Recent reports suggest several high-end international brands are still in the Daesung Department Store in Pyongyang, North Korea. On Tuesday, critics pointed out significant loopholes in the sanctions imposed on North Korea that aim to restrict various exports.
Earlier this month, Chinese college students studying in North Korea shared photos on social media of their visit to the Daesung Department Store.
In the photos, the sports section, labeled “Sports Equipment, Athletic Wear,” featured shoes and clothing from well-known brands like Adidas and Nike. The cosmetics section featured products from well-known brands such as Chanel and SK-II.
Another international student posted a video of the food section, where shelves were stocked with spirits like Ballantine’s 12-Year-Old and 17-Year-Old whiskies—the tobacco section featured stacks of the Japanese cigarette brand Seven Stars.
The Daesung Department Store in Pyongyang is a primary outlet for luxury goods. It is reportedly managed by Room 39 of the Workers’ Party of Korea, which is known to handle Kim Jong Un’s governing funds. Luxury items from brands like Chanel and Ferragamo are considered available for purchase.
Despite sanctions, Kim Jong Un and other senior North Korean officials frequently purchase luxury goods. Illegal means, such as dual trading or diplomats, are used to acquire items. According to a report released by the UN Security Council Sanctions Committee on North Korea, an Italian company that sold a German Mercedes-Benz Maybach S600, Kim’s private vehicle, to North Korea explained that it was supposed to be sold to Hong Kong.
During Kim’s visit to a flood site in Uiju County, North Pyongan Province, the latest Maybach vehicle was also spotted on his private train in August. This vehicle is presumed to be the Mercedes-Maybach GLS 600 4MATIC facelift, which began selling in South Korea in April. Its domestic starting price is reported at approximately $210,000.
Since 2006, when it adopted Resolution 1718, the UN Security Council has prohibited exporting luxury goods to North Korea. Additionally, Resolution 2094 from 2013 designated luxury cars, yachts, high-end watches, and jewelry as banned items, later expanding the list to include alcohol and tobacco.
In 2020, the UN Security Council Sanctions Committee on North Korea released an interim report with photos of foreign luxury whiskies displayed in the Daesung Department Store. Experts pointed out that if North Korea were involved in the import process, it would be a flagrant violation. However, there are no practical regulations to prohibit trading within North Korea.
While it is possible to identify trends in which North Korean authorities, institutions, or individuals are actively involved in the smuggling process, there is little to do. Adopting new sanction resolutions is difficult due to the current opposition from China and Russia.
