…After Generation after. . .

Recently, ROK media published several stories detailing the family connections among current and past members of the DPRK leadership.  The images below illustrate some of the familial connections among the country’s elites.

 

Kwangbok Supermarket Opens

Kwangbok Area Supermarket in Mangyo'ngdae District in west Pyongyang (Photo: KCNA)

The Kwangpok Area Supermarket in west Pyongyang opened on Thursday, 5 January.  One of the largest shopping centers in the DPRK, the Kwangpok market is a joint venture between the DPRK T’aesong General Trading Corporation and the PRC’s Feihaimengxin Trading Company.  A grand opening event was held on 5 January.  One of the participants at the opening ceremony was Jon Il Chun (Chon Il-chun), deputy director of the Korean Workers’ Party’s Finance and Accounting Department and section chief of Office #39.  Mr. Jon accompanied Kim Jong Il on a visit to the Kwangpok store in mid-December 2011, which was KJI’s last reported public appearance before his death.

Jon Il Chun (R) stands with DPRK and Chinese participants at an opening ceremony held in front of the main entrance to Kwangpok Area Supermarket on 5 January (Photo: KCNA)

KCNA reports:

All business service at the supermarket built as a commercial service center has been put on IT and digital basis. Customers can buy varieties of goods according to their taste and requirements in the sales rooms on each floor stacked with household appliances, electronic products, foodstuff, fibre, sundries and others.

Present there were officials concerned, officials of the Korea Taesong General Trading Corporation, officials and employees of the Kwangbok Area Supermarket, members of the Feihaimengxin Trading (Beijing) Co. Ltd. staying in the DPRK and the Chinese embassy here.

O Ryong Il, general president of the Corporation, said in his speech that the work to build the supermarket was successfully completed under the energetic leadership of leader Kim Jong Il and the dear respected Kim Jong Un and the positive efforts of the peoples of the two countries.

He expressed belief that the supermarket would help towards improving the people’s living standard and promoting the well-being of the two peoples through better service and management.

Xue Rifei, executive managing director of the Feihaimengxin Trading (Beijing) Co. Ltd., said in his speech that Kim Jong Il and Kim Jong Un gave field guidance to the supermarket on December 15, 2011 and named it the Kwangbok Area Supermarket.

He expressed the expectation that an effort will be made to reenergize the supermarket to win high appreciation for its best management, service and credit.

People tour the aisles of the Kwangpok Area Supermarket after an opening ceremony on 5 January (Photo: KCNA)

Xinhua English reported:

The shopping center was the last place the leader paid a public visit to before he died in mid-December. It is jointly run by China and DPRK, with China holding 65 percent of its shares.

At the opening ceremony on Thursday, DPRK business representatives said they will try their best to provide quality service in order to contribute to the livelihood of people from the two countries.

Chinese delegates responded that the shopping center’s opening will give a new boost to DPRK trade and economy.

The shopping center is now selling a complete variety of items, ranging from food to clothes, and from household appliances to electronic products, most of which are imported from neighbouring China.

DPRK 2010 Luxury Imports Were Highest in 3 Years

CC KWP Finance and Accounting Department Vice (Deputy) Director Jon Il Chun (Cho'n Il-ch'un) visiting the So'nhung Food Factory with KJI in Pyongyang in December 2010. Mr. Jon manages, via Office #39, much of the foreign currency earned through overseas enterprises. (Photo: KCNA)

The DPRK’s import of luxury goods hit a 3-year high in 2010 with an estimated $446 million (USD) in purchases of televisions, media equipment and luxury vehicles.  According to ROK media, these purchases totaled just over $1 billion (USD) during 2008 through 2010.  Typically, overseas operatives, acting either semi-autonomously or working under foreign trading corporations, procure goods in EU countries, China and southeast Asia for delivery to the DPRK.  A vast majority of these purchases are conducted by and through the DPRK’s 3rd economy (also known as the party economy) with revenues generated through the operation of legitimate and illicit business activities.  While some luxury items are earmarked for Kim Jong Il and members of his extended family, many are held by subordinate offices in KJI’s Personal Secretariat or the CC KWP Finance and Accounting Department in so-called gift rooms.  Officials in the gift rooms are tasked with distributing items to senior party, military and government officials, as well as cadres and officials in the party apparatus, either as rewards or as an inducement for political support.

Aides from the Personal Secretariat (C and R) assist with a presentation of gifts during Kim Chong-il's visit to performers' apartments in October 2010

Luxury goods are not restricted to automobiles or media equipment.  Japanese authorities have made several arrests in 2010 and 2011 of ethnic Koreans residing in that country, linked to the Ministry of State Security, who were involved in purchasing pianos and other musical instruments, women’s clothing and shoes, bolts of fabric and home furnishings with the intention of sending those items to the DPRK.  Luxury goods purchases in other countries have included top-shelf alcohol and cigars.  Chosun Ilbo reports:

According to data Grand National Party lawmaker Yoon Sang-hyun obtained from the Foreign Ministry and other government agencies, the regime imported luxury goods worth $272.14 million in 2008, $322.53 million in 2009, and $446.17 million in 2010.

TVs, digital cameras, and video recorders made up the largest proportion, jumping from $115.47 million in 2008 to $215.95 million in 2010.

Luxury cars and parts came second and movie equipment such as film cameras and projectors third.

UN Security Council resolutions 1718 and 1874 ban exports of luxury goods and weapons of mass destruction to the North.

Meanwhile, the Kathmandu branch of the Okryu (Okryugwan) Restaurant is under investigation by local revenue officials for evading VAT (value added tax) payments since its 2007 opening.  According to Nepal, tax officials visited the restaurant twice in early September 2011.  During their second visit, restaurant managers argued with the officials for four hours.  Faced with the threat that Kathmandu authorities would close the restaurant, a DPRK embassy official was summoned.  Investigators were permitted to confiscate a variety of documents and a computer, which was said to be owned by the DPRK Embassy.

A review of the documents and computer found major accounting irregularities and interestingly, evidence that restaurant personnel conducted intelligence** activities on anti-DPRK countries.  Despite the Okryu having been a hive of bean counters, neither the owner, the management nor a DPRK embassy official have made themselves available for questioning and the restaurant only received a legal notice after city police were involved.  Officials were reported as expecting a nominal settlement of the tax matter, and for the Okryu to relocate elsewhere in the city.

In November 2010, the DPRK shuttered a branch of the Ku’mgangsan Restaurant and recalled 13 of its 15 employees to Pyongyang after its manager fled to ROK.  The Ku’mgangsan Restaurant was located across the street from the Okryu.

**It is not clear what type of activities (i.e. surveillance) in which the restaurant or any related personnel were involved.  Given the discoveries on the confiscated computer and the circumstances surrounding the closure of Ku’mgangsang last November, the two do not seem completely unrelated.

Kim Jong Il Visits NE China on Homeward Trip

Chinese State Councilor Dai Bingguo (R) shakes hands with top leader of the Democratic People's Republic of Korea (DPRK) Kim Jong Il in northeast China's Heilongjiang Province, Aug. 26, 2011. (Xinhua/Lan Hongguang)

Kim Jong Il (Kim Cho’ng-il) arrived in northeastern China on 25 August (Thursday) and visited Heilongjiang Province on 26 August (Friday), during his return trip from Russia.  On Thursday KJI visited Hulun Buir (Hailar) in autonomous Inner Mongolia.    He was greeted at the railway station by Wang Jiarui and various local officials.  He took in the city’s skyline, then attended a banquet and art performance, according to KCNA:

Commanding a bird’s-eye view of the night scenery, he got familiar with the history and culture of the region and the achievements made by its people in construction.

The Inner Mongolian Autonomous Regional Committee of the CPC gave a grand banquet at the Tianjiao State Guest House in honor of Kim Jong Il visiting the region.

He was present on invitation.

Speeches were made.

Hu Chunhua said that today we welcomed Kim Jong Il to this vast steppe where President Kim Il Sung was accorded warm welcome several times long ago, thereby seeing the desire of the party, the government and the people of the autonomous region come true at last.

Hu Chunhua noted that the traditional Sino-DPRK friendship will remain ever-green like the vast steppe along with history, expressing firm belief that the friendly Korean people would make fresh success in the efforts to improve the standard of people’s living and build a prosperous and powerful nation.

A specially prepared art performance was given in honor of Kim Jong Il.

Artistes of the autonomous region including Hulun Buir National Song and Dance Troupe put on the stage such colorful numbers strong in national flavor as national song and dance “Song of Wedding”, national instrumental solo “Vast Steppe”, dance “Dance of Bowl”, chorus “Calling You” and Korean song “Arirang”.

The performers clearly reflected the boundless respect and reverence of the government and the people of the region for Kim Jong Il visiting China again for the development of the Sino-DPRK friendship.

Kim Jong Il conveyed a floral basket to the performers in congratulation of their successful performance and had a photo taken with them.

He was presented with a gift by Hu Chunhua on behalf of the party committee of the autonomous region.

He expressed thanks for the warm reception and cordial hospitality accorded him by the party, government and people of the Inner Mongolian Autonomous Region. He hoped the people of the region would achieve a fresh victory in their struggle for the prosperity and development of the country under the leadership of the CPC.

Kim Jong Il departed for the next destination that day amid the warm send-off from the leading officials of the region.

Chinese State Councilor Dai Bingguo (R) shakes hands with top leader of the Democratic People's Republic of Korea (DPRK) Kim Jong Il in northeast China's Heilongjiang Province, Aug. 26, 2011. (Xinhua/Lan Hongguang)

A North Korean special train carrying Kim Jong-il arrives at China's Manzhouli Station, near the Russian border, on Aug. 25. (Yonhap)

Upon entry into China, KJI’s travel party changed with the addition of two officials: DPRK Ambassador to the PRC Ji Jae Ryong (Chi Chae Ryo’ng) and Ri Ki Pom, diplomatic counsel in Shenyang.  KJI then moved along into Heilongjiang Province where he visited Qiqihar and Daqing.  In Qiqihar he visited a machine tool factory and dairy farm, and in Daqing he visited an apartment building construction site.  He also met with Dai Bingguo.  Xinhua reports on his visit to Heilongjiang Province:

In a meeting with Kim, Dai, entrusted by Hu Jintao, Chinese president and general secretary of the Central Committee of the Communist Party of China (CPC), conveyed sincere greetings from Hu to Kim and welcomed Kim on behalf of the CPC, the Chinese government and people.

Kim, general secretary of the Workers’ Party of Korea (WPK) and chairman of the DPRK National Defense Commission, thanked China’s warm hospitality and conveyed his sincere greetings to Hu.

Kim made an unofficial visit to China in May. Dai said that after an interval of three months, Kim visited China again. It fully demonstrated the high attention attached by Kim, the WPK, the DPRK government and people to the consolidation and growth of China-DPRK ties.

During his previous visit, Hu and Kim had an in-depth exchange of views of bilateral ties and issues of mutual interests. “Along with DPRK comrades, we are willing to earnestly implement important consensus reached by the top leaders of our two countries and promote the continuous growth of our ties,” Dai said.

Kim said China and DPRK are close neighbors and should have frequent contacts. “Every time I visited China, I can feel the friendly affections from the Chinese people to the Korean people,” he said.

He spoke highly of the development momentum of current China-DPRK ties. Bilateral exchanges and cooperation should be enhanced between different departments and localities of the two countries in various areas, he said.

During his stay in Heilongjiang, Kim visited the cities of Qiqihar and Daqing. In Qiqihar, Kim toured Qier Machine Tool Group Co., a large state-owned enterprise, and Mengniu Dairy, a leading Chinese dairy producer. In Daqing, he toured an urban planning exhibition hall and a residential district.

“I’ve seen new changes every time I came here,” he said. He wished that China would smoothly realize the goals set in its 12th Five-year Plan under the leadership of the CPC.

Kim came on Thursday to China’s Manzhouli, a border city in the Inner Mongolia Autonomous Region, after his Russian tour.

Qiqihar and Daqing, two cities in northeastern China Kim Jong Il visited on 26 August 2011 on his return trip to the DPRK (Photo: Google image)

Whilst meeting with Dai, KJI repeated his “no preconditions” declaration on the DPRK’s return to the Six Party Talks.  His meeting with Dai occurred one day after ROK representative to the Six Party Talks, Wi Sung-lac, visited Beijing for one day where he met with Wu Dawei.

Kim, general secretary of the Workers’ Party of Korea (WPK) and chairman of the DPRK National Defense Commission, made the remarks while meeting with Chinese State Councilor Dai Bingguo during his visit to northeast China’s Heilongjiang Province.

The DPRK adheres to the goal of denuclearization on the Korean Peninsula and is ready to fully implement the Sept. 19 joint statement along with all sides for maintaining and promoting peace and stability on the Korean Peninsula, he said.

Launched in 2003, the six-party talks on the denuclearization on the Korean Peninsula involved China, the DPRK, the United States, the Republic of Korea, Japan and Russia.

The 9.19 Joint Statement was signed on Sept. 19, 2005, in which the DPRK promised to abandon all nuclear weapons and existing nuclear programs.

Chinese Defense Minister Liang Guanglie (C front) and Chinese officers pose for a group photo with a Democratic People's Republic of Korea (DPRK)'s delegation headed by Jon Chang Bok (5th L front), chief of the General Logistics Bureau of the DPRK's Armed Forces Department, in Beijing, capital of China, Aug. 26, 2011. (Xinhua/Xie Huanchi)

Kim Jong Il is not the only DPRK official who traveled to China this week. Col. Gen.  Jon Chang Bok (Cho’n Chang-pok), chief of the KPA General Logistics Department met with Chinese Defense Minister Liang Guanglie on 26 August.   Xinhua reports:

Liang said China and the DPRK enjoy a traditional friendship due to shared treasures inherited from the two countries’ former leaders. The two countries and the two militaries have continued to strengthen a friendly partnership over the years, promoting the development of both countries and militaries and safeguarding common interests.

“Under new historical phases, China is willing to enhance its communication and coordination with the DPRK to further promote military ties between the two sides, and make joint contributions in safeguarding regional stability as well as world peace, stability and prosperity. ” Liang said.

Jon Chang Bok said the mutual support and assistance between the two militaries has broadened the content of DPRK-China friendship. He said the DPRK will always work with China to promote ties between the two countries and the two militaries during turbulent international situations.

He also hopes to learn about military logistics construction from China.

Chinese Defense Minister Liang Guanglie (R) meets with Jon Chang Bok, chief of the General Logistics Bureau of the Democratic People's Republic of Korea's Armed Forces Department, in Beijing, capital of China, Aug. 26, 2011. (Xinhua/Xie Huanchi)

Jon Chang Bok’s visit to Beijing occurred as a report emerged in ROK media that the DPRK purchased several thousand trucks and jeeps.  Chosun Ilbo reports:

There were eight video clips of varying lengths ranging from two minutes to 16 minutes. The footage shows Chinese-produced military vehicles standing in the 10,000 sq.m parking lot of the Dandong customs office waiting to be cleared along with other civilian cars, and two-story trailers loaded with military vehicles waiting on the side road to enter the customs office. A local source in Dandong said, “Normally, all Chinese-made vehicles going into North Korea were civilian, but in July, a massive number of military cars went to North Korea.”

A senior source in North Korea said that these cars were gifts to military officers by North Korea’s heir apparent Kim Jong-un in celebration of “Victory Day,” or the day the armistice in the Korean War was signed on July 27. “North Korean military vehicles produced in the 1970s and the 80s are too old to carry out drills, and many soldiers were dissatisfied. In order to buy the loyalty of the military and show what he can do, Kim Jong-un replaced the old vehicles thanks to the assistance of China,” the source added.

Jeeps were given to officers to be used to conduct operations, and the trucks were given to soldiers.

Analysis of the footage suggests the trucks were 6-ton trucks made by FAW Car Limited Company. North Korean leader Kim Jong-il visited the headquarters of this firm in Changchun, Jilin, during his visit to China in May. The military jeeps were manufactured by Beijing Automobile Works with engine capacity of 2,200 cc and 100 horsepower. BAW, which specializes in SUVs, trucks and military vehicles, is a subsidiary of Beijing Automotive Group, a partner of Hyundai Motor.

Dump trucks, large buses, sedans, oil trucks, agricultural machines and heavy machinery were also spotted in the video going into North Korea. In the windscreen, the name of the recipients is written. One is Korea Taesong Trading Company, a trading company under the Workers Party that manages Kim Jong-il’s slush funds. It was blacklisted by the U.S. as part of its economic sanctions against the North.

Meanwhile, the DPRK is moving quickly to formalize military and economic agreements resulting from KJI’s meeting with Dmitry Medvedev. On 25 August chief of the KPA General Staff met with Konstantin Sidenko, commander of Russia’s Eastern Military District.  KCNA reports:

Ri Yong Ho, chief of the General Staff of the Korean People’s Army, Thursday met and had a talk with the delegation of the Eastern Military District of the Armed Forces of the Russian Federation led by Commander of the District Konstantin Sidenko.

DPRK Premier Choe Yong Rim (R) shakes hands with Russian Minister of Regional Development Viktor Basargin (L) after a meeting Friday, 26 August in Pyongyang (Photo: KCNA)

On 26 August, DPRK Minister of Foreign Trade Ri Ryong Nam (Ri Ryo’ng-nam) signed an agreement on economic cooperation and technical exchanges:

A protocol of the 5th Meeting of the DPRK-Russia Intergovernmental Committee for Cooperation in Trade, Economy, Science and Technology was signed at the Mansudae Assembly Hall on Friday.

Present there were Ri Ryong Nam, minister of Foreign Trade and chairman of the DPRK side to the Committee, and officials concerned and the members of the Russian governmental economic delegation led by Minister of Regional Development Viktor Basargin, chairman of the Russian side to the Committee, and Arkady Lavrov, charge d’affaires a.i. of the Russian embassy here.

Ri Ryong Nam and Viktor Basargin inked the protocol.

DPRK Minister of Foreign Trade Ri Ryong Nam shakes hands with Russian Ministerr of Regional Development Viktor Basargin on 26 August 2011 at Mansudae Assembly Hall in Pyongyang (Photo: KCNA)

KJI’s Yachting Holiday

One of Kim Jong Il's yachts at Lake T'aesong, between Pyongyang and Namp'o (Photo: Google Earth)

Kim Jong Il’s (Kim Cho’ng-il’s) last public appearance was a guidance tour of the 8 February Vinalon Complex which was reported by DPRK media on, or around, 8 August.  The country has undertaken reconstruction and recovery work from typhoons and floods, which have killed over 30 and caused extensive damage to homes, agriculture and infrastructure.  KCBS reported on 11 August that “a struggle to heal from the aftermaths of the consecutive natural disasters is actively being waged nationwide.”  To that effect, according to Asahi Shimbun, DPRK traders in China were ordered around 10 August to purchase 5,000 tons of grain a piece or “what appears to be over 100,000 tons.”  Meanwhile, overseas agents of the Ministry of State Security are being recalled to Pyongyang because many of them are under investigation for hiding money and other assets in their assigned countries.

One of Kim Jong Il's residences on the coast in South Hamgyo'ng Province (Photo: Google Earth)

This deluge of activity might demand the attention of the micromanaging party center, who is allegedly reading his briefings and ‘phoning instructions from his yacht somewhere off the country’s east coast.  Yonhap, via Korea Herald, reports:

North Korean leader Kim Jong-il has been enjoying sailing on his yacht along the east coast in recent weeks, a person familiar with the issue said Thursday, as his country is struggling to recover from devastating floods.

Kim has been sailing in waters off a coastal villa, where he has been staying since August for a summer holiday, as he did in previous years, the person said on condition of anonymity. He was not authorized to speak to the media on intelligence matters on the record. He did not elaborate on the type of boat and who accompanied the leader during the cruise.

The development underscored that Kim’s lavish lifestyle has not changed despite international sanctions banning the sale of yachts and other luxury goods to North Korea to try to squeeze Kim and his ruling elites.

Despite years of economic difficulty and food shortages, Kim has engaged in the gift politics of showering his top aides and other elites with luxury goods to win their loyalty.

Kim’s summer holiday comes as the North is working to recover from the floods in the recent past that left dozens of people dead, injured or missing, while destroying thousands of homes and submerging or washing away tens of thousands of hectares of farmland.

There was no report in the North’s state media on whether he traveled to the flood-stricken areas.

KJI does not necessarily restrict his yachting activities to the summer months.  When he visited an Office #39-managed seafood plant in Ku’mya County, South Hamgyo’ng, during February 2010, he traveled by boat.  In 2009, Italian authorities seized two Azimut yachts purchased for KJI by European and Asian front companies.

A view of the premises of a KJI residence in South Hamgyo'ng Province (Photo: Google Earth)

One of KJI’s South Hamgyo’ng residences is down the coast from a KPA Navy (Korean People’s Navy) station, under its East Sea Command.  When the Chinese PLA Navy visited Wo’nsan during 4-8 August, the KPA Navy Song and Dance Ensemble participated in a performance with their PRC counterparts.  A Chinese military blogger has published over a dozen photographs of the ensemble; some are candid shots of the women prior to going on stage, and others are of the performance.

Members of the KPA Navy Song and Dance Ensemble, prior to their 6 August performance, part of a program of events during the PLA Navy's goodwill visit to the DPRK during 4-8 August (Photo: Sina.com)

A part of the performance given by the KPA Navy Song and Dance Ensemble on 6 August, during a goodwill visit from 4 to 8 August of the PLA Navy (Photo: Sina.com)

A performer of the KPA Navy Song and Dance Ensemble. Highlighted in the image is her digital camera (Photo: Sina.com)

Where is Kim Kyong Hui? (9 Weeks Without You, Thought I’d Forget)

3 August 2011

According to Yonhap, Kim Kyong Hui may have received medical treatment outside the DPRK for back problems.  An AFP report can be found in the comments for this posting:

Kim Kyong-hui, the only known sister of North Korean leader Kim Jong-il, is believed to have received treatment for back pains during a recent trip to Moscow, a source familiar with the communist regime said Wednesday.

The 65-year-old head of the ruling Workers’ Party’s light industry department was spotted by a South Korean tourist at an airport in the Russian capital in early June, and appeared to be walking with a slight stoop, the source said on the condition of anonymity.

2 August 2011

Kim Kyong Hui (Kim Kyo’ng-hu’i) was not reported to have attended any of Kim Jong Il’s 18 public appearances during July 2011.  According to DPRK and ROK media, her last reported public appearance was on or around 5 June when she attended a performance by an art troupe of “builders” of overseas construction projects.  Until June Kim Kyong Hui attended almost all of KJI’s  domestic public appearances in the DPRK since late 2009.

Initial speculation has focused on the condition of her physical and mental health.   Kim Kyong Hui’s absence does not necessarily indicate a change in her status.  She may have assumed more substantive responsibilities and a less public role.   She is one of the few members of the central leadership who is completely untouchable by any inquiring security or party organizations.   That does not, however,  preclude any opponent from politically neutralizing her.

Jon Il Chun Visits May 11 Factory with KJI

UPDATE (8 August 2011)

Jon Il-chun (circled in red), head of Office 38 of the Workers' Party of (North) Korea, is pictured as he carries a wreath at Revolutionary Martyrs Cemetery on Mount Daesong in Pyongyang on July 27, the 58th anniversary of the signing of the armistice that ended the 1950-53 Korean War. Jon made his first public appearance in seven months. His office is known for engaging in driving revenue by dealing in narcotics, arms, natural resources and others. (Yonhap)

Prior to visiting the 11 May Factory with Kim Jong Il, Jon Il Chun assisted in delivering a floral wreath to the Revolutionary Martyrs’ Cemetery on Mt. Taesong on 27 July, which the DPRK commemorates as a victory day in the Fatherland Liberation (Korean) War.

Jon Il Chun (3rd L) attends Kim Jong Il's visit to the 11 May Factory (Photo: KCNA-Yonhap)

Jon Il Chun (Chon Il-chun) attended Kim Jong Il’s visit to the May 11 Factory.  According to several sources, Jon is daily manager of Office #39 under the party’s Finance and Accounting Department.  Jon has either been reported or observed attending KJI’s visits for several years, most recently in December 2010 during KJI’s visit to the So’nhu’ng foodstuffs factory and Hyangmallu Restaurant in December 2010.

Office #39 is the key institution in the DPRK’s party economy.  It operates a network of companies that earn foreign currency through legitimate (seafood; herbal nutrient supplements; furs; labor contracts) and illicit (heroin and amphetamine  production and distribution; small arms sales; counterfeiting) means.   Office #39 is also linked to proliferation finance, and some companies within it are linked to the purchase of parts and technology for the country’s nuclear and ballistic missile programs.  Revenues  subsidize the personal lives of DPRK elites and portion or deposited to KJI’s foreign bank accounts.

Jon Il Chun (highlighted) at a commemorative photo session of KJI and Kim Jong Un with employees and officials of the 11 May Factory (Photo: KCNA)

Mansions and Benzes, Ends to My Friends

In a still from a documentary broadcast on KCTV, Kim Jong Il is stepping out of one of his chauffered vehicles during his trip to the PRC in May 2011

According to Open Radio for North Korea, the 3rd economy continues to spend its funds on European luxury cars.  Last summer Kim Jong Un’s (Kim Cho’ng-u’n) political supporters were giving cars imported from China to provincial party officials.  And if this report is accurate the party center, Kim Jong Il (Kim Cho’ng-il), is ferrying Ri Jae Il (Ri Chae-il) and Jang Song Taek (Chang So’ng-t’aek) around in an S-Class, instead of a Maybach.

A high level Pyongyang source reported June 29th, “The Mercedes Benz limousine used by Kim Jong-il during his recent China visit in May was a different model to the ones he used in his visits last year in May and August.” The new car was photographed by Yonhap news when Kim Jong-il arrived at his Jangchun hotel.

The source said that Kim Jong-il used to be conveyed to his destinations in the Maybach model of limousine but in 2009 the Benz S-600 Pullman Guard came out of production and onto the market. This new model was $100,000 more expensive than the Maybach. Given that customarily when leaders are transported there are at least two cars required to simultaneously convey protection units, at least $200,000 must have been spent on the vehicles.

Asked whether the new cars might have been provided by the Chinese authorities, the source said, “A photo confirms otherwise but also the Beijing plates that the car is carrying are just a matter of custom that the Chinese authorities usually apply in the immigration process to cars that were transported by air. It’s certain that the car was brought in from North Korea.”

Meanwhile, the self-financed DPRK diplomatic presence overseas is leasing out space on the grounds of its embassies.  Russian press reported some time ago that several embassies in Moscow, including the DPRK’s, rented space used for high-stakes games of chance.    According to Chosun Ilbo:

A South Korean official on Sunday said the North Korean Embassy to Germany made illegal profits by turning an annex into a youth hostel and renting out its gymnasium for social functions. The North Korean Embassy to Poland was criticized in the local press for leasing out part of its compound to local firms.

This violates the Vienna Convention on Diplomatic Relations, which bans the commercial use of embassy buildings.

A South Korean security official said, “Staffers of North Korean overseas missions are using their embassy buildings to make money because of a global crackdown on the North’s drug trade and tobacco smuggling.”

In April, the North Korean Embassy to Russia was caught running a casino in its compound. “The embassy had four roulette tables, five poker and blackjack tables, and 30 slot machines in six game rooms on two floors,” the official added.

North Korean diplomats in Latin America earn hard currency by buying Cuban cigars at duty-free prices from Cuban distributors and reselling them to traders in the countries they are assigned to.

Some Latin American nations have stepped up searches of North Korean cargo, and one airline has banned North Koreans, the official said.

North Korean missions in South Africa, Zimbabwe and other African countries are suspected of dealing in contraband goods such as rhino horns or tiger hides.

NDC Statement Pronounces DPRK “Will Never Deal With” Lee Myung-bak

The National Defense Commission issued a statement announcing that “the DPRK will launch a nationwide offensive  to put an end to the moves of the Lee group to escalate confrontation with the DPRK.”  The NDC threatened to “take physical action without any notice at any time” against ROK-based “psychological warfare.”  It also announced the termination of an inter-Korean military ‘phone line in the East Sea (Sea of Japan), and the closure of an office at Mt. Kumgang.  JoongAng Ilbo reports:

In a statement reported by the North’s official Korean Central News Agency, the National Defense Commission, chaired by North Korean leader Kim Jong-il, said it will cut military communication lines along the East Sea coast and shut down a liaison office on Mount Kumgang.

It said these are the first steps and more will follow.

“We will enter a full-scale offensive designed to put to an end the maneuvers by the traitor Lee Myung-bak and its thuggish clan to confront the Republic [Democratic People’s Republic of Korea],” the NDC spokesman said in a statement, referring to the South Korean president.

“The full-scale offensive by our military and the people will be merciless,” the statement said.

The verbal threats come as the two Koreas remain at odds over the two provocations directed at the South last year – the sinking of the warship Cheonan, for which the North denies any involvement, and the shelling of Yeonpyeong Island. Seoul has refused to put the events behind it before an acknowledgement or apology from the North.

Late last month, former U.S. President Jimmy Carter visited South Korea after a trip to Pyongyang with a message from Kim that he was willing to have an inter-Korean summit.

Seoul regards it as a showy gesture lacking sincerity and is calling for the North to respond to its call for inter-Korean talks that it made in January through direct and official diplomatic channels.

The remarks yesterday are also being looked at to determine whether they hint at a downshift in the North’s will to economically engage the South following apparent growing economic ties with China.

Last Friday, Kim Jong-il finished a trip to China, the third in a year, which was observed by some to have taken economic ties between the two communist allies to a closer level.

In the statement, the NDC also reiterated its warning against the psychological warfare tactics of the South, including border-crossing anti-regime leaflets and reconfirmed its threat of sudden strikes from where the leaflets are sent.

Yonhap reports:

North Korea threatened Monday that it will no longer engage with South Korea and will retaliate against Seoul for anti-Pyongyang “psychological warfare.”

“The army and people of the (North) will never deal with traitor Lee Myung-bak and his clan,” the North’s powerful National Defense Commission said in a statement, referring to the South Korean president by name.

The commission headed by North Korean leader Kim Jong-il also renewed a warning that the North “will take physical action without any notice any time against any target to cope with the anti-(North Korea) psychological warfare.”

In April, North Korea threatened to launch “unpredictable and merciless” fire against South Korea over anti-Pyongyang leaflets.

South Korean activists and defectors, however, have continued to send hundreds of thousands of leaflets calling for a popular revolt to topple Kim, which the North sees as psychological warfare against it.

The latest harsh rhetoric came just days after Kim called for the easing of tensions on the Korean Peninsula during his summit talks with Chinese President Hu Jintao in Beijing.

Kim has said his country sincerely hopes for improved relations with South Korea, according to China’s official Xinhua news agency.

Xinhua reported:

According to a statement issued by the DPRK’s National Defence Commission, two more steps would be taken in this regard.

“The DPRK will launch a nationwide offensive to put an end to the moves of the Lee group to escalate the confrontation with the DPRK,” the statement said.

The Korean People’s Army would “cut off the north-south military communication in the area along the east coast” and “close the communication liaison office in Mt. Kumgang area,” the statement announced.

“As already warned by the DPRK, it will take a physical action without any notice any time against any target to cope with the anti-DPRK psychological warfare,” it added.

The statement said Lee’s government is piling up false accusations against the DPRK’s “revolution” and “socialist system,” “undermining its national reconciliation and unity” and “laying a hurdle in the way of peace and prosperity.”

It said South Korea is trying to stop the DPRK’s legitimate measures for self-defense and driving the inter-Korean relations to “uncontrollable catastrophe.”

Lee Myung-bak’s government has been smearing the DPRK’s efforts to achieve cooperation, peace and reunification through dialogue as “delaying tactics,” the statement said.

The inter-Korean relations were further soured in March last year by the sinking of the South Korean corvette Cheonan. South Korea insists the warship was sunk by the DPRK’s torpedo, an accusation the DPRK denies.

The two countries also exchanged fire off Yeonpyeong Island last November, leaving four South Koreans dead and prompting Seoul to begin to build up its forces on five front-line islands in the Yellow Sea.

A satellite image which is appended to the May 2011 Report of the Panel of Experts Established Pursuant to Resolution 1874 (UN Department of Field Services Cartographic Section via Hankyoreh)

The May 2011 report by the UNSC Panel of Experts assesses that the DPRK’s UEP has a military use.  Via Hankyoreh (which includes this link to the report):

In the report, the panel said it “believes both that, despite the assertions of the Democratic People’s Republic of Korea to the contrary, its long pursuit of a uranium enrichment programme was primarily for military purposes, and that the risk that the uranium enrichment workshop could easily be converted for military purposes should be underlined.”

“The Panel of Experts strongly believes that the Democratic People’s Republic of Korea should be compelled to abandon its uranium enrichment programme and that all aspects of the programme should then be placed under international monitoring, and suggests steps towards this in its recommendations,” it added.

The report includes satellite pictures of North Korea’s Yongbyon Nuclear Complex Fuel Fabrication Complex and Uranium Enrichment Workshop.

According to Yonhap News, however, the report was not officially adopted by UN Security Council as China refused to do so saying that the North’s nuclear issue should be discussed at the six-party talks.

Meanwhile Chosun Ilbo  reports on  viewing a fence in Dandong and a 28 May ceremony that did not happen:

A trip down the highway across the Apnok (or Yalu) River in China’s Dandong, Liaoning Province leads to a large field surrounded by double barbed-wire fences. Without the fences it would not stand out, but this is Hwanggumpyong, which has been at the center of recent cracks in Sino-North Korean relations.

The field, part of the breadbasket of North Korea’s Sinuiju region, straddles the North Korea-China border. There have been rumors since last year that Pyongyang had signed a development pact and would lease it to China for 50 years for development of an industrial park.

There has been no official comment from China, but a ground-breaking ceremony for the development scheduled for Saturday has been cancelled, apparently because China had second thoughts. “Since last year, I’ve had business officials from other regions like Tianjin and Qingdao, asking me whether there’s any vacant office spaces for rent,” said a business owner in Dandong.

But people in Dandong have not lost all hope of potential development of the area. One Chinese businessman who has traded with North Korea since the 1990s, said, “Business projects with North Korea usually take a long time to materialize, and talk of developing Hwanggumpyong and Wihwa islands have been around for a long time, so I feel they will happen someday.”

Other major projects are already under way in Dandong. The Chinese city plans to build a new city in the Langtou area to house 200,000 people by 2020. A bank building and high-rise apartments have already sprung up in the area, which was a barren tract of land just three years ago. And a new bridge is being built linking Langtou with the North Korean border town of Ryongchon across the Apnok River.