German automaker Mercedes-Benz has launched a formal investigation into the perplexing appearance of its high-end vehicles in North Korea, a nation under strict international sanctions prohibiting the import of luxury goods. This probe comes amidst growing concerns over sanctions evasion and the flow of prohibited items into the изолированная state.
Mercedes-Benz headquarters, based in Stuttgart, Germany, issued a statement to VOA Korean Service addressing the unfolding situation. The company asserted it “has had no business connection with North Korea for far more than 15 years” and expressed unawareness regarding how its vehicles “have come to the use of the government of North Korea.” This statement underscores the company’s official stance of non-engagement with North Korea, further deepening the mystery of the vehicles’ presence.
The statement from Mercedes-Benz further detailed the company’s proactive measures to prevent such diversions. “To prevent deliveries to North Korea, Mercedes-Benz has implemented a comprehensive export control process” and “strictly complies with U.S. and E.U. embargoes,” the statement emphasized. Despite these stringent controls, the appearance of their vehicles in North Korea raises serious questions about the effectiveness of current sanctions and export protocols.
The automaker also highlighted the challenges in tracing the vehicles. While Mercedes-Benz stated it always investigates vehicles displayed in media photos “thoroughly,” they pointed out that “without the vehicle identification numbers, it is impossible to find a concrete trace.” This lack of vehicle identification makes pinpointing the exact route and actors involved in delivering these luxury cars to North Korea considerably difficult.
North Korea’s state media, KCNA, inadvertently brought this issue to the forefront with the release of footage on December 27. The video showcased several high-ranking North Korean officials arriving at a year-end Workers’ Party meeting in Mercedes-Benz S-class sedans. Notably, North Korean Premier Kim Tok Hun was seen arriving in a Mercedes-Benz S-class limousine, further highlighting the regime’s apparent access to luxury vehicles despite international bans. The Mercedes-Benz S-class sedan carries a starting price tag of $114,500, according to the company’s official website, indicating the high value of these sanctioned goods.
It is well-documented that North Korean leader Kim Jong Un has a penchant for gifting Mercedes-Benz vehicles to officials demonstrating unwavering loyalty. Kim himself has been previously seen in a Mercedes Maybach, a luxury model ranging from approximately $500,000 to over $1.5 million. Reports even suggest Kim Jong Un transported a Maybach on his armored train during his meeting with Russian President Vladimir Putin in September, showcasing the leader’s continued access to and utilization of luxury automobiles.
Joshua Stanton, a Washington-based attorney instrumental in drafting the Sanctions Enforcement and Policy Enforcement Act of 2016, suggests North Korea’s media release might be a deliberate act. “They do like to flaunt” luxury vehicles and “to demonstrate that the sanctions don’t have effects on them,” Stanton commented. He urged Mercedes-Benz to offer “full cooperation to the U.N. Panel of Experts” to facilitate tracing the supply chain of these vehicles to North Korea. Stanton further advocated for adding individuals knowingly violating UN sanctions by dealing with Pyongyang to the list of specially designated nationals, with their assets subsequently frozen, to strengthen enforcement.
The United Nations Security Council initially imposed a ban on luxury goods exports to North Korea in 2006, with expanded restrictions implemented in a 2013 resolution. The UN Panel of Experts on North Korea is tasked with monitoring the enforcement of these sanctions. Anthony Ruggiero, a senior fellow and sanctions expert at the Foundation for Defense of Democracies and former National Security Council senior director, believes North Korea’s brazen display is intentional. “Kim Jong Un does not hide North Korea’s sanctions violations because Kim knows that the Biden administration is not implementing U.N. and U.S. sanctions,” Ruggiero stated. He called for immediate implementation of U.S. sanctions, targeting Chinese and Russian entities involved in North Korea sanctions evasion.
Responding to the visuals of North Korean officials in Mercedes-Benz vehicles, a U.S. State Department spokesperson reiterated to VOA Korean Service on December 27 the necessity for UN member states to enforce North Korea sanctions. “Under U.N. Security Council resolutions, all U.N. Member states are required to prohibit the supply, sale or transfer to the DPRK of transportation vehicles,” the spokesperson affirmed, emphasizing the collective international responsibility in upholding these measures.
Adding to concerns, Japanese authorities raided a car dealership in Chiba, near Tokyo, in December. The dealership is suspected of attempting to smuggle a Lexus, valued at approximately $70,000, to North Korea via Bangladesh, as reported by The Asahi Shimbun. Furthermore, a 2019 report by the Center for Advanced Defense Studies (C4ADS) revealed a significant scale of luxury goods smuggling to North Korea. The report indicated that up to 90 countries were involved in facilitating the flow of luxury items between 2015 and 2017. C4ADS uncovered over 800 luxury vehicles shipped to North Korea, originating from Germany, the Netherlands, and Thailand, and transshipped through countries including China, Japan, South Korea, and Russia before reaching North Korea. This extensive network highlights the sophisticated and widespread nature of sanctions evasion that continues to challenge international efforts to curb North Korea’s access to banned luxury goods like Mercedes-Benz vehicles.
