Our regular readers will be aware from previous Pyongyang Papers reports that coal is a major generator of revenue for North Korea– historically, the DPRK was the global leader in anthracite coal exports. However due to the DPRK regime’s persistent refusal to decommission their WMD scheme, coal is included in the UN list of sanctioned commodities since 2017. Meaning, North Korea are banned in exporting coal, and all member states prohibited from procuring coal from the DPRK.

Despite this, the 2021 Midterm Panel of Experts report details the DPRK’s continued disregard for sanctions and reports on the high level of illicit coal exports still being carried out at the request of the regime. According to the report, at least 364,000 metric tons of coal were exported by the DPRK between February and May 2021. The report also noted that this was significantly lower than in 2020, which estimated 4.8 million metric tons of coal were exported to China!

Although the numbers are lower than in 2020, it looks like the North Korean trade is not going to stop anytime soon and may soon increase massively. the Midterm report also notes that as of April 2021, 32 DPRK flagged vessels were docked at Taean Port with all but three of the vessels laden with coal! Pyongyang Papers has been investigating North Korean coal exports and has uncovered some further upcoming trade plans between North Korea and China. Korea Investment Development Group located in Pyongyang is planning to sell anthracite coal to a Chinese company China Shenyang Samsinmangro Science and Technology Co., Ltd. Our investigation is still ongoing but negotiations focus on 100,000 metric tons of coal per month loaded from either Nampo or Taean Port and delivered to China.

Pyongyang Papers wonders if any of the vessels located at Taean Port were on standby as part of the proposed deal. We estimate the profit from this contract would be in excess of $6.5 million per month– a substantial sum which will likely be used by the North Korean regime to fund the nuclear and ballistic missile program instead of providing for its citizens.

DPRK-flagged vessels laden with coal, Taean Port, DPRK, 4 April 2021- as seen in S/2021/777 UN PoE report.

Coal shortages

China is the world’s largest coal consumer. Recent flooding in Shanxi, their main coal-producing province, has impacted Chinese coal supplies. As a result, more than half the regions in Mainland China managed by the State Grid implemented power consumption rations in September 2021.

It is no surprise that China has once again turned to North Korea, given their history of illicit trade. North Korean coal is still under half the international price, despite attempts to increase price in line with international demand, making them an attractive trading partner for China. Following this, DailyNK reported that there have been more requests for coal from Chinese traders, according to their source in Pyongyang. This includes Beijing increasingly approving transactions with private North Korean traders, instead of limiting imports to official North Korean trading bodies. There are also reports that provincial civil servants in China are advising traders to take care and not get photographed when shipping coal. This could suggest that the Chinese government are well aware they are breaking international sanctions and that the international community are watching!

China Cover Up?

The evidence against China is well documented and it is highly likely there is a huge amount of activity still to be uncovered even with China’s underhand tactics to put pressure on the UN Panel of Experts to remove or edit content that may be seen as damaging to Beijing. A recent article from Foreign Policy details how the strategy of sanitizing investigations and blocking the reappointment of panel experts has been expanded to now include limiting financial resources available to sanctions experts (along with Russia) and ensuring all requests from Hong Kong based entities are channeled through the China mission to the UN, with the ultimate aim of slowing down the panels investigations. Along with the recent proposal from China and Russia to ease the sanctions on North Korea with the intent of enhancing the livelihood of the civilian population, you can clearly see that China will try anything to portray itself as an honest member of the UN whilst disregarding sanctions entirely.

The True Cost of Coal Production

China’s ongoing imports of North Korean coal undermines UN sanctions, encourages the DPRK in developing their nuclear and ballistic missile programs, and turns a blind eye to ongoing human rights abuses.

A 2021 investigation by Citizen’s Alliance for North Korean Human Rights’ (NKHR) found that the export supply chain is dependent on using enslaved labor of men, women and children in detention camps. This investigation shows that the extractive industries, particularly coal production, are fueled by a ‘pyramid-scheme’ involving political prisoners and citizens being forced to produce quotas of coal and other commodities whilst trapped in a system of slavery. NKHR argues that a full analysis of North Korea’s export supply chain is needed to understand the humanitarian impact of ongoing coal exports.

With the recent global shortages leading Kim Jong Un to call for further investment into electricity and coal production, the use of forced labor is likely to increase in order to meet demand, suggesting a bleak future for the citizens of North Korea. The DPRK continues to ignore sanctions in order to fund the development of their ballistic missiles, at a great humanitarian cost, whilst China continues to ignore international sanctions and North Korea’s human rights violations, in return for cheap coal.

Pyongyang Papers will continue to highlight countries and companies enabling sanction violations – as always please get in touch if you have any information that may help us.

Unfortunately, here at Pyongyang Papers we have come to expect to hear of the DPRK and its co-conspirators committing acts of a brutal, inhumane and cold-blooded nature and today we report on another. No nation, human or animal is safe from unwillingly contributing to the DPRK and its ever-growing money pot for weapons of mass destruction.

In this case the DPRK have teamed up with there usual partner in crime, China, to facilitate the illegal sale of rhino horn and violate UN sanctions.

Rhino horn – Big business on the black market

Rhino horn is big business for the Chinese and Vietnamese market places, used in some cultures as ‘traditional’ medicine, ornaments, or simply a ‘status symbol’ to demonstrate wealth. Poachers kill rhinos for their horns which are bought and sold on the black market- the value for this commodity ranging between $60,000 and $65,000 per kg (the same value as gold) with an average rhino horn weighing between 1-3kg each.

Between 2009 and 2018, 11000kg of illegally harvested rhino horn was seized, with South Africa contributing nearly 3000kg and Mozambique over 1000kg; the value of which on today’s black market is between $660 and $715 million.

rhino horn
Poachers killed this black rhinoceros for its horn with high-caliber bullets at a water hole in South Africa’s Hluhluwe-Imfolozi Park.

Pyongyang Papers have been tipped off that Yun Kil, an officer at DPRK Embassy South Africa based in Pretoria, is looking to sell $65 million of rhino horn to Shanghai Pharmaceutical Holding Con., Ltd, China from a South African supplier. The deal is via a Mozambican national named Avelino Antonio Nhantumbo. Nhantumbo was believed to be involved in a joint fishing venture with North Korea previously that was was shut down. Clearly he has not learnt from his previous illegal activity!

Although the rhino horn may have been sourced legally, requiring permits from both seller and buyer, international trade is not permitted under CITES regulations. CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora) is a multilateral treaty to protect endangered plants and animals, located in Geneva, Switzerland. the international trade in rhino horn has been banned since 1977.

Due to poaching and habitat loss rhinoceroses are now considered a critically endangered species with less than 30,000 rhinos living in wild today. Unfortunately, the scarcity and decreasing availability of rhino horn only continues to increase its value, and therefore the demand for it.

This isn’t the first time the DPRK has been caught in the illicit sale of African wildlife; Pyongyang Papers has previously reported on two North Korean diplomats arrested and detained in 2016 for smuggling multiple kilos of rhino horn. There are further reports from 2019, revealing that North Korean diplomats have continued to engage in smuggling rhino horn out of South Africa, despite the risk of being detained.

Hypersonic gliding missile

The commission for the deal undertaken between Yun Kil and Shanghai Pharmaceutical Holding Con., Ltd will amount to a multi-million USD pay-out which will be claimed by the DPRK regime and likely to fund its ballistic weapons program.

Despite UN sanctions, North Korea continue to advance its nuclear arms weapons technology. In September 2021, North Korea successfully tested a new hypersonic gliding missile. State media, Korean Central News Agency reported the launch was of ‘great strategic significance’ as the North seeks to increase its defense capabilities ‘thousand-fold’.

Hypersonic missiles move much faster and more agile than standard ones, making them much harder for missile defense systems- on which the U.S. is spending billions- to intercept.

It comes as no surprise, as Kim Jong Un announced his intention to develop more weapons and increase the country’s military capabilities at the Workers’ Party Eighth Congress in January 2021.

The launch took place less than an hour before North Korea’s UN envoy, Kim Song, addressed the UN’s annual meeting in New York. Kim told the UN that Pyongyang had a, ‘righteous right to self-defense’, and therefore implying a right to develop weapons.

North Korea has increased the pace of their missile testing in 2022, launching a total of nine so far. January saw a record number of such tests, with at least seven launches during the month including a hypersonic missile.

It seems clear that leader Kim Jong Un has no intention of slowing down North Korea’s production of weapons of mass destruction, despite the US’s pleas for peace talks. Here at Pyongyang papers we ask- what will it take for the Kim dynasty to end their tyrannical rule spanning more than 7 decades, and free all the innocent parties who are suffering at the hands of this regime?

It has been widely reported that the DPRK enforced strict border closures throughout 2020 and 2021 to stop the spread of COVID-19. Unsurprisingly this severely impacted trade opportunities, especially with China. China is North Korea’s biggest partner in both legal and illegal trade. In 2020, China’s reported trade with North Korea was down 80% from the previous year. Whilst the North Korean regime has maintained some level of income by violating sanctions through ship-to-ship transfers of oil and continuing to export tons of coal, it is clear that a strict border lock-down has resulted in devastating economic consequences.

South Korean outlet “Seoul Pyongyang News” recently reported shipping activity resumed between China and North Korea during the summer of 2021, according to their sources in bordering China cities. The Port State Control Committee of the Asia-Pacific have also released data indicating several North Korean ships have been seen entering various Chinese ports, signifying an increase in trade between the neighbors as well as a blatant disregard for ongoing sanctions.

Sanction evasion

Over the past few years North Korea’s efforts to evade sanctions have only increased. A recent Panel of Experts investigation has described ongoing illicit imports and exports carried out under cover of foreign flagged ships with obscured origins, but the latest data showing North Korean ships in Chinese ports suggests both nations no longer feel the need to hide the illegal activity.

The North Korean ships largely come from Nampo, a city in South Pyongan on the banks of the Taedong River. Nampo Port is a known hub for illegal activity, with satellite imagery released in the UN Panel of Experts report highlighting continuous use of the port to evade sanctions including carrying out illegal ship-to-ship transfers of oil as well as loading exports including coal.

A Pyongyang Papers investigation has also discovered that a North Korean trading corporation known as Korea Kumgangsan Trading Corporation, is planning to export 5,000 metric tons of graphite per month to a Chinese corporation called Dandong Earth Science and Technology Co., Ltd. The graphite is due to be loaded from Nampo Port.

Dandong Earth Science and Technology Co., Ltd, also known as 丹东大地科技有限公司 in Chinese, is located in Dandong, China’s largest border city, directly across the Yulu river from the North Korean city of Sinuiju. The company is represented by Mr Shen Guochun (沈国春) with an office adjacent to the Sino-Korean Friendship Bridge. Dandong is a prime location for ongoing trade with the DPRK and was the focus of heavy investment prior to the pandemic. Dandong Earth Science and Technology Co., Ltd. are so shameless about their activity with North Korea that company profile online even states “Since its establishment, the company has given full play to its regional advantages and vigorously developed its import and export trade with North Korea.” (translated from Chinese).

Location of Dandong Earth Science and Technology Co., Ltd. taken from business listing website
Street view of Dandong Earth Science and Technology Co., Ltd. office location

Graphite Demand

Graphite is required for lithium-ion battery production and there is no substitute for it. It is also a good conductor of heat and electricity and so is therefore useful in electronic products. Global demand for graphite has been growing by over 20% a year, fueled by the constant production of cell phones, cameras and laptops. The mounting worldwide focus on electric vehicles and renewable energy means that demand will only increase further. A report by the World Bank Group predicts almost 500% rise in graphite supply would be needed by 2050, in the shift to a ‘low-carbon future’.

North Korea is no stranger to the graphite industry, exporting $4.65m in graphite in 2018, making it the 16th largest exporter of graphite in the world. China is also a big player in the industry, having been the largest producer and exporter of flake graphite for decades. Recently China has been importing more graphite, increasing imports by 22% between July 2020 and July 2021. China has a long record of circumventing sanctions in order to trade with North Korea, so illegal graphite imports will undoubtedly continue to rise as global demand surges along with trade routes reopening following the pandemic.

Where does the money go?

The high demand for graphite naturally leads to high prices- in 2019, the global price of graphite was $690 per metric ton, and prices have only increased since then thanks to new rounds of Chinese environmental inspections, demand growth and plant closures during the pandemic.

Sadly, it is unlikely the substantial income from illegal graphite exports will be used to help feed the North Korean population, who have been hit hard by border closures and food shortages. Kim Jong Un told citizens to prepare for another ‘Arduous March’ indicating the potential for another famine similar to that of the 1990’s, which killed up to 10% of the population. Despite this clear economic hardship, recent displays of military developments such as ballistic missile tests show that the North Korean regime is still funneling money towards the development of its weapons program whilst letting the citizens of North Korea starve! If you have any information regarding North Korean sanction evasion, please get in touch.

Whether working to smuggle luxury goods, refined petroleum, or its most lucrative export – coal– the DPRK’s maritime vessels have been a key component in the states notorious sanction evasion activities for years. Pyongyang Papers recently investigated a deal involving the sale of sand, dredged from the North Korean Yalu river, to its long established ally China. After further research by Pyongyang Papers, it seems the North Korean regime have been funding their nuclear and ballistic weapons program by selling sand for some time and on an immense scale!

C4ADS Expose

Between March and August 2019, Washington based think tank C4ADs tracked hundreds of vessels that were suspected of dredging sand in Haeju Bay before transporting it to China. These shipments involved at least one million tons of sand and were worth at least $22 million. C4ADS stated that the activity in Haeju demonstrates scale, and a level of sophistication unlike other known cases of north Korean sanctions evasion at sea. Providing renewed evidence of the DPRk’s evolving abilities to coordinate and execute complex operations with facilitators abroad.

When questioned by the UN Panel of Experts on its involvement in C4ADs’s expose, China responded that it attached great importance to the clues provided by the panel in relation to the smuggling of sand originating in the DPRK. However, unsurprisingly, the Chinese side could not trace the related vessels voyage a was unable to confirm that the sand had been transported to Chinese ports.

Despite China’s continued insistence of being an upstanding member of the UN in support of North Korean sanctions, their actions continue to suggest that this is not the case. Our sources have informed us of two further Chinese companies who are the recipients of illegally-sourced sand from the DPRK’s Yalu river.

Mining Agreement

Our sources have informed us that North Korean company Kwangyong Trading Corporation have facilitated a 10-year sand mining agreement with China Liaoning material Import and Export Co. Ltd, (辽宁鑫之烨物资进出口有限公司). This agreement is a blatant violation of the United Nations Security Council resolution 2397 (2017), which prohibits the sale of earth and stone (including sand) by North Korea. According to business listings China Liaoning was established in December 2020 and appears to have quickly moved onto illegal activity. The company is managed by Xie Zongxuan (谢宗烜) with its headquarters registered in Benxi City, Liaoning Province, around 100km from the North Korean border!

Modern civilization is built on different types of sand. Its a key ingredient in concrete, glass and the processors that power electronic devices. Approximately 50 billion tons of sand is consumed globally each year. More than any other natural resource on the planet except water. As the global leaders in construction, it is not surprising that China are in the market for sand supply deals of a long lasting nature.

Vessel Violations

The Yalu river is situated on the North Korea/China border between the cities of Sinuiju and Dandong. The river is the longest waterway on the Korea peninsula, measuring 795km, and so acts as a great source of sand for the North Koreans to mine and sell. The first entrance to the Yalu river is located near the southern section of Pidan-som island.

The Yalu river, situated on the North Korea/China border between the cities of Sinuiju and Dandong

A second Chinese company, China Hunchun Longchao Trading Co. Ltd, are also looking to enter into illicit sand dredging deals by partnering with a DPRK company named Jinmyong Trading Corporation, This wouldn’t be the first time Jinmyong Trading Corporation has been involved in sanctions breaking activity alongside China. The 2021 midterm panel of Experts report states that the DPRK acquired a vessel named the the Ming Zhou (IMO 8829878) following a joint venture involving Jinmyong Trading Corporation. This violates UN resolutions that prohibit the direct or indirect supply, sale or transfer of vessels old and new to the DPRK. despite this, the oppressive state has continued to expand its fleet through the addition of former foreign flagged tankers and cargo vessels since 2019.

Our sources have confirmed that the North Korean government notified the Chinese government of the two companies cooperation on the project!

China’s Lies

Pyongyang papers finds it ridiculous that China continues to deny any involvement or wrongdoing in sanctions breaking activity, when clearly this couldn’t be further from the truth. By undermining the sanctions and continuing to trade with North Korea, China is effectively funding the Kim regimes nuclear weapons program and completely disregarding the illegal, immoral and dangerous practices taken to do so. Pyongyang Papers believes that these deals may just be a tiny fraction of the activity currently taking place on the Yalu river. As always, if you have any information regarding sanctions evasion and North Korea, please get in touch.

The totalitarian state of North Korea is renowned for conducting illicit activities and trade deals in order to continue funding its ballistic and nuclear weapons program, often with the assistance of neighboring countries who are looking to make a quick profit despite UN sanctions. Pyongyang Papers has investigated the DPRK’s involvement in a range of illicit activities including coal exports, wildlife trafficking, import of luxury goods and overseas workers. Our latest investigation looks at a river sand contract worth up to $10 million between the DPRK and its favorite trading partner, China.

Why sand?

Sand is one of the most important commodities in the world with the smallest appreciation space. Sand is very commonly used in construction, often providing bulk, strength and stability to other materials such as asphalt, concrete, mortar, render, cement and creed. It is the most consumed raw material besides water and is needed to build roads, bridges and trains.

The sand that covers the world’s deserts is too fine to use in construction because it doesn’t bind well. River sand is typically the best for making cement- which is where North Korea come into play.

Pyongyang has seemingly cashed in on the sand trade for many years. In previous years, when North and South Korea did significant business together, sand was Pyongyang’s most valuable export to its southern neighbor, according to media reports at the time. North Korea sold $73.35 million worth of sand to the Republic of Korea in 2008, though South Korea stopped buying North Korean sand shortly after.

But there’s an even more important customer bordering North Korea: China. China is the world’s largest consumer of sand, accounting for about half of the world’s total, with an annual consumption of up to 20 billion tons.

During the 2010’s, the country underwent a construction boom unprecedented in world history- Beijing used more concrete between 2011 and 2013 than the United States did in the entire 20th century.

Tan Wee Beng

North Korea is banned from exporting earth and stone under the United Nations sanctions passed in December 2017.

However, here at Pyongyang Papers we believe that DPRK-controlled, Singapore-registered Singapore Morgan Marcos Co., LTD is involved in a sanction-breaking deal involving the export of sand to China.

This wouldn’t be the first time that Morgan Marcos Co., LTD has been involved in dodgy dealings with the DPRK.

Morgan Marcos Pte. Ltd. is an Exempt Private Company Limited by Shares, incorporated on 22 January 2008 in Singapore. The address of the companies registered office is at the WEE TIONG BUILDING. The Company’s current operating status is live and has been operating for 14 years. The Company’s principal activity is collective portfolio investment funds with rental income.

Morgan Marcos Pte LTD is the sister company to commodity trading company Wee Tiong (S) Pte Ltd to whom Tan Wee Beng is the managing director and shareholder, along with his other business WT Marine.

Tan Wee Beng, a 44 year old Singaporean who also goes by the names “WB” and “Marcus Tan”, is described as a prominent young executive with a taste for expensive sports cars. However, that’s isn’t all he’s known for, you can also find Beng on the United States’ Federal Bureau of Investigation’s (FBI) most wanted list for money laundering and violating the International Emergency Economic Powers Act (IEEPA) by doing business with North Korea.

During October 2021, Beng was fined $210,000 by a Singapore Court for falsifying invoices linked to business in North Korea. According to the Singaporean police department, Wee Tiong (S) Pte Ltd sold sugar and other goods to two persons from the DPRK through their respective companies prior to 2017, with payments made to Wee Tiong (S) Pte Ltd and its related company, Morgan Marcos Pte Ltd.

Tan Wee Beng wanted by FBI

Investigations by the Commercial Affairs Department revealed that between November 2016 and October 2017, Tan Wee Beng received queries from two banks about deposits made to Wee Tiong (S) Pte Ltd and Morgan Marcos Pte Ltd. These deposits were payments for sales of goods to the DPRK persons. Although these deals were made prior to the UN sanctions embargo, Tan Wee Beng was concerned that the banks would terminate their relationship with the companies if either bank found out that Wee Tiong (S) Pte Ltd had transacted with entities linked to the DPRK.

To conceal this from the banks, Tan Wee Beng falsified the invoice of both companies. The names of the end buyers, and in some cases, the destination ports on these invoices, were changed to remove any links to the DPRK. Tan Wee Beng then signed the false invoices and submitted them to the banks, which ultimately resulted in money laundering charges.

Yalu River

It seems despite recent trouble with law enforcement, our sources inform us that a deal involving Morgan Marcos Co., Ltd sees 5 million cubic meters of river sand from the Yalu river destined for Chinese waters, which is in complete violation of UN sanctions.

The Yalu River, known by Koreans as the “Amrok River” or “Amrok Ocean”, is a river that separates the North Korean town of Sinuiju from China’ border in Dandong.

Daily NK reported in April how the economic hardship caused by the COVID-19 pandemic seemed to be easing in North Korea, as North Korean ships were spotted back on the Yalu River collecting sand. Pyongyang Papers wonders if this sand being collected was in fact to be sold via illicit transactions to further fund their deadly weapons?

North Korea’s continued pursuit of a ballistic nuclear weapon program, along with the UN security council-imposed sanctions it faces, regularly dominates the headlines. This often reduces the focus on the millions of citizens, living in Pyongyang and other neighboring cities, facing a huge humanitarian and health crisis.

The humanitarian and health crisis in North Korea existed long before the COVID-19 pandemic spread around the world. Unfortunately, North Koreans are no stranger to famine having endured a period of mass starvation and economic crisis between 1994 & 1998 known as the ‘Arduous March’ or the ‘March of suffering’. Estimates vary hugely but between 240,000 and 3,500,000 North Koreans died of starvation and malnutrition due to a number of factors including economic mismanagement and poor decision making from the regime. More recently, North Korean leader Kim Jong Un reacted to the COVID-19 pandemic with immediate border closures, preventing the import of food and medicine which has further intensified the current crisis. An increased number of citizens begging for food, a rise in homelessness and desperate need for antibiotics and medicine puts the North Korean economy on the brink of recession according to Jiro Ishimaru from Asia Press.

Children photographed in an orphanage in North Korea during the 1997 famine.

Pyongyang and Beijing

Beijing has been North Korea’s closest foreign ally since the fall of the Soviet Union, with China often accused by other UN member states of stalling and persistently discrediting the accusations of the DPRK’s continued efforts to violate UN Security Council resolutions. However, the DPRK’s trade with China shrank by approximately 80% in 2020 after the nation sealed its borders.

Not only has the pandemic disrupted the relationship between Pyongyang and Beijing, recent reports of a high level North Korean official dying after being given a Chinese-made injection has strained the relationship further. Kim Jong Un reportedly became very angry after learning about the incident and has banned the use of all Chinese medicines at major hospitals in Pyongyang, including Chinese made COVID-19 vaccines.

This isn’t the first time that the regime has had to adopt this extreme stance, in 2005 the government demanded a directed crackdown to try and eradicate the illegal medical practices of retired DPRK doctors using medicine and equipment smuggled from China. Orders were given to each municipal and provincial procurator office to “eradicate private doctors” and to “actively control profit-making anti-socialistic activities by the doctors who must care for the people’s health”.

Healthcare in the DPRK and abroad

Pyongyang Papers have reported before on the failing healthcare system in the DPRK. Despite their claims of offering free national medical service and health insurance to all citizens, many defectors and refugees have revealed that this in fact only applies to the uppermost classes citizens who often come from a long lineage of people devoted to the socialist regime.

The majority of citizens instead must pay for medical procedures along with the equipment and medications needed alongside it. Due to the fact state-run hospitals are so expensive and unreliable, many North Korean’s instead turn to the cheaper option of doctors and surgeons who practice illegally and discreetly in their own homes.

Death by dangerous practice

Although the uppermost class may receive free healthcare, the standard of medical practice received from DPRK doctors is poor. Unfortunately, the death of a high-level North Korean mentioned above is not the first of its kind. There have been other reports of death caused by North Korean doctors practicing medicine illegally both in the DPRK and abroad.

Even though the North Korean health care system may be crumbling due to a lack or resources including medicines and basic medical equipment, this does not stop the regime from sending North Korean doctors overseas to generate much needed income to aid its ballistic nuclear weapons program. One of the countries that has North Korean doctors present is the Republic of Congo.

Information has been forwarded to Pyongyang Papers from a contact within the Republic of Congo that two DPRK doctors have been arrested and charged with illegal practice of medicine and manslaughter. The contact informed us that the Doctors were from Korea Moranbong Medical Cooperation Centre (Moranbong) and working in the Republic of Congo. A Republic of Congo based representative has so far failed to get the two doctors released.

The fate of the doctors is yet to be determined- but the future of the DPRK’s economy, humanitarian and healthcare crisis looks bleak as the regime continues to prioritize its own aims ahead of the needs of North Korean citizens wo continue to suffer.

If you have any information on illicit DPRK activity, please get in touch.

Since 2017 the United Nations has listed coal amongst the goods and services sanctioned against North Korea as shown in our previous article. The security council declared that the “DPRK shall not supply, sell or transfer, directly or indirectly from its territory any coal”. The resolutions go on to say “all states shall prohibit the procurement of such material from the DPRK”.

Despite UN sanctions, trade in coal continued to be a huge revenue generator for the regime, with the DPRK continuing to export the coal illegally via deceptive maritime practices such as ship to ship transfers. This trade contributes vast sums of money to aid the DPRK regime in its proliferation of prohibited nuclear and ballistic missile program. Coal is North Korea major export and foreign currency earner with most of North Korea’s coal being exported through China in a clear breach of UN sanctions. Estimates for DPRK coal reserves at around 4.5 billion tonnes worth in the region of $600 billion.

Due to the worldwide COVID-19 pandemic, North Korea shut its borders in early 2020, resulting in a decrease in trade of up to 81%. However, it has been reported that trade between North Korea and China has resumed as of April 2021, with no doubt coal being a priority for the DPRK.

Chinese Involvement

Pyongyang papers has been investigating Chinese involvement in helping break sanctions against North Korea for some time. In 2016 police in China announced a criminal investigation into Chinese company that conducts extensive trade with North Korea. During this investigation Chinese authorities discovered that for a long time a company named Dandong Hongxiang Industrial Development Co. Ltd. engaged is suspected economic crimes during trading activities.

Dandong is the largest Chinese border city and located on the western border of North Korea, facing Sinuiju, North Korea, with the two cities connected by the Sino-Korean friendship bridge along with rail links to Shenyang and Sinuiju. Dandong Hongxiang Industrial Development operates the commodity distribution business and has a number of front companies associated with it. Dandong Hongxiang was sanctioned by the US in September 2016 and Dandong Hongxiang personnel were indicted by the US on sanctions evasion charges in June 2019. It appears that the head of Dandong Hongxiang, Ma Xiaohong, and a number of her colleagues were accused of violating the international Emergency Economic Powers Act on a conspiracy to defraud the United States and launder money. According to the indictment, Dandong Hongxiang is a Chinese company whose core business was trade with North Korea, and had at its disposal at least 20 front companies to obscure illicit financial dealings on behalf of sanctioned DPRK entities that were involved in the proliferation of weapons of mass destruction.

Ma Xiaohong, head of Dandong Hongxiang

Pyongyang Papers has received information about Dandong Hongxiang’s recent sanctions breaking activity. Our investigation would suggest that Dandong Hongxiang have not learnt from the past and have used the Chinese vessel “Hong Rui 8899” for the transportation of anthracite coal from Taean Port, North Korea. Korea Hangsong Trading Corporation was listed as the shipping company for the cargo. During our investigation Pyongyang papers has also discovered another vessel involved in transporting anthracite coal this time through Daean Port. The “Jang An” traveled from North Korea and performed a ship to ship transfer in the sea waters outside of Shanghai.

Reporting in the latest UN Panel of Experts report proves that the activity highlighted above is only the tip of the iceberg and with the DPRK regime suggesting that North Korean orphans are ‘volunteering’ to work in coal mines it is clear that the regime is willing to do anything to generate revenue. Even if this includes forced child labor and sanctions evasion!

If you have any information that could expose DPRK sanctions evasion, please get in touch.

As reported many times previously, current UN sanctions imposed upon the DPRK limits the import of crude oil and refined petroleum, bans all imports of luxury goods, and prevents North Korean citizens from working overseas. North Koreans are often employed in the restaurants, construction and agricultural industries abroad.

The thousands of North Korean citizens working overseas, mostly in China and Russia, have provided a vital source of cash for Kim Jong Un’s regime over the years. According to US government estimates, Pyongyang has netted $500m annually from its overseas workforce. The UN clampdown seeks to block a steady flow of revenue back to Kim Jong Un’s regime, in the hope the sanctions force the regime to cease its nuclear weapon program. However, the DPRK have employed illicit tactics to continue it’s ballistic missile and nuclear weapon program, often with the help of foreign enablers. These enablers often hide in disguise as member of the United Nations…

Two allies, one border

China is key ally to the DPRK and their most important trading partner. China’s support for North Korea dates back to the Korean War and since the war, China has lent political and and economic support to North Korea’s leaders. Yet, the DPRK put a strain on the relationship when Pyongyang tested a nuclear weapon in October 2006, forcing Beijing to back the UN Security Council Resolution 1718 which imposed sanctions on Pyongyang.

Despite being an active member of the Security council, China has been accused by other member states of stalling and persistently trying to discredit or argue the accusations of the DPRK’s continued efforts to violate Security council resolutions. In some cases, China has been accused of helping facilitate the illicit import of refined petroleum products through ship to ship transfers and direct deliveries.

As published in the 2020 midterm Panel of expert’s report, communications from the delegation of the United States of America were fairly damning of China’s involvement:

“China and Russia’s annual obstructionist response to these reports is intended to prevent the UN from accounting for the large-scale, illicit refined petroleum product imports that the DPRK maintains while offering no alternative for how to reflect these volumes, which are being documented with irrefutable evidence. The United Sates, other Committee members and the Panel have made extensive efforts to resolve the ton to barrel conversion issue. China and Russia’s refusal to enter those discussions in good faith to reach a resolution and its comments in response to this report only reinforce that their intentions are to obstruct the committee’s responsibility to maintain and accurate accounting of the DPRK’s actual refined product imports.”.

Restaurants in China contravening UN sanctions

When responding to the UN Panel of Experts investigation in 2020 China stated that it “…has faithfully implemented the provision of Security Council’s resolution on repatriating all DPRK nationals earning income abroad”. However, it is no great surprise that China’s commitment to ensuring DPRK citizens have been repatriated may not be as genuine as they like to portray. This is particularly evident when it comes to the food trade and particularly overseas workers in restaurants. Pyongyang Papers has been investigating claims that restaurants in the Yanji and Jian areas specifically are actively employing DPRK workers despite sanctions.

There are believed to be over a hundred North Korean restaurants in China, with many located within the provinces along the North Korean border. Some of these restaurants are run as joint ventures between North Korea and China. During the early stages of the COVID-19 pandemic many restaurants were forced to close their doors and there were reports of workers, who were already being exploited by their own government during a global pandemic, being forced to take night shifts or moved to alternative employment in order to meet the financial demands of the regime.

North Korean restaurant in Dandong
North Korean run restaurant in Dandong, China

Yanji and Ji’an

Recent reports suggest the situation has changed and many North Korean restaurants on the border have began operating again. Pyongyang Papers has received information that the Helong representative of Korea Chonryong Trading General Corporation, So Yung Guk, set up DPRK workers for the Yanggak Restaurant located in the city of Yanji, Yanbian province.

Whilst in the Myohyangsan Restaurant located in Ji’an, the region of Changchun, China, the restaurant’s manager removed any reference to DPRK within the restaurant. A Pyongyang Papers source has indicated that this was on the orders of Chinese officials, presumably to help ‘hide’ any overt North Korean involvement in the restaurant and shield and illegal sanctioned workers.

What’s in it for China?

So why does China continue to support their difficult neighbor? China’s strategy boils down to the following- “no war, no instability, no nukes”.

Written in order of priority, China’s main focus is to avoid another Korean war which could ultimately end in a unified, pro-American Korea right on its border. Keeping close ties with the DPRK also benefits China in managing its rocky relationship with the US, it provides China with leverage to be involved and broker a deal between the two nations to denuclearize– further reinforcing China’s powerhouse status in the world of global politics.

As always, if you have any further information on North Korean sanction evasions please get in touch with Pyongyang Papers.

There are many images of Kim Jong-Un enjoying a ride in a luxury sanctioned vehicle in recent years and the shops in Pyongyang appear to be filled with watches, champagne and high-end technology. It seems that despite sanctions on luxury goods, the DPRK is still able to overcome these to guarantee the best experiences for the elite or those willing to pay for it. Pyongyang Papers first reported on North Korea’s illicit luxury goods trade back in 2018, where we detailed North Korean brokers sourcing luxury goods for the elite whilst normal citizens within the country were struggling with fuel shortages that were crippling food supplies.

Breaking the rules

According to the Panel of Experts 2020 midterm report and the recent final report in March 2021, luxury vehicles have been found within the DPRK despite efforts by the manufacturers to try and stop this from happening. Manufacturers including Mercedes-Benz and Toyota (Lexus) have had their vehicles found in the country. Both UN reports mention Mercedes-Benz S-Class 600 Sedan Long Guard VR9s specifically and the final report adds Lexus vehicles to this list of sanctions breaking behavior. It seems that the Mercedes-Benz vehicles passed through multiple countries including Italy & the Netherlands to make it from the manufacturer and eventually into the DPRK.

It seems that this method of sanctions evasion is still ongoing! A source close to the supply chain confirmed to Pyongyang Papers that a shipment of luxury goods and vehicles, including several newly manufactured Lexus 570 SUV’s and a Mercedes-Benz AMG, along with more UN sanctioned goods worth in excess of $1.2 million was due to be delivered to Ningbo Beilun, China with onward travel to the DPRK. This is in breach of the UN resolution prohibiting the sale of luxury items to the DPRK. Ningbo Beilun has an international port which has been heavily invested in by the Chinese government, also showing a continued increase in revenue over time. Clearly it is getting well used by the DPRK!

Kim Jong-Un has been seen, in recent years, showcasing several Mercedes limousines as well as a Rolls Royce Phantom and Lexus. Add to this the images of Kim Jong Un’s wife, Ri Sol-Ju, carrying handbags made by Chanel and Dior. This is in complete contrast to the citizens of North Korea who are facing potential famine under the current situation in the country. Despite offers, the DPRK has refused international aid meant to help fix this humanitarian crisis. It is unfortunate that whilst these citizens suffer through the pandemic, the elite in DPRK are able to obtain seemingly vast quantities of luxury goods.

China and the DPRK

The relationship between China and the DPRK has not been straightforward during the period of enforced sanctions on DPRK. China voted in favor of United Nations sanctions against DPRK when the country carried out its first nuclear test even through the two countries signed the Sino-North Korean Mutual Aid and Cooperation Friendship Treaty in 1961. The treaty encourages economic cooperation between the two countries and could explain why it is common for China to have been found facilitating DPRK breaking sanctions along with the financial reward they will gain from the transaction. China is the largest trading partner of the DPRK which might also explain this illicit behavior!

Routes to smuggle DPRK sanctioned items have frequently involved China, as seen in the recent case of Lim Cheng Hwee, who was jailed for supplying alcohol to North Korea. Another report written by C4ADS in 2019 describes the techniques and lengths the regime are willing to go to evade sanctions and get luxury goods into the DPRK. This includes Mercedes vehicles being shipped through China!


As always, if you have any information about evasion of DPRK sanctions, please get in contact with Pyongyang Papers.

A relationship between North Korea and Cambodia has been in place since 1965 when Cambodia’s Norodom Sihanouk met Kim-Il Sung. Even after Sihanouk lost his power in government the DPRK was still supportive. They built a palace for him and even provided bodyguards when he became king and returned to Cambodia. In more recent years the DPRK has invested in Cambodia’s Angkor Panorama Museum. The museum’s director Yit Chardaroat stated to Aljazeera “63 artists toiled for more than a year to complete the panorama”. The artists came from North Korea which designed, built and bankrolled the $24m project through the Mansudae Art Studio. According to the article, the first 10 years of profits are going straight to North Korea.

However the first sign of cracks in the country’s relationship started to appear a few years ago. Forbes reported that Cambodia rejected an official visit from North Korea’s Foreign Minister back in 2016. This was followed by reports of Pyongyang sending North Korean assassins to Cambodia to conduct terror attacks against South Koreans as well as the emergence that the Kim Jong Nam murder suspects used Cambodia for 3 practice runs of the attack. The relationship was certainly failing when other DPRK officials were also denied access. Perhaps all this was a result of North Koreas reckless approach to weapons, or it constant attempts to avoid sanctions and deny human rights abuses. Cambodia were certainly not only country to be severing ties.

A Change in Relationship

It appears the relationship between the two countries is now falling apart. The Korean Herald reported in January 2020 that Cambodia had shut down 7 North Korean businesses in the country, including the Angkor Panorama Museum which was staffed by North Koreans. This is all result of UN sanctions. Pyongyang Papers has also learned that as part of this crackdown North Korean IT workers are relocating to China from Cambodia. This just adds to the volume that are present in China. It is estimated that around 50,000 North Korean laborers are still in China which has been citing COVID-19 as the excuse for not repatriating these illegal workers.

The Angkor Panorama Museum

Our sources have revealed a group of IT developers led by an individual called Hwang Ju Yong have been forced to leave the country by the Cambodian government, along with other North Korean workers in Cambodia. They were working for the Chongsin Information Technology Company, based in Pyongyang. The majority of North Koreans in Cambodia have relocated to Yanji in North Eastern China. According to the UN Panel of Experts midterm report, hundreds of workers access to China was sponsored by the sanctioned entity Yanji Silver Star Network Technology Company LTD.

China Still Aiding Sanctions Evasion

Clearly, the DPRK and China still have no intention of abiding by the current sanctions. With North Korea benefiting from its workers abroad it looks like they will use whatever means necessary to generate revenue and China are happy to support this relationship. It has recently been reported that a 10 day quarantine process in designated accommodation has been set up in the Jilin Province facing the North Korean border. This is specifically for North Korean workers and proves that even with huge potential risks posed to its citizens the DPRK is happy to ignore sanctions in the pursuit of money for the regime.

Do you have information about Cambodia’s involvement with the DPRK? If you have any information about this or North Korean sanctions evasion please get in touch with Pyongyang Papers.