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North Korean House of Cards

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• The KWP Administrative Department had a target <strong>of</strong> $20 million<br />

per year. 464<br />

• The KWP OGD is tied to the Supreme Leader’s personal apparatus. It<br />

is not clear if it has a mandated target. 465<br />

• The GC is tied to the Supreme Leader’s personal apparatus. It is not<br />

clear if it has a mandated target.<br />

• The KPA GPB has a target <strong>of</strong> $10 million per year.<br />

• The KPA GSD has a target <strong>of</strong> $10 million per year.<br />

• The MPAF has a target <strong>of</strong> $10 million per year.<br />

• The MSC has a target <strong>of</strong> $10 million per year.<br />

• The RGB has a target <strong>of</strong> $10 million per year. 466,467<br />

• The SSD has a target <strong>of</strong> $10 million per year.<br />

• The MPS has a target <strong>of</strong> $10 million per year.<br />

• Other Party and administrative <strong>of</strong>fices (such as KWP LID and<br />

Pyongyang City Administration) have targets <strong>of</strong> $2 million per year.<br />

The final source <strong>of</strong> revenue for the Supreme Leader comes from a one percent<br />

tax on the People’s Economy. 468,469 The total amount that goes into a governing<br />

464 Since the dissolution <strong>of</strong> the KWP Administration Department, its hard currency operations<br />

(and accompanying loyalty funds) have dispersed to several other organizations within the regime.<br />

465 If the stories <strong>of</strong> Choe Ryong-hae assuming the position <strong>of</strong> KWP Secretary for the OGD are<br />

true, this would be the first time the OGD has fallen under the control <strong>of</strong> someone other than a Kim<br />

family member. This could result in the OGD being given a mandated target for loyalty payments.<br />

466 “Dangers in a Cutthroat World,” Daily NK, September 2, 2011. According to some sources,<br />

soon after its creation in 2009, the RGB advanced its hard currency operations into China, sending more<br />

than 100 operatives there under the cover <strong>of</strong> monitoring Sino-South <strong>Korean</strong> relations. This move apparently<br />

caused problems for other China-based hard currency operations run by the Ministry <strong>of</strong> Foreign<br />

Trade, the SSD’s General Security Bureau, the MPS, and the MPAF.<br />

467 “<strong>North</strong> Korea Requiring Diplomats to Raise Millions in U.S. Currency,” UPI, September 29,<br />

2015. In the lead up to the celebration <strong>of</strong> the 70th anniversary <strong>of</strong> the founding <strong>of</strong> the Party in October<br />

2015, reports surfaced in the international media that <strong>North</strong> <strong>Korean</strong> RGB agents in the field were<br />

required to deliver $200,000 in “kickback” money to the regime or face penalties. According to Japanese<br />

reporting, this led many spies to turn away from their normal duties to focus on generating foreign currency.<br />

468 The GDP <strong>of</strong> <strong>North</strong> Korea is estimated to be $40 billion according to the International Trade<br />

Office <strong>of</strong> Korea. The domestic economy has either contracted or grown at one percent in recent years,<br />

according to South <strong>Korean</strong> government estimates based on limited data, with annual exports <strong>of</strong> about $3<br />

billion, falling well short <strong>of</strong> the total amount <strong>of</strong> imports.<br />

469 “Pyongyang Imposes Duty on Diplomats To Obtain Foreign Currency To Raise Funds To Celebrate<br />

10 October 70th Anniversary <strong>of</strong> Founding <strong>of</strong> Workers’ Party <strong>of</strong> Korea,” Sankei Shimbun, September<br />

29, 2015. In an indication <strong>of</strong> the Royal Economy’s declining condition, Kim Jong-un placed increasing pressure<br />

on the <strong>North</strong> <strong>Korean</strong> diplomatic corps in the summer <strong>of</strong> 2015 to raise funds ahead <strong>of</strong> the Party’s 70th<br />

anniversary in October. Each embassy staff member was responsible for raising $1 million in U.S. currency<br />

to be passed to the regime. Average <strong>North</strong> <strong>Korean</strong> citizens were also asked to contribute $6 per household<br />

(twice the monthly salary <strong>of</strong> the average <strong>North</strong> <strong>Korean</strong> worker) to <strong>of</strong>fset the celebration expenses. The<br />

Committee for Human Rights in <strong>North</strong> Korea<br />

212

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