Prosecutors in Austria are looking into a case involving the sale of luxury yachts and cars to North Korean leader Kim Jong-il.

The prosecution said an Austrian businessman and Korean intermediary are being questioned over the sale of Italian-made luxury yachts apparently prepped for purchase by Kim Jong-il.

The two yachts, worth over 23 billion won, were seized by Italian authorities, who later determined they were bought by an Austrian who ceded the contract to a Chinese company acting as an agent for the North Korean leader.

Austrian prosecutors said the deal also involved seven Mercedes automobiles and some musical instruments.

The sale of luxury goods to North Korea is banned under a U.N. resolution adopted following the country's nuclear tests.