North Korean leader Kim Jong Un visits the national science centre in
this photo released by North Korea's Korean Central News Agency (KCNA)
in Pyongyang on January 12, 2018. Source: KCNA/via Reuters
FOLLOWING a series of nuclear weapons and missile tests, a critical
slush fund controlled by North Korea’s leader Kim Jong Un is nearly
empty, leaving the Supreme Leader looking for new ways to bolster the
economy of the isolated regime, according to Radio Free Asia (RFA).
Two anonymous Chinese sources with connections to North Korea’s ruling
elite, reportedly told the newspaper that Kim had nearly exhausted the
financial handout inherited from his father. They also said the lack of
funds was a factor in his decision to participate in the upcoming Winter
Olympics in Pyeongchang, hoping the move would boost the country’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 of the sources.
“It won’t be easy to control North Korea’s high-level executives, who are [cunning] like raccoons.”
According to the source, who said he was “well-acquainted” with the
North Korean elite, the lack of funding is no secret and is discussed
amongst the top executives of government. Much of the money has been
spent on Kim’s weapons development, he said.
“We can speculate that he spent a lot of money from the number of missile [and nuclear weapons] tests he carried out,” he told RFA.
“Most of the funding for nuclear weapon and missile development is coming from Kim Jong Un’s slush fund.”
A view of the newly developed intercontinental ballistic rocket
Hwasong-15’s test was successfully launched is seen in this undated
photo released by North Korea’s Korean Central News Agency (KCNA) in
Pyongyang November 30, 2017. Source: Reuters/KCNA
North Korea’s leader has conducted four nuclear weapons tests and nearly
20 missile tests over his seven-year reign. He has also spent lavishly
on development flagship projects, such as the Ryomyong Street
neighbourhood in the capital Pyongyang and the Masikryong Ski Resort in
eastern North Korea’s Kangwon province.
Kim’s refusal to stop his nuclear programme led to international
sanctions that have crippled the already fragile economy and cut off
access to foreign currency.
Following a nuclear test in September, the United Nations Security
Council adopted resolutions prohibiting any country from accepting North
Korean workers, and on Dec. 22 passed an additional resolution
requiring North Korean workers abroad to return home within two years.
According to RFA, these latest
measures dealt serious financial blow as latest UN estimates suggest
over 100,000 North Koreans working abroad send some US$500 million in
earnings to the Kim regime annually.
“International sanctions on North Korea have made it extremely difficult
to earn foreign cash, and the slush fund is now running out,” the
source said.
Kim hopes the decision to participate in February’s Winter Olympics in
South Korea will help to improve relations and aid in their financial
woes.
“North Korea’s warm gestures toward South Korea have underlying
intentions: to use the Pyeongchang Winter Olympics that will be held
there from Feb 9 as a breakthrough for their financial difficulties,”
another source told RFA.
