Kim Jong-un’s 'slush fund' is reportedly running out due to 'extravagant spending'

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North Korean leader Kim Jong Un visits Mount Paektu in this photo released by North Korea's Korean Central News Agency (KCNA) in Pyongyang December 9, 2017. KCNA/via Reuters

North Korean leader Kim Jong-un has reportedly spent much of his inheritance on a series of missile, nuclear tests and other projects. He has been exhausting a “slush fund” left to him by his dad, according to a source who claimed to have connections with North Korean government officials.

A Chinese source told Radio Free Asia that Kim has been using a slush fund from his late father, The Sun reports. “Due to Kim Jong-un’s extravagant spending, the slush fund from his father, Kim Jong-il, is running out,” one source alleged.

It has been said that Kim has been using his inheritance since he came to power following his father’s passing in 2011. The fund was supposedly intended to run the country.

The source said he was “well-acquainted” with officials from a secretive government body tasked to obtain foreign currency for the North Korean elite. Kim has been reportedly worrying about insufficient funds in Office No. 39 multiples times.

How much exactly is in the supposed slush fund is unknown. Kim has reportedly spent on showpieces such as the luxury Masikryong Ski Resort and the high rises of the Ryomyong Street neighbourhood in the capital Pyongyang. Some critics pointed out that the country could not afford some of these showpieces.

Kim has also carried out four of North Korea’s six nuclear tests. So far, the young dictator has tested more missiles than his grandfather and father combined. Up to 23 missiles were reportedly tested in 2017. North Korea’s first intercontinental ballistic missile also made headlines.

According to the sources, most of the funding for missile development and nuclear weapons came from the slush fund. They said they can speculate that Kim has spent a lot of money from the number of missile tests he carried out.

South Korean Winter Olympics

His leadership’s decision to participate in the South Korean Winter Olympics was said to be part of a plan to boost North Korean’s economy. Its GDP is thought to be 1/28th of its southern neighbours, which suggests that North Korea faces food and medical shortages.

Another Chinese source has said that Pyongyang intended to ease financial woes by taking part in the Winter Olympic Games. It is slated to start next month.

Kim is the second born of former North Korean supreme leader Kim Jong-il. His elder brother reportedly lives a quiet life.

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