North Korea, Since Kim Il-sung Era... Distributing Gifts to Induce Loyalty
As the North Korean leadership continues to be seen wearing high-end luxury goods, North Korea's 'gift governance,' a practice utilized since the Kim Il-sung regime, is being reexamined. Luxury items such as these are banned from being imported into North Korea under United Nations Security Council (UNSC) resolutions.
Recently, Choe Son-hui, North Korea's Foreign Minister, attracted attention by appearing at the 1st BRICS Women's Forum held in Saint Petersburg, Russia, wearing glasses from the luxury brand Dior. Choe, the first female foreign minister of North Korea, is known as an expert in diplomacy with the United States. She also made headlines last September when she appeared carrying a Gucci bag worth around 10 million won.
The so-called 'gift governance,' where gifts are distributed to cadres and privileged classes to manage their loyalty, has been a tool of North Korean rule since the Kim Il-sung era. Since individuals in North Korea cannot purchase luxury goods from abroad, expensive luxury items are used to buy loyalty and suppress dissatisfaction.
Kim Jong-un, Chairman of the State Affairs Commission of North Korea, also appears to actively use gifts in party, military, and government governance. Recently, imports of items classified as luxury goods such as alcoholic beverages, cosmetics, and watches have significantly increased in North Korea.
According to an analysis of the first half of this year's statistics from China's General Administration of Customs by Yoon Sang-hyun, a member of the National Assembly's Foreign Affairs and Unification Committee from the People Power Party, North Korea's imports of luxury goods from China from January to June this year amounted to a total of 37.94 million USD.
Comparing the amounts recorded up to June this year with the import amounts during the COVID-19 lockdown period in 2021, alcoholic beverages surged from 20,000 USD to 3.93 million USD, cosmetics from 550,000 USD to 11.8 million USD, and leather products from 60,000 USD to 4.03 million USD. Watch imports reached 10.72 million USD, surpassing the previous year's total watch import volume of 9.34 million USD.
In March 2023, North Korea Central TV released footage of the launch of the ICBM Hwasong-17. Behind Kim Jong-un were his daughter Kim Ju-ae, Jo Yong-won, Secretary of the Party Central Committee Organization, Ri Il-hwan, Secretary of the Party Central Committee, and Kim Yo-jong, Deputy Director of the Workers' Party. Photo by Yonhap News Agency
Selling luxury goods to North Korea violates sanctions. The UN Security Council banned the supply, sale, and transfer of luxury goods to North Korea in October 2006 in response to North Korea's first nuclear test.
However, Kim Jong-un seemingly scoffed at these sanctions by appearing in a new Mercedes-Benz. During his visit to flood damage sites last August, Kim parked a brand-new high-end German Mercedes-Benz sports utility vehicle (SUV), released less than four months prior, nearby and gave a speech.
His daughter, Kim Ju-ae, also drew attention for her 'luxurious luxury fashion.' Since last year, Kim Ju-ae has appeared multiple times in North Korean media wearing jackets from the French luxury brand Christian Dior. Kim Jong-un's younger sister, Kim Yo-jong, Deputy Department Director of the Workers' Party, appeared last September carrying a Dior bag. The bag Kim Yo-jong carried was the Lady Dior Large Bag in 'Black Ultra Matte Cannage Calfskin,' priced at around 6,200 euros (approximately 9.11 million won).
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
