Archive for the ‘South Korea’ Category

Inter-Korean trade falls more than 30%

Friday, August 6th, 2010

According to Yonhap:

Inter-Korean trade has fallen more than 30 percent since the South cut almost all business relations with the North after Pyongyang was blamed for torpedoing one of its naval ships in late March, the customs office here said Friday.

According to data provided by the Korea Customs Service, the trade between the two Koreas came to US$123.06 million in June, down 32 percent from April, when they still kept their ordinary business relations despite a probe into the naval disaster.

South Korea’s exports to the North amounted to $56.88 million in June, down 27 percent from April, while imports decreased 36.5 percent to $66.18 million over the same period, the data showed.

Inter-Korean trade also dropped 21 percent from May, with its exports to and imports from the North falling 4 percent and 32 percent, respectively.

Despite such a sharp shrinkage, the customs office said the decline was not as steep as expected thanks to the Kaesong complex, which takes up most inter-Korean trade.

“The reason why the decline was not as sharp as expected is because we still keep a trade channel open in the Kaesong complex, which accounts for around 70 percent of total trade with the North,” a customs official said.

South Korea is the North’s second-largest trade partner after China. A suspension of inter-Korean business would cause a significant impact on the efforts of the reclusive communist nation to secure cash, according to experts.

Earlier, a state-run think tank here said inter-Korean trade suspension could cost North Korea about $280 million annually, adding to pressure on the North’s cash-strapped regime in governing its country.

Read the full story here:
Inter-Korean trade falls more than 30 pct amid heightened tensions
Yonhap
8/6/2010

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Rok aids businesses formerly engaged with DPRK

Monday, August 2nd, 2010

According to Yonhap:

South Korea began examining applications for low-interest loans Monday for companies troubled by a government ban on trade with North Korea, an official said.

The measure is part of the South Korean government’s efforts to alleviate the financial troubles of private enterprises that had to stop trading with North Korea after Seoul announced in May that Pyongyang was responsible for the March 26 sinking of its warship.

North Korean firms are moving business to China.

Read the full story here:
S. Korea launches support for companies banned from trading with N. Korea
Yonhap
8/2/2010

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RoK bans civic group from visiting DPRK

Monday, August 2nd, 2010

According to KBS:

South Korea has turned down a civic organization’s request to visit North Korea.

The Unification Ministry in Seoul said Monday that it decided not to allow a cross-border trip by a delegation from the Korea NGO Council for Cooperation with North Korea, citing icy inter-Korean relations.

The NGO council sought to make a four-day visit to Pyongyang starting Wednesday to discuss the establishment of a branch office in the North Korean capital.

The government has banned South Koreans from traveling to North Korean regions other than the Gaeseong Industrial Complex and the Mount Geumgang resort in the wake of North Korea’s sinking of the “Cheonan” naval vessel.

Read the full story here:
S.Korea Bans Civic Group from Visiting NK
KBS
8/2/2010

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DPRK defector numbers

Monday, August 2nd, 2010

UPDATE: The Daily NK offers these numbers:

This September, the number of North Korean defectors living in South Korea is likely to pass 20,000. Hanawon, the resettlement education center for defectors located just outside Seoul, recently revealed that a total of 19,300 defectors were in South Korea as of 1 July, and forecast that the tally would surpass the 20,000 mark this coming September.

It is a number which has been rising steadily ever since eight people first crossed the border in 1993, with records for 2006, 2007, 2008, and 2009 showing 2018, 2544, 2809, and 2927 defectors reaching South Korean territory respectively.

ORIGINAL POST: According to the Donga Ilbo:

The [Unification] ministry said the number of North Koreans who arrived in the South in this year’s first half was 1,237, or 42.3 percent of last year’s figure of 2,927. The number for the second half is expected to decline further because the number of defectors awaiting entry into South Korea has dropped.

More than six months is normally needed for defectors to enter the South after fleeing the North. So the number of North Koreans to enter the South this year will reach an estimated 2,000, or two thirds last year’s figure.

This is a big change given that the number of defectors to South Korea had grown 10-30 percent every year. Had this pace been maintained this year, the number would have exceeded 3,000.

The number of defectors reaching South Korea was marginal through 1993, but increased to 52 in 1994. It exceeded 100 in 1999, 1,000 in 2002, and 2,000 in 2006.

The drop is largely due to the North’s stepped-up crackdown on defectors. The Stalinist country set up layered surveillance networks in border areas early this year shortly after its major security agencies — the People’s Security Ministry and the State Security Ministry — issued their first joint statement declaring war on defectors in February.

The People’s Security Ministry is in charge of maintaining public order and the State Security Ministry handles intelligence gathering. Unlike in the past, the two organizations are working closely together with military forces dispatched to border areas to prevent defections.

The North is known to have significantly strengthened its crackdown after its disastrous currency revaluation in December last year.

The punishment for defectors deported from China has also gotten tougher. In the past, North Koreans who fled their country were subject to labor if they left to earn a living but now face more than three years in prison without exception. In worst cases, public execution is their fate.

The heightened crackdown on defectors has raised the price of crossing a river to escape. The cost used to be tens of thousands of North Korean won (tens of U.S. dollars) in the past, but has soared to millions of won (hundreds of dollars). Even this amount, however, does not guarantee safe passage out of the North.

North Koreans who escaped to South Korea used to send money to the North to help their families flee, but it has gotten more difficult not only to send money, but also to contact their families in the North.

All of this is related to strained inter-Korean relations. The powerless defectors are victims of the bilateral confrontation that began with the inauguration of the Lee Myung-bak administration in 2008.

Read the full stories here:
No. of Defectors Drops Amid Heightened Crackdown
Donga Ilbo
8/2/2010

Rekindling Hope for North Korean Youth
Daily NK
Mok Yong Jae
8/6/2010

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DPRK firms find Chinese partners to replace ROK revenues

Sunday, August 1st, 2010

According to the AFP:

North Korea has found Chinese partners to make up for losses in trade with South Korean firms, weakening the impact of Seoul’s measures to punish the communist country, a report said Sunday.

South Korea banned most cross-border trade in May after a multinational investigation concluded that a North Korean torpedo sank one of Seoul’s warships with the loss of 46 lives.

Before the ban was announced, the North had produced goods after receiving raw materials from more than 500 South Korean firms, Yonhap news agency said.

“After the South Korean companies became unable to send the raw materials, North Korean factories have been manufacturing products ordered by China,” a source familiar with North Korean affairs told Yonhap.

Seoul partially lifted the ban to allow South Korean firms to proceed on deals which had been signed earlier.

“North Koreans said they already signed contracts with Chinese firms and told us they will manufacture the orders from the Chinese side first,” the source was quoted as saying.

Most of the goods made on consignment trade with China are for export to Europe, Yonhap said.

The ban would cost the impoverished North hundreds of millions of dollars a year, a state think-tank here said last month.

Washington announced further sanctions last month to stop the North from selling nuclear weapons or related material as well as blocking money laundering and other illicit activities.

Read the full story:
Trade ban prompts N.Korea to find Chinese partners: report
AFP
8/1/2010

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Flooding washes DPRK mines into ROK

Sunday, August 1st, 2010

UPDATE: According to Yonhap:

South Korean soldiers have found a total of 91 land mines believed to have washed into the South from the North by heavy rains, military officials said Saturday.

ORIGINAL POST: According to the New York Times:

A man in the South Korean border town of Yeoncheon, northeast of Seoul, was killed Saturday when one of two land mines he had picked up from a stream exploded, the Defense Ministry said. A friend was seriously injured and hospitalized.

The scare came amid heightened vigilance against North Korea, following the March sinking of a South Korean warship in border waters that was widely thought to be caused by a North Korean torpedo attack. On Sunday, South Korea sent a message urging North Korea to prevent its land mines from washing downstream to the South, the Defense Ministry said in a statement.

The authorities also distributed pamphlets, which carried photos of the North Korean mines, warning people living near the border not to touch objects that look like the land mines.

In towns and islands downstream from North Korea, officials using megaphones urged villagers and vacationers to stay off the streams and beaches.

Soldiers with minesweepers were searching river beds where the floods have retreated. Since Friday, they have found 35 land mines. The mines, built in wooden boxes, were designed to explode when pressed or opened.

“The mines were apparently swept down from North Korea after torrential rains,” said an official from the Office of the Joint Chiefs of Staff who spoke on the condition of anonymity, citing his office’s policy. He said that the safety pins of some recovered mines were not removed, indicating that they had been in storage when they were swept away.

Read the full story here:
In Koreas, Floods Carry Land Mines
New York Times
Choe Sang-hun
8/1/2010

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ROK raises barriers to trade with DPRK

Wednesday, July 28th, 2010

According to Yonhap, the South Korean government is subsidizing firms as they transition away from trade with North Korean firms:

South Korea will provide low-interest loans worth a total of about 60 billion won (US$50 million) to companies troubled by a government ban on trade with North Korea, an official said Monday.

The loans are aimed at alleviating the financial trouble of the companies, which started when South Korea implemented a ban in May in retaliation for the March 26 sinking of its warship near the Yellow Sea border with North Korea, Unification Ministry spokesman Chun Hae-sung said in a briefing.

“Each company will be eligible to receive a loan of up to 700 million won with a 2 percent interest rate, based on the volume and type of trade the companies have been doing for the past year,” he said, adding the measure will take effect next week.

Hundreds of companies had to stop trading with North Korea after South Korea announced that a multinational investigation found the communist state responsible for the Cheonan sinking, which claimed the lives of 46 sailors.

Yonhap also reports  South Korean companies operating in the DPRK will once again be banned from shipping goods and materials for consignment trade with the DPRK from early next month:

The application deadline was set for Aug. 10, when the temporary lift of the existing ban will end, the ministry said.

On May 24, South Korea prohibited all shipments to the North as part of punitive actions against the communist neighbor it blamed for a deadly torpedo attack on one of its warships. The March 26 sinking in the Yellow Sea killed 46 sailors.

More than 500 hundred South Korean companies were doing consignment trade with the North, in which they send raw material and bring back processed goods. Such trade amounted to US$254 million in 2009.

Seoul’s shipment ban seriously affected South Korean businesses operating at the North’s border city of Kaesong, where some 120 firms from the South operate manufacturing lines using the North’s relatively cheap labor costs.

The companies’ complaints forced the government to temporarily lift the ban, on condition that the business contracts were made before May 24.

Read the full stories here:
S. Korea to offer loans to companies banned from trading with N. Korea
Yonhap
7/26/2010

S. Korea to re-impose ban on materials shipments to N. Korea after temporary lift
Yonhap
7/28/2010

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RoK to teach legal system to DPRK defectors

Thursday, July 22nd, 2010

According to Yonhap:

The Unification Ministry signed an agreement Wednesday with a leading association of lawyers here to support North Korean defectors having difficulties while adapting to the capitalist South Korean society.

Minister Hyun In-taek signed the deal with President Kim Pyung-woo of the Korean Bar Association, calling on lawyers to teach the defectors about South Korea’s legal system at resettlement centers.

The agreement also provides consultation with lawyers for free or at reduced fees if the former residents of the communist North are involved in a legal dispute or need to file a lawsuit.

More than 19,000 North Koreans have defected to the South since the three-year Korean War ended in a truce in 1953. A bulk of them have come in recent years as the North’s food crisis deepens.

A 2007 survey showed that North Korean defectors were dozens of times more susceptible to fraud due mainly to their lack of understanding of the market system here.

Read the full story here:
Gov’t joins hands with lawyers to support N. Korean defectors
Yonhap
7/21/2010

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DPRK agent now RoK pastor

Sunday, July 18th, 2010

An interesting story in the Los Angeles Times:

He looks more like a graying clergyman than the boogeyman of thousands of South Korean childhoods.

But Kim Shin-jo is both.

The 69-year-old may preside over a Protestant church in this picturesque community where the Han River bends among mountain peaks. But he is also the reluctant grandfather of North Korean spies, a reminder of a cloak-and-dagger world that refuses to be dispatched to the history books on this divided peninsula.

On a recent day, Kim read a news story about the sentencing of two North Korean military spies. Such stories stir bitter memories of the night in 1968 when Kim and 30 other heavily armed North Korean commandos slipped into Seoul  on a mission to assassinate then-President Park Chung-hee.

For the infiltrators, the operation ended in disaster. Cornered outside the presidential residence, they waged a deadly, days-long gun battle with South Korean police and military forces. Although nearly all of the North’s commandos were killed, Kim was captured. Interrogated for months about his spy career, he was eventually released and later became a South Korean citizen, marrying and having a family.

Years in a free society have exposed the fallacy of North Korea’s argument that the South is an agonized wasteland that must be recolonized. Still, Kim feels pity for these newest Northern moles.

“I know they must be punished — we have a rule of law here,” he says. “Still, I’m a human being. I feel sorry for them.”

As the recent U.S. arrest of nearly a dozen Russian agents illustrates, international espionage still exists decades after the Cold War — especially on the Korean peninsula, where North and South are still technically at war.

Without money for high-priced satellites, a cash-starved North Korea relies on a more practical resource.

“It’s hardly believable, but in this high-tech age, North Korea still relies heavily on humans as information gatherers,” said Lee Dong-bok, a former member of South Korean intelligence and a senior associate at the Center for Strategic and International Studies.

Kim, whose parents were executed when he pursued citizenship here, still faces derision over his sinister mission of long ago. He’s not a man of God, some say, but a would-be assassin. He remains haunted for surviving when others didn’t.

“Sometimes,” he says, “I think it would have been better if I had died that day.”

*

The operation code names were Cuckoo and Skylark.

At 27, Kim was chosen from among tens of thousands of North Korean agents to form the elite 124th Special Forces Unit. Their task: Cross the heavily mined DMZ and execute the South Korean president, taking pictures to verify the kill.

The 31 commandos were divided into six teams. As an army lieutenant, Kim led a squad whose role was to take out the bodyguards at the presidential mansion, known as the Blue House.

“I felt gratified to be part of the revolution to emancipate South Korea,” Kim recalls. “We thought the president there was a stooge, an American collaborator. I hated him.”

The unit set off at 8:30 p.m. on Jan. 17, 1968, dressed in South Korean army uniforms. Moving by darkness, hiding during the day, they snipped barbed wire and marched south through the mountains.

One night, they ran into a group of farmers gathering wood. Instead of killing them, they warned the villagers not to report them. The civilians immediately contacted authorities, who launched a manhunt for the infiltrators.

Still, Kim and his teams made it to within 200 yards of the Blue House before being stopped by a suspicious South Korean soldier who demanded their identification.

The commandos opened fire, setting off a series of deadly street battles. Eventually, 35 South Koreans were killed and 64 wounded — soldiers, policemen and civilians, including a 15-year-old boy, who was among the victims of a grenade thrown at a loaded bus.

Insisting that he made a point not to kill civilians, Kim says that he scattered from the rest and never fired his gun. Instead, he fled south into the woods, where he was captured within hours.

Two days later, Kim was trotted out in handcuffs on live television. Asked about his mission, the unrepentant prisoner gave an answer that still haunts many older South Koreans: “I came down to cut Park Chung-hee’s throat,” he declared.

But his revolutionary spirit would not last — thanks to a South Korean army general who headed Kim’s interrogation. Over months of patient reasoning, the officer broke through Kim’s defenses. The two eventually became close.

“He told me, ‘We have a problem with the North Korean regime, not you,’ ” Kim recalls. “He was my father’s age and treated me as his son. He said, ‘I was a young soldier too once. As a commander, I will never kill you. But I will forgive you.’ ”

*

After four decades, the South Korean government recently opened a trail that leads south toward the capital from the North Korean border. It is the path the commandos took on their fatal mission. For years, the winding path has been known as the Kim Shin-jo Route, after a man whose name for many is as recognizable as any former president.

Officials called on Kim to act as a tour guide on the trail’s opening day. He could have refused, he says. But he realized that in order to come to terms with this painful national incident, South Koreans needed to see him in the role of the everyman, to see that he was no longer their boogeyman.

All day, people pointed at him. Those old enough often spoke with scorn. Kim, they swore, was the reason many South Koreans fled their homeland in the early 1970s, fearful of another war with the North. Because of Kim, many of the older generation who remained behind lived in perpetual fear.

“Wherever I go, I get the comments,” says Kim, who became a Protestant clergyman in 1997, finding solace in his faith. “It will happen as long as I am alive. People will point and accuse me.”

Every Jan. 21, Kim memorializes the day of the attack. The day once brought what Kim calls “indescribable pain.” But his wife has taught him to think differently.

“My family tells me that as of Jan. 21, 1968, I was dead,” he says. “On that day, I started a second life. I’m really 69, an old man. But they joke that I’m only 42. And that day that once caused me so much grief should be celebrated as my birthday.”

Read the full story here:
The face of South Korea’s boogeyman
Los Angeles Times
http://www.latimes.com/news/nationworld/world/la-fg-korea-spy-20100718,0,7204441.story?page=1
John M. Glionna
7/18/2010

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DPRK risk ‘biggest drag on Seoul’s credit rating’

Tuesday, July 13th, 2010

According to the Choson Ilbo:

Korean reunification risk is the biggest drag on South Korea’s sovereign rating, according to an expert at ratings agency Standard and Poor’s.

David Beers of S&P on Monday said, “Korea unification, that’s going to be very economically and financially challenging for South Korea, because of the huge gap in income levels of the two countries.”

German reunification cost a lot of money despite the narrower economic gap between East and West Germany. The U.S-based global credit agency has kept South Korea’s sovereign rating unchanged at A since July 2005 — two notches lower than AA-, the rating given before the Asian financial crisis in the late 1990s, because the potential cost of the Korean reunification has been increasing, he said.

Beers also pointed to the war risk between South and North Korea as a hurdle to raising South Korea’s rating, even though the likelihood is slim.

The “stable” outlook means that there is a slim chance of a change in the country’s rating for two years to come, he added.

Beers was positive about the country’s reduction of short-term foreign debts since the global financial crisis in 2008 and predicted it will be ready to avert another global liquidity crisis.

An S&P inspection team led by Beers is in Seoul to attend an annual consultation about the rating from Wednesday to Friday.

Read the full story here:
N.Korean Risk ‘Biggest Drag on Seoul’s Credit Rating’
Choson Ilbo
7/13/2010

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An affiliate of 38 North