A senior official of North Korea's ruling party has been named to lead a special party bureau, code-named Office 38, that oversees coffers and raises slush funds for its leader Kim Jong-il and the ruling elites, a source on North Korea said Sunday.
Kim Tong-un, formerly head of Office 39 in the Workers' Party of Korea, assumed the post in May last year, when North Korea revived Office 38, which was merged with Office 39 in 2009, the source said on condition of anonymity. Office 39 is believed to be another organ that governs a wide network of business operations both legal and illegal.
Both Offices 38 and 39 belong to the Secretariat of the Workers' Party, which Kim Jong-il chairs, according to a diagram of the North's power structure released by the Unification Ministry, which handles inter-Korean affairs. Last year, the ministry had only included Office 39 in a similar diagram.
In a meeting with reporters last week, a ministry official said Office 38 has been spun off from Office 39 and is now running on its own again. The official, who would speak only on the condition of anonymity citing the sensitive nature of his comments, described "a stream of information" that has come through since mid-2010.
Office 38 mainly oversees transactions involving foreign currency, hotels and trade, the official said, while Office 39, headed by Jon Il-chun, drives revenue by dealing in narcotics, arms, natural resources and others.
The North's revival of Office 38 is interpreted as an effort to cover the increasing cost of leader Kim Jong-il's ceding of power to his youngest son, Jong-un.