opposition leader Alexey Navalny and the Russia-linked hack on U.S. government agencies.

The state of play: Biden also raised arms control, bounties allegedly placed on U.S. troops in Afghanistan and the war in Ukraine, according to a White House readout. The statement said Biden and Putin agreed maintain "consistent communication," and that Biden stressed the U.S. would "act firmly in defense of its national interests in response to actions by Russia that harm us or our allies."

Biden signs racial equity executive orders

Joe Biden prays at Grace Lutheran Church in Kenosha, Wisconsin, on September 3, 2020, in the aftermath of the police shooting of Jacob Blake. PHOTO: Jim Watson/AFP via Getty Images

President Joe Biden on Tuesday signed executive orders on housing and ending the Justice Department's use of private prisons as part of what the White House is calling his “racial equity agenda.”

The big picture: Biden needs the support of Congress to push through police reform or new voting rights legislation. The executive orders serve as his down payment to immediately address systemic racism while he focuses on the pandemic.

You’ve caught up. Now what?

Sign up for Mike Allen’s daily Axios AM and PM newsletters to get smarter, faster on the news that matters.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!