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Kim Jong-un reportedly had a man shot for illegally selling music and films.
The man, known to have the surname Lee, was executed by firing squad in front of his family last month.
He was reported to the authorities after the daughter of his 'people's unit' leader caught him flogging USBs and CDs that had been loaded with South Korean movies and music videos.
On 25 April, around 40 days after his arrest in Wonsan, Gangwon province, Lee was shot and killed as 500 local residents, teachers and students looked on.
According to reports in Daily NK, North Korean authorities released a statement on the matter, warning others of the consequences of similar actions.
It read: "This was the first execution in Gangwon Province for anti-socialist acts under the anti-reactionary thought law.
"In the past, [people like Lee] were sent to labor or re-education camps.
"It would be a grave error to believe that you will receive light punishment [for anti-socialist acts].
"Such reactionary behavior helps people who are attempting to destroy our socialism. Reactionaries should not be allowed to live without fear in our society."
A source close to the case claimed Lee's family were taken away by authorities following his execution.
They said: "After the authorities recited the guilty verdict, the sound of twelve shots rang out. [Lee's] lifeless body was rolled into a straw sack and loaded into a box, and then taken somewhere.
"Lee's wife, son, and daughter collapsed where they were standing in the front row of the execution area.
"While everyone watched, Ministry of State Security officials picked them up and loaded them into a cargo truck with barred windows for transport to a political prisoner camp.
"The family's neighbors burst into tears when they saw the four security guards picking up Lee's collapsed wife and throwing her [into the cargo van] like a piece of luggage, but they had to clamp their mouths shut and weep in silence for fear of being caught in the criminal act of having compassion for a reactionary."
According to reports, prior to his death Lee had admitted to secretly selling devices containing South Korean entertainment for between $5 (£3.42) and $12 (£8.46) each.
North Korean authorities are said to be looking for people who bought the items off Lee and have already detained around 20 other sellers.
The source added: "Nowadays, if you are caught watching a South Korean video, you receive a sentence of either life in prison or death, so nobody knows who will be executed next.
"You can receive a seven-year sentence just for not reporting someone [who watched or distributed South Korean media]. The entire population is shaking with fear."