This monograph examines Office Number 39’s origins, organizational structure, and activities in order to develop a more calibrated strategy and policy to meet the North Korean challenge. This monograph focuses on Office Number 39's key illicit activities— to include manufacture and distribution of illegal drugs, the counterfeiting of U.S. currency, and the manufacture and distribution of counterfeit cigarettes. Finally, as Kim Jong-Il grows frailer, assessing how his successor may continue or alter Office Number 39’s activities is also examined.