July 6, 2017

We can neither talk, bomb, nor wait our way out of the North Korea crisis

“The era of procrastination, of half-measures, of soothing and baffling expedients, of delays is coming to its close. In its place we are entering a period of consequences.” – Winston Churchill In one sense, North Korea’s first test of an ICBM should change little about our analysis of this crisis, other than to compress its timeline by two years. Two years ago, in fact, I predicted that we’d have reached this point by January. Most Korea-watchers have long assumed this...

Categories North-South
July 5, 2017

We cannot live with a nuclear North Korea (or rather, it will not live with us)

Yesterday, the North Korean threat finally crossed the ocean to our shores. As it is after every fresh outrage from Pyongyang, the question many will ask is, “Now what?” Certainly, there are plenty of legal, financial, and diplomatic options on this list that President Trump’s cabinet can exercise. Congress is also ready to act, or nearly so. You should expect to see the Senate move legislation you’ve seen (or something similar to it) and legislation you have not yet seen....

Categories "United" Nations/Missiles/Proliferation/Sanctions/WMD
July 3, 2017

The Moon-Trump Summit: Catastrophe averted, for now

Korea-watchers are relieved that the uniquely volatile combination of Moon Jae-In and Donald Trump did not cause a catastrophe at last week’s summit. If avoiding catastrophe was the objective, then mission accomplished, for now. But if the objective was to build trust between the two governments or resolve the thorniest issues between them, the two governments achieved little. They tabled the issue of THAAD and already have an emerging split on free-trade renegotiations. Difficult USFK cost-sharing talks lie ahead. On...

Categories An Alliance?/U.S. & Korea
June 30, 2017

Commence Primary Ignition: Treasury zaps the Bank of Dandong for laundering Kim Jong-Un’s money

And so, the “maximum pressure” we’ve been waiting for begins in earnest. Yesterday afternoon, the Treasury Department announced a series of legal actions against Chinese enablers of North Korea’s proliferation, smuggling, and money laundering. First, Treasury’s Office of Foreign Assets Control froze the assets of two businessmen and a shipping company. One of those businessmen, Sun Wei, was the sole shareholder of Mingzheng International Trading, the Chinese company targeted in this recent civil forfeiture action. The shipping company was sanctioned for...

Categories Money Laundering/Sanctions
June 29, 2017

N. Korea just threatened to kill S. Korea’s ex-president & any of its critics anywhere

Here at OFK, we collect small bits of North Korea trivia, such as the fact that President Bush removed North Korea from the list of state sponsors of terrorism on October 11, 2008, and the related fact that the State Department’s official position is that North Korea has not sponsored acts of terrorism since 1987. Discuss among yourselves. In other news, the official North Korean “news ” agency, KCNA, has just published a call by the North Korean government for the...

Categories Terrorism (NK)
June 28, 2017

China finally pays a (symbolic) price for its North Korean slave trade

This blog has long posited that a nuclear North Korea will not coexist with us and that war with it would be inevitable; that preventing another Korean War will require a focusing an assortment of financial, diplomatic, and political pressures on Pyongyang; and that to deter China’s government and industry from undermining that pressure will require us to pressure China itself. This will carry costs for both economies, and to the relationship between the two governments. Relations with China will...

Categories China & Korea/Human Trafficking/U.S. Law
June 26, 2017

Five North Koreans, including two soldiers, have defected in June 2017 (so far)

Nat Kretchun’s latest report on Pyongyang’s efforts to control the spread of outside and subversive information suggests that the state has mostly written off its thirty- and forty-somethings as a lost generation, irrecoverably disillusioned by the collapse of the state’s rationing system, corruption, and the influx of South Korean DVDs. Instead, Kim Jong-Un is focusing his War on Glasnost on the detection of cellular signals and the watermarking of digital files to control the spread of dissent. Demographically, he is...

Categories Defectors/NK Military/Refugees
June 23, 2017

Pyongyang’s freeze gambit is a transparent pre-summit ploy.

I’m going to give the reports that North Korea’s Ambassador to India floated the idea of negotiations for a freeze deal all they attention they deserve. The proposal, such as it is, came during an English-language interview with a local journalist. First, the proposal is an obvious ploy to divide the U.S. and South Korean governments just before Moon Jae-In’s visit to Washington. (As I noted yesterday, that visit already looks to be a difficult one.) Even Moon Jae-In appears...

Categories Diplomacy
June 22, 2017

Moon Chung-In’s visit was a fiasco. Moon Jae-In’s summit with Trump might be the next one.

Next week, South Korean President Moon Jae-In will arrive in Washington for his first meeting with President Trump. North Korea policy is certain to be at the top of their agenda. Months ago, I predicted that the combination of Moon Jae-In and Donald Trump would be a uniquely volatile one, and all the indications so far are bearing this prediction out. Volumes of august and cerebral analysis may soon be nullified by 140 characters. This is partially (but only partially)...

Categories An Alliance?/Anti-Americanism/Korean Politics/U.S. & Korea
June 20, 2017

How to hold North Korea accountable for Otto Warmbier’s death

In North Korean prisons (at least, in those from which release is possible at all) when the guards conclude that a prisoner is about to die, they release her and send her away to die at home, so that disposing of her body will be someone else’s problem, and so that the warden can manipulate the camp’s rate of in-custody deaths downward. (Perhaps in some small way, even the wardens of North Korean prisons fear being held accountable, one day,...

Categories Foreigners in N. Korea/Sanctions/U.S. Law
June 15, 2017

Breaking: DOJ files $1.9M forfeiture complaint against North Korean front company in China

The U.S. Attorney for the District of Columbia issued a press release this afternoon announcing that it has filed a complaint under the civil forfeiture statute at 18 USC 981, to forfeit $1,902,976 from Mingzheng International Trading Limited of Shenyang, China. According to the complaint, Mingzheng conspired to evade sanctions and launder money through the United States on behalf of the Foreign Trade Bank of North Korea (FTB). Treasury designated the FTB under Executive Order 13382 in March 2013, for proliferation financing. Under the...

Categories Money Laundering/Proliferation/U.S. Law
June 15, 2017

Meet the fresh-faced kids who want you to commit a felony for Kim Jong-un

I confess that I’ve always hated Facebook, but every now and then, I see something there that interests me. One such example is the Facebook page of a group called Delegations for Dialogue, which led me to this slickly produced website. As it turns out, Delegations is run by a cast of improbably young characters promoting investment in North Korea through a “fact-finding†trip to Rason this August. Now, I suppose there are two kinds of people in this world...

Categories Money Laundering/Sanctions
June 14, 2017

One American tragedy, millions of North Korean statistics

The idea that foreign tourists in North Korea could escape the evil they help, however minimally, to propagate, was never sustainable. Tourism in North Korea reduces the physical and mental slavery of totalitarianism to a circus performance and its subjects to zoo animals. It doesn’t only endanger the tourist, it plays some unquantifiable role in sustaining that horrid system, and in endangering the lives of people from Seoul to Seattle to Aleppo by giving cash to a regime obsessed with the...

Categories Foreigners in N. Korea
June 13, 2017

C4ADS: Pyongyang’s networks in China are “centralized, limited, and vulnerable” to sanctions 

Because I’ve already given too many minutes of my life to the moveable farce named Dennis Rodman, I’m devoting today’s post to something more consequential: the Center for Advanced Defense Studies’s new report exposing more North Korean financial networks in China, and dispelling the misinformation that North Korea is isolated from the financial system and thus sanctions-proof. (Full disclosure: I advised C4ADS on the drafting of the report, without compensation of course.) Money quote: The continuing misperceptions of North Korea...

Categories China/Money Laundering/Sanctions/Shipping sanctions
June 12, 2017

Moon Jae-In passes an early test on North Korean refugee policy, but for how long?

In recent years, growing numbers of North Korean boats have drifted into the waters of neighboring countries. Most of these incidents probably weren’t attempts to defect, but cases of North Korean fishermen coming under rising pressure to stray further out to sea, to bring home bigger catches (which are often exported for hard currency, including to the U.S. and South Korea) and who are given only a marginal amount of fuel to make the journey home. Dozens of these North Koreans...

Categories Defectors/Human Rights/Refugees
June 8, 2017

China is cheating on the North Korea coal import ban (again) (with updates)

Via the indispensable Leo Byrne: Two North Korea-linked ships have arrived at two separate coal terminals in Shanghai since Sunday, while one other was departing the area after having left a third facility at a similar time. Satellite imagery shows that each of the terminals is equipped to handle coal. The UN currently restricts member states from importing North Korean coal, while Beijing has said numerous times that it has suspended all imports for the remainder of 2017. “Imagery indicates...

Categories China/Sanctions/Shipping sanctions
June 7, 2017

North Korean man stabs, nearly kills Ministry of State Security officer

The Daily NK is reporting another case of a North Korean citizen attacking and nearly killing an officer of the dreaded Ministry of State Security (MSS), the agency that runs most of North Korea’s political prison camps, possibly over official corruption. It has been reported that an [sic] Ministry of State Security agent working as a surveillance patrol officer at the No. 10 guard post in Hoeryong City, North Hamgyong Province, was stabbed by a knife-wielding assailant while on duty....

Categories Resistance
June 5, 2017

Trump & North Korea: In search of maximum pressure (Pt. 1)

Last week’s North Korea designations from the Treasury Department were the second round since Inauguration Day, and like the first round, they omitted the essential element for sanctions against North Korea to be effective: secondary sanctions to deter Chinese | banks and companies from enabling North Korean proliferation and money laundering, as they’ve been | doing for so long, and so flagrantly. On this point, I need not repeat Anthony Ruggiero’s arguments, so I’ll just refer you to his post. In other words,...

Categories "United" Nations/Money Laundering/Sanctions