Home  >  NK Economics

Category: NK Economics

April 7, 2006

Diplomacy Update

You know that the six-party goat rodeo is in real trouble when South Korea’s Minister of UniFiction gives the North “unusually caustic advice”, and when China starts to lose interest in stalling: What is more troubling is that China does not appear to be as enthusiastic as before about bringing North Korea to the negotiating table. Instead, China is reportedly becoming reluctant to share information with South Korea, which Seoul says is vital in putting common pressure on North Korea...

Categories NK Economics/Six-Party Talks
April 6, 2006

Is Kim Jong Il Bankrupt?

There is more evidence to suggest that North Korea really is in dire financial straits after all. Some would not call this a novel conclusion to make about a country in which 2.5 million people have starved to death, but a careful reading of what NGO workers and refugees tell us of how the food was passed out suggests that the North Korean regime was not unduly upset about that, as long as its elite ate well and never lacked...

Categories China/China & Korea/Counterfeiting/Diplomacy/NK Economics/Uncategorized
April 6, 2006

Links of Interest

The Flying Yangban has lots of good stuff up today. If you’re in or near Seoul and aren’t working with LiNK yet, they’re holding another meeting Saturday afternoon. Andy also links to an analysis from the International Crisis Group, giving the encouraging conclusion that the U.S. will never allow anything made in Kaesong to be included in a free-trade agreement. He also informs us of the latest machinations in South Korean politics. Yet more calls for America to disengage from...

Categories Abductions/Activism/An Alliance?/Anti-Americanism/Appeasement/Blogs & Blogging/Geopolitics/Human Rights/Islam/Korean Politics/NK Economics/North Korea/Uncategorized/Washington Views
April 5, 2006

The Other Nuclear Option

Much info on the economic front of late, including some initial, sketchy evidence to back U.S. claims that the sanctions are biting. The Chosun Ilbo continues to tremble over what the U.S. Treasury Department’s next move could be. Have a look at Section 311 (115 Stat. 298) of the USA PATRIOT Act, and if you can bear it, keep reading. It empowers Treasury to declare all of North Korea a jurisdiction of special money laundering concern — as we’ve apparently...

Categories China/China & Korea/Counterfeiting/Diplomacy/Drugs & N Korea/NK Economics/Six-Party Talks/Uncategorized
April 4, 2006

Treasury Official: NK Sanctions Are Leaving a Mark

Last week, we heard that Kim Jong Il was trying to wait out President Bush. This week, a new report suggests that the converse may also be true: The U.S. Treasury Department says its ongoing financial sanctions against North Korea put “huge pressure” on the regime that could have a “snowballing … avalanche effect.” Under Secretary Stuart Levy was quoted in the latest edition of Newsweek, which analyzed the possible effect on the regime from Washington’s identification of the Banco...

Categories An Alliance?/Appeasement/China/China & Korea/Counterfeiting/NK Economics/Six-Party Talks/Uncategorized/WMD
April 3, 2006

Oranckay on Kaesong and Workers’ Rights

I’m sure Pete and I disagree as much as any two people in the Korea blogosphere, but you’ve got to read what he has to say about the Hanky’s anti-human rights / anti-workers’ rights editorial. The Oranckay has a long history with the Korean unions, which I’ve called out for their hypocrisy for being absent from the Kaesong debate. Kudos to pete for being willing to risk burning bridges for the sake of advocating a consistent view that’s true to...

Categories Korean Politics/Korean Society/NK Economics
April 3, 2006

NYT: Labor Grows Scarce in China

It may be one of the more significant trends we’ve seen in China — there is no longer enough cheap labor for every factory to continue to run on a low-tech, low-wage, labor-intensive basis. The result is that factories are now paying better wages and improving working conditions. It’s also causing some foreign investors to consider other countries where labor is cheaper and more plentiful. Could this mean that China’s manufacturing boom is topping out? I’m no economist, but I...

Categories China/NK Economics
April 3, 2006

Lefkowitz Denounces Kaesong Slave Labor; U.S. Continues to Squeeze NK’s Finances

It’s like they’re reading this blog . . . or perhaps great minds just think alike. You may recall that recently, I blogged about a media visit to the Kaesong Industrial Park. Piecing together several excellent reports allowed one to gather: (1) the extraordinary degree of control over the North Korean workers; (2) the extraordinary degree of supervision of the South Korean visitors; (3) the fact that the North Korean workers actually receive just $8 a month, not the widely-reported...

Categories "United" Nations/Activism/An Alliance?/Appeasement/China/China & Korea/Defectors/Diplomacy/Human Rights/NK Economics/North Korea/Refugees/U.S. & Korea/Uncategorized/Washington Views/WMD
March 28, 2006

N. Korean Trade Official Defects

This guy no doubt can tell us where a few bodies are buried (not literally, one hopes): A North Korean employee of a state-run company defected to the South with three family members recently, sources in the Foreign Ministry confirmed yesterday, correcting some media reports that the man was a diplomat. He worked at a trading company run by the government, the ministry sources said. They gave few other details of the matter, citing its sensitivity. Unfortunately, it’s almost a...

Categories An Alliance?/Appeasement/Censorship/Defectors/NK Economics/Refugees/U.S. & Korea/WMD
March 27, 2006

Brace Yourself for Labor Unrest (Unless You Own Slaves)

The strike season is starting. While still living in Korea, I had the inspiration for a new business model, “Demo Land.”  Your entrance fee of just W30,000 would cover equipment rental (signs, drums, headbands, riot shields, tear gas, fire bombs), bail, and E.R. treatment.  Great fun for those who mainly do it for the entertainment of it all, which seems to be most, with an occasional legitimate grievance to be found in there somewhere.  I’d put it somewhere near Yangjae,...

Categories Human Rights/Humor/Satire/Korean Society/NK Economics
March 1, 2006

Comrade Chung to Visit Kaesong

Must be an election coming . . . . He said he would also ask opposition party leaders to join the trip, and was pushing for a meeting with Kim Jong-il and other senior North Korean leaders.  The Grand National Party dismissed Mr. Chung’s invitation yesterday, calling a trip to North Korea an old-fashioned way for politicians to promote themselves before an election. As OFK alumni already know, Chung has a signed  pact with Satan, and I have the photo...

Categories Appeasement/Human Rights/Humor/Satire/Korean Politics/NK Economics
February 28, 2006

Korea’s ‘Arbeit Macht Frei’ Bubble

This week, several new reports, chiefly those from the New York Times and the LA Times, describe a journalists’ group tour of the Kaesong Industrial Park, possibly the only place on earth where the spirits of P.T. Barnum(*) and Lavrenti Beria cohabitate. A Paradise Within a (Worker’s) Paradise In North Korea, a nation that is essentially one vast open-air prison, Kaesong is the new prison laundry — a relatively cushier, marginally less despotic part of the institution into which you...

Categories Appeasement/Human Rights/Inside NK/NK Economics/North Korea
February 27, 2006

Supernotes Scandal to Hit Bank of China; NK Gov’t in Talks with U.S. on Counterfeiting

Via the Chosun Ilbo: The U.S. is preparing to seize more than US$2.67 million from three frozen bank accounts with Chiyu Banking, a subsidiary of Bank of China Hong Kong. The South China Morning Post reported the funds are believed to be the first known link between a Hong Kong bank and North Korea’s underground trade in “supernotes,” or high-quality fake US$100 bills. The accounts belong to an unemployed mainland Chinese woman named Kwok Hiu Ha. The Bank of China...

Categories China/China & Korea/Counterfeiting/Defectors/Diplomacy/NK Economics/Uncategorized
February 25, 2006

True to Form, World Food Program Caves in to NK Demands

When she’s not exposing the U.N.’s corruption, Claudia Rosett is exposing its general fecklessness and worthlessness on matters of substance. Ms. Rosett’s favorite case-in-point is North Korea, where she nails – dead-on – what’s wrong with the World Food Program’s approach to feeding the hungry. North Korea, unrestrained by any regard for the lives of its less-privileged citizens, pushes for more control over the food and less U.N. monitoring. The U.N. bureaucrats lack the testicular fortitude to push back, go...

Categories Appeasement/Defectors/Diplomacy/Famine & Food Aid/Human Rights/NK Economics/North Korea/Uncategorized
February 23, 2006

Caught in the Act!

I wonder what Roh Moo-Hyun will say this time. Rogue diplomats? North Korean diplomats were caught attempting to smuggle US$1 million and 200 million yen into Mongolia on Tuesday, the Mongolian press reported. Reports said the North Koreans told Mongolian authorities they were planning to put the money in a Mongolian bank account, according to Japan’s Yomiuri Shimbun. The paper said that it was unclear whether the money was counterfeit or not, and what measures the Mongolian authorities will take....

Categories Counterfeiting/Diplomacy/Japan/NK Economics/North Korea/Uncategorized
February 19, 2006

When Power Comes from the Wire of a Modem

The Washington Post has a fascinating look at how the Internet forced the Chinese government to retreat – partially – in its censorship of the journal “Freezing Point” (previous posts here). Why didn’t Beijing simply follow Mao’s old “barrel of a gun” formula this time? Because the Chinese economy must sustain sufficiently high growth to absorb a flood of excess laborers from rural areas to preserve social stability, which places China between the Scylla of rising dissent and the Charibdis...

Categories Censorship/China/Geopolitics/Human Rights/NK Economics/WTF?
February 16, 2006

Banco Delta Sanctions ‘Severe Blow’ to NK Economy

The Chosun Ilbo, relaying an AWSJ story, reports that the Treasury Department’s action against the Macau-based bank “dealt a severe blow to the secretive country,” “dried up its financial system,” and “brought foreign trade virtually to an end.” In December, I noted reports that North Korean front companies and spies were fleeing Macau en masse. According to today’s story, Banco Delta has now announced that it’s ending its financial ties with North Korea in an effort to prevent a run...

Categories Appeasement/Asia/China/China & Korea/Counterfeiting/Diplomacy/NK Economics/U.S. Law/Uncategorized