North Korea reportedly purchased luxury goods worth approximately $38 million from China in the first half of this year, according to recent data.
Yoon Sang-hyun, a lawmaker from South Korea’s ruling People Power Party, released a press release on August 20, revealing the findings from an analysis of the General Administration of Customs of China’s statistics for the first half of the year.
The data shows that between January and June, North Korea’s imports of luxury goods from China totaled $37.94 million.
By category, cosmetics accounted for $11.8 million and watches made up $10.72 million of the total imports, representing a significant portion. Notably, the value of watch imports has already surpassed the total amount imported in the previous year, which was $9.34 million.
Other luxury items imported include optical and medical devices valued at $5.36 million, leather goods at $4.03 million, beverages and alcohol at $3.93 million, and carpets at approximately $1.55 million.
Commenting on the findings, Yoon Sang-hyun suggested that North Korean leader Kim Jong-un may be using these luxury goods, such as alcohol, cosmetics, and watches, as gifts to secure the loyalty of the party, military, and government officials.
Oh Kyung-seop, a research fellow at the Korea Institute for National Unification, echoed this sentiment in an interview with Radio Free Asia on August 21, stating that individuals in North Korea cannot import luxury goods on their own, implying that the state imports these items to distribute them to officials as a means of maintaining their allegiance.
“North Korea manages its key officials in a way that prevents individuals from purchasing luxury goods on their own, so the party imports them collectively and distributes them as rewards for loyalty,” said Oh.
North Korea’s luxury goods imports from China drastically decreased to $1.84 million in 2021, following the closure of its borders due to the COVID-19 pandemic. However, imports surged to $28.35 million in 2022 and further to $86.1 million in 2023.
The total trade volume between North Korea and China in the first half of this year amounted to approximately $971 million, reflecting an 8% decrease compared to the same period last year. This figure also represents a 22.5% decline compared to the first half of 2019, before the COVID-19 pandemic.
The United Nations Security Council’s Resolution 1718, adopted in October 2006 in response to North Korea’s first nuclear test, prohibits the supply, sale, or transfer of high-end luxury goods to North Korea.
BY YOUNGNAM KIM [kim.youngnam@koreadaily.com]
