Kim Jong-un’s ‘inheritance dwindling’ after expensive missile tests and vanity projects
Posted On August 1, 2020
A vital slush fund controlled by North Korean leader Kim Jong-un has reportedly been drained by a series of missile and nuclear tests, and extravagant vanity projects.
Two Chinese sources with connections to North Korean government officials told Radio Free Asia that Kim has been exhausting his inheritance, a fund intended to run the country, since coming to power after the death of his father, Kim Jong-il, in 2011.
They alleged that the leadership’s last-minute decision to take part in the South Korean Winter Olympics was part of a wider plan to boost the nation’s failing economy.
“Due to Kim Jong-un’s extravagant spending, the slush fund from his father, Kim Jong-il, is running out,” said one source.
The source claimed to be “well-acquainted” with officials from Bureau 39, a secretive government body tasked with obtaining foreign currency for the North Korean elite through illicit activities.
South Korean government analysts have estimated North Korea’s nuclear spending to be $1.1 – 3.2billion.
Kim has also splashed out on showpieces like the high rises of the Ryomyong Street neighbourhood in the capital, Pyongyang, and the luxury Masikryong Ski Resort, which critics have claimed the cash-strapped country cannot afford and which has been allegedly serviced by child labour.
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Meanwhile, the economy has been hit by the double whammy of toughening international sanctions.
A second Chinese source told RFA that North Korea had decided to join the Winter Games to improve relations and solicit charity from its rival southern neighbour.
“North Korea’s warm gestures towards South Korea have underlying intentions: to use the Pyeongchang Winter Olympics… as a breakthrough for their financial difficulties,” he said.
The precedent lies in South Korea’s “sunshine policy” of the 1990s and early 2000s, when Seoul offered subsidies in exchange for warmer relations.
It was the policy of former liberal President Roh Moo-hyun, whose chief-of-staff was the current President Moon Jae-in. Conservatives have blamed the decision for allowing the North’s weapons programme to flourish.
While the North’s move to open talks with the South in January was widely welcomed, analysts remain cautious about the potential for dialogue on security issues after the Olympics.
That hesitancy has been underscored by an order handed down by Kim Jong-un on January 19 for a new round of ideological training and combat preparation for the entire military, reported the Daily NK.
The leadership had stressed that the army must remain ready to “hit the enemy with a devastating blow,” said a source.