Category: Sunshine

What’s that? You want the Sunshine Policy back? Good luck with that.

If Nate Silver is feeling humble these days, just let him try to predict who wins the next election in South Korea. In the 12 months between now and the time South Korea elects its next president, the ruling Saenuri party will probably break up. God willing, new candidates will emerge to supplant the dismal fare it has served until now. Divisions between the pro- and anti-Park Geun-hye factions may or may not heal. Ban Ki-moon may or may not...

Park Geun-hye finds her inner Thatcher

This week, the South Korean government imposed bilateral sanctions on North Korea, banning from its harbors ships that have been to North Korea in the last 180 days, cancelling a joint logistics project with Russia to export coal through Rajin, and designating “30 companies with links to the North’s nuclear and missile programs …, 38 North Korean nationals and two foreigners.” The targets include “Leonard Lai, president of ­Singapore-based Senat Shipping” (see this post) and “the Taiwanese president of Royal Team...

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 rebirth of an alliance: The U.S., South Korea & Japan are finally getting North Korea policy right

As you and I both know, I spend a lot of keystrokes here kvetching about the lax enforcement of sanctions against North Korea, but I’ve also written that diplomacy is essential to making sanctions work. Now, for the first time I can recall, the U.S., South Korea, and Japan are coordinating their policies as allies should. They’ve coordinated their defense responses to the North’s missile test, their calls for tougher U.N. sanctions, their strategies to strengthen sanctions enforcement, and their recruitment of new...

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...

If S. Korea won’t close Kaesong, let it pay N. Korea in food.

The bad news from North Korea’s nuclear test is that its yield exceeded those of its 2006, 2009, and 2013 tests. The good news is that while the blast wasn’t thermonuclear, it was still hot enough to burn away plenty of policy fog. In Congress, sanctions legislation has sailed through the House, and seems to have good prospects in the Senate. Opinions are shifting among Korea scholars here, too. This morning, I had a chance to finish reading last week’s testimony before the...

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...

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...

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...

North Korean Men Cross DMZ (and plant land mines)

By now, you’ve read that South Korea’s government has accused the North Korean military of sending soldiers across the DMZ to plant mines near South Korean guard posts, an act that blew the legs off two South Korean soldiers last week. The two South Koreans, both staff sergeants, triggered the mines last Tuesday just outside their post, within the South Korean half of the 2.5-mile-wide Demilitarized Zone, a buffer separating the two Korean armies. One lost both legs in the...

The Korea Development Institute wants to help companies “bypass” U.N. sanctions against N. Korea

Pyongyang’s latest business model for accessing hard currency despite U.N. sanctions is to rent out tens of thousands of its workers to Chinese factory owners. Those workers then labor in exploitative conditions, while Pyongyang steals most of their wages. Now, the Korea Development Institute—an “independent” think tank created under South Korean law in 1970, and “partnered” with several U.N. bodies and at least one South Korean government ministry—is urging small and medium-sized South Korean firms to join these exploitative arrangements. I’ve often argued...

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,...

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...

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...

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...

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...

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...