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Category: North-South

May 14, 2015

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,...

Categories Engagement/Human Rights/Kaesong/Russian Far East/Sanctions
May 12, 2015

Kaesong promised us peace and reform. It delivered conflict, tension, and exploitation.

In April 2013, Kim Jong Un pulled 50,000 North Korean workers out of Kaesong, in retaliation for South Korea’s support for U.N. Security Council Resolution 2094. The shutdown lasted for five months and cost investors (and ultimately, the South Korean government that still subsidizes them) millions of dollars. Kaesong eventually recovered to pre-shutdown levels of operation, but the shutdown probably scared away potential foreign investors for years. A few months after the shutdown ended, a new dispute arose when North Korea told Kaesong investors to pay back...

Categories Kaesong/North-South/Sunshine
March 9, 2015

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...

Categories Engagement/Kaesong/Money Laundering/Sanctions/Sunshine
January 28, 2015

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...

Categories Engagement/Subversion/Sunshine
January 12, 2015

U.S., S. Korea reject N. Korea’s nuke test offer

North Korea has offered to stop testing nuclear weapons — something that several U.N. Security Council resolutions already prohibit — if President Obama cancels annual military exercises (full KNCA article below the fold.) Which sounds something like a bank robber promising to stop robbing you if you disable your alarm system and leave the safe unlocked. Which is almost exactly what the Korean Defense Ministry thought. To his credit, President Obama saw this for what it was: “The DPRK (North...

Categories North-South/Proliferation/WMD
January 3, 2015

Really? Just 15% of S. Koreans support humanitarian aid to N. Korea?

Yonhap reports that, according to a poll commissioned by the Database Center for North Korean Human rights, 73.1% of South Korean adults surveyed support approval of a human rights law. That would be even better news if the respondents actually knew what the law would do; I can’t say I do. (While you’re at NKDB’s site, be sure to have a look at their Google Earth Visual Atlas.) It’s also good news that less than 20% opposed “meddling” in the “internal” issue of...

Categories Korean Society/North-South/Reconstruction
December 30, 2014

President Park’s unification plan is missing a Phase 2

For months now, we’ve heard Park Geun Hye telling us about how reunification would be a “jackpot” for both Koreas, but we’ve never heard her explain just how she intends to achieve this result. This left some rather important questions unanswered. Having heard so much from President Park about Phase 3 (profit!) and so little about Phases 1 or 2, at least we know that she’s asking us to resume the collection of underpants: South Korean Unification Minister Ryoo Kihl-jae said Wednesday that Seoul and Washington...

Categories North-South/Sunshine
December 17, 2014

Max Fisher’s criticism of the Sunshine Policy is spot-on

Washington Post alumnus Max Fisher, now writing at Vox, presents a graph and data showing how, despite all of its abhorrent behavior, North Korea’s trade (most of it with China and South Korea) has grown, and how that leads to more abhorrent behavior. The way it’s supposed to work is that North Korea’s belligerence, aggression, and horrific human rights abuses lead the world to isolate it economically, imposing a punishing cost and deterring future misdeeds. What’s actually happening is that North...

Categories Appeasement/Kaesong/Sunshine
December 12, 2014

This is why no rational person would invest in Kaesong

North Korea has unilaterally raised those “wages” that South Korean companies pay the North Korean regime for labor at Kaesong—wages that the workers probably never see, and that for all the Unification Ministry knows, are used to buy iron maidens, centrifuge bearings, and 300-millimeter rocket fuses. The Unification Ministry isn’t happy, but only because wage hikes are bad for business: “Our firm position is that it’s impossible to revise the wage system without consultations between the South and North,” the...

Categories Kaesong
November 26, 2014

Oh, so this is what pissed the North Koreans off.

Speaking at the International Democrat Union last Friday, Park said this: In a luncheon meeting with the party leaders, President Park Geun-hye said North Korea’s pursuit of nuclear weapons had resulted in the country’s isolation and dire human rights conditions. “Now the North Korean people are faced with hunger and a tragic humanitarian situation as the North sticks to the path of… isolation by developing nuclear arms,” Park said during the luncheon at the presidential office Cheong Wa Dae. “I...

Categories North-South/Sunshine
November 14, 2014

Suki Kim recalls a “good student” in Pyongyang

Writing in The New York Times, Kim recalls a young North Korean student who made her uncomfortable with his risky questions about government in America: What I had just described was, more or less, democracy. I could not read his expression, but he thanked me and excused himself. That evening, I discussed my growing fears about the student’s motives with my teaching assistant. There was nowhere we would not be overheard, so we took a walk around campus, hoping it...

Categories Foreigners in N. Korea/Subversion/Sunshine
November 4, 2014

Another Kaesong firm folds

An unidentified small manufacturer for watch and mobile phones cases on Wednesday submitted an application for dissolution to the committee handling affairs at the joint park, according to officials from Seoul’s unification ministry. It marked the second case since June 2009 that South Korean firms operating at the Kaesong Complex have closed their businesses. It also marked the first time since the operation of the park had been halted briefly last year. The company, which had employed about 100 North...

Categories Kaesong
October 28, 2014

Sue Terry v. John Delury and Moon Chung-In, on reunification

Although Delury and Moon may not like the idea of North Korea’s collapse, that is a far more likely scenario than their fantasy of “the gradual merging of North and South.” South Korea has tried to make that dream come true before, through the so-called sunshine policy it pursued from 1998 to 2008, and the result was unambiguous failure. During those years, South Korea gave North Korea $8 billion in investment and assistance. In 2000, South Korean President Kim Dae-jung...

Categories North-South/Reconstruction/Regime Change
October 11, 2014

Silencing Park Sang-Hak won’t end North Korea’s threats (updated)

For the first time since 2010, North Korea has fired across the border into South Korean territory, this time with 14.5-millimeter anti-aircraft guns. The North Koreans were shooting at the second of two launches of balloons carrying a total of 1.5 million leaflets, by North Korean refugee Park Sang-Hak and the Fighters for a Free North Korea. The North Koreans didn’t respond to the first launch of 10 balloons at noon, but at around 4:00 in the afternoon, they fired...

Categories Activism/Censorship/Korean War II/North-South/Terrorism (NK)
October 9, 2014

North Korean official, asked about human rights problems, cites … lack of public baths.

And even this is really the fault of imperialist sanctions, which prohibit the import of “luxury goods” to North Korea: When the North Korean officials at the U.N. briefing were asked Tuesday to identify human rights problems in their country, Choe Myong Nam, a North Korean responded, “We need some facilities where people go and enjoy a bath… Right now, due to problems in the economic field — that is due to the external forces hindrance — we are running...

Categories Human Rights/North-South/WTF?
October 6, 2014

I’d tell you what I think of North Korea’s sudden mini-summit …

but Robert Koehler has already told you roughly what I think, so I can save most of the keystrokes. North Korea has had more false rehabilitations than Linsday Lohan, Robert Downey Jr., and the entire membership of Grateful Dead, combined. It would take nothing less than the announcement of a coup d’etat for me to take this at all seriously. I wonder if Pyongyang’s Southern Wind ploy means that its Hostage ploy with Japan is about to blow up, as predicted....

Categories North-South/Sunshine
October 6, 2014

Prediction: the Kaesong worker safety inquiry will be a whitewash.

You may recall that several weeks ago, some North Korean workers at Kaesong fell ill with symptoms of benzene poisoning. The bad news is that we still haven’t heard a peep of protests on the workers’ behalf from the Korean Confederation of Trade Unions, for some reason. The good news is that the Korean government cares enough about appearances to have ordered a safety inquiry: The South Korean government began a two-month probe Thursday into the working conditions at 33 factories in the...

Categories Kaesong
October 3, 2014

Australia-Korea FTA causes Kaesong backlash

I couldn’t have said it any better than this, and Jay Lefkowitz may be the last person who did: “We can’t see how the Australian government in good conscience could bring such goods into the country,” he said. “It’s absolutely appalling, it basically would make the Australian government and Australian consumers complicit in the exploitation of North Korean workers by their government, and would ensure that Australian dollars are going directly into the pockets of the North Korean regime. Let’s...

Categories Kaesong