Last week a North Korean diplomat was caught smuggling gold estimated to be worth £1m from Singapore to Bangladesh. The route of travel and amount of gold seized suggests that North Korea was probably in the process of paying for something, but for what remains unclear.

Whilst some might question the outdated payment method, a recent UN security council report suggests that this a common tactic employed by the country to evade sanctions.

The report, chaired by a UN panel of experts on North Korea, focuses on the procurement networks established by Pyongyang, which have allowed it to continue trading illegally with international partners.

Of central importance, it suggests, are North Korean diplomats, officials and trade representatives who have been used to sell counterfeit goods or drugs.

Sometimes acting under the cover of diplomatic immunity, these individuals are key nodes in a global system, arranging deals, organising payments and helping contractors to bypass customs agencies, the report says.

It also found evidence that DPRK representatives in embassies and trade missions “continue to play key roles in facilitating the trade of prohibited items, including arms and related material and ballistic missile-related items.”

Individuals, sometimes acting under the cover of diplomatic immunity, are key nodes in a global system

The seizure in Bangladesh is not unique, nor is it as troubling as other cases. In 2012, two officials from the North Korean trade mission in Minsk, Belarus were reportedly imprisoned in Ukraine for attempting to obtain sensitive information relating to missile production.

Last year the French ministry of economy and finance froze the assets of three North Koreans who had infiltrated UN agencies, Unesco in Paris and the World Food Programme (WFP) in Rome, “on the grounds that they were likely to engage in activities prohibited by the resolutions”.

All three were simultaneously working on behalf of Pyongyang-based government agencies, including North Korea’s intelligence agency, the Reconnaissance General Bureau.

Around the arms embargo

In some cases North Korea’s diplomats and embassies were found to be involved in activities beyond espionage. Agreements with Cuba and the Republic of Congo, for example, involved military deals prohibited by the UN arms embargo.

In February 2014, a North Korean official was caught at a southeast Asian airport with $450,000 in cash, suspected to be payment for an arms deal.

This occurred a year after the Security Council passed resolution which explicitly emphasised the need heightened vigilance of North Korean diplomats and bulk cash transfers after a North Korean nuclear test in 2013.

This may not have deterred North Korea but the increased number of seizures suggests that other UN member countries are taking action to try and curb transactions.

A diplomatic dilemma

Sanctions against North Korea have served to slow the progress of its nuclear and ballistic missile programme, and have made it more expensive.

But the “isolation” approach is not working as well as some might have hoped, and Obama’s mantra of “strategic patience” has come under criticism from some North Korea observers.

As North Korea continues to fire missile tests off its east coast, there are increasing calls for a change of tack. John Delury from 38 North, a group of North Korean analysts, argues that the US president should be the one to lead a proactive, strategic and effective dialogue with North Korea.

But if dialogue is the answer, then embassies and diplomats are crucial in the process of communicating policies and establishing bilateral relations. Yet the continued abuse of diplomatic privileges by North Korean officials means they are difficult to trust.



So, for those suggesting more engagement with the DPRK, there remains a dilemma: dialogue may bring political harmony but, it could also leave room for North Korean officials to exploit their diplomatic privileges.

Matthew Cottee is a Research Analyst at the International Institute for Strategic Studies (IISS)

