North Korean House of Cards
HRNK_Gause_NKHOC_FINAL
HRNK_Gause_NKHOC_FINAL
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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 />
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