Agency handling business deals with China called key to Jang’s rise and fall

Special to WorldTribune.com

By Lee Jong-HeonEast-Asia-Intel.com

SEOUL — Pyongyang’s “Department 54” was integral to North Korea’s struggle to acquire foreign currency and was at the center of the recent bloody purges, officials and analysts here said.

Jang Song-Thaek meets China’s Minister of Commerce Chen Deming in Beijing on Aug. 14, 2012.
Jang Song-Thaek meets China’s Minister of Commerce Chen Deming in Beijing on Aug. 14, 2012.

They added that another power struggle is likely shortly over who will control the agency which runs projects like coal exports to China.

Department 54, also known as the “Bureau 54,” is a key North Korean agency for earning foreign currencies by exporting mineral resources and fisheries products and running restaurants overseas, according to the South Korean intelligence agency.

Department 54 was originally controlled by the military, but Jang Song-Thaek,who had emerged as the country’s No. 2 man as the uncle of youthful new leader Kim Jong-Un,put the agency under his direct control which ultimately triggered a backlash from the military.

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