Pyongyang Papers last published an article on the Blue Flower Restaurant along with Nam Un Gyong and her then Cambodian buisness partner Pan Yong in December 2023 and February of last year. Since then, we have received further information through our contacts page, shedding more light on Pan Yong’s dealings and complex network of trusted partners involved in North Korea’s sanctions evasion schemes. We understand that Pan Yong was the chairman of the board for Golden One Investment Co. Ltd , who was looking to invest multi million dollars into a North Korean factory.

Thousands of Dollars worth of liquor

We also understand that Sin-Myanmar Investment Group were to send over $200,000 of liquor, which is a sanctioned item for North Korea, to Chinese entity, Qingdao Yangche Import and Export Trade Co., Ltd (room 208, 11 Hongtong Road, Jihongtan subdistrict Chenyang district). Coincidentally, this value is the same as a deal involving luggage being sent by Singapore-based Grandeur de Group to Pan Yong. Therefore, it is likely that the luggage deal was to be used as cover for the sale of sanctioned liquor. According to Grandeur de Group’s website, the company specializes in Re-Export for liquors and tobacco products and names Vietnam, East Timor , the Philippines and Myanmar as the primary destinations for their products – perhaps they ought to update this list to include North Korea as well?!

Looking into company records for Qingdao Yangche Import and Export Trade Co., Ltd, it has previously used the vessel CMA CGM Mississippi. This vessel is a container ship that was built in South Korea and is currently owned by a ship management company in China – if you know anything about the link to this vessel please get in contact! It is believed that Qingdao Yangche, Grandeur De Group, and Sin-Myanmar, as well as Pan Yong, are all trusted partners of North Korean traders.

German company involved in acquiring sanctioned goods

This scheme is just one example of the creative ways in which North Korean traders are evading sanctions. Another case involves a DPRK trade company acquiring in excess of $250,000 of luxury goods including liquor and clothing, handbags, and beauty and hygiene products by using a German trade company Elysia Trade acting as middleman in negotiating the purchases. Whilst not much is known about Elysia Trade, we found a company in Germany going by Elysia Trade e.K. based in Berlin. Perhaps this is the entity so clearly trusted by North Korea despite being in the capital of one of the world’s largest democracies? It appears the DPRK trade company used China-based Liaoning Sailing International Forwarding Company as their shipping agent.

It is disappointing to see luxury items yet again being a focal point of North Korea’s illicit trading. No doubt ending up in the arms of North Korea’s leadership and elite to keep them loyal whilst the everyday citizens continue to suffer under the regime.

We must remain vigilant!

These cases highlight the sophisticated networks and tactics employed by North Korean traders to circumvent sanctions. The use of middlemen, front companies, and falsely declared goods allows them to acquire prohibited items while maintaining an image of legitimacy. Notably, the involvement of a German trade company in one of these schemes is a reminder that North Korea’s sanctions evasion efforts are not limited to countries typically seen as sympathetic to the regime. The fact that a company from a country like Germany, which is a strong supporter of international sanctions, can be implicated in these schemes underscores the need for continued vigilance and cooperation from all nations to prevent these types of activities.

The international community must remain vigilant and continue to work together to prevent these types of sanctions evasion. Strengthening enforcement mechanisms and increasing transparency in international trade can help to disrupt these networks and prevent North Korea from acquiring prohibited goods.

Please make contact with us at Pyongyang Papers if you can shed any more light on North Korea’s sanction evasion activities.

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.