SEOUL, South Korea — The North Korean leader Kim Jong-il has found a novel way of raising badly needed cash, according to the South Korean authorities: unleashing young hackers on South Korea’s immensely popular online gaming sites to find ways to rack up points convertible to cash.
South Korean and American officials say they believe the slush fund is worth billions, and that Mr. Kim uses it to help finance his nuclear weapons programs and to smuggle Rolex watches and other luxury goods, which he doles out to buy the allegiance of the party and the military elite. Meanwhile, the bulk of his people suffer privation and myriad hardships.
A series of United Nations sanctions imposed after North Korea’s nuclear and ballistic missile tests in recent years aim to squeeze the cash flow by curtailing trade with the North Korean companies suspected of illicit activities. They also ban exports of luxury goods to North Korea.
The North Korean computer experts were each required to send at least $500 a month back to the Pyongyang government, the police said. It remained unclear how much of the rest of their profits they pocketed for themselves, given different layers of party and military officials involved in a typical illicit operation.
What appeared clear from the case, the police said, was that North Korean agencies, increasingly hamstrung by international sanctions, were exploring any new means to raise cash for Mr. Kim and prove their loyalty. The two Koreas, which have remained technically at war for almost 60 years, operate in an environment of mutual suspicion. The tensions extend to the virtual world: Seoul accused North Korea of spreading malicious software that paralyzed the Web sites of South Korean government agencies and financial institutions in July 2009 and again in March. In May, the South blamed North Korea for an attack that brought down a South Korean bank’s network.
North Korea denied responsibility and accused Seoul of inventing a conspiracy.