German authorities plan to terminate
a North Korean business in the heart of Berlin - a big hostel next to
the communist state's embassy.
The move is in line with UN sanctions aimed at curbing Pyongyang's nuclear weapons capability.German media say City Hostel Berlin is run by a Turkish hotelier who pays more than €38,000 (£32,000; $41,000) a month in rent to North Korea.
The embassy also derives income from a conference hall at the site.
North Korea has conducted several nuclear tests and launched missiles, provoking fears that it could one day hit Japan or the US with a long-range nuclear strike.
German Foreign Ministry spokesman Martin Schäfer said "any kind of commercial activity on the site of the embassy or in relation to the embassy is prohibited".
"City Hostel in Berlin constitutes neither a diplomatic nor consular activity of a North Korean foreign representation," he said, adding that the government will move to "shut down the financial source to the North Korean regime as quickly as possible".
Germany's Berliner Zeitung newspaper says (in German) the ministry has warned the leaseholders that they must end their contracts with North Korea - otherwise they face hefty fines.