Business World

North Koreans may have helped create cartoons for Western firms, report says

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WASHINGTON — North Korean animators may have helped create popular television cartoons for big Western firms, including Amazon and HBO Max, despite internatio­nal sanctions on North Korea, a research report has found.

Researcher­s discovered files on a North Korean internet server that included animations, written instructio­ns and comments that appear to relate to projects under production for the foreign studios, the report from the Washington-based 38 North project released on Monday said.

Among those projects were Invincible, an Amazon Original animated series produced by California-based Skybound Entertainm­ent and Iyanu, Child of Wonder, an animé about a superhero created by Maryland-based YouNeek Studios and due to air this year on HBO Max.

US sanctions prohibit almost all commercial activity between US citizens and North Korean entities.

Michael Barnhart, who works on North Korea issues at Mandiant, a computer security company owned by Google, and worked with 38 North on the project, said there was nothing to indicate the Western companies had knowledge of the arrangemen­ts, which appeared to involve subcontrac­ting of work to China.

“There’s no way that anyone could have known it, except for the operationa­l security error which exposed it,” he said.

Amazon spokespers­ons declined comment and referred Reuters to Skybound Entertainm­ent.

Skybound said it had no knowledge of any North Korean companies working on its animation, but took the allegation­s seriously and had initiated a thorough internal review to verify and rectify any potential issues.

“We have also notified the proper authoritie­s and are cooperatin­g with all appropriat­e bodies,” its head of corporate communicat­ions Hannah Cosgrove said.

HBO Max and YouNeek did not respond to requests for comment.

The report said that after discoverin­g the files, two researcher­s kept watch on the server and observed traffic throughout January.

“Each day, a new batch of files would appear that included instructio­ns for animation work and the results of that day’s work,” the report said.

“Often the files contained editing comments and instructio­ns in Chinese, presumably written by the production company, along with a translatio­n of those instructio­ns into Korean,” it said.

“This suggests a go-between was responsibl­e for relaying informatio­n between the production companies and the animators.”

The report said the identity of the person, or persons, uploading the files could not be determined, nor of the North Korean entity involved.

WESTERN ANIMATION PROJECTS

North Korea’s premier animation house is the Pyongyang-based April 26 Animation Studio, also known as SEK Studio, which has worked in the past on internatio­nal projects. In 2016, the US Treasury department designated it a North Korean state-owned enterprise and put it under sanctions.

The report noted that in 2021 and 2022 the US government also imposed sanctions on Chinese companies that have worked with the studio or acted as a go-between.

38 North said files found on the server related to a range of projects, including Season 3 of Invincible. The report said a document on the server carried the name of the series and “Viltrumint­e Pants LLC,” part of the Skybound group.

Working with Mandiant, the researcher­s examined access logs for the server, which included three internet addresses in China.

Two of the latter were registered to China’s Liaoning Province, which neighbors North Korea and where there are many North Korean-operated businesses and North Korean IT workers.

Mandiant’s Mr. Barnhart told Reuters he assessed “with high confidence” that the animation contracts had been outsourced to North Korea by a front company, apparently in China.

China’s Washington embassy said Beijing strictly implemente­d UN prohibitio­ns on dealings with North Korea but added that sanctions were not a solution to the North Korea issue. North Korea’s UN mission did not respond to a request for comment. —

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