Washington correspondents, especially Korean and Japanese journalists, have been fiercely competing to get access to a report on North Korean counterfeit cigarette production.

The report is a result of co-investigation funded by Philip Morris of the US, British American Tobacco (BAT) of the United Kingdom, and a Japanese tobacco manufacturer. The eleven-page report was compiled on 29 June last year. The Asian edition of Time Magazine acquired the report and reported parts of it in its 30 January issue.
What’s noticeable about this report is that a coalition of US, European and Japanese tobacco companies hired former intelligence agents, investigators, and criminal organisation informants to penetrate North Korea and to write about their discoveries. It was reported that Andre Reiman, a senior vice president of Philip Morris USA, which produces Marlboro cigarettes, led the final preparation of the report.
The report was submitted to US authorities. Reportedly, the Korean government has also shown interest in obtaining the report.
According to Time Magazine’s coverage of the report, it is estimated that there are ten to twelve tobacco factories in North Korea; that some of the cigarette factories are directly owned by North Korea's military and internal security service, giving the state ‘total control’ over their operations; and that North Korea provides a 'safe haven' for factories run by overseas counterfeiting syndicates. Three of the factories that are said to be located in the Rajin area (in the North Hamgyong Province) are allegedly run or financed by crime syndicates from Taiwan (and who are thought to be the same Taiwanese organised crime syndicates whose members were arrested in the US last August).
According to the article, another factory in Rajin employed 120 people and was run by Chinese supervisors and technicians. “North Korean officials were allegedly paid a ‘tax’ on the factory`s cigarettes, which were then exported in fishing vessels owned by a Taiwan crime syndicate,” the article said. “A chief attraction of running such a business in North Korea is that the regime`s willingness to allow smuggling vessels to use its ports provides gangs with a secure delivery channel. And on occasion, such shipments have been intercepted in foreign waters.” (pi)