Room 39

Room 39 (also referred to as Bureau 39, Division 39, or Office 39^[1]) is a secretive North Korean government organization that seeks ways to maintain the foreign currency slush fund for the country's leader Kim Jong-un.^[2]

The organization holds as much as $5 billion in funds, and may be involved in illegal activities, such as counterfeiting $100 bills (see Superdollar), production of controlled substances (including the synthesis of methamphetamine and the conversion of morphine-containing opium into pure opiates, like heroin) and international insurance fraud.^[2][3]

Although the seclusion of the North Korean state makes it difficult to evaluate this kind of information, many claim that Room 39 is critical to Kim Jong-un's continued power, enabling him to buy political support and to help fund North Korea's nuclear weapons program.^[2]

Room 39 is believed to be located inside a ruling Workers' Party building in Pyongyang,^[4] not far from Kim's villa.^[1]

History

Room 39 was established in the late 1970s. It has been described as the lynchpin of the North's so-called "court economy" centered on the dynastic Kim family.^[5] It is unknown how the name originated.

In early 2010, South Korea's Yonhap news agency reported that Kim Dong-un, head of the department, was replaced by his deputy, Jon Il-chun.^[6]

The Chosun Ilbo reported that Room 38, led by Kim Jong-Il was merged into Room 39 in late 2009, but then the two were split again in 2010 due to difficulties in obtaining foreign currency.^[7]

Purpose and activities

Very little is known about Room 39 due to the secretive nature surrounding the organization, but it is widely speculated that the organization uses 10 to 20 bank accounts in China and Switzerland for the purposes of counterfeiting, money laundering and other illicit transactions. It is also alleged that Room 39 is involved in drug smuggling and illicit weapon sales. It is known, however, that the organization has 120 foreign trade companies under its jurisdiction and is under the direct control of Kim Jong-un. North Korea has denied taking part in any illegal activities. Room 39 is also involved in the management of foreign currency earnings from foreigners' hotels in Pyongyang, gold and zinc mining, and agricultural and fisheries exports. Companies believed to be controlled by Room 39 include Zokwang Trading and Taesong Bank.^[7]

A 2007 report published by the Millennium Project of the World Federation of United Nations Associations said North Korea makes an estimated $500 million to $1 billion annually from criminal enterprises.^[8]

In 2009, a Washington Post report outlined a global insurance fraud scheme by the North Korean government. The state-owned Korea National Insurance Corp sought reinsurance contracts with international reinsurers and then submitted fraudulent claims; the contracts were governed by North Korean law and legal challenges were fruitless.^[3]

Room 39 is also believed to be operating the overseas North Korean restaurant chain called Pyongyang.^[9]

Room 39 in fiction

Room 39 is featured:

• as a low level enemy faction in the video game Mercenaries: Playground of Destruction, where they are referred to as "Division 39". They are involved in similar illegal activities to their real world counterparts
• in Gérard de Villiers's novel Le Défecteur de Pyongyang (SAS series, two volumes)
• in Timothy Hallinan's novel The Fourth Watcher, a Bangkok thriller concerning counterfeiting and Asian criminal syndicates

See also

• North Korea's illicit activities
• Chong Chon Gang

References

Further reading

• Jay Solomon and Hae Won Choi (July 14, 2003). "Money Trail: In North Korea, Secret Cash Hoard Props Up Regime". The Wall Street Journal. 
• Michael Breen, Kim Jong-il: North Korea's Dear Leader, John Wiley and Sons (January, 2004), hardcover, 228 pages, ISBN 0-470-82131-0