U.N.’s Sanction on Distributions of North Korean Goods

On the draft resolution sanctioning North Korea that the U.S. government suggested to the U.N. Security Council on October 9, a phrase of “blocking the influx of luxury goods into North Korea” is attracting the public’s gaze.

On October 9, a Washington insider said, “This one added to Clause 3, Art. 5, is aimed at the ‘quality of life’ of North Korean leaders. Fierce resistance by North Korea is expected.”

In other words, this stipulation allows North Korea’s import of common goods required for ordinary business use but strictly prohibits bringing in high quality products such as Mercedes-Benz. Due to its lack of ability to produce luxury consumer products caused by its munitions-oriented industry structure, North Korea has imported most of its luxury goods from overseas.

The Bush administration has been assuming that profits from the production of counterfeit notes, false cigarettes and medicines, and drugs are appropriated to subsidize Kim Jong Il’s ruling expenses via secret accounts in third-party countries.

David Asher, the former coordinator of North Korea Working Group and Senior Adviser for East Asian and Pacific Affairs, Department of State, said during an interview with us, “The money is a kind of secret fund to buy luxury cars and cognacs which are used for compensating for the loyalty of political powers.”

The Washington insider said, “Cutting off the influx of luxury goods doesn’t affect the North Korean people. It seems to have an intention to loosen the solidarity of North Korean leaders.”

srkim@donga.com