The Hill News

An executive order signed by President Obama on Monday will strengthen general sanctions against North Korea and freeze the U.S. assets of several entities that distribute arms and luxury goods to leaders in Pyongyang. 

Reuters reports that the move comes in partial response to the North Koreans' sinking of a South Korean warship in March, and that luxury goods are often used by the regime to ensure loyalty among its officials. 

Stuart Levey, who is Treasury under secretary for terrorism and financial intelligence, said the sanctions were aimed at North Korean leadership and businesses that "enrich the highest echelons of the North Korean government while the North Korean people suffer." 

Officials have not commented on how the p! enalty may affect the likelihood of resuming talks on the country's nuclear program.