Room 39

Room 39. Also known by its formal name, Bureau 39, it is a secretive North Korean government organization tasked with managing clandestine financial operations to generate foreign currency for the country's leadership. Established during the Cold War, it operates under the direct guidance of the ruling Workers' Party of Korea and is central to the economic and political strategies of the Kim dynasty. Its activities, which span from legitimate business to illicit enterprises, have drawn significant international scrutiny and sanctions from bodies like the United Nations Security Council.

History and establishment

The organization was formally created in 1974 under the direction of Kim Il-sung, the founding leader of North Korea, to secure hard currency for the state and the ruling family amidst a struggling planned economy. Its formation coincided with periods of economic difficulty following the Korean War and the cooling of relations with traditional allies like the Soviet Union and the People's Republic of China. Early operations focused on leveraging North Korea's natural resources, such as gold and silver, and establishing trading companies in regions like Hong Kong and Macau. The bureau's role expanded significantly under Kim Jong-il, who utilized its networks to fund political projects and procure luxury goods, solidifying its importance within the North Korean government.

Organizational structure and operations

The bureau is believed to be a division within the powerful Organization and Guidance Department of the Workers' Party of Korea, reporting directly to the Supreme Leader. It operates through a complex web of front companies, shell corporations, and diplomatic entities spread across continents, including in Asia, Europe, and Africa. Key operational hubs have historically included cities like Vienna, Singapore, and Beijing. The structure is highly compartmentalized, with different cells handling specific functions such as banking, shipping, and manufacturing, often using the diplomatic cover of North Korean embassies to facilitate transactions and avoid detection by international regulators.

Functions and activities

Its primary function is to generate and manage foreign currency, which is used to support the North Korean regime, fund the Korean People's Army, and finance the personal expenditures of the leadership. Activities range from ostensibly legal trade in commodities like coal, textiles, and seafood to widely condemned illicit operations. These include the production and trafficking of narcotics such as methamphetamine, counterfeit currency (notably superdollar forgery), insurance fraud, cybercrime including cryptocurrency theft, and clandestine arms sales. It also oversees a network of overseas restaurants and labor export operations, sending workers to countries like Russia and the Middle East.

International sanctions and controversies

The organization has been a primary target of international sanctions aimed at curtailing North Korea's nuclear weapons program and destabilizing its revenue streams. The United States Department of the Treasury has repeatedly designated associated entities and individuals under the USA PATRIOT Act and Executive Order 13722. The United Nations Security Council has passed multiple resolutions, such as United Nations Security Council Resolution 2270, imposing asset freezes and travel bans on its operatives. Major incidents linked to its activities include the Bombardment of Yeonpyeong and the seizure of the cargo ship MV Chong Chon Gang, which was found to be carrying illicit weapons from Cuba.

Leadership and key figures

While its internal leadership is opaque, it is understood to operate under the direct command of the country's supreme leader, having been closely associated with both Kim Jong-il and his successor, Kim Jong-un. Key operational figures have occasionally been identified by international investigators, often through connections to sanctioned trading companies or diplomatic posts. For instance, individuals like Kim Tong-myong have been cited by the U.S. Department of State for managing front companies. The bureau's activities are also intertwined with other elite North Korean institutions, including the Korean People's Army and the Ministry of State Security.

Category:North Korea Category:Government of North Korea Category:Intelligence agencies