N. Korea reportedly trades arms in Russian luxury goods

The South Korean government authorities believe that North Korea imported millions of dollars worth of luxury goods from Russia last year. These imports are likely part of a deal to provide artillery shells and ballistic missiles to Russia, a move that breaches UN Security Council sanctions against North Korea.

The South Korean government sources reported on Friday that there was a significant increase in North Korea's luxury goods imports last year. These imports, mainly through China and Russia, particularly saw a notable rise from Russia compared to previous years. "The import of luxury goods by North Korea began to increase in the latter half of 2022 as the COVID-19 lockdown started to ease,” a government source said. “We understand that these imports became more frequently caught the attention (of South Korea and U.S. authorities) in the latter half of the year when the lockdown was effectively lifted. While most imports come from China, the rise in luxury goods from Russia is attracting attention."

"There are signs of high-end liquor such as vodka, watches, and cosmetics being imported,” another source revealed. “The total value of these imports could reach millions of dollars." Earlier in December last year, it was observed that North Korean leader Kim Jong Un had recently upgraded his vehicle to a new Mercedes-Maybach, worth at least 300 million won. Mercedes vehicles, categorized as luxury items, are among the goods banned from being exported to North Korea by the UN Security Council.

Reports also indicated an increase in food, including flour, that North Korea imported from Russia last year. North Korea faced severe food shortages, with over 240 reported starvation cases until July of last year. In a September meeting with Kim last September, Russian President Vladimir Putin discussed agricultural development, hinting, "Russia has something to offer to North Korea." This suggested Russia's readiness to actively engage in food support, being the leading global wheat exporter.

Notably, North Korea's import of luxury goods could be seen as compensation for weapon provision, prompting vigilant monitoring by South Korean and U.S. authorities. Ukrainian President Volodymyr Zelenskyy stated on Thursday (local time) that Russia had received over a million rounds of ammunition from North Korea. The White House also recently revealed that North Korea had supplied Russia with several ballistic missile launchers and missiles.

As evidence of the deepening ties between North Korea and Russia, there was also an increase last year in the operation of trains between the North Korean Tumen River station and the Russian Primorsky Krai Hassan station in border areas. “In the second half of last year, the frequency of train trips increased to several times a week," a source mentioned. This might be for arms trading, but it also likely serves the purpose of smuggling energy resources such as coal and oil, as well as luxury goods.


Jin-Woo Shin niceshin@donga.com