North Korean House of Cards

Kim Jong-il’s private secretary and mistress, jointly ran Kim Jong-il’s office. While Kim
Kyong-hui was responsible for overseeing the Kim family‘s assets, which included the
Royal Economy, Jang was reportedly given wide latitude for ensuring the day-to-day
operations of the government, including the economic sector. This continued after
Kim Jong-il recovered and he reached out to Jang to support the upcoming succession
of Kim Jong-un.
In 2009, Kim Kyong-hui returned to public life after a six-year hiatus. It
was presumed that Kim Jong-il was relying on his family to pave the way for the
succession. Overlapping with this reinvigoration of Kim family participation in
politics was a series of moves tied to the Royal Economy:
• In January 2010, the European Union identified the Director of Office
39, Kim Tong-un, as one of thirteen North Korean officials targeted for
sanctions related to the regime’s nuclear activities.
• In February 2010, reports surfaced that suggested Office 38 had been
merged with Office 39 some time in 2009. 436 In addition, Jon Il-chun
was identified as the Director of Office 39, replacing Kim Tong-un. 437
• In early 2010, Kim Hyo was reportedly named Director of the KWP
FAD. 438 The post had previously been vacant. According to South Korean
government sources, Kim was believed to be the father of Kim Ok.
• In March 2010, reports surfaced that Ri Kwang-gun, who had fallen out
of favor in 2004, had been appointed Vice Director of Office 39 in 2009.
Ri had previously run a trading company and served as an economic
counselor at the North Korean mission in Germany. His purge and
subsequent return to politics suggested that he was part of Jang Songtaek’s
network.
• In March 2010, Ri Chol, the Ambassador to Switzerland and the
caretaker of Kim Jong-il’s secret funds, left office after thirty years to
return to Pyongyang. 439 He was succeeded by So Se-pyong, North
436 Kim So-Hyun, “DPRK Scraps Panel on Security Law,” The Korea Herald, February 18, 2010,
http://www.koreaherald.com/view.php?ud=20100218000026.
437 Jon Il-chun is also the Director of the Daesong Group, the business arm of Office 39. In his long
career, Jon has served in various roles in the State External Economic Affairs Commission and the KWP
FAD, as well as a five-year tenure as Vice Chairman of the North Korea-Rwanda Friendship Association.
438 Ro Myong-kun, who used to work as a carpenter for Kim Il-sung, served as Director of the
FAD from 1983 to 2001. His successor, Ri Pong-su, was reportedly dismissed shortly after the death of
Ko Yong-hui, Kim Jong-il’s wife, in 2004. After Ri Pong-su was removed, the position of FAD Director
remained vacant.
439 “N. Korean Ambassador to Geneva Expected to Leave Office,” Yonhap News Agency, March
10, 2010.
Committee for Human Rights in North Korea
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