July 14, 2003

Kim Jong Il's lifeline

The Wall Street Journal gives front page coverage today to a story on what keeps the dictator of North Korea going. Since their normal economy is crippled to the point of starvation, it only makes sense that there is another way for them to survive. The global war on terror has many dimensions; this one of the key areas of the conflict, but we'll hear little about it. Good reporting by the WSJ.

Inside North Korea, it goes by the Orwellian name of Division 39. It is a largely unpublicized trading network and slush fund. The money it generates is, by all accounts, the lifeblood of Kim Jong Il's dictatorship.

According to interviews with high-level defectors, South Korean businessmen and Asian intelligence officials, Division 39 has generated a cash hoard as large as $5 billion that is salted away in places as disparate as Macau, Switzerland and Pyongyang. It produces a steady flow of money that Mr. Kim uses to buy political support and loyalty. Intelligence officials have also tied it to Pyongyang's efforts to develop weapons of mass destruction.

So critical is Division 39 that defectors and North Asian security officials say cutting off its cash flow is the key for those in the U.S. and elsewhere advocating regime change in Pyongyang. By shutting down Division 39's businesses, "you can shut down Kim Jong Il," says Kim Dok Hong, a high-ranking defector who has worked with Division 39 companies.

via The Wall Street Journal (subscribers only)

Posted by Alan at July 14, 2003 12:22 PM