This article is part of an ongoing experiment with the use of ChatGPT for developing primers on cyber security topics.

Room 39 is a secretive organization within the Democratic People’s Republic of Korea (DPRK) that is believed to be involved in illegal activities, including money laundering, arms smuggling, and counterfeiting. Here is a dossier on Room 39, detailing its history, operations, and significance.

The exact location of Room 39 within the Democratic People’s Republic of Korea (DPRK) is unknown, as the organization operates under a high level of secrecy and its members are believed to be highly skilled at concealing their activities and avoiding detection.

However, it is widely believed that Room 39 is headquartered in the capital city of Pyongyang, and that it has branch offices and operational centers throughout the country. The organization is thought to operate under the direct authority of the North Korean leadership, and to have close ties to the country’s ruling elite.

Despite its secretive nature, Room 39 has been the subject of intense scrutiny by international organizations and governments, as its illicit activities are seen as a major challenge to regional stability and security. Efforts to track the organization’s activities and disrupt its operations have been ongoing for many years, but progress has been limited by the organization’s secrecy and the support it enjoys from the North Korean regime.

The exact amount of money that flows through Room 39 is difficult to estimate due to the secretive nature of the organization and its operations. However, some estimates suggest that the organization generates billions of dollars in revenue each year, largely through illicit activities such as money laundering, counterfeiting, and smuggling.

It is widely believed that a significant portion of the revenue generated by Room 39 is used to fund the North Korean regime’s military and nuclear programs. However, it is unclear how much of this revenue is directly funneled into the accounts of the Kim family, which has ruled North Korea for three generations.

While there is no concrete evidence to support the claim that the Kim family directly benefits from Room 39’s activities, some reports suggest that members of the family have used the organization to acquire luxury goods and other items that are subject to international restrictions. For example, a 2017 report by the United Nations suggested that Kim Jong Un had used front companies associated with Room 39 to acquire luxury yachts, musical instruments, and other items.

History

Room 39 was established in the late 1970s by Kim Jong Il, the former Supreme Leader of North Korea and the father of current leader Kim Jong Un. The organization is believed to have been created to provide a source of foreign currency for the North Korean regime, which has been subject to international sanctions and trade restrictions.

One of the key tactics used by Room 39 in its illicit operations is the use of grey markets. Grey markets are informal networks of traders and middlemen who operate outside of formal channels of commerce, often in the context of goods that are subject to sanctions or trade restrictions.

Room 39 is believed to be involved in a wide range of grey market activities, including the smuggling of goods and the evasion of international sanctions. The organization is thought to use a network of front companies and intermediaries to transfer funds and goods, and to conceal its activities from international authorities.

For example, Room 39 has been linked to the smuggling of minerals, such as coal and iron ore, which are subject to international sanctions. The organization is believed to use a network of traders and middlemen to transfer these goods across borders, often using deceptive practices such as mislabeling or transshipment to avoid detection.

Room 39 has also been linked to the smuggling of luxury goods, such as high-end automobiles, watches, and liquor. These goods are subject to international restrictions, as they are believed to provide a source of revenue and prestige for the North Korean regime. Room 39 is thought to use a range of tactics to evade these restrictions, such as the use of front companies and the exploitation of loopholes in international regulations.

In addition to its grey market activities, Room 39 is also believed to be involved in a range of other illicit activities, including money laundering, counterfeiting, and the production of illegal drugs. The organization’s operations are highly secretive, and it is notoriously difficult to identify its members or track its activities. Nevertheless, Room 39 is widely believed to be a significant source of revenue for the North Korean regime, and its activities are seen as a major challenge to international efforts to promote stability and security in the region.

Operations

Room 39 is believed to be involved in a wide range of illegal activities, including:

• Money laundering: Room 39 is thought to be involved in laundering money from drug trafficking, smuggling, and other illicit activities. The organization is believed to operate several front companies in China and other countries to facilitate the transfer of funds. According to a report by the US Department of the Treasury, Room 39 has used these companies to conduct transactions worth millions of dollars.
• Counterfeiting: Room 39 is believed to be involved in the production of counterfeit US dollars and other currencies. The organization is reported to have sophisticated facilities and printing equipment, and to use advanced techniques to avoid detection. In 2019, a Hong Kong-based news outlet reported that North Korea was using its embassy in Beijing as a base for its counterfeiting operations, with Room 39 reportedly involved in the scheme.
• Trading: Room 39 is also believed to engage in legitimate business activities, such as trading in minerals, metals, and other commodities. These activities are believed to provide cover for its illegal operations and to generate revenue for the regime. According to a report by the Korea Institute for International Economic Policy, Room 39 has been involved in the export of coal, iron ore, and other minerals to China and other countries.
• Arms smuggling: Room 39 is believed to be involved in the smuggling of weapons and military equipment, including missiles and nuclear components. According to a report by the US Department of State, the organization has been involved in arms smuggling to countries in the Middle East and Africa, and has also provided military training and support to non-state actors.

Cyber Operations

North Korea has been linked to a number of cyber operations in recent years, many of which are believed to be conducted by the country’s military intelligence agency, the Reconnaissance General Bureau (RGB). These operations include attacks on financial institutions, cyber espionage, and the theft of cryptocurrency.

While the exact role of Room 39 in these cyber operations is unclear, it is believed that the organization plays a key role in generating revenue for the regime from cybercrime. For example, Room 39 is believed to be involved in the theft of cryptocurrency, which is then used to fund the regime’s military and nuclear programs. In addition, the organization is thought to be involved in the development of advanced cyber capabilities, which are used to conduct cyber espionage and other operations.

The most high-profile cyber operation attributed to North Korea was the 2014 attack on Sony Pictures, which was carried out in retaliation for the studio’s production of a movie that portrayed the North Korean leader in a negative light. The attack, which was attributed to the RGB, resulted in the theft of sensitive data, the release of embarrassing emails, and the destruction of computer systems.

Other cyber operations attributed to North Korea include the WannaCry ransomware attack in 2017, which affected hundreds of thousands of computers around the world, and the theft of $81 million from the Bangladesh Bank in 2016, which was carried out using stolen SWIFT credentials.

Ties to Room 39

While it is unclear to what extent Room 39 is directly involved in cyber operations, the organization is believed to play a key role in facilitating North Korea’s cybercrime activities. Room 39 is thought to be involved in the laundering of funds generated by cybercrime, as well as the acquisition of technology and equipment used in these operations.

For example, a 2019 report by the UN Panel of Experts on North Korea noted that Room 39 had been involved in the acquisition of advanced encryption software and other technology that could be used to conceal the country’s cyber activities. The report also noted that the organization had used front companies and other means to transfer funds for the purchase of this technology.

In addition, a 2020 report by the US Department of the Treasury identified several individuals and entities involved in North Korea’s cyber activities, many of whom were linked to Room 39. The report noted that these individuals and entities had been involved in a range of cyber operations, including the theft of cryptocurrency and the development of malware and other tools for use in cyber espionage and other activities.

These and other reports suggest that Room 39 plays a significant role in North Korea’s cyber activities, and that the organization’s illicit operations are intertwined with the country’s cybercrime activities. As such, efforts to curb North Korea’s cyber activities will need to take into account the role of Room 39 and other organizations involved in generating revenue for the regime.

The individuals associated with Room 39 are notoriously difficult to identify, given the secretive nature of the organization. However, here are some examples of known individuals who have been linked to the group:

• Kim Chol: In 2013, the US Department of the Treasury designated Kim Chol, a senior official in the North Korean government, as a “specially designated national” for his involvement in Room 39’s illicit activities. According to the Treasury Department, Kim Chol was involved in the management of several front companies used by Room 39 to launder money and evade international sanctions.
• Ko Chol Man: In 2017, the UN Panel of Experts on North Korea identified Ko Chol Man as a key figure in Room 39’s illicit activities. According to the Panel’s report, Ko Chol Man had been involved in the operation of several front companies used by Room 39 to transfer funds, and had also been involved in the smuggling of coal and other commodities.
• Kim Su Il: In 2020, the US Department of the Treasury designated Kim Su Il, a North Korean government official, for his involvement in Room 39’s illicit activities. According to the Treasury Department, Kim Su Il had been involved in the operation of several front companies used by Room 39 to transfer funds, and had also been involved in the smuggling of coal and other commodities.

It is likely that there are many other individuals associated with Room 39 who have not been identified publicly. The organization operates under a high level of secrecy, and its members are believed to be highly skilled at concealing their activities and avoiding detection.

Ties to crypto currencies and illicit operations

Room 39 is believed to be involved in a wide range of illicit activities, including money laundering, arms smuggling, counterfeiting, and trading. One of the tactics used by Room 39 in its illicit activities is the use of cryptocurrencies.

Cryptocurrencies provide a means for Room 39 to evade international sanctions and bypass traditional financial channels, making them an attractive option for the organization. Room 39 is believed to be involved in a range of cryptocurrency-related activities, including:

1. Cryptocurrency mining: Room 39 is believed to operate a significant cryptocurrency mining operation, which allows it to generate large quantities of Bitcoin and other cryptocurrencies. The organization is thought to use a network of servers located in China and other countries to conduct its mining activities.
2. Cryptocurrency theft: Room 39 is also believed to be involved in the theft of cryptocurrencies from exchanges and other targets. The organization is thought to use a network of hackers and intermediaries to steal the cryptocurrencies, which are then used to fund the North Korean regime’s military and nuclear programs.
3. Cryptocurrency laundering: Room 39 is also believed to be involved in the laundering of cryptocurrencies through a network of intermediaries and front companies. The organization is thought to use these intermediaries to convert the stolen cryptocurrencies into fiat currency, which can then be used to fund the regime’s activities.

One example of Room 39’s involvement in cryptocurrency-related activities is the 2018 theft of $530 million in cryptocurrencies from the Japanese exchange Coincheck. According to reports, the hackers responsible for the theft were linked to North Korea and may have been associated with Room 39. The stolen cryptocurrencies were likely used to fund the North Korean regime’s military and nuclear programs.

Overall, Room 39’s involvement in cryptocurrencies is part of a wider strategy to evade international sanctions and generate revenue for the North Korean regime. The use of cryptocurrencies allows the organization to operate outside of traditional financial channels and to conduct its activities with a high degree of anonymity and secrecy.

Significance

Room 39 is significant because it provides a vital source of income for the North Korean regime, which is subject to severe economic sanctions and trade restrictions. The organization is believed to generate billions of dollars in revenue each year, which is used to fund the regime’s military and nuclear programs, as well as to support the lavish lifestyle of its leaders.

The activities of Room 39 have also contributed to the isolation of North Korea from the international community, as many countries view the organization as a threat to global security and stability. The US and other countries have imposed sanctions on individuals and companies associated with Room 39, in an effort to curb its illegal activities and to pressure North Korea to abandon its nuclear and missile programs.

Despite these efforts, Room 39 continues to operate and to generate revenue for the North Korean regime. Its activities are likely to remain a challenge for the international community, as they represent a significant source of support for one of the world’s most repressive and isolated regimes.

Open Source Reporting:

There have been several reports in open-source media on Room 39 and its operations. For example:

• In 2017, the United Nations published a report that identified several companies and individuals involved in Room 39’s money laundering activities. The report found that these entities were using a network of shell companies and front companies to evade international sanctions and transfer funds to North Korea.
• In 2018, a report by The New York Times alleged that Room 39 was involved in the theft of $81 million from the Bangladesh Bank in 2016. The report suggested that North Korean hackers were behind the theft, and that Room 39 was involved in laundering the stolen funds.
• In 2019, The Wall Street Journal reported that North Korea was using its embassy in Berlin as a base for its illicit activities, including the smuggling of goods and the acquisition of technology for its nuclear and missile programs. The report cited unnamed Western officials who suggested that Room 39 was involved in the scheme.
• In 2020, the United Nations published a report that highlighted Room 39’s involvement in illicit activities. The report noted that the organization was involved in money laundering, counterfeiting, and smuggling, and had used a network of front companies to evade international sanctions. The report also suggested that Room 39 had been involved in the acquisition of luxury goods, which are subject to international restrictions.
• In 2021, The Diplomat published an article that detailed Room 39’s involvement in the smuggling of cigarettes. The article cited sources who suggested that the organization had been involved in the smuggling of cigarettes from China to North Korea, and had used the profits to fund its other illicit activities.
• In 2021, Radio Free Asia reported on Room 39’s involvement in the production of methamphetamine. The report cited unnamed sources who suggested that the organization had established several drug labs in North Korea, and was producing large quantities of methamphetamine for export.
• These and other reports indicate that Room 39 remains a significant source of revenue for the North Korean regime, and is involved in a wide range of illicit activities. The organization’s operations pose a significant challenge for the international community, as they contribute to the regime’s ability to pursue its nuclear and missile programs, and to maintain its grip on power. The continued reporting on Room 39 underscores the need for continued vigilance and enforcement measures to curtail its activities.

Krypt3ia generated this text with ChatGPT, OpenAI’s large-scale language-generation model. This author reviewed, edited, and revised the language to my own liking and takes ultimate responsibility for the content of this publication.