North Korean House of Cards

Chart 7: Securing Gifts for Kim Jong-il
Cabinet
Kim Jong-il
Loyalty
State
Economy
$
Gifts
People’s Economy
Office 39/38
North Korean Elite
Trade
Domestic
Economy
Trading Companies
Mines
Factories
Restaurants
Farms
Statues
As with all operations, gift-giving gave rise to an extensive infrastructure.
The regime established collection hubs around the world, close to where major gifts
were purchased, namely: Vienna, Austria; Australia; and Canton and Macau, China.
These hubs were usually operated by North Korean embassies or by special offices set
up by Office 39. The operatives who worked in these offices were skilled in strategies
for working around local customs, regulations, and law enforcement. In addition,
Kim Jong-il relied on a collection of special agents, also known as Third Floor operatives,
403 dedicated to procuring items both for Kim’s personal use, as well as gifts to
satisfy the rising consumer expectations of the North Korean elite. These operatives
worked out of General Bureau 73 of Kim Jong-il’s Personal Secretariat.
Life of a Third Floor Operative
“Trieste is a port city in northeastern Italy. Among the shipping
companies that have their base in Trieste are companies that began
as large merchant fleets in the 19th century. One of those companies
was used as a cover for the activities of the man in charge of procuring
Kim Jong-il’s luxury goods.
The man’s name is O Myong-kun. From 1988, he worked at the
North Korean embassy in Yugoslavia, and from 1992, O was posted
to Italy as an embassy counselor. An official from South Korea’s
403 Michael Madden, “Third Floor,” North Korea Leadership Watch, October 18, 2012. “The
term refers to the original location of these offices on the third floor of Kim Jong-il’s office building in
the KWP Central Committee Office Complex in the Central District of Pyongyang. The Third Floor is
technically subordinate to the Party Central Committee. However, it is directly tied to the Kim Family.”
Ken E. Gause
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