Electromagnetic pulse attacks. Good afternoon, everybody. The committee on Homeland Security subcommittee. Will come to order. The purpose of this hearing is to examine the risk posed by north korea to Homeland Security and recommendations for the department to be better prepared to mitigate these risks. The chair recognizes himself for an Opening Statement. It is no secret that kim jong un and his regime in north korea has ratcheted up tensions with thenitis at an alarming rate. With the knowledge north korea conducted over 20 missile tests on a dozen different occasions between february and september of 2017. Including test of Ballistic Missiles. Many americans and allies around the globe remain on edge. However, americans may rightly wonder about north koreas ability to threaten the homeland directly. Intelligence from the hermit kingdom is inconsistent and limited. Despite the intelligence challenges, information that has been gathered is reason enough for alarm. For example, according to to media reports two north korean shipments to a Syria GovernmentAgency Responsible for the Chemical Weapons Program were intercepted in the past six months. While these reports did not detail exactly what the shipments to syria contain, this is not the first time a north korea ship has been seized due to carrying suspected Missile System components. In 2013 a north korea ship was intercepted in the canal with false manifests and hidden under cargo. Parts of fighter jets and rockets. In addition, according to to the counsel on foreign relations, recent estimates suggest that north Koreas Nuclear weapons stockpile compromises ten to 16 Nuclear Weapons and have the potential to grow rapidly by 20 to 125 weapons. The center of studies estimates north korea has between 2,505,000 metric tons of creme kal weapons. We are all aware with the assassination of kim jong uns half brother with a deadly nerve about. Those weapons have been put to use. Whether or not north korea intends to act on any of the threats to the u. S. Directly, we must also keep in mind that pun and willing to to other hostile nation states and possibly nonnation state actors that are intent on destroying the United States and the freedoms we stands for. Former department of Homeland Security stated in april that the most imminent threat from the north korea is a cyber threat. North koreas increaseingly sophisticated Cyber Program has ability to pose a threat to United States interest. Federal prosecutors are investigating north korea for a possible role in the International Banking system or the swift hack that resulted in the theft of 81 million from the central bank of bangladesh in 2016. 2014 the commuters system of Sony Pictures entertainment were infiltrated. In retaliation over expressed out rage of the back ill m centered on kim jong un. The growing variety of digital threats against the private sector and federal net work ts. Are we prepared it safeguard our infrastructure against a north korea led cyber attack . Its a serious risk we face. We cannot discount other possible threats. Such as an electromagnetic attack. That could result in paralyzing the grid. And other key infrastructure that rely on the electric grid to function. Disruption to the power grids would be disasterous. According to to a government report. A major emp could result in cascading impacts on fuel distribution, transportation system, food and water supply. And communication and equipment for emergency services. North korea continues baa lij rent actions the United States must be. The department of Homeland Security has a vital role in protecting the cyber space and infrastructure. And preventing chemical buy logical, and nuclear terrorism. This hearing will allow us to gain a greater understanding of the multitude, severity and probability of threats posed by tho thort korea. And how the homelands can mitigate the risks. The chair recognizes the je moon from california. Thank you. And welcome all the guests here today. Panelists, thank you sir for holding this hearing on threats of north korea to the great country. And again i thank the witnesses for being here. Also want to take a moment to send my thoughts and prayers to those affected by the california Southern California wild fires. In my district many of folks very near and dear to me have been evacuated. My staffers and friends have had to be evacuated. And a couple camps receiving those evacuated are my district. Our thoughts and prayers are with them. As well as others in california. Also want to thank the First Responders for again doing the work theyre doing right now in and around my district. The chairman will recognize the seriousness of north korea this threats it poses to us. I just want to take a moment to acknowledge we also have to look at those achked by hurricane harvey, irma and maria. Coming back to north korea. Americas current diplomatic policy must be cautious in engaging this individual, this leadership that appears to be very unpredictable. Reports do confirm north korea is accelerating the pace of its missile testing. Devoting more resources to develop its cyber operation. And threatening to create a multifunctional nuclear bomb. Recent actions such as the north korea connected hacking groups that stole 81 million from banks in bangladesh and Southeast Asia show north korea is getting more daring and much more functional. With their cyber operation. From the Witnesses Today i look forward to hearing from you. And how this department Homeland Security can better protect the vulnerable Critical Infrastructure of cyber. Cyber threats and how to mitigate such threats here in our country. Further while the probability of a electromagnetic pulse appears to be at this time unlikely. North korea has made it clear it is testing its ability to mike a hydro general bomb capable of such destruction. So my question to you is, is an emp something thats a threat at this time or soon . Speaking on this frustration with president trump, north koreas leader stated that trump denied the existence of insulted me my country and from the eyes of the world my questioning is is this anything new . Or is this going on for the last 20 years . Im interested in hearing from the witnesses in this panel. What happens if the unthinkable happens. What would happen the first 10, 20, 30 minutes of all out war . Hi hypothetical. But one we need to be appraised of. With that, i thank you and yield back. Chair, thanks the gentleman. And join you in echoing concerns for those affected in and around your district. And of course in california. The wild fires and the First Responders as well as the victims in the recent hurricanes here. In the United States. And our citizens in puerto rico. And the caribbean. With that, other members of the subcommittee are reminded Opening Statements maybe submitted for the record. Were pleased to have a panel of witnesses before us today. Witnesses entire written statements will appear in the record. The chair will introduce the witness first. And then recognize each of you for your testimony. All right. Mr. Frak frank cilluffo. Associated Vice President at the George Washington university and director of the center for cyber and Homeland Security. He previously served in Homeland Security positions in the white house and Homeland Security advisory counsel. Welcome, sir. Anthony rougier. The office of terrorist financing and financial crime. And spent 13 years in various positions in the state department. Welcome i sir. Mr. Patrick terrelle. A Senior Research fellow. Weapons of mass destruction at the National Defense university. He served in the u. S. Army chemical core. For 27 years. And was the wmb military add vie tor and Deputy Director for chemical, buy logical and Nuclear Defense policy in the office of the Deputy Assistant secretary of defense for counting wmb. Thank you for your service. Welcome. Jeff green a senior director of Global Government Affairs and policy. Where he leads a team focussed on Cyber Security data integrity and privacy issues. Prior to joining he sefbed in staff positions on the senate Homeland Security and governmental affairs. And security committees and as an attorney with a the washington dc law firm. Welcome sir. Doctor peter pry is a nationally recognized expert on electromagnetic pulse. Doctor pry was most recently chief of staff of the Emp Commission. And has served on the staff of various congressional commissions related to National Security as well as the House Armed Services committee. And was an Intelligence Officer with a Central Intelligence agency. Welco welcome, sir. Thank you for being here today. We recognize cilluffo for Opening Statement. Thank you for the opportunity to testify before you today. On such a critical set of issues. North korea poses an increaseingly complex and multidimensional threat to the u. S. Homeland. The many facets of the challenge include the Nuclear Threat, missile threat and the proliferation. My own remarks will focus on the cyber threat. Regards to the cyber aspect it should be flagged up front. It is not one dimensional. To the contrary, it may manifest itself in three ways. As a stand alone cyber threat. A component in conjunction with the broader campaign. Military or connectic means. And an indicator of an attack or campaign that is yet to come. The cyber equal of intelligence preparation of battlefield or mapping of Critical Infrastructure. A conference we cohosted with the cia last week, a senior official described north korea as between bookends. The fear of chinese abandonment on the one end and fear of u. S. Strike on the other. Official stated further that north korea exists to oppose the United States. And that kim jong un defines winning as staying in the game. It is against this background the over riding survival of the kim regem. And the military first policy that the north korea cyber threat must be considered and evaluated. In terms of the bottom line up front. The cyber threat is already here. It is persistent, ongoing and comes in various disguises and forms. The battlefield includes the traditional air, land sea space. But cyber space. Which is simultaneous its own domain and transcends all other domains. The question is if and when the north korea cyber activity escalates. Moving higher up the chain of conflict. Going beyond traditional computer net work exploit. And cyber crime to bigger and more destructive attack. If so, what are the primary targets. And how can we tlart the attack or minimize the impact through Contingency Planning and building resilience. At the high end of the threat spectrum are nation states. Military and intelligences are integrating attack and exploit into the war fighting strategy and doctrine. North korea is one of a small handful of countries that top the list from a u. S. National security perfective. Many of the details of the actual cyber warfare capabilities are shrouded in secrecy. We know north korea has invested heavily in building out cyber capability. 2015 report by the south Korea Defense Ministry estimates the nor korea cyber army employs an elite squad of 16,000 hackers. This number likely increased and worth noting that many of the hackers operate outside of in northeast china and Southeast Asia. While not yet up to par with the likes of russia or china, what north korea may lack in capability it unfortunately makes up for with intent. Thort yee engaged in extensive es pea knowledge recent reports of classified information from the south korea military. In the targeting of u. S. Energy companies and Industrial Control Systems here is troubling. And reflective of the espionage. The attack on sony is only one example. Perhaps what differentiates they turn to cyber crime to raise revenue. Including funding nuclear aspirations. Given recent sanctions that are lev ried upon them. They have been pegged the likely culprit as you have highlighted behind a string of cyber Bank Robberies as far as poland. Also the swift hack opt central bank. Hacks against bit coin and other current si exchanges. And the attack which impacted. If pasdsed this prologue we ought to be prepared for a further spike in cyber crime. The cyber twist maybe new, such behavior is not. North korea has long turned to criminal activity such as counter fitting, current, cigarettes and foorm suarm su p. With the country using diplomatic cover to pursue illegal activity. In essence theyre using National Collection means. Using all Source Intelligence for criminal game or more aptly to be compared to as a state sponsor of cyber crime. One word on what to do about this. Bottom line. Train more and better. We need to exercise i think contingency plans are important. Make the big mistakes on the practice field. Not when its game day. And dhs has done good work in terms hof sharing of information and intelligence such as hidden cobra. Where that i provide north korea activity. This is so vital. That will be the warning. That will be the indicator that something bigger maybe a foot. The broader threat picture other scenarios like emp that will require a much broader response and need to include partners like dod. As dhs and the utilities would be overwhelmed. I hope theres more time to get into that. Thank you, mr. Chairman. The chair recognize mr. Rougier o for opening state. Chairman, Ranking Member, and distinguished members of the subcommittee. Thank you for the opportunity to address you. North korea Nuclear WeaponsMissile Programs are expanding after a decade of failed american policy. And now pose a direct threat to the u. S. Homeland. Threatened our close allies south korea and japan. As well as the u. S. Troops stationed for decades on allied territory. The progress of north koreas programs shouldnt be surprising. Since conducted its First Nuclear test eleven years ago. And its long range Missile Program lasted 20 years. Twice tested in a Ballistic Missile in july that could target los angeles, denver and chicago. And possibly boston and new york. The kim regime tested a massive weapon designed to ob lid rate cities and could be delivered by long range missiles. These developments are more concerning when we consider that it has a that pyongyang has a proclivity for selling weapons to anyone who has paid for them. It has sold items related to Nuclear Weapons, chemical weapons, and Ballistic Missiles. Among north koreas most troubling relationships are those with iran and syria. The threat we face is acute and growing. After years of strategic patience the time has become for a policy of maximum pressure that actually stands a chance of restraining the north korean threat without resorting to war. The Trump Administration is pursuing iranstyle sanctions to force north korea to denuclearize. And absent that result protect the u. S. And its allies from pyongyangs activities. Both critics and supporters of the 2015 nuclear deal agree that sanctions were the main driver that brought iran to the negotiating table. Modeled on the successful iran sanctions program, the Trump Administrations efforts clarify the choice we are asking other countries to make. Do business with north korea or do business with the united stat states. It cannot be both. This approach includes diplomatic efforts to convince other countries to cut ties with north korea, reinforced by the threat of losing access to the u. S. Financial system. The wall street journal reported that a yearlong effort by the state department resulted in over 20 countries cutting off diplomatic or commercial relationships with north korea. In prior testimonies i detailed flaws in the current sanctions regime, including a failure to prioritize the north Korea Sanctions Program and the need to focus on pyongyangs overseas Business Network as well as nonNorth Koreans facilitating sanctio