North Korean House of Cards

a. Gift-giving
At the heart of Kim Jong-il’s power consolidation strategy was the notion
of gift-giving. This practice began in the 1970s when Kim Jong-il became heir
apparent. Lacking his father’s inherent legitimacy, Kim Jong-il had to buy the
loyalty of the North Korean elite. Gift-giving became a major undertaking, growing
as a proportion of the overall Party economy throughout the 1980s and 1990s,
eventually reaching a staggering figure of nearly $300 million per year.
Table 6: Examples of Kim Jong-il’s Gifts to Maintain Loyalty
Housing
Medical
Facilities
Monetary
Gifts
National
Holiday
Gifts
Privileged
Distribution
System
As part of the Pyongyang remodeling campaign, Kim Jong-il provided
specially funded housing on Changgwang Streets 1 and 2 for Party
and government officials.
Bonghwa Medical Center, located in Potonggang District of Pyongyang,
is for the Kim family and most senior Party officials above the
vice director level. Namsan Medical Center, located in the Taedonggang
District of Pyongyang, is for officials just below the vice director
level, as well as two-star generals and above. In 1992, the Eo-eun
Hospital was built to take care of members of the high command.
Party secretaries, the Premier, and vice premiers received foreign
exchange coupons worth between $1,000 and $2,000.
The following are some examples of national holiday gifts given by
Kim Jong-il:
• Automobiles: Mercedes Benz, Japanese SUVs
• Accessories: Swiss Omega gold watches
• Appliances: Japanese color televisions, refrigerators, VCRs,
CD players
• Alcohol: Johnnie Walker scotch whiskey
• Food: Danish hams and candy, fruit boxes
• Clothing: Japanese underwear, suits, socks
Vice ministers and above received regular deliveries twice a week.
Deliveries included rice, sugar, meat, fish, liquor, beer, cigarettes,
vegetables, eggs, soya beans, and soap. They also received end-of-year
special gifts.
Ken E. Gause
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