North produces 2 billion counterfeit cigarette packs

North Korea is allegedly the world’s top producer of counterfeit cigarettes, including Marlboro and Mild Seven, reported the Wall Street Journal on January 27. The paper quoted employees at famous cigarette makers such as Philip Morris as saying, “Fake North Korean cigarettes were spotted at over 1,300 places in 23 states including New York, Oklahoma, Seattle, and Los Angeles in recent years, and an estimated two billion packs are made in North Korea annually.” These companies, which requested the U.S. government to stem the flow of the counterfeit cigarettes into the country, discovered the country’s shady business by sending secret agents into an Asian crime ring and North Korea on their own.

The cigarette makers’ report submitted to Washington said the city of Na-sun in North Korea is the center of the fake cigarette production, and a state-owned enterprise around the Pyongyang area engage in the business. It also said Pyongyang made $80 million to $160 million through counterfeiting, or the equivalent of 8-16 percent of profits from legal exports.

Seung-Ryun Kim srkim@donga.com