Earnings from a hostel reportedly owned by the Government of North Korea is being used to fund that country's nuclear and ballistic missiles programmes.
The Berlin Hostel, a popular tourist spot located next to the North Korean embassy in the German capital Berlin has been leased out and is being used in violation of UN rules, CNN reports.
The German government said it is considering to close the arrangement in order to comply with United Nations sanctions against North Korea.
City Hostel Berlin has been operating since 2008 and it has become a major financial source to the rogue state as it offers private rooms as well as bunk beds in shared bedrooms for as little as USD 10 per night.
The hostel caters to young travellers, students and to tourists. They may not be linked to North Korea as the hostel's website and social media accounts do not mention that the building is owned by the reclusive regime.
The rent of the building runs into tens of thousands of Euros each month.
The UN security council adopted a resolution in November prohibiting North Korea from using property it owns abroad for anything other than diplomatic or consular activities.