North Korea has recently replaced the director of a department of the North Korean Workers Party's Central Committee codenamed Room 39, which manages leader Kim Jong-il's coffers and personal slush funds, it emerged Thursday.

A North Korean source said Kim Tong-un (75) has been dismissed and his deputy Jon Il-chun (69) has been working in his place.

A South Korean government official said since Jan. 30, Jon has been seen by the side of Kim Jong-il, and it seems highly likely that Kim Tong-un has been replaced. Kim Tong-un had managed Kim Jong-il's slush funds since 1994.

Kim Jong-il and Jon went to the prestigious Namsan High Middle School at around the same time. Jon was appointed deputy director of Room 39 in 1998.

Kim Tong-un was put on blacklist of North Korean officials by the EU in December, alongside Jang Song-taek, Kim Jong-il's brother-in-law and the director of the party's administration department, and Kim Yong-chun, the minister of the armed forces, which is why Kim Jong-il may have decided he is no use to him any more in managing slush funds squirreled away abroad.

Kim Jong-il reportedly has several secret bank accounts abroad, including Switzerland, and launders money through the Russian mafia.