Despite food shortages, North's leader spends million on bling

Unification Ministry reported Thursday that the leader of North Korea, Kim Jong-un, has spent billions of Korean won every year to buy luxury goods amid the serious hunger that has struck North Korea.

(Left, top) Kim Jong-un wears a IWC Schaffhausen wristwatch and uses a Montblanc pen during his visit to Vostochny Cosmodrome spaceport in Russia in September. (Right, top) Kim Yo-jong carries a black luxury hand bag during her visit to the Yuri Gagarin Aviation Plant in Russia in September. (Left, bottom) Ri Sol-ju, right, wears a Molvado wristwatch during a cultural event held in Pyongyang in April 2018. (Right, bottom) Kim Jong-un's daughter Kim Ju-ae wears a Dior jacket to a weapons test in March. [MINISTRY OF UNIFICATION]

North Korean leader Kim Jong-un has spent vast sums every year to buy luxury goods despite ongoing severe food shortages under his regime, according to South Korea's Unification Ministry on Thursday.

The ministry, basing its analysis on testimonies from North Korean defectors and information provided by intelligence agencies, said that “it appears North Korea has been spending hundreds of millions to billions of won to import and acquire luxury goods for Kim’s family.”

North Korea’s Office 39, a special office believed by South Korean and U.S. intelligence to manage Kim's foreign currency slush fund, is involved in supplying luxury goods to the leader and his family, according to the ministry.

Office 39 is also called Room 39, Bureau 39 or Division 39 by intelligence analysts.

Jewelry, watches, and high-end luxury items are subject to economic sanctions by the United Nations Security Council imposed on North Korea. To avoid such sanctions, the North Korean government is believed to have purchased luxury goods for Kim and his family in countries that maintain good relations with Pyongyang or through its diplomats stationed in European countries.

“North Korea usually stocks up these luxury items in the border region between North Korea and China, then ships them either by land, sea or air,” a ministry official said, noting that such deliveries constitute “acts of smuggling” because they “make several stopovers during the shipment and don't declare the final destination of the products.”

Although the volume of luxury goods delivered to the North decreased during the regime's self-imposed blockade during the Covid-19 pandemic, Pyongyang is believed to have continued importing high-end items for its leadership's use through the sea.

According to the ministry, with the easing of its Covid-19-related border restrictions and the reopening of road traffic to China through the border city of Sinuiju, the number of cars and trains moving between China and the North is increasing.

The ministry noted that the volume of luxury goods imports earmarked for Kim and his family seems to have returned to normal.

Kim was photographed wearing an IWC Schaffhausen watch on his wrist and using a pen made by Montblanc during his visit to Russia last month to meet President Vladimir Putin. Both are luxury brands based in Switzerland.

Kim Yo-jong, sister of North Korean leader Kim Jong-un, was spotted carrying a Lady Dior bag worth more than $6,500 during her visit to the Yuri Gagarin Aviation Plant in Russia last month.

Kim's wife Ri Sol-ju has also been seen wearing a Molvado watch made in Switzerland, while his daughter Kim Ju-ae was snapped wearing a jacket from Dior during recent public appearances.

The ministry official noted that Kim’s family appears to pay little heed to public sentiment inside the North as they sport their luxury goods.

In its analysis, the Unification Ministry said Kim is playing what it characterized as “gift politics” by presenting luxury goods to the regime's high-ranking officials whenever important political and military events occur.

“Kim offers luxury cars as gifts to those who win his favor or accomplish outstanding military achievements,” the ministry said, adding that the North Korean leader “also gives away newly developed mobile devices and Swiss watches, such as ones by watchmaker Omega, to celebrate his birthday or other special occasions, such as a ruling Workers' Party congress.”

BY JEONG HYE-JEONG, LEE SOO-JUNG [lee.soojung1@joongang.co.kr]