1 00:00:00,531 --> 00:00:02,948 (soft music) 2 00:00:02,000 --> 00:00:07,000 Downloaded from YTS.MX 3 00:00:03,820 --> 00:00:05,760 - North Korea is like "Game of Thrones" 4 00:00:05,760 --> 00:00:07,193 but without the dragons. 5 00:00:08,000 --> 00:00:13,000 Official YIFY movies site: YTS.MX 6 00:00:08,620 --> 00:00:11,470 It's an aristocratic society, and it's capitalist. 7 00:00:11,470 --> 00:00:13,340 And everything is geared to make sure 8 00:00:13,340 --> 00:00:16,673 that there's as much cash for Kim as is possible. 9 00:00:22,059 --> 00:00:25,226 (Koh speaking Korean) 10 00:00:29,200 --> 00:00:32,860 Bureau 39 is involved in everything that makes money 11 00:00:32,860 --> 00:00:36,010 for North Korea: selling arms, smuggling of drugs, 12 00:00:36,010 --> 00:00:38,770 counterfeiting of U.S. bills. 13 00:00:38,770 --> 00:00:41,420 This is about hundreds of millions of dollars a year. 14 00:00:43,157 --> 00:00:46,407 (Park speaking Korean) 15 00:00:52,615 --> 00:00:55,615 (suspenseful music) 16 00:01:08,722 --> 00:01:11,140 (soft music) 17 00:01:11,140 --> 00:01:14,493 - [Narrator] North Korea, the pariah state. 18 00:01:17,550 --> 00:01:20,593 A dictatorship shrouded in mystery. 19 00:01:25,570 --> 00:01:27,880 Every day, the official newspapers 20 00:01:27,880 --> 00:01:30,973 praise the heroic deeds of the Dear Leader. 21 00:01:35,330 --> 00:01:38,143 Time seems to stand still here. 22 00:01:43,400 --> 00:01:46,853 North Korea has the fourth largest army in the world. 23 00:01:49,610 --> 00:01:51,080 For three generations, 24 00:01:51,080 --> 00:01:55,913 the Kim family has ruled the country with an iron fist. 25 00:02:00,520 --> 00:02:03,480 But how does the regime manage to survive 26 00:02:03,480 --> 00:02:06,280 despite severe UN sanctions? 27 00:02:06,280 --> 00:02:10,810 And how come Kim Jong-un has enough money to threaten 28 00:02:10,810 --> 00:02:15,810 the world with the most powerful weapon of all time: 29 00:02:16,050 --> 00:02:17,603 the nuclear bomb. 30 00:02:18,476 --> 00:02:21,893 (rocket engines roaring) 31 00:02:29,850 --> 00:02:32,267 (soft music) 32 00:02:37,850 --> 00:02:39,380 Far from North Korea, 33 00:02:39,380 --> 00:02:41,050 a history professor is working 34 00:02:41,050 --> 00:02:43,223 on answers to these questions. 35 00:02:44,248 --> 00:02:46,600 Remco Breuker from the University of Leiden 36 00:02:46,600 --> 00:02:48,800 in the Netherlands has been studying 37 00:02:48,800 --> 00:02:52,393 the enigmatic country and its rulers for years. 38 00:02:53,660 --> 00:02:56,913 He says our image of North Korea is wrong. 39 00:02:58,050 --> 00:03:00,670 - North Korea isn't what it tells us it is. 40 00:03:00,670 --> 00:03:03,720 Just look how the country functions at the highest level. 41 00:03:03,720 --> 00:03:07,400 What is the main goal of the government, 42 00:03:07,400 --> 00:03:09,240 of the regime, I should say? 43 00:03:09,240 --> 00:03:11,540 It's to make money. It's to make cash for Kim. 44 00:03:13,690 --> 00:03:15,190 What intrigues me personally 45 00:03:15,190 --> 00:03:17,893 is how North Korea manages to make money. 46 00:03:20,160 --> 00:03:22,420 One of the questions we were stuck with 47 00:03:22,420 --> 00:03:24,140 is where does the money go? 48 00:03:24,140 --> 00:03:26,193 How much money does North Korea make? 49 00:03:27,180 --> 00:03:28,620 - [Narrator] For North Korea's leadership, 50 00:03:28,620 --> 00:03:31,630 questions like these are dangerous. 51 00:03:31,630 --> 00:03:34,600 - The North Korean regime sent a letter of indictment 52 00:03:34,600 --> 00:03:36,880 under my name to the Dutch government, 53 00:03:36,880 --> 00:03:38,970 charging me with three capital crimes. 54 00:03:38,970 --> 00:03:43,770 The worst of the three was the accusation that our research, 55 00:03:43,770 --> 00:03:46,070 my research because it was in my name, 56 00:03:46,070 --> 00:03:48,550 damaged the supreme dignity of the supreme leader. 57 00:03:48,550 --> 00:03:52,280 This sounds like it's a funny crime, right? 58 00:03:52,280 --> 00:03:54,510 Damaging the supreme dignity of somebody. 59 00:03:54,510 --> 00:03:56,710 In North Korea it carries the death penalty. 60 00:03:57,830 --> 00:04:00,090 - [Narrator] A serious threat. 61 00:04:00,090 --> 00:04:02,420 Remco Breuker's investigations threaten 62 00:04:02,420 --> 00:04:05,410 to disrupt North Korea's cash flow. 63 00:04:05,410 --> 00:04:07,830 The country is internationally isolated 64 00:04:07,830 --> 00:04:10,050 because of its nuclear program. 65 00:04:10,050 --> 00:04:12,740 Without legal sources of income, 66 00:04:12,740 --> 00:04:16,003 the regime has taken to raising money illegally. 67 00:04:19,460 --> 00:04:23,010 New York, the seat of the United Nations. 68 00:04:23,010 --> 00:04:26,910 Since 2006, the UN has imposed nine rounds 69 00:04:26,910 --> 00:04:29,310 of sanctions against North Korea. 70 00:04:29,310 --> 00:04:30,550 These measures are monitored 71 00:04:30,550 --> 00:04:33,600 by an international panel of experts. 72 00:04:33,600 --> 00:04:36,050 The panel consists of eight members, 73 00:04:36,050 --> 00:04:40,573 including ex-intelligence, military and financial experts. 74 00:04:41,460 --> 00:04:44,580 For their own safety, they work in secret. 75 00:04:44,580 --> 00:04:47,120 Only the coordinator, Hugh Griffiths, 76 00:04:47,120 --> 00:04:48,803 is willing to speak on camera. 77 00:04:49,760 --> 00:04:52,360 - The sanctions have a tremendous impact 78 00:04:52,360 --> 00:04:54,530 on one level on North Korea. 79 00:04:54,530 --> 00:04:57,550 It means that their economy can't flourish 80 00:04:57,550 --> 00:04:59,600 in the way it would if they were able 81 00:04:59,600 --> 00:05:02,070 to sell their largest 82 00:05:02,070 --> 00:05:05,700 foreign currency-earning commodities legitimately. 83 00:05:05,700 --> 00:05:09,430 So, they can't ship coal legitimately, 84 00:05:09,430 --> 00:05:12,890 they can't ship iron ore legitimately, 85 00:05:12,890 --> 00:05:15,533 they can't ship zinc legitimately. 86 00:05:16,710 --> 00:05:20,320 Foreign currency is very important to any country, 87 00:05:20,320 --> 00:05:23,070 no matter how autarkic its economy. 88 00:05:23,070 --> 00:05:26,430 You need foreign currency to buy the goods 89 00:05:26,430 --> 00:05:29,180 that are essential for your population 90 00:05:29,180 --> 00:05:30,750 or for your elite group. 91 00:05:30,750 --> 00:05:33,580 So foreign currency is pretty essential 92 00:05:33,580 --> 00:05:35,610 to North Korea's survival. 93 00:05:35,610 --> 00:05:37,660 The question is, what's more important 94 00:05:37,660 --> 00:05:40,490 to the North Korean leadership: 95 00:05:40,490 --> 00:05:44,830 developing nuclear and ballistic missile program 96 00:05:44,830 --> 00:05:47,774 or seeing their economy flourish? 97 00:05:47,774 --> 00:05:50,570 (soft music) 98 00:05:50,570 --> 00:05:53,193 - [Narrator] The regime decided to go for the bomb. 99 00:05:54,490 --> 00:05:59,490 In 2005, it officially announced that it had nuclear weapons 100 00:06:00,200 --> 00:06:02,030 as a protection against attacks 101 00:06:02,030 --> 00:06:06,893 from the outside and to strengthen its power on the inside. 102 00:06:09,960 --> 00:06:13,123 Pyongyang, the city of the chosen. 103 00:06:14,740 --> 00:06:19,273 Brand new apartment blocks line spotlessly clean avenues. 104 00:06:21,260 --> 00:06:24,263 Here is where Pyongyang's upper class resides. 105 00:06:25,300 --> 00:06:28,883 Only those who are considered loyal to the regime live here. 106 00:06:30,100 --> 00:06:32,200 Those who want to enter the capital 107 00:06:32,200 --> 00:06:35,017 from the outside need a permit. 108 00:06:38,983 --> 00:06:40,030 Seong Kyun-chul 109 00:06:40,030 --> 00:06:43,380 from Pyongyang's Economic Research Institute. 110 00:06:43,380 --> 00:06:45,840 He is authorized to talk to journalists, 111 00:06:45,840 --> 00:06:48,519 for example, about the sanctions. 112 00:06:48,519 --> 00:06:51,852 (Seong speaking Korean) 113 00:07:22,370 --> 00:07:23,970 - The sanctions that have been put 114 00:07:23,970 --> 00:07:26,050 on North Korea are extremely strict. 115 00:07:26,050 --> 00:07:27,770 I mean, there's probably not been a country 116 00:07:27,770 --> 00:07:32,170 that has been sanctioned more diversely, more strictly. 117 00:07:32,170 --> 00:07:34,493 At the same time, they're no longer working. 118 00:07:36,640 --> 00:07:39,080 There is a huge problem with our North Korea policy 119 00:07:39,080 --> 00:07:41,640 and using sanctions to try 120 00:07:41,640 --> 00:07:44,313 and have the regime modify its behavior, 121 00:07:46,450 --> 00:07:49,460 because we're not sanctioning the one entity 122 00:07:49,460 --> 00:07:51,390 that earns most of this money, 123 00:07:51,390 --> 00:07:54,183 that keeps it afloat financially, that keeps it alive. 124 00:07:58,580 --> 00:08:01,700 - [Narrator] Many high-ranking defectors from North Korea 125 00:08:01,700 --> 00:08:03,930 talk about a secret government department 126 00:08:03,930 --> 00:08:07,810 that's said to administer the regime's secret funds. 127 00:08:07,810 --> 00:08:11,980 Allegedly, Kim Il-sung and his son Kim Jong-il 128 00:08:11,980 --> 00:08:14,390 set it up in the late 1970s 129 00:08:14,390 --> 00:08:17,480 and equipped it with wide ranging powers. 130 00:08:17,480 --> 00:08:22,110 Its tasks: securing an independent power base for the Kims, 131 00:08:22,110 --> 00:08:24,330 and raising money for the nuclear bomb 132 00:08:24,330 --> 00:08:26,620 and the leaders' personal luxury. 133 00:08:26,620 --> 00:08:29,363 Its name: Bureau 39. 134 00:08:33,430 --> 00:08:38,430 Only 200 kilometers to the southeast: Seoul. 135 00:08:38,710 --> 00:08:41,580 South Korea's hypermodern capital. 136 00:08:41,580 --> 00:08:45,023 One of the 10 most expensive cities in the world. 137 00:08:46,170 --> 00:08:50,510 Around 25 million people live in the metropolitan area, 138 00:08:50,510 --> 00:08:53,720 about half the population of South Korea. 139 00:08:53,720 --> 00:08:57,610 Among them, most of the 30,000 people 140 00:08:57,610 --> 00:09:00,413 who managed to flee from North Korea. 141 00:09:03,740 --> 00:09:06,633 Koh Young-hwan was a North Korean diplomat. 142 00:09:07,530 --> 00:09:10,570 He escaped in 1991. 143 00:09:10,570 --> 00:09:12,800 Later, he was deputy director 144 00:09:12,800 --> 00:09:16,813 of South Korea's Institute for National Security Strategy. 145 00:09:20,020 --> 00:09:21,370 Few people know more 146 00:09:21,370 --> 00:09:24,813 about the Kim regime's workings than he does. 147 00:09:26,831 --> 00:09:29,998 (Koh speaking Korean) 148 00:10:01,240 --> 00:10:04,300 - Talk to any prominent North Korean exile 149 00:10:04,300 --> 00:10:06,400 and they'll all tell you that Bureau 39 150 00:10:06,400 --> 00:10:09,650 is absolutely crucial in earning revenues 151 00:10:09,650 --> 00:10:10,800 for the North Korean regime. 152 00:10:10,800 --> 00:10:13,020 It's absolutely vital. 153 00:10:13,020 --> 00:10:15,548 Take it away, everything collapses. 154 00:10:15,548 --> 00:10:17,965 (soft music) 155 00:10:20,310 --> 00:10:23,520 - [Narrator] Here in New York, the United Nations impose 156 00:10:23,520 --> 00:10:26,373 and monitor the sanctions against North Korea. 157 00:10:27,260 --> 00:10:30,550 An entity as important as Bureau 39 158 00:10:30,550 --> 00:10:33,973 should be heading the list of banned organizations. 159 00:10:36,090 --> 00:10:38,820 - Office 39 is normally talked about 160 00:10:38,820 --> 00:10:41,580 by North Korean defectors. 161 00:10:41,580 --> 00:10:45,380 We don't really see Office 39 in our investigations. 162 00:10:45,380 --> 00:10:48,940 Instead, we're looking at the North Korean banks 163 00:10:48,940 --> 00:10:53,570 and the shell companies that traditionally operate overseas 164 00:10:53,570 --> 00:10:56,790 in third countries to generate foreign currency. 165 00:10:56,790 --> 00:10:59,923 And then that money is sent back to North Korea. 166 00:11:02,200 --> 00:11:05,400 - Bureau 39 outside of North Korea is not called Bureau 39. 167 00:11:05,400 --> 00:11:09,300 Nobody identifies as somebody who works for Bureau 39. 168 00:11:09,300 --> 00:11:11,770 So, it's very difficult to slap sanctions on people 169 00:11:11,770 --> 00:11:14,117 you don't really know are active. 170 00:11:15,220 --> 00:11:16,870 - [Narrator] Kinshasa, the capital 171 00:11:16,870 --> 00:11:19,610 of the Democratic Republic of Congo. 172 00:11:19,610 --> 00:11:21,270 Since the 1980s, 173 00:11:21,270 --> 00:11:24,350 North Korea has been procuring foreign currency here, 174 00:11:24,350 --> 00:11:26,520 in the heart of Africa. 175 00:11:26,520 --> 00:11:28,320 Koh Young-hwan witnessed 176 00:11:28,320 --> 00:11:31,523 a particularly spectacular case at the time. 177 00:11:32,700 --> 00:11:35,867 (Koh speaking Korean) 178 00:12:28,970 --> 00:12:32,560 Bureau 39 never acts openly. 179 00:12:32,560 --> 00:12:36,154 But its fundraising activities span the globe. 180 00:12:36,154 --> 00:12:38,571 (soft music) 181 00:12:44,526 --> 00:12:48,359 Angkor Wat in Cambodia, a World Heritage site. 182 00:12:51,140 --> 00:12:53,590 Over 2.5 million people visit 183 00:12:53,590 --> 00:12:56,043 the old Khmer temples every year. 184 00:12:58,910 --> 00:13:03,910 Selfies for the tourists, foreign exchange for Cambodia. 185 00:13:04,660 --> 00:13:06,627 Angkor Wat's operating company 186 00:13:06,627 --> 00:13:11,110 earned more than $100 million in 2018. 187 00:13:11,110 --> 00:13:15,520 Tourism is by far the largest industry here. 188 00:13:15,520 --> 00:13:20,303 A lucrative business, also for North Korea. 189 00:13:25,960 --> 00:13:28,370 Right next to the entrance to the temples: 190 00:13:28,370 --> 00:13:31,640 a museum that opened in 2015. 191 00:13:31,640 --> 00:13:35,320 At its heart is a 3D painting that depicts the history 192 00:13:35,320 --> 00:13:39,350 of the Khmer Empire in monumental images. 193 00:13:39,350 --> 00:13:43,310 Throngs of tourists are guided through here every day. 194 00:13:43,310 --> 00:13:47,046 - So for the painter, they're from North Korea. 195 00:13:47,046 --> 00:13:49,230 We had 63 painter. 196 00:13:49,230 --> 00:13:52,133 They took one year and four months to paint it. 197 00:13:56,070 --> 00:13:57,369 - [Reporter] And who constructed it? 198 00:13:57,369 --> 00:13:59,872 Was it Cambodian or North Korean as well? 199 00:13:59,872 --> 00:14:01,115 - The North Korean as well. 200 00:14:01,115 --> 00:14:03,640 The North Korean construct the museum. 201 00:14:03,640 --> 00:14:05,770 - [Narrator] Circumventing UN sanctions, 202 00:14:05,770 --> 00:14:10,770 North Korea not only built the complex but also financed it. 203 00:14:10,920 --> 00:14:14,500 In return, the North Koreans collect all the revenues 204 00:14:14,500 --> 00:14:16,260 for the first ten years. 205 00:14:16,260 --> 00:14:18,833 After that, they'll share the profits. 206 00:14:19,800 --> 00:14:22,370 The North Korean CEO doesn't want to appear 207 00:14:22,370 --> 00:14:23,810 in front of the camera. 208 00:14:23,810 --> 00:14:25,450 But he says the museum makes 209 00:14:25,450 --> 00:14:30,030 about $7 million a year in entrance fees alone. 210 00:14:30,030 --> 00:14:32,783 Soon, this figure is supposed to double. 211 00:14:38,290 --> 00:14:39,750 Cambodia and North Korea 212 00:14:39,750 --> 00:14:43,030 have maintained close relations for decades. 213 00:14:43,030 --> 00:14:46,470 Kim Il-sung and Cambodia's King Norodom Sihanouk 214 00:14:46,470 --> 00:14:48,260 were good friends. 215 00:14:48,260 --> 00:14:51,600 A solid basis for today's business ties 216 00:14:51,600 --> 00:14:54,033 that contravene UN sanctions. 217 00:14:59,090 --> 00:15:01,410 In the evening, when the museum closes, 218 00:15:01,410 --> 00:15:02,920 the North Koreans throw 219 00:15:02,920 --> 00:15:06,500 another set of doors open for the hungry tourists. 220 00:15:06,500 --> 00:15:08,800 They don't want cameras in the restaurant, 221 00:15:08,800 --> 00:15:10,875 so we film in secret. 222 00:15:10,875 --> 00:15:12,390 - [Waitress] Reservation? 223 00:15:12,390 --> 00:15:15,000 - [Reporter] Yeah, we had a reservation yesterday. 224 00:15:15,000 --> 00:15:17,534 What name did you have? 225 00:15:17,534 --> 00:15:19,970 (chatter) 226 00:15:19,970 --> 00:15:22,903 - [Narrator] The tables are almost always fully booked. 227 00:15:24,910 --> 00:15:27,266 - [Reporter] Can we also sit near the stage? 228 00:15:27,266 --> 00:15:29,417 - [Waitress] Only reservation. 229 00:15:29,417 --> 00:15:31,373 - [Reporter] Oh, okay then we sit here. 230 00:15:32,747 --> 00:15:34,914 (chatter) 231 00:15:37,810 --> 00:15:40,730 - [Narrator] The menu boasts North Korean specialties 232 00:15:40,730 --> 00:15:43,433 such as cold noodles and sea cucumber. 233 00:15:44,370 --> 00:15:48,160 The prices are surprisingly high by Cambodian standards. 234 00:15:48,160 --> 00:15:51,053 A main course costs up to $50. 235 00:15:52,240 --> 00:15:54,380 In particular, tourists from China 236 00:15:54,380 --> 00:15:57,010 and South Korea visit the restaurant. 237 00:15:57,010 --> 00:15:58,930 The young women who serve here 238 00:15:58,930 --> 00:16:01,513 are mostly art students from Pyongyang. 239 00:16:02,960 --> 00:16:05,690 They live and sleep above the restaurant 240 00:16:05,690 --> 00:16:09,593 and are often not allowed to leave the premises for years. 241 00:16:12,090 --> 00:16:13,960 Every evening at the same time, 242 00:16:13,960 --> 00:16:18,063 they change their costumes and get ready for the big show. 243 00:16:20,869 --> 00:16:23,869 (singing in Korean) 244 00:16:31,359 --> 00:16:33,942 (upbeat music) 245 00:16:39,346 --> 00:16:42,146 (people cheering) 246 00:16:42,146 --> 00:16:47,146 There are 130 such North Korean restaurants worldwide, 247 00:16:47,170 --> 00:16:48,933 three of them in Cambodia. 248 00:16:49,800 --> 00:16:53,040 They're said to make several million dollars a year, 249 00:16:53,040 --> 00:16:56,253 but the waitresses don't get paid for their work. 250 00:16:57,220 --> 00:17:01,073 The dollars flow directly into the regime's secret coffers. 251 00:17:02,861 --> 00:17:05,028 (chatter) 252 00:17:09,244 --> 00:17:11,240 (soft music) 253 00:17:11,240 --> 00:17:14,120 No other country exploits its population 254 00:17:14,120 --> 00:17:16,493 as systematically as North Korea. 255 00:17:18,000 --> 00:17:21,600 North Korean workers are deployed worldwide. 256 00:17:21,600 --> 00:17:24,893 Even in the European Union: in Poland. 257 00:17:27,270 --> 00:17:30,360 Here, we encounter North Korean work brigades 258 00:17:30,360 --> 00:17:32,280 on a building site. 259 00:17:32,280 --> 00:17:34,210 They've been promised good wages 260 00:17:34,210 --> 00:17:36,800 and decent working conditions, 261 00:17:36,800 --> 00:17:39,943 only to be treated like slaves. 262 00:17:43,090 --> 00:17:45,720 In the evening, after a 12-hour shift, 263 00:17:45,720 --> 00:17:47,943 the workers are driven to their barracks. 264 00:18:02,120 --> 00:18:03,640 They're monitored around the clock 265 00:18:03,640 --> 00:18:05,923 by North Korean state security. 266 00:18:17,580 --> 00:18:20,563 Still, one of them decides to talk. 267 00:18:23,864 --> 00:18:27,087 (reporter speaking Korean) 268 00:18:27,087 --> 00:18:30,504 (worker speaking Korean) 269 00:18:31,407 --> 00:18:33,996 (reporter speaking Korean) 270 00:18:33,996 --> 00:18:37,413 (worker speaking Korean) 271 00:18:50,156 --> 00:18:52,714 (reporter speaking Korean) 272 00:18:52,714 --> 00:18:56,131 (worker speaking Korean) 273 00:19:44,027 --> 00:19:46,550 Modern slavery: North Korea sends 274 00:19:46,550 --> 00:19:50,620 well-trained workers to Poland to toil in shipyards 275 00:19:50,620 --> 00:19:53,030 and on construction sites. 276 00:19:53,030 --> 00:19:57,660 The workers' families are held hostage in North Korea. 277 00:19:57,660 --> 00:19:58,900 If the worker flees, 278 00:19:58,900 --> 00:20:01,863 the family at home is often severely punished. 279 00:20:03,100 --> 00:20:06,710 The workers only earn about 90 euros per month, 280 00:20:06,710 --> 00:20:09,300 the rest goes to the regime. 281 00:20:09,300 --> 00:20:10,853 Cash for Kim. 282 00:20:12,800 --> 00:20:15,490 Largely unnoticed by the international community, 283 00:20:15,490 --> 00:20:18,480 North Korea has sent laborers all over the world, 284 00:20:18,480 --> 00:20:21,440 up to 150,000 in all. 285 00:20:21,440 --> 00:20:24,070 About 40,000 of them are in Russia 286 00:20:24,070 --> 00:20:26,623 and up to 100,000 in China. 287 00:20:27,610 --> 00:20:31,690 North Koreans also work in Kuwait, Malaysia, 288 00:20:31,690 --> 00:20:36,130 Cambodia, Mongolia, Oman, Qatar, 289 00:20:36,130 --> 00:20:40,970 the United Arab Emirates and in African countries. 290 00:20:40,970 --> 00:20:42,340 Under UN sanctions, 291 00:20:42,340 --> 00:20:45,520 these workers need to go back to North Korea. 292 00:20:45,520 --> 00:20:48,250 But the practice still continues. 293 00:20:48,250 --> 00:20:50,610 Experts estimate that the regime 294 00:20:50,610 --> 00:20:53,797 makes up to $1 billion a year this way. 295 00:20:55,426 --> 00:20:58,593 (Koh speaking Korean) 296 00:21:07,570 --> 00:21:10,090 Defectors say that Bureau 39 297 00:21:10,090 --> 00:21:12,793 is directly controlled by Kim Jong-un. 298 00:21:13,720 --> 00:21:16,620 It manages the leadership's secret accounts, 299 00:21:16,620 --> 00:21:18,943 the so-called palace economy. 300 00:21:20,070 --> 00:21:24,193 But where in Pyongyang is Bureau 39 located? 301 00:21:25,060 --> 00:21:28,743 And how many millions flow into its coffers? 302 00:21:29,963 --> 00:21:34,963 (bell ringing) (soft music) 303 00:21:38,630 --> 00:21:40,490 When we ask the North Korean official, 304 00:21:40,490 --> 00:21:43,880 he and his translator pretend not to know. 305 00:21:44,830 --> 00:21:48,580 (translator speaking Korean) 306 00:21:55,081 --> 00:21:58,414 (Seong speaking Korean) 307 00:22:01,320 --> 00:22:06,320 Bureau 39 is one of the best-kept secrets of the Kim regime. 308 00:22:06,550 --> 00:22:10,273 Only North Koreans who've escaped can talk about it openly. 309 00:22:11,304 --> 00:22:13,721 (soft music) 310 00:22:19,770 --> 00:22:20,920 Seoul. 311 00:22:20,920 --> 00:22:22,180 At a secret location, 312 00:22:22,180 --> 00:22:25,660 we meet a man who used to work for Bureau 39. 313 00:22:25,660 --> 00:22:27,940 He was based in China. 314 00:22:27,940 --> 00:22:31,053 His task: smuggling foreign currency. 315 00:22:32,670 --> 00:22:33,983 Then he escaped. 316 00:22:35,040 --> 00:22:38,060 His position was so important that today, 317 00:22:38,060 --> 00:22:41,550 the North Korean regime threatens to kill him. 318 00:22:41,550 --> 00:22:45,430 This is why he had plastic surgery to alter his face. 319 00:22:45,430 --> 00:22:49,013 Even so, he only wants to be filmed from behind. 320 00:22:49,989 --> 00:22:53,156 (Lee speaking Korean) 321 00:23:27,700 --> 00:23:29,780 To understand Bureau 39 322 00:23:29,780 --> 00:23:33,110 and the capitalist structures of North Korea, 323 00:23:33,110 --> 00:23:36,400 it's important to understand its history. 324 00:23:36,400 --> 00:23:40,050 In 1991 the Soviet Union breaks up. 325 00:23:40,050 --> 00:23:41,530 North Korea loses one 326 00:23:41,530 --> 00:23:44,023 of its most important trading partners. 327 00:23:45,200 --> 00:23:47,480 While many former socialist states 328 00:23:47,480 --> 00:23:50,060 now rely on market economics, 329 00:23:50,060 --> 00:23:54,090 the Kims continue to isolate themselves. 330 00:23:54,090 --> 00:23:56,070 When Kim Jong-il takes over 331 00:23:56,070 --> 00:24:00,853 from his late father in 1994, a famine breaks out. 332 00:24:04,190 --> 00:24:06,790 - During the great famine in the mid-90s, 333 00:24:06,790 --> 00:24:08,740 many North Koreans starved to death. 334 00:24:08,740 --> 00:24:11,950 The public distribution system collapsed. 335 00:24:11,950 --> 00:24:14,130 Witnesses described seeing mountains 336 00:24:14,130 --> 00:24:16,110 of dead bodies in the streets. 337 00:24:16,110 --> 00:24:19,473 Anywhere between one to three million North Koreans died. 338 00:24:20,650 --> 00:24:23,360 So, what happened is that North Koreans now knew 339 00:24:23,360 --> 00:24:24,770 that if they wanted to survive, 340 00:24:24,770 --> 00:24:28,193 they could no longer trust or rely on the state. 341 00:24:29,780 --> 00:24:31,810 - [Narrator] From then on, the rural population 342 00:24:31,810 --> 00:24:35,100 in particular had to be self-sufficient. 343 00:24:35,100 --> 00:24:39,070 Black markets started to emerge all over North Korea. 344 00:24:39,070 --> 00:24:41,690 They're called Jangmadang. 345 00:24:41,690 --> 00:24:44,000 All sorts of currencies are accepted, 346 00:24:44,000 --> 00:24:47,920 especially American dollars and Chinese yuan. 347 00:24:47,920 --> 00:24:49,130 Today, there are countless 348 00:24:49,130 --> 00:24:51,570 of these markets throughout the country. 349 00:24:51,570 --> 00:24:54,700 400 of them are even officially licensed 350 00:24:54,700 --> 00:24:57,820 and provide tax income for the regime. 351 00:24:57,820 --> 00:25:01,593 Mainly food and goods from China are bartered and sold here. 352 00:25:02,670 --> 00:25:05,837 (Lee speaking Korean) 353 00:25:29,310 --> 00:25:32,720 - So, the regime tried to control the markets 354 00:25:32,720 --> 00:25:33,860 but it knows it can't, 355 00:25:33,860 --> 00:25:35,600 because if it shuts down the markets 356 00:25:35,600 --> 00:25:39,420 without having in place another public distribution system, 357 00:25:39,420 --> 00:25:41,280 people die of hunger. 358 00:25:41,280 --> 00:25:44,030 And North Koreans are not going to let that happen again. 359 00:25:44,030 --> 00:25:45,730 They know what happened last time. 360 00:25:49,440 --> 00:25:51,700 And that's how North Korea really changed 361 00:25:51,700 --> 00:25:55,860 from a socialist country with an economy in ruins 362 00:25:55,860 --> 00:26:00,080 to a capitalist country with a hybrid economy 363 00:26:00,080 --> 00:26:03,323 that looks socialist but really is capitalist. 364 00:26:08,000 --> 00:26:09,230 - [Narrator] The biggest profiteers 365 00:26:09,230 --> 00:26:13,880 from these black markets are Pyongyang officials. 366 00:26:13,880 --> 00:26:16,000 Because of their loyalty, 367 00:26:16,000 --> 00:26:19,430 but mainly out of financial self-interest, 368 00:26:19,430 --> 00:26:22,250 the regime allows them to trade. 369 00:26:22,250 --> 00:26:24,680 Over the years, they've become rich. 370 00:26:24,680 --> 00:26:28,590 They sell luxury goods, smuggle raw materials 371 00:26:28,590 --> 00:26:30,980 and invest in real estate. 372 00:26:30,980 --> 00:26:34,960 They're called Donju, Money Lords. 373 00:26:34,960 --> 00:26:37,200 They enjoy the luxury and the freedom 374 00:26:37,200 --> 00:26:39,210 that the regime grants them. 375 00:26:39,210 --> 00:26:41,993 But their loyalty comes at a price. 376 00:26:47,310 --> 00:26:50,810 Many Donju hold senior government positions, 377 00:26:50,810 --> 00:26:53,553 including at Bureau 39. 378 00:26:53,553 --> 00:26:55,970 (soft music) 379 00:26:59,050 --> 00:27:03,690 Like this man who's been hiding in Seoul since he escaped. 380 00:27:03,690 --> 00:27:05,170 Born in the 90s, 381 00:27:05,170 --> 00:27:07,060 he experienced how North Korea 382 00:27:07,060 --> 00:27:10,310 developed increasingly capitalist structures. 383 00:27:10,310 --> 00:27:14,450 Before his escape, he was responsible for exports, 384 00:27:14,450 --> 00:27:17,930 Bureau 39's most lucrative business. 385 00:27:17,930 --> 00:27:20,020 Fearing the regime's revenge, 386 00:27:20,020 --> 00:27:22,836 he too doesn't want to be recognized. 387 00:27:22,836 --> 00:27:26,086 (Park speaking Korean) 388 00:28:04,836 --> 00:28:06,850 In that respect at least, 389 00:28:06,850 --> 00:28:09,580 North Korea's go-getters are no different 390 00:28:09,580 --> 00:28:11,730 from their counterparts in the West. 391 00:28:16,145 --> 00:28:19,312 (Lee speaking Korean) 392 00:28:51,776 --> 00:28:55,026 (Park speaking Korean) 393 00:29:12,285 --> 00:29:15,896 (reporter speaking Korean) 394 00:29:15,896 --> 00:29:19,104 (Park speaking Korean) (reporter speaking Korean) 395 00:29:19,104 --> 00:29:21,521 (soft music) 396 00:29:22,938 --> 00:29:24,355 Hamburg, Germany. 397 00:29:25,600 --> 00:29:26,830 Until a few years ago, 398 00:29:26,830 --> 00:29:30,670 the North Korean state insurance company KNIC 399 00:29:30,670 --> 00:29:34,163 had a branch in an innocuous-looking apartment block here. 400 00:29:35,290 --> 00:29:37,930 Six North Korean officials made deals 401 00:29:37,930 --> 00:29:41,269 with major European insurance companies. 402 00:29:41,269 --> 00:29:44,436 (Koh speaking Korean) 403 00:30:39,900 --> 00:30:42,000 One case among many. 404 00:30:42,000 --> 00:30:44,180 In 2015, the European Union 405 00:30:44,180 --> 00:30:46,310 put the North Korean insurance company 406 00:30:46,310 --> 00:30:48,290 on their sanctions list. 407 00:30:48,290 --> 00:30:51,800 The accusation: co-financing of the nuclear weapons 408 00:30:51,800 --> 00:30:54,940 program through Bureau 39. 409 00:30:54,940 --> 00:30:58,270 Experts estimate that with crashed helicopters 410 00:30:58,270 --> 00:30:59,600 and similar tricks, 411 00:30:59,600 --> 00:31:03,053 the Kim regime earned several hundred million dollars. 412 00:31:03,930 --> 00:31:07,097 (Koh speaking Korean) 413 00:31:12,450 --> 00:31:14,300 But how does the Kim regime 414 00:31:14,300 --> 00:31:19,130 manage to transfer the millions it makes to Pyongyang? 415 00:31:19,130 --> 00:31:22,323 The answer is simple: through diplomatic channels. 416 00:31:23,426 --> 00:31:26,593 (Lee speaking Korean) 417 00:31:43,000 --> 00:31:45,530 North Korea uses its worldwide network 418 00:31:45,530 --> 00:31:49,320 of embassies to ferry money back to Pyongyang. 419 00:31:49,320 --> 00:31:53,040 North Korean officials enjoying diplomatic immunity 420 00:31:53,040 --> 00:31:56,450 carry the money in cash in their flight baggage. 421 00:31:56,450 --> 00:31:59,090 A simple but efficient way to ensure 422 00:31:59,090 --> 00:32:01,040 the cash flow doesn't stop. 423 00:32:07,418 --> 00:32:09,740 - The North Korean embassies have a diplomatic function, 424 00:32:09,740 --> 00:32:11,853 but that's often mainly ceremonial. 425 00:32:12,850 --> 00:32:14,660 But their true function is financial. 426 00:32:14,660 --> 00:32:16,483 It's also illegal, mainly. 427 00:32:18,430 --> 00:32:21,433 North Korean diplomats are basically cash carriers for Kim. 428 00:32:22,580 --> 00:32:25,100 They're entrepreneurs, they're businessmen. 429 00:32:25,100 --> 00:32:27,817 They may be drug lords, they may be weapons smugglers, 430 00:32:27,817 --> 00:32:30,240 but they carry a diplomatic passport, 431 00:32:30,240 --> 00:32:31,440 so you can't touch them. 432 00:32:33,290 --> 00:32:34,690 - [Narrator] Berlin. 433 00:32:34,690 --> 00:32:36,130 Right in the middle of the city 434 00:32:36,130 --> 00:32:38,223 lies the North Korean embassy. 435 00:32:39,070 --> 00:32:41,030 The North Koreans have been renting out 436 00:32:41,030 --> 00:32:43,890 one of the buildings as a hostel for tourists. 437 00:32:43,890 --> 00:32:47,913 They've been earning 38,000 euros per month in rent. 438 00:32:49,100 --> 00:32:52,090 Using embassy grounds for such activities 439 00:32:52,090 --> 00:32:54,730 is against diplomatic practices 440 00:32:54,730 --> 00:32:57,973 and contravenes UN and EU sanctions. 441 00:32:59,200 --> 00:33:02,540 But despite the efforts of German authorities, 442 00:33:02,540 --> 00:33:05,683 operations have been continuing for years. 443 00:33:07,670 --> 00:33:08,910 - Like any other country, 444 00:33:08,910 --> 00:33:12,580 the main goal of the embassies is to serve the state. 445 00:33:12,580 --> 00:33:15,950 And the North Korean state's priorities, in particular. 446 00:33:15,950 --> 00:33:20,350 So, because sanctions are so comprehensive now, 447 00:33:20,350 --> 00:33:22,210 much of the activities conducted 448 00:33:22,210 --> 00:33:24,763 in these embassies may be prohibited. 449 00:33:28,060 --> 00:33:32,410 Providing military supplies, training, 450 00:33:32,410 --> 00:33:33,930 and much of that has been done 451 00:33:33,930 --> 00:33:36,100 through North Korea's embassies, 452 00:33:36,100 --> 00:33:39,720 particularly in Africa and the Middle East. 453 00:33:39,720 --> 00:33:42,270 So out of all the countries in the Middle East, 454 00:33:42,270 --> 00:33:45,940 currently the Syrian Arab Republic has the greatest levels 455 00:33:45,940 --> 00:33:49,140 of prohibited cooperation 456 00:33:49,140 --> 00:33:51,403 with North Korean military entities. 457 00:33:54,970 --> 00:33:56,690 - [Narrator] Hafiz al-Assad, 458 00:33:56,690 --> 00:33:59,410 the father of the current Syrian despot, 459 00:33:59,410 --> 00:34:04,000 and Kim Il-sung were friends from the 1960s on. 460 00:34:04,000 --> 00:34:06,510 Back then, the North Koreans helped the Syrians 461 00:34:06,510 --> 00:34:08,530 during the war against Israel 462 00:34:08,530 --> 00:34:11,560 and supplied them with weapons and ammunition. 463 00:34:11,560 --> 00:34:15,283 An important source of income right up till today. 464 00:34:21,430 --> 00:34:25,970 Using tactics similar to those of 18th century pirates, 465 00:34:25,970 --> 00:34:30,970 Bureau 39 runs ships under false flags and fake names. 466 00:34:32,050 --> 00:34:35,360 According to the UN, North Korea has thus managed 467 00:34:35,360 --> 00:34:39,673 to send large numbers of weapons and grenades to Syria. 468 00:34:40,690 --> 00:34:43,510 Between 2012 and 2017, 469 00:34:43,510 --> 00:34:46,570 at least 40 shipments from North Korea 470 00:34:46,570 --> 00:34:48,800 passed through the Suez Canal. 471 00:34:48,800 --> 00:34:53,800 But in 2018, the UN managed to have one of them intercepted. 472 00:34:57,800 --> 00:35:02,350 - So, we found something, cargo on its way to Syria. 473 00:35:02,350 --> 00:35:05,940 These were acid-resistant tiles and valves, 474 00:35:05,940 --> 00:35:09,760 which could be used in chemical weapons development. 475 00:35:09,760 --> 00:35:12,770 But also, missile fuel is highly corrosive. 476 00:35:12,770 --> 00:35:15,470 And such tiles could be used 477 00:35:15,470 --> 00:35:18,420 for ballistic missile program as well. 478 00:35:18,420 --> 00:35:23,420 The bill of lading clearly gave us an address in Syria, 479 00:35:23,540 --> 00:35:25,190 an established front company 480 00:35:25,190 --> 00:35:30,190 for Syria's Scientific Studies Research Center, the SSRC, 481 00:35:30,220 --> 00:35:34,030 which is responsible for Syria's ballistic missile 482 00:35:34,030 --> 00:35:36,853 and chemical weapons development program. 483 00:35:40,193 --> 00:35:41,680 - [Narrator] The chemical weapons produced 484 00:35:41,680 --> 00:35:43,800 in these laboratories have been used 485 00:35:43,800 --> 00:35:48,590 by Syria's dictator Assad against his own people for years. 486 00:35:48,590 --> 00:35:50,270 - [Reporter] And pictures of many others 487 00:35:50,270 --> 00:35:52,833 who died in agony, foaming at the mouth. 488 00:35:54,330 --> 00:35:57,020 - [Narrator] It's a little-known fact that the Syrian 489 00:35:57,020 --> 00:35:59,500 chemical weapons program was created 490 00:35:59,500 --> 00:36:03,810 with the help of North Korean technicians and scientists. 491 00:36:03,810 --> 00:36:08,810 - Syria's Scientific Studies Research Center, the SSRC, 492 00:36:09,030 --> 00:36:12,380 have facilities located close to Damascus, 493 00:36:12,380 --> 00:36:14,980 Homs and elsewhere in Syria. 494 00:36:14,980 --> 00:36:17,720 And some of these sites were subsequently bombed 495 00:36:17,720 --> 00:36:19,343 by the United States. 496 00:36:22,250 --> 00:36:24,320 - More than a hundred missiles were fired 497 00:36:24,320 --> 00:36:28,340 in a joint action targeting suspected chemical weapon sites. 498 00:36:28,340 --> 00:36:30,770 President Trump declares: mission accomplished, 499 00:36:30,770 --> 00:36:33,483 saying missile strikes against Syria by the U.S., 500 00:36:33,483 --> 00:36:36,553 Britain and France were perfectly executed. 501 00:36:37,920 --> 00:36:40,550 - The purpose of our actions tonight 502 00:36:40,550 --> 00:36:44,180 is to establish a strong deterrent against the production, 503 00:36:44,180 --> 00:36:47,173 spread and use of chemical weapons. 504 00:36:48,550 --> 00:36:52,070 - Well, when the Americans bombed the chemical laboratories, 505 00:36:52,070 --> 00:36:53,810 they bombed the North Koreans there. 506 00:36:53,810 --> 00:36:54,807 Whether they knew they were bombing 507 00:36:54,807 --> 00:36:56,900 the North Koreans, I don't know. 508 00:36:56,900 --> 00:36:57,950 But they did, yes. 509 00:36:57,950 --> 00:36:59,970 The North Korean presence in Syria 510 00:36:59,970 --> 00:37:03,671 is really much underreported and underappreciated. 511 00:37:03,671 --> 00:37:06,671 (suspenseful music) 512 00:37:09,130 --> 00:37:12,600 Had Syria not been able to count on North Korea 513 00:37:12,600 --> 00:37:14,963 to sell to it its weapons, 514 00:37:16,690 --> 00:37:21,070 its guided missiles, its chemical laboratories, 515 00:37:21,070 --> 00:37:22,790 perhaps Assad would not have emerged 516 00:37:22,790 --> 00:37:24,483 as a victor from this struggle. 517 00:37:26,580 --> 00:37:28,320 - [Narrator] One third of all buildings 518 00:37:28,320 --> 00:37:30,560 in Syria have been destroyed. 519 00:37:30,560 --> 00:37:34,720 A tragedy and a business opportunity. 520 00:37:34,720 --> 00:37:37,010 The Syrian regime hopes for billions 521 00:37:37,010 --> 00:37:38,770 from international donors 522 00:37:38,770 --> 00:37:41,270 for the reconstruction of the country. 523 00:37:41,270 --> 00:37:45,260 The necessary work brigades are to come from North Korea. 524 00:37:45,260 --> 00:37:46,970 The two countries signed a contract 525 00:37:46,970 --> 00:37:49,820 at a meeting in June, 2019. 526 00:37:49,820 --> 00:37:51,733 Dirty deals between despots. 527 00:37:53,540 --> 00:37:55,900 - The money that's earned by Office 39, 528 00:37:55,900 --> 00:37:58,500 it goes straight into the coffers of the leadership. 529 00:38:00,490 --> 00:38:03,890 It is used on the one hand to provide for luxury items. 530 00:38:03,890 --> 00:38:07,660 It is used to pay for the Mercedes Benz cars 531 00:38:07,660 --> 00:38:09,320 that somehow found their way 532 00:38:09,320 --> 00:38:12,280 into North Korea despite the sanctions. 533 00:38:12,280 --> 00:38:15,540 But it is also used, and this is probably more important, 534 00:38:15,540 --> 00:38:19,423 to deliver the best hackers you can train. 535 00:38:21,110 --> 00:38:22,750 As early as the mid-80s, 536 00:38:22,750 --> 00:38:27,400 Kim Jong-il started training the most talented children 537 00:38:27,400 --> 00:38:29,450 in terms of mathematical abilities 538 00:38:29,450 --> 00:38:32,330 and programming abilities to become cyber hackers. 539 00:38:32,330 --> 00:38:34,000 They're also good money earners. 540 00:38:34,000 --> 00:38:38,210 Ransomware, like the WannaCry virus for example, 541 00:38:38,210 --> 00:38:41,820 is considered to come from the North Koreans. 542 00:38:41,820 --> 00:38:43,270 - [Reporter] It is the biggest cyberattack 543 00:38:43,270 --> 00:38:44,930 the world has ever seen. 544 00:38:44,930 --> 00:38:46,570 Hundreds of thousands of computers 545 00:38:46,570 --> 00:38:50,540 around the world in about 150 countries rendered useless. 546 00:38:50,540 --> 00:38:53,360 Now the US government is publicly placing the blame 547 00:38:53,360 --> 00:38:56,490 for that cyber-assault, uniquely dubbed WannaCry, 548 00:38:56,490 --> 00:38:59,280 squarely on Kim Jong-un's army of hackers. 549 00:38:59,280 --> 00:39:01,700 British intelligence officials and Microsoft 550 00:39:01,700 --> 00:39:04,440 had previously concluded that groups associated 551 00:39:04,440 --> 00:39:05,910 with the North Korean regime 552 00:39:05,910 --> 00:39:08,163 were responsible for the WannaCry hack. 553 00:39:11,200 --> 00:39:13,020 - [Narrator] In Seoul, computer specialists 554 00:39:13,020 --> 00:39:16,200 are hot on the heels of North Korean hackers. 555 00:39:16,200 --> 00:39:18,470 Simon Choi works as a consultant 556 00:39:18,470 --> 00:39:21,183 for South Korean intelligence agencies. 557 00:39:23,941 --> 00:39:27,274 (Simon speaking Korean) 558 00:39:43,170 --> 00:39:46,650 North Korea has limited access to the Internet, 559 00:39:46,650 --> 00:39:50,840 only 1,000 IP addresses are available to the country. 560 00:39:50,840 --> 00:39:53,060 North Korean computer specialists 561 00:39:53,060 --> 00:39:55,570 use them to attack other countries. 562 00:39:55,570 --> 00:39:58,467 Experts estimate that between 600 563 00:39:58,467 --> 00:40:01,955 and 1,300 hackers work for Kim. 564 00:40:01,955 --> 00:40:05,288 (Simon speaking Korean) 565 00:40:28,090 --> 00:40:31,350 Experts estimate that up to two billion dollars 566 00:40:31,350 --> 00:40:33,160 have been stolen by young, 567 00:40:33,160 --> 00:40:35,683 highly trained North Korean hackers. 568 00:40:38,124 --> 00:40:40,780 (soft music) 569 00:40:40,780 --> 00:40:43,930 North Korea has developed an efficient education system 570 00:40:43,930 --> 00:40:45,913 for its upper middle class. 571 00:40:49,510 --> 00:40:51,910 Here at Pyongyang Middle School, 572 00:40:51,910 --> 00:40:54,720 the children who will later be computer specialists, 573 00:40:54,720 --> 00:40:57,440 scientists and engineers are trained 574 00:40:57,440 --> 00:41:01,573 to shape the future of the country, at home or abroad. 575 00:41:02,417 --> 00:41:04,316 - Hello, everybody, nice to meet you. 576 00:41:04,316 --> 00:41:06,227 I am (indistinct). I am eight years old. 577 00:41:06,227 --> 00:41:09,510 But I'm a student, I can speak English, 578 00:41:09,510 --> 00:41:13,640 I can speak Chinese, I can speak Russian too. 579 00:41:13,640 --> 00:41:16,920 I count on the abacus, it's real fun. 580 00:41:16,920 --> 00:41:17,827 Thank you. 581 00:41:21,050 --> 00:41:24,910 - [Narrator] The students also learn how to use computers. 582 00:41:24,910 --> 00:41:27,240 They have access to a very limited 583 00:41:27,240 --> 00:41:30,320 North Korean version of the internet. 584 00:41:30,320 --> 00:41:33,883 Uncensored variety is strictly forbidden. 585 00:41:38,220 --> 00:41:39,830 North Korea's rulers know 586 00:41:39,830 --> 00:41:42,350 that once the doors to the digital world 587 00:41:42,350 --> 00:41:46,830 have been thrown open, they can never be shut again. 588 00:41:46,830 --> 00:41:48,960 But despite all precautions, 589 00:41:48,960 --> 00:41:51,630 in 2007 North Korea faced 590 00:41:51,630 --> 00:41:55,220 the first digital data leak in its history. 591 00:41:55,220 --> 00:41:57,470 Because a lot of classified information 592 00:41:57,470 --> 00:41:59,660 is now available digitally, 593 00:41:59,660 --> 00:42:03,880 it can easily be copied and smuggled out of the country. 594 00:42:03,880 --> 00:42:08,210 For example, the data of Pyongyang's municipal registry 595 00:42:08,210 --> 00:42:10,810 with more than two million entries. 596 00:42:10,810 --> 00:42:13,170 Professor Breuker obtained a copy 597 00:42:13,170 --> 00:42:16,823 and is currently analyzing it using special software. 598 00:42:19,430 --> 00:42:23,883 - We never had this kind of up-to-date information ever. 599 00:42:27,350 --> 00:42:30,550 If you want to understand the system, the regime, the party, 600 00:42:30,550 --> 00:42:32,240 if you want to understand Pyongyang, 601 00:42:32,240 --> 00:42:34,900 if you want to understand North Korean economic activities 602 00:42:34,900 --> 00:42:36,470 in and outside of the country, 603 00:42:36,470 --> 00:42:38,510 this is really the Stone of Rosetta. 604 00:42:41,130 --> 00:42:43,640 We can now actually go about analyzing 605 00:42:43,640 --> 00:42:46,410 and mapping Pyongyang for the first time. 606 00:42:46,410 --> 00:42:49,280 And we're no longer dependent on anecdotes, 607 00:42:49,280 --> 00:42:52,213 on people who tell us where all the buildings are. 608 00:42:53,290 --> 00:42:56,250 We can actually now see who's inside the buildings, 609 00:42:56,250 --> 00:42:59,260 what companies there are, what departments there are, 610 00:42:59,260 --> 00:43:00,910 and where you should locate them. 611 00:43:03,440 --> 00:43:06,730 - [Narrator] The data proves the main building of Bureau 39 612 00:43:06,730 --> 00:43:09,010 is close to the seat of power, 613 00:43:09,010 --> 00:43:11,330 right in the middle of Pyongyang. 614 00:43:11,330 --> 00:43:13,070 Just a stone's throw away 615 00:43:13,070 --> 00:43:15,313 from the headquarters of the Workers Party. 616 00:43:16,790 --> 00:43:19,470 It's divided into six main departments 617 00:43:19,470 --> 00:43:23,460 and employs several thousand people in Pyongyang alone. 618 00:43:23,460 --> 00:43:27,110 They have their own fleet of vehicles, kindergartens, 619 00:43:27,110 --> 00:43:32,110 a golf course, an ostrich farm and even their own bank. 620 00:43:33,000 --> 00:43:36,190 These six main departments are in turn responsible 621 00:43:36,190 --> 00:43:40,980 for hundreds of individual companies throughout North Korea. 622 00:43:40,980 --> 00:43:44,200 They control iron ore and diamond mines, 623 00:43:44,200 --> 00:43:47,840 jewelry factories and textile companies. 624 00:43:47,840 --> 00:43:51,700 They're mainly specialized in exporting goods abroad. 625 00:43:51,700 --> 00:43:55,180 Other companies in the Bureau earn foreign exchange 626 00:43:55,180 --> 00:43:59,120 through forced labor, arms smuggling and insurance fraud. 627 00:43:59,120 --> 00:44:01,560 But one rule applies to all: 628 00:44:01,560 --> 00:44:06,560 the name Bureau 39 is never mentioned outside North Korea, 629 00:44:06,890 --> 00:44:09,160 so it remains invisible. 630 00:44:09,160 --> 00:44:12,973 Impossible for UN sanctions monitors to detect. 631 00:44:13,830 --> 00:44:16,247 (soft music) 632 00:44:21,246 --> 00:44:24,413 (Lee speaking Korean) 633 00:44:45,057 --> 00:44:48,307 (Park speaking Korean) 634 00:45:08,602 --> 00:45:11,020 North Korea is changing. 635 00:45:11,020 --> 00:45:13,640 An impoverished socialist state 636 00:45:13,640 --> 00:45:14,960 has turned into a country 637 00:45:14,960 --> 00:45:18,000 with a highly flexible shadow economy. 638 00:45:18,000 --> 00:45:21,900 In many ways, North Korea is run like a commercial company. 639 00:45:21,900 --> 00:45:25,220 All that matters is cash for Kim. 640 00:45:25,220 --> 00:45:26,800 The workers here are no longer 641 00:45:26,800 --> 00:45:29,160 slaving away for the revolution, 642 00:45:29,160 --> 00:45:32,710 but for the wealth of their leader and his cronies. 643 00:45:32,710 --> 00:45:36,610 The gap between rich and poor is widening. 644 00:45:36,610 --> 00:45:38,290 While the population in Pyongyang 645 00:45:38,290 --> 00:45:41,580 enjoys a constantly growing prosperity, 646 00:45:41,580 --> 00:45:46,430 40% of the rural population still suffer from malnutrition. 647 00:45:46,430 --> 00:45:48,510 In order to control its people, 648 00:45:48,510 --> 00:45:52,910 the regime employs Cold War-era socialist tactics. 649 00:45:52,910 --> 00:45:56,090 North Korea's shadow economy, on the other hand, 650 00:45:56,090 --> 00:45:59,283 is 21st century capitalist. 651 00:46:00,160 --> 00:46:02,870 - What the database shows beyond any doubt 652 00:46:02,870 --> 00:46:05,480 is that Office 39 not only exists, 653 00:46:05,480 --> 00:46:07,483 now we can prove what it does. 654 00:46:08,540 --> 00:46:11,840 It owns companies. It operates these companies. 655 00:46:11,840 --> 00:46:13,830 It exports clothes. 656 00:46:13,830 --> 00:46:16,440 It exports tobacco. 657 00:46:16,440 --> 00:46:18,700 It exports all kinds of things. 658 00:46:18,700 --> 00:46:23,040 And that is actually quite an important development 659 00:46:23,040 --> 00:46:25,830 in understanding how North Korea 660 00:46:25,830 --> 00:46:28,220 manages to earn money abroad. 661 00:46:28,220 --> 00:46:32,830 And we now know exactly through what kind of departments, 662 00:46:32,830 --> 00:46:36,073 through what kind of companies Office 39 does this. 663 00:46:38,750 --> 00:46:41,540 - [Narrator] The Kim Jong-suk silk spinning mill, 664 00:46:41,540 --> 00:46:44,093 named after Kim Jong-un's grandmother. 665 00:46:45,900 --> 00:46:47,293 A model factory. 666 00:46:49,100 --> 00:46:52,963 1,600 workers are employed here, most of them women. 667 00:46:55,020 --> 00:46:58,260 They sort, process and boil the cocoons 668 00:46:58,260 --> 00:47:01,343 of the silkworms to obtain the precious yarn. 669 00:47:05,010 --> 00:47:08,820 The silkworms come from a province south of Pyongyang. 670 00:47:08,820 --> 00:47:12,563 About 200 tons of silk are produced here every year. 671 00:47:13,690 --> 00:47:18,180 A luxury product, expensive and labor-intensive. 672 00:47:18,180 --> 00:47:20,340 The factory's entire production 673 00:47:20,340 --> 00:47:22,493 is intended for export abroad. 674 00:47:23,830 --> 00:47:25,800 But the supervisors are unwilling 675 00:47:25,800 --> 00:47:28,907 to disclose who the foreign customers are. 676 00:47:30,530 --> 00:47:33,713 - I'm not sure anymore who suffers under those sanctions. 677 00:47:36,130 --> 00:47:38,470 It's a hassle, I'm sure, for North Koreans. 678 00:47:38,470 --> 00:47:39,987 But they do find ways around it. 679 00:47:39,987 --> 00:47:43,580 One of the problems is that neither China nor Russia 680 00:47:43,580 --> 00:47:46,483 is helping in enforcing the sanctions. 681 00:47:49,505 --> 00:47:52,755 (Park speaking Korean) 682 00:48:24,156 --> 00:48:28,446 (reporter speaking Korean) 683 00:48:28,446 --> 00:48:31,696 (Park speaking Korean) 684 00:48:32,890 --> 00:48:35,380 - [Narrator] Textiles are the second most important 685 00:48:35,380 --> 00:48:38,203 North Korean export product after coal. 686 00:48:40,325 --> 00:48:44,075 (translator speaking Korean) 687 00:48:54,804 --> 00:48:58,137 (Seong speaking Korean) 688 00:49:06,811 --> 00:49:09,125 (translator speaking Korean) 689 00:49:09,125 --> 00:49:12,458 (Seong speaking Korean) 690 00:49:21,795 --> 00:49:23,850 Dandong, China. 691 00:49:23,850 --> 00:49:25,920 North Korea's gateway to the world 692 00:49:27,450 --> 00:49:30,790 and a symbol of how futile the UN's efforts are 693 00:49:30,790 --> 00:49:33,293 to dry up Kim's sources of cash. 694 00:49:35,060 --> 00:49:38,800 The Sino-Korean Friendship Bridge across the Yalu River 695 00:49:38,800 --> 00:49:43,030 has been connecting China and North Korea since 1943. 696 00:49:43,030 --> 00:49:47,320 It's one of the few ways to enter or leave North Korea. 697 00:49:47,320 --> 00:49:51,610 Every day, trucks queue in front of the customs checkpoint. 698 00:49:51,610 --> 00:49:55,870 Smugglers, traders, and also the agents and entrepreneurs 699 00:49:55,870 --> 00:49:59,913 of Bureau 39, they're all hoping for a quick deal here. 700 00:50:01,810 --> 00:50:03,940 China is by far North Korea's 701 00:50:03,940 --> 00:50:06,310 most important trading partner. 702 00:50:06,310 --> 00:50:11,310 Financial experts estimate that 90% of North Korea's exports 703 00:50:11,470 --> 00:50:14,348 go to its powerful neighbor in the North. 704 00:50:14,348 --> 00:50:16,765 (soft music) 705 00:50:20,250 --> 00:50:21,840 Thousands of North Koreans 706 00:50:21,840 --> 00:50:24,943 are said to work in textile factories in the region. 707 00:50:27,690 --> 00:50:31,240 Disguised as businessmen and equipped with hidden cameras, 708 00:50:31,240 --> 00:50:33,930 we film in one of the factories. 709 00:50:33,930 --> 00:50:37,360 Chinese textile companies hire North Koreans 710 00:50:37,360 --> 00:50:41,810 because their wages are lower than those of Chinese workers. 711 00:50:41,810 --> 00:50:44,780 These seamstresses work day and night, 712 00:50:44,780 --> 00:50:47,850 and often sleep on the company premises. 713 00:50:47,850 --> 00:50:50,230 They're likely to be locked up for years, 714 00:50:50,230 --> 00:50:52,113 far away from their families. 715 00:50:56,180 --> 00:50:58,210 Together with a team of labor lawyers, 716 00:50:58,210 --> 00:51:00,680 trade experts and data specialists, 717 00:51:00,680 --> 00:51:04,960 Remco Breuker tries to find out whether European brands 718 00:51:04,960 --> 00:51:06,950 work with Chinese companies 719 00:51:06,950 --> 00:51:11,253 that directly or indirectly employ North Koreans. 720 00:51:13,704 --> 00:51:14,733 - Well, we found out different things. 721 00:51:14,733 --> 00:51:18,300 And one of the things we were actually hoping to establish 722 00:51:18,300 --> 00:51:22,010 was the use of North Korean workers in Chinese factories. 723 00:51:22,010 --> 00:51:25,410 But what we found, really to our surprise, 724 00:51:25,410 --> 00:51:28,610 is that, yes, we do have North Korean workers 725 00:51:28,610 --> 00:51:31,220 working under slave-like conditions in China, 726 00:51:31,220 --> 00:51:32,510 but more than that, 727 00:51:32,510 --> 00:51:34,130 Chinese factories outsource 728 00:51:34,130 --> 00:51:36,523 to North Korean factories in North Korea. 729 00:51:39,390 --> 00:51:41,610 We've managed to prove the existence 730 00:51:41,610 --> 00:51:45,440 of a significant amount of North Korean slave labor 731 00:51:45,440 --> 00:51:46,920 in the supply chain 732 00:51:46,920 --> 00:51:49,453 of some of the world's leading clothing companies. 733 00:51:52,120 --> 00:51:55,450 Basically, in Europe and the U.S. we've come to an agreement 734 00:51:55,450 --> 00:51:58,870 that we no longer wish to find slave labor 735 00:51:58,870 --> 00:52:00,590 or child labor in our supply chains, 736 00:52:00,590 --> 00:52:02,620 so there are all kinds of agreements in place. 737 00:52:02,620 --> 00:52:04,800 But if you look closer at some of these producers, 738 00:52:04,800 --> 00:52:08,690 you find that sometimes up to 90% of the production 739 00:52:08,690 --> 00:52:10,513 does not take place in China. 740 00:52:11,420 --> 00:52:15,340 It does not take place in the factories where the European 741 00:52:15,340 --> 00:52:17,260 and the Americans auditors come 742 00:52:17,260 --> 00:52:20,260 to check whether working conditions are decent. 743 00:52:20,260 --> 00:52:22,230 Yes, they are in those factories, 744 00:52:22,230 --> 00:52:25,580 but that's only where 10% of the products are made. 745 00:52:25,580 --> 00:52:28,540 The other 90% comes from North Korea. 746 00:52:28,540 --> 00:52:30,640 - [Narrator] Breuker's team investigated 747 00:52:30,640 --> 00:52:33,510 one Chinese textile company more closely. 748 00:52:33,510 --> 00:52:35,520 It's called Vent d'Est. 749 00:52:35,520 --> 00:52:37,900 Their website states that the company 750 00:52:37,900 --> 00:52:42,260 relies on low labor cost and abundant human resources. 751 00:52:42,260 --> 00:52:44,260 Their list of customers reads 752 00:52:44,260 --> 00:52:48,270 like a who's who of international fashion brands. 753 00:52:48,270 --> 00:52:50,840 The website features a men's jacket. 754 00:52:50,840 --> 00:52:54,100 Next to it it says: "Korean imported". 755 00:52:54,100 --> 00:52:57,783 The buttons carry a label: Armani Jeans. 756 00:52:58,620 --> 00:53:00,380 Using trade databases, 757 00:53:00,380 --> 00:53:03,860 Breuker's team analyzed Vent d'Est's business relations 758 00:53:03,860 --> 00:53:07,110 between 2013 and 2019. 759 00:53:07,110 --> 00:53:09,690 The databases use customs data 760 00:53:09,690 --> 00:53:11,840 showing which goods are sent back and forth 761 00:53:11,840 --> 00:53:14,660 between companies in different countries. 762 00:53:14,660 --> 00:53:18,610 - So, what happens is that China sends the material 763 00:53:18,610 --> 00:53:21,950 to make certain types of clothes to North Korea. 764 00:53:21,950 --> 00:53:25,080 One month later, they're shipped back in the same container, 765 00:53:25,080 --> 00:53:27,200 and then you have finished clothes. 766 00:53:27,200 --> 00:53:30,110 Those clothes are then shipped to, say, 767 00:53:30,110 --> 00:53:33,760 the Netherlands or to Germany or to America. 768 00:53:33,760 --> 00:53:36,380 And from there they're distributed into our stores. 769 00:53:36,380 --> 00:53:40,030 - [Narrator] Between 2013 and December 2016, 770 00:53:40,030 --> 00:53:43,500 Vent d'Est sent around $10 million worth of fabrics 771 00:53:43,500 --> 00:53:46,460 and raw materials to North Korea. 772 00:53:46,460 --> 00:53:47,970 During the same period, 773 00:53:47,970 --> 00:53:50,460 Vent d'Est received finished garments 774 00:53:50,460 --> 00:53:54,673 worth almost $25 million from North Korea. 775 00:53:57,710 --> 00:54:02,650 Customs classify textiles by so-called HS codes. 776 00:54:02,650 --> 00:54:04,670 A ladies' sweater, for example, 777 00:54:04,670 --> 00:54:09,330 has a different HS Code than men's jeans. 778 00:54:09,330 --> 00:54:14,190 We take a closer look at HS Code 6201. 779 00:54:14,190 --> 00:54:17,350 It stands for men's anoraks and jackets, 780 00:54:17,350 --> 00:54:19,683 like the Armani jacket on the website. 781 00:54:22,170 --> 00:54:25,660 Between 2013 and December 2016, 782 00:54:25,660 --> 00:54:29,320 Vent d'Est imported garments worth $12 million 783 00:54:29,320 --> 00:54:32,260 with this code from North Korea. 784 00:54:32,260 --> 00:54:34,910 The same code is also used for deliveries 785 00:54:34,910 --> 00:54:38,360 from Vent d'Est to Europe and the US. 786 00:54:38,360 --> 00:54:41,083 Among the customers: Armani. 787 00:54:42,920 --> 00:54:45,080 Armani jackets that look exactly 788 00:54:45,080 --> 00:54:47,200 like the one on Vent d'Est's website 789 00:54:47,200 --> 00:54:49,340 can also be bought in Europe. 790 00:54:49,340 --> 00:54:52,780 This one costs 219 euros. 791 00:54:52,780 --> 00:54:55,790 It can't be proven beyond doubt whether garments 792 00:54:55,790 --> 00:54:57,790 like this one are made in North Korea. 793 00:54:57,790 --> 00:55:00,160 But can it be ruled out? 794 00:55:00,160 --> 00:55:02,280 We ask the fashion brands. 795 00:55:02,280 --> 00:55:05,220 Armani writes, "We confirm that Vent d'Est 796 00:55:05,220 --> 00:55:09,130 is one of our suppliers and as such is regularly subject 797 00:55:09,130 --> 00:55:11,070 to checks and inspections, 798 00:55:11,070 --> 00:55:14,240 the result of these checks being that no finished products 799 00:55:14,240 --> 00:55:16,430 are manufactured in North Korea. 800 00:55:16,430 --> 00:55:17,920 Like all our suppliers, 801 00:55:17,920 --> 00:55:21,890 it's also required to declare which subcontractors it uses 802 00:55:21,890 --> 00:55:23,610 and where these are concerned 803 00:55:23,610 --> 00:55:27,560 it's also the case that none are in North Korea." 804 00:55:27,560 --> 00:55:31,010 We've also contacted Vent d'Est in writing. 805 00:55:31,010 --> 00:55:34,350 The company offered no explanation as to why 806 00:55:34,350 --> 00:55:37,723 and to what extent it trades with North Korea. 807 00:55:40,400 --> 00:55:43,170 One thing can be said for certain. 808 00:55:43,170 --> 00:55:46,280 Well-known fashion brands have their goods manufactured 809 00:55:46,280 --> 00:55:51,280 by a Chinese company that cooperates with North Korea. 810 00:55:51,420 --> 00:55:54,640 A country where workers have no rights. 811 00:55:54,640 --> 00:55:57,723 Where human life counts for nothing. 812 00:55:58,640 --> 00:56:00,530 Breuker's investigation shows 813 00:56:00,530 --> 00:56:03,193 that this is not an isolated incident. 814 00:56:05,240 --> 00:56:06,370 - For years and years, 815 00:56:06,370 --> 00:56:10,160 we've heard testimonies from North Korean escapees 816 00:56:10,160 --> 00:56:11,650 who were in concentration camps, 817 00:56:11,650 --> 00:56:14,520 that they had been forced there to produce textiles 818 00:56:14,520 --> 00:56:19,520 for the export market for famous Western brands. 819 00:56:19,560 --> 00:56:22,450 And I think for the first time I've been able to corroborate 820 00:56:22,450 --> 00:56:25,450 that through an external source, so not through a testimony. 821 00:56:27,450 --> 00:56:32,310 In the same database, I found the department, 822 00:56:32,310 --> 00:56:33,700 the bureaucratic department, 823 00:56:33,700 --> 00:56:38,040 that is responsible for managing the production of textiles 824 00:56:38,040 --> 00:56:40,690 for one of the concentration camps outside Pyongyang. 825 00:56:44,760 --> 00:56:48,070 It means that we not only buy clothes 826 00:56:48,070 --> 00:56:52,360 produced by forced laborers, maybe even slave labor, 827 00:56:52,360 --> 00:56:56,410 we may even buy clothes in the Netherlands, in Germany, 828 00:56:56,410 --> 00:56:58,610 all through Europe, in America, 829 00:56:58,610 --> 00:57:00,580 that was made in concentration camps 830 00:57:00,580 --> 00:57:04,120 by people who will never see the light of day again. 831 00:57:04,120 --> 00:57:05,210 These are the kinds of camps 832 00:57:05,210 --> 00:57:07,560 that you don't leave until you're dead. 833 00:57:07,560 --> 00:57:11,750 That is just too horrific to put in words. 834 00:57:11,750 --> 00:57:13,299 And we're complicit. 835 00:57:13,299 --> 00:57:15,716 (soft music) 836 00:57:20,150 --> 00:57:22,740 - [Narrator] Hundreds of thousands of men and women 837 00:57:22,740 --> 00:57:27,363 secretly ensure the survival of the dictatorship. 838 00:57:28,690 --> 00:57:30,750 Their futures are sacrificed 839 00:57:30,750 --> 00:57:35,750 for the luxury of the regime and for our prosperity. 840 00:57:35,840 --> 00:57:39,850 Kim Jong-un is not a crazy dictator, 841 00:57:39,850 --> 00:57:42,730 but a coolly calculating businessman 842 00:57:42,730 --> 00:57:45,743 who runs his country like a company. 843 00:57:46,660 --> 00:57:50,290 His Bureau 39 does business 844 00:57:50,290 --> 00:57:53,753 with everything and everyone, 845 00:57:54,660 --> 00:57:55,963 including us.