Category: Engagement

The PUST hostage crisis is a fitting symbol of the futility of engaging Pyongyang

Just one week after I predicted that the misbegotten experiment known as the Pyongyang University of Science and Technology would soon be at the center of a hostage crisis, the inevitable has happened. North Korean state media reports the country has detained a U.S. citizen – the fourth U.S. citizen being held there amid rising tensions between the two countries. The official Korean Central News Agency identifies the man detained Saturday as Kim Hak Song, an employee of Pyongyang University...

The Commerce Department should review PUST’s export licenses for North Korea

Last week, several news outlets reported that representatives of PUST, the Pyongyang University of Science and Technology, are in the United States, seeking support to expand their curriculum in North Korea. PUST didn’t say what kind of support it seeks, but recent reports suggest that PUST has lost donors and had to slash its budget. PUST is probably looking for money. Donors, however, would be wise to keep their checkbooks closed until the Commerce Department and a U.N. Panel of...

In The Weekly Standard: Kaesong, where life imitated Monty Python & the Holy Grail

In Monty Python and the Holy Grail, the Knights of Camelot are on a quest for the Holy Grail, but find their way barred by a group of ornery French knights – never mind what they are doing in England – who have walled themselves inside an impregnable castle. After a pathetic attempt to breach the walls fails, Sir Bedivere the Wise devises a scheme to do through guile what could not be done through force. He persuades King Arthur...

The End of Sunshine: S. Korea suspends ops at Kaesong, “suspected” of funding N. Korea’s WMD programs

Year after year, and almost alone, I have argued that the Kaesong Industrial Park was incompatible with U.N. Security Council resolutions sanctioning Pyongyang. At Kaesong, “South Korea has 124 companies … employing 54,700 North Korean workers … whose wages are paid to a North Korean state agency.” All told, those fees, taxes, and “wages,” which the North Korean workers probably never saw after Kim Jong-un took his cut, totaled $110 million last year alone. Contrary to Kaesong’s founding purpose of promoting North-South engagement and people-to-people...

Did a U.S. university teach North Korea to track down dissidents?

Just after Christmas, Reuters reported on the analysis of two German IT experts who downloaded a copy of North Korea’s Linux-based Red Star operating system and analyzed its code. Inside, they found something both horrifying and completely predictable. Red Star contains code for “tagging, or watermarking, every document or media file on a computer or on any USB stick connected to it.” Meaning? That means that all files can be traced. “It’s definitely privacy invading. It’s not transparent to the user,”...

Attention North Korean generals: You have exactly six months to plot your coup.

Notwithstanding some reports to the contrary yesterday, it looks like Kim Jong-Un’s big party congress will proceed in May, as planned. According to the Korean Institute for National Unification, a South Korean think tank, personnel changes will be on the agenda: North Korean leader Kim Jong-un is expected to reveal his new aides in a major community party convention to be held in May next year, a South Korean government think tank said Tuesday. [….] Chances are high that it will set...

Inter-Korean phone calls can keep the promises of the Sunshine Policy

Twenty years of state-to-state engagement between North and South Korea have not lived up to Kim Dae-Jung’s promises. Pyongyang has taken Seoul’s money, nuked up, and periodically attacked South Korea for good measure. Rather than reforming, it has invested heavily in sealing its borders. Pyongyang sustains itself on foreign hard currency, even as it cuts off the flow of people, goods, and information to its underprivileged classes. It knows that if it fails to do this, members of those classes...

Defectors: PUST is training North Korean hackers

Not for the first time, the Pyongyang University of Science and Technology, a showpiece for academic engagement between North Korea and the Outer Earth, stands accused of teaching its elite students to work as hackers in Kim Jong-Un’s notorious cyberwarfare units.  North Korea is reportedly recruiting graduates from Pyongyang University of Science and Technology for cyber warfare. North Korean defector Jang Se-yul, who worked in the North’s electronic warfare command, and another defector Yi Chol claimed on Wednesday in a news conference...

Orascom’s Big Turkey Drop: Why the SEC should require disclosure of investments in N. Korea

For years, Koryolink was the showpiece of economic engagement with the North Korean government. The service, a partnership between Pyongyang and the Egyptian conglomerate Orascom, provided cell phone service to North Korean officials, elites, security forces, and a few other customers with enough cash and connections to afford them. As a sweetener for Kim Jong-Un, Orascom also clothed the Ryugyong Hotel, the awkwardly naked (and still vacant) colossus of an embarrassment to Pyongyang’s economic system. According to the Daily NK,...

The Great Engagement Debate: Stanton v. Delury at NCNK

On October 22nd, the National Committee for North Korea invited me and Professor John Delury of Yonsei University to a debate, in which we each offered three proposals for the next president on North Korea policy, all premised on a delusion of grandeur that Donald Trump really cares what either of us thinks. The debate was held in a beautiful conference room on the top floor of the Hart Senate Office Building overlooking the Capitol. There was a great crowd...

Jeffrey Fowle’s mission to N. Korea no dumber than the rest of them

In this age of click-bait listicles, The Atavist has published a rare example of real journalism, in which reporter Joshua Hunt traces the story of Jeffrey Fowle from its origins (in a dream!) to its anticlimax. Fowle, you will recall, is the Ohio municipal worker who went to North Korea, “certain that God had a plan for him,” left a Korean-language Bible next to a toilet in Chongjin, got himself arrested and detained for six months, and nearly lost both his job and his wife. Later, asked if...

Of fools and their money: Martyn Williams on Orascom’s North Korea fiasco

Martyn Williams of the North Korea Tech blog has a must-read story at IT World about how Orascom’s investment in North Korea’s Koryolink mobile phone service “went horribly wrong.” That such a headline can be written is, by itself, a stunning reversal. During the early years of Kim Jong-Un’s reign, Koryolink was the poster child for more sanguine North Korea watchers, who believed that once a Swiss-educated reformer had taken the throne, a Pyongyang Spring must surely follow. For the...

Tourists put $43M in Kim Jong-Un’s pockets last year

Despite a string of high-profile arrests of foreign tourists recently, Darwin’s light continues to draw slummers — and record hauls of their money — into Pyongyang: North Korea earned tens of millions of dollars from foreign tourists in 2014, around half of the hard currency it won from the lucrative inter-Korean industrial park, a researcher said Sunday. North Korea’s income from foreign tourists is estimated at US$30.6 million to $43.6 million last year, considering about 95,000 Chinese tourists and 5,000...

The more North Korea trades, the more it reforms, right? Wrong.

Yesterday, I questioned the premises of economic engagement with Pyongyang — that Pyongyang is socialist, that trade is capitalism, that capitalism inexorably erodes socialism, and that capitalism (least of all, state capitalism) is inherently liberal and peaceful. I argued that Pyongyang adopted state capitalism decades ago, and that it has grown steadily more menacing and repressive ever since. It feigns socialism to feed our false hopes of reform and arguments against sanctions, to tempt investors, to recruit apologists who embrace its socialist pretenses, and to justify the...

The Myth of North Korean Socialism: How Pyongyang’s Profiteers Fooled the World

Over this long weekend, I’ve been reading Brian R. Myers’s new book, “North Korea’s Juche Myth,” a copy of which Prof. Myers was kind enough to send. Myers argues that juche, that cryptic ideology reporters often mention but never explain, is a sham ideology that is both overblown and seldom understood, by foreigners as well as North Koreans. Very roughly translated, juche means that man must be the master of his own destiny (in contrast to North Korea’s reality, in...

N. Korea’s expatriate labor needs ethical and financial limits

N. Korea increasingly relies on expat labor for hard currency A series of new reports suggests that the export of labor has become a major source of income for Pyongyang. The Financial Times cites an NGO estimate that the regime earns $1.5 to $2.3 billion a year from contract labor, in line with educated estimates of its annual revenue from missile sales ($1.5 billion) or arms deals with Iran ($1.5 billion to $2 billion). (Update: Marcus Noland questions that estimate,...

Why legal investments in North Korea are a money laundering risk

You’ve often seen me write about the importance of “financial transparency” in transactions with North Korea. For a decade, economic engagement has mostly been done by one of two models: (1) controlled interactions with members of the elite, the actual effects of which are negligible at best; and (2) barbed-wire capitalism, where a few North Korean officials relay orders from foreign managers to hand-picked workers, and where the regime seals the whole enterprise off to prevent it from influencing the local community. The former are, for the most part, of little...

Somehow, I don’t think this will encourage Kim Jong Un to engage with us.

I think Marzuki Darusman is a good man who means well, but it’s difficult to derive a coherent policy from this: “This is a new thing, spotlighting the leadership and ridiculing the leadership. In any authoritarian, totalitarian system, that is an Achilles’ heel,” Darusman said in an interview in Tokyo, where he held talks with the government on an investigation into North Korea’s abductions of Japanese citizens. If this kind of ridicule seeps into North Korea, it could become lethal for the regime, he...