Archive for the ‘South Korea’ Category

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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Neurosurgeon travels to N. Korea on medical mission

Sunday, July 11th, 2010

According to the Delmar Times:

San Diego neurosurgeon Dr. Kevin Yoo recently spent the first half-day of his medical mission to North Korea assembling a $20,000 surgical operative microscope that his travel partner donated to the Pyongyang University Hospital.

And both he and his fellow neurosurgeon Dr. Kee Park, who retired from private practice in Missouri several years ago to devote himself to humanitarian medical projects, demonstrated the effectiveness of the new scope in a series of operations they performed or assisted in during their three-day teaching visit to the North Korean capital in early June.

Yoo, 45, a Carmel Valley resident and father of three children, who was born in Seoul, South Korea, took time off from his busy practices in La Jolla, Poway and Temecula to join Park in a “special access” mission to the isolated communist state arranged with the help of the United Nations.

Park previously made similar trips to Ethiopia, Nepal and, on four occasions, to North Korea.

Yoo learned of Park’s humanitarian efforts at a meeting of Korean-American Spine Surgeons and volunteered to join Park, who lives in Indiana, on his fifth visit to North Korea last month.

“He didn’t think I would show up, but I did,” Yoo said.

They rendezvoused at the Inchon International Airport in South Korea and traveled together to North Korea via Beijing.

Yoo is a staff physician at Scripps Memorial Hospital in La Jolla specializing in head, neck and spine surgery.

Commenting on his visit to North Korea, Yoo said he was impressed with the knowledge, intelligence and skill of the North Korean surgeons. “But,” he said, “they just didn’t have the tools” that American surgeons often take for granted.

“The microscope was a tremendous addition to what they had,” Yoo said. “Dr. Park told me they had an old microscope that was broken down and he had a terrible headache using it because only one of the eyepieces worked and the visualization was pretty poor.”

Initially, Yoo was scheduled to assist in the operations, but, as it turned out, he did most of the work on two lumbar disc operations that the North Koreans were not used to performing “the way I did it.”

Given the tense political climate between Pyongyang and Washington these days, especially after the alleged North Korean torpedo attack and sinking of a South Korean warship in March, we asked if he and Park, as Americans, had experienced any animosity toward them.

“No,” Yoo said, “we were very well received. The gratitude they showed was always present, and I was told many times to come back.

“They were very grateful, and, obviously, very much in need of our help, very much in need of tools. It can be as simple as sterile gloves. They have them, but they have to recycle them. These guys would take the gloves, wash them, re-powder them, and use them again. And, for us, everything is disposable.

“I would just like to be able to share with them what we have,” he said.

He is hoping he may be able to convince Scripps to allow him to collect unused items from the operating room to donate to the hospital in Pyongyang on a return visit to North Korea being planned for next October.

“The need is great,” he said.

Yoo said he is not a political person. He is, however, interested in helping in “people-to-people” missions “that have a medical bent to them.”

Asked what gives him the greatest satisfaction in his work, he said: “Medicine is really tough these days. There are a lot of disappointments. Just to get paid for our services, we have to fight so much. So satisfaction is sometimes very difficult to obtain.

“But the thing that keeps us going on is good results and good patient outcome. But it’s so overshadowed by all the other things we have to deal with, regulations, not being paid … and fighting with the insurance companies.”

But, he said, he is beginning to enjoy the business aspects of his work.

“I don’t like fighting with insurance companies, but I do like the art of the business side of it, just practicing, surviving and making it work.

“The bottom line is, it really is a business. I put my practice on hold and spent several thousand dollars going to North Korea. I couldn’t do that if I wasn’t running a profitable practice.”

Read the full story here:
Neurosurgeon travels to N. Korea on medical mission
Del Mar Times
Arthur Lightbourn
7/8/2010

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Aidan Foster-Carter offers DPRK current events summary…

Thursday, July 8th, 2010

In the East Asia Forum:

June 2010 saw two major anniversaries on the Korean peninsula. On June 25 sixty years ago the Korean People’s Army (KPA) invaded the South launching a bitter three-year war. North Korea still denies culpability, claiming it was repelling a Southern invasion; despite overwhelming evidence, now backed by Soviet archives, that it was the aggressor. No less mendaciously Pyongyang nonetheless celebrates the July 27, 1953 Armistice which ended open hostilities as a ‘brilliant victory in the Fatherland Liberation War’ — even though this left the North bombed and napalmed to ruination.

China still formally backs the North’s version, but this year some brave soul decided to take seriously the late Deng Xiaoping’s instruction to ‘Seek truth from facts.’ The International Herald Leader, an affiliate of Xinhua news agency let the cat out of the bag. It featured interviews with Chinese historians telling the true story, and a timeline stating that ‘The North Korean military crossed the parallel on June 25 1950 and Seoul was taken in four days.’ Naturally, the article rapidly vanished from the web. But many Chinese now are openly critical of the DPRK, and embarrassed that Beijing continues to toe Pyongyang’s line.

North Korea itself sticks to the old tunes. On June 22 the Korean Central News Agency (KCNA) reported what it headlined as ‘Revenge-vowing Meetings.’

Youth and students and agricultural workers gathered in Susan-ri… and in Sinchon … Tuesday to vow to take revenge upon the U.S. imperialists on the occasion of the ‘June 25, the day of the struggle against the U.S. imperialists’.

The reporters and speakers at the meetings recalled that the U.S. imperialists brutally destroyed cities, villages, factories and farms and killed innocent civilians…denouncing the Yankees as a herd of wolves in human skin and the Koreans’ sworn-enemy with whom they cannot live under the same sky…

They bitterly condemned the U.S. imperialists and the Lee group of traitors for totally negating the historic June 15 North-South Joint….

If the U.S. imperialists intrude into the DPRK even an inch, all the servicepersons and people will mercilessly wipe out the aggressors.

Rhetoric like the above is clearly intended to fan the flames of hatred.

A further KCNA item on June 24 purported to list the ‘Tremendous Damage Done to DPRK by US.’ The KCNA, with unusual precision, computed a total of nearly 65 trillion dollars for human and material losses inflicted from 1945 up to the present. Considering the state of US public finances, Kim Jong-il should not expect a cheque any time soon. There is also a degree of inflation; last time KCNA published such an exercise, in November 2003, the bill was a mere US$ 43 trillion. One can only wonder what is the point of such grandstanding.

So savage a mood has torpedoed a second anniversary; one which should have been happier. On June 13 2000 South Korea’s then president, the veteran democrat Kim Dae-jung flew to Pyongyang for the first ever inter-Korean summit with the North’s leader, Kim Jong-il. On June 15 they signed a North-South Joint Declaration; Kim Dae-jung was awarded that year’s Nobel Peace Prize. Thus began a decade of unprecedented North-South cooperation, albeit patchy and one-sided. This ‘sunshine’ policy was ended by South Korea’s current president, Lee Myung-bak, who insists that the North must give up its nuclear weapons first if it wants better ties with the South. That sounds fine in theory, but few expect it will ever happen.

North Korea made much of the June 15 anniversary, even while excoriating the ‘traitor’ Lee Myung-bak for trampling on it. Pyongyang warmly welcomed a South Korean radical priest, Han Song-ryeol, who made the trip illegally to mark the occasion.

South Korea by contrast played up the war anniversary more than the inter-Korean one. Lee Myung-bak used this occasion to once again call on the North to admit that it sank the ROK corvette Cheonan on March 26, and to apologise.

Will the Cheonan go unpunished?
Nevertheless, it looks increasingly like Pyongyang has got away with it. June brought Lee Myung-bak little joy on the issue, at home or abroad. Local elections in South Korea on June 2 saw his ruling Grand National Party (GNP) rebuffed. Many voters saw Lee’s tough first reactions, which roiled global markets, as adding to rather than reducing risk.

Abroad too Lee has met obstacles. Assured of firm US and other Western support he is struggling to convince Russia and China. That was predictable: for Beijing and Moscow, unwillingness to paint Pyongyang into a corner was always going to trump the facts. A Russian naval team visited Seoul to inspect the Cheonan wreckage, including DPRK torpedo parts, but is not expected to report until July. In this light the ROK government will be relieved that the G-8 summit in Canada on June 25 issued a strong statement on the Cheonan – after energetic lobbying by Japan’s new prime minister Naoto Kan, which will get his relations with Lee Myung-bak off to a good start. Connoisseurs of diplomatic wordplay noted that while the G-8 condemned the attack, noted that an international team had blamed it on Pyongyang, and called on the DPRK to avoid any attacks against the ROK, it did not quite join up all those dots; doubtless at Moscow’s behest. Lee may lobby similarly when he arrives for the ensuing G-20 summit; although since South Korea chairs the group and will host its next jamboree in Seoul in November, it may look bad if he were perceived as acting in too particularist a way.

Earlier, on June 4 South Korea formally referred the Cheonan incident to the UN Security Council (UNSC). On June 14 both Korean states briefed the UNSC, with the North as ever denying all responsibility and urging the Council not to consider the matter. No official response is expected until July. With Russia and China likely to abstain at best, whatever the Security Council eventually comes up with looks set to be a damp squib. South Korea has already said it will not seek further sanctions, on top of those already in force under earlier UNSC resolutions from 2006 and 2009 after the North’s two nuclear tests. But it would like a clear, resounding condemnation, preferably in the form of a resolution.

Looking ahead, it is not too soon to wonder how the two Koreas will get past Cheonan. Record numbers of DPRK workers at the Kaesong Industrial Zone (KIZ) – 44,000 as of June, according to the ROK unification ministry (MOU) – are seen in Seoul as a sign that at some level Pyongyang remains committed to this joint venture at least.

A big event in September
Meanwhile North Korea looks more preoccupied with the succession issue than in reaching out to South Korea.

On June 26 KCNA reported that ‘the Political Bureau of the WPK [Workers’ Party of Korea] Central Committee decides to convene early in September … a conference of the WPK for electing its highest leading body reflecting the new requirements of the WPK.’

Though nominally it is North Korea’s ruling communist party, and still an important tool of control at lower echelons, the WPK has seen its topmost organs atrophy under Kim Jong-il. Neither the rarely mentioned Politburo nor the Central Committee (CC) is known to have met at all in the 16 years since Kim Il-sung died. Kim Jong-il has favoured the army, ruling through the NDC and informally via a kitchen cabinet of trusted cronies. The dear leader is also of course secretary-general of the WPK, but he acquired that post irregularly: by acclamation at a series of local Party meetings, rather than being duly elected by the CC.

Hence while the precise nature of September’s meeting remains vague, like its exact date, it looks like a long overdue effort to restore a measure of due process to the Party. If this is in fact a full formal WPK congress, it would be the first since the Sixth Congress thirty years ago in October 1980. It was then that Kim Jong-il, hitherto veiled behind coded references to a mysterious ‘Party Centre’, was finally revealed in the flesh. The speculation is that this new meeting similarly will finally give the world a glimpse of the enigmatic Kim Jong-eun.

While all rumours emanating from Seoul should be treated carefully it’s hard not to link this news with reports that Kim Jong-il’s health is worsening. There are claims that on some aides including his son are duping him with Potemkin factories to hide from him how dire the economy really is. An already tardy succession can clearly brook no further delay, or else regime stability and continuity may be gravely imperilled.

The economy shrank again last year
If Kim Jong-il wants to know how his economy is really doing, he could look at the latest estimates from the enemy.

The (southern) Bank of Korea (BOK) published its latest estimates, covering 2009, on June 24, just in time for Seoul to crow about them as it marked the Korean War anniversary. By this reckoning North Korea’s real annual gross domestic product (GDP) shrank by 0.9 per cent last year. Unlike most other countries this had little to do with the global financial crisis. Rather it reflected local conditions, natural and man-made.

The gaps just get wider
The result is a huge and ever widening gap. North Korea’s gross national income (GNI) in 2009 was a mere 2.7 per cent of the South’s. BOK cites Northern GNI in 2009 was US$22.4 billion, compared to US$837 billion for the South. True, the South has over twice as many people. But the average North Korean per capita income too is a minute fraction of the South’s, with the ROK topping US$17,000 while the DPRK’s is a paltry US960. (Some experts, including a former unification minister, think even this is too high and posit a figure nearer US$300, putting North Korea among the poorest nations on earth.)

With trade figures the gap is even wider. This year inter-Korean trade will fall, since Seoul has banned most of it (except the Kaesong zone, which accounts for over half) as punishment for the Cheonan. Peanuts to the South, this has been crucial for the North: South Korea is its largest market, taking almost half of its meagre total exports. Last year inter-Korean trade like DPRK trade overall fell slightly, from US$1.82 to US$1.68 billion. Yet Northern exports crept up, from US$932 to 934 million.

In 2009 North Korea’s real trade totals were just under US$2 billion in exports and US$3.1 billion in imports. They are still dwarfed by South Korea’s respective figures of US$364 and US$324 billion – and this in a bad year for the South, due to the downturn.

Every year the gap widens further, yet still Kim Jong-il refuses economic reform. It is hard to fathom a mind-set which can inflict such disaster and tragedy on a once proud land and people – and whose idea of a way out of its self-dug hole is to fire a sneaky torpedo.

Good losers
It was left to North Korea’s footballers to remind the world that their country does not lack for talent and virtue. As one would expect, North Korea were a disciplined team. They kept to themselves and avoided the press – with one striking exception, Jong Tae-se. Born in Japan to a South Korean father and a pro-North Korean mother, and having attended schools run by Chongryun – the organisation of pro-North Koreans in Japan – he elected to play for the DPRK; although he still holds ROK nationality, lives in Japan and plays in the J-League for Kawasaki Frontale.

A young man whose talk is as uninhibited as his style of play, Jong cried when the DPRK anthem was played before the Brazil match. Yet his love for his adopted homeland is not uncritical. ‘Everybody thinks about our country as being closed and mysterious, so we have to change that,’ he told AFP. ‘We can change for the better if we are more open with the way we talk to people and it would make a better team.’

It would make a better country too. If North Korea’s fate must rest in the hands of an untried youth, better it were the warm-hearted and wised-up Jong Tae-se than Kim Jong-eun.

Read the full story here:
North Korea: Unhappy anniversaries
East Asia Forum
Aidan Foster-Carter
7/6/2010

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South Korea mulls covering inter-Korean trade losses

Thursday, June 24th, 2010

According to Yonhap:

South Korea is considering providing about 100 billion won (US$84 million) of rescue funds to hundreds of its companies hamstrung by a ban on cross-border trade with North Korea, a senior government official said Wednesday.

The ban has been in effect since a month ago after South Korea concluded from a multinational investigation that North Korea was to blame for the deadly March 26 sinking of its Cheonan warship.

Read the full story here:
S. Korea mulling huge rescue funds for troubled inter-Korean trade firms
Yonhap
Sam Kim
6/23/2010

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DPRK traders hit hard

Thursday, June 17th, 2010

According ot the Daily NK:

People working for North Korean enterprises overseas are concerned by their poor financial performance and excessive requests for remittances since the Cheonan incident and Kim Jong Il’s visit to China.

Cheong is one such businessman. In his 50s now, he has been residing in Shenyang since the early 2000s working on exports of North Korean mineral resources. He has won recognition from home for his efforts, but nowadays he is growing more anxious and says he has lost his composure.

Upon meeting with The Daily NK’s correspondent, who arranged the meeting in the guise of a businessman, Cheong said frankly that life is exceedingly hard at the moment.

“Even though the General (Kim Jong Il) visited China, there were no clear promises of Chinese aid or investment in North Korea,” Cheong says. “Therefore, the authorities are requesting more foreign investment and that money be given to the country in order to get past the situation.”

According to him, the authorities have threatened to merge export offices that do not perform to expectations. He says he plans to avoid this by first gathering around $2,000 to remit to Pyongyang, and then visiting the North Korean capital to check on the domestic situation next month.

He says that the failure of the currency redenomination has affected the credit worthiness of North Korea. China-based traders are anxious about the situation as the number of foreign investments and sales has deteriorated this year.

“Since the route for seafood exports to South Chosun has been blocked, we have been instructed to sell it all in China,” he adds. “Although the quality is quite good, we have to have dumping sales in order to find immediate ways to sell it. Therefore, profits are reduced and we have to compensate for the loss. It is terrible.”

He says he has thought about going back to the North, but his wife bitterly opposes it for their son’s education. She was surprised by Cheong’s thought, he says, since the couple had even devised a method to bring their daughter, who is still in Pyongyang, to China.

He explains, “Even those who are known as old hands and who are seen as very skilled in foreign currency earning business look worried about the need for ‘loyalty funds.’ They are eager to make contacts in powerful positions by whatever means necessary, because background and supporters can be decisive in your life.”

One example, Kang, who is in charge of importing light industrial products in Beijing, dropped by Shenyang on his way to meetings with other branch managers. He became a well-known trader after he made good money supplying air conditioners to the Mansudae Assembly Hall and fabric to the military authorities.

His business is stable because he is known as a “Kim Jong Nam person”, i.e. a close associate of Kim Jong Il’s first son, and his life is also stable; he resides in a luxurious apartment in Beijing and his son is studying in the U.K.

However, even he has grown concerned lately, he says. “Decrees demanding increased ‘loyalty funds’ have been constantly handed down,” he explains. “The amount they request has increased by two or three times. It is awful.”

North Korean traders residing in Shenyang generally agree that, in Kang’s words, “In order to survive overseas, Kim Jong Eun is now a lifeline. When chiefs of foreign offices go to Pyongyang, they busy themselves trying to find invisible backers (i.e. Kim Jong Eun) to give a few thousand dollars to.”

Read the full story here:
North Korean Traders Feeling Pinch
Daily NK
Jung Kwon Ho and Shin Joo Hyun
6/16/2010

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