North Korean ambassador shuffled out of Swiss role

NORTH KOREA is to replace its top diplomat in Switzerland, thought to be responsible for managing leader Kim Jong-il's alleged stash of secret funds.

Ri Tcheul, ambassador to UN agencies in Geneva, is to step down after 30 years in service in Switzerland, a South Korean news agency reported.

Mr Ri, 75, one of Mr Kim's closest associates, is believed to have managed the leader's illicit money in secret Swiss bank accounts.

Mr Kim is believed to have stashed away billions of dollars in Switzerland, Hong Kong, Singapore and other countries to finance the North's weapons programmes, buy lavish gifts for his top deputies to ensure their loyalty and maintain his luxury lifestyle.

The agency said it was not clear why the North had decided to replace the diplomat, but overexposure may have made it difficult for him to manoeuvre, according to Seoul-based analyst Yang Moo-jin, a professor at the University of North Korean Studies in Seoul.

"Ri Tcheul has been exposed too much", he said.

Also, Mr Ri may be replaced by a younger person, just as Mr Kim is thought to be preparing to hand over power to one of his sons.