The cost of doing business with North Korea

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There are differences between the United States and South Korea over their approach to North Korea. While no danger of a rift between the United States and South Korea exists yet, there’s a saying in Korean that perfectly sums up their situation: same bed, different dreams.

Korean President Park Geun-hye, having taken a hard line against Kim Jong Un when she assumed power two years ago, has noticeably relaxed her stance on North Korea. That perhaps reflects her domestic political realities, analysts say, pointing out that she’s entered the third year of her five-year term. With few successes to point to so far, they say, she could do with a boost from a summit with North Korea, which generally has the effect of lessening fears of the North.

Certainly, North Korea doesn’t do anything for free. To secure the first summit between the two Koreas, in 2000, Kim Dae-jung’s administration paid $500 million to the North, and the price has apparently risen exponentially over the years. In an 800-page memoir, Park’s predecessor, Lee Myung-bak, writes that North Korea demanded an “absurd” $10 billion and almost a million metric tons in food aid in 2009 during discussions about a potential summit (which never happened).

[Washington Post]

More on the three South Koreans detained in North Korea

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A South Korean student, who moved to the United States with his family in 2001, now held in North Korea for an illegal entry on April 22 has told CNN in an interview from Pyongyang that he wanted to be arrested.

Joo Won-Moon, 21, who attends New York University and has permanent U.S. residency, said he had hoped to create an “event” that could improve relations between North and South Korea. It was unclear whether he was speaking freely or had been told by North Korean authorities what to say.

“I wanted to be arrested,” Joo told a CNN reporter, looking relaxed and even smiling as he walked into a conference room at Pyongyang’s Koryo Hotel for the interview. “I thought that by my entrance to the DPRK (North Korea), illegally I acknowledge, I thought that some great event could happen and hopefully that event could have a good effect on the relations between the North and (South Korea),” Joo said, without elaborating on the event.

South Korea’s Unification Ministry, which handles relations with the North, said Monday it was “extremely regrettable” the North had detained Joo and called for his immediate repatriation.

CNN also interviewed on Sunday two other South Koreans being held in the North on espionage charges. Both Kim Kuk-Gi, a Christian missionary, and Choe Chun-Gil, a businessman, admitted spying for Seoul in the interviews in Pyongyang in the presence of North Korean minders. The two claimed they had not been coerced or coached on what to say. CNN noted that their accounts were “strikingly similar”.

Foreigners arrested in North Korea have previously admitted wrongdoing on camera or in writing, only to retract their statements following their return home.

[Agence France Presse]

North Korea arrests student from US for illegal entry

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North Korea said it has arrested a South Korean student of New York University for illegally entering the country from China last month.

Won Moon Joo, who North Korea says has permanent residency in the U.S. and lives in New Jersey, was arrested on April 22 after crossing the Amnok River from the Chinese border town of Dandong, the official Korean Central News Agency reported Saturday.

The 21-year-old man is being questioned by state authorities and has admitted that his actions were in violation of North Korean law, the agency said.

In New York, a spokesman for New York University, John Beckman, confirmed that Joo was a junior at NYU’s Stern School of Business, but that he was not taking classes this semester and the university was unaware of his travels.

North Korea has occasionally detained South Koreans, Americans and other foreigners, often on accusations of spying.

In March, North Korea announced that it had detained two South Korean citizens over alleged espionage. It has been holding another South Korean man since late 2013 on suspicion of spying and allegedly trying to set up underground churches in the North. He was sentenced last year to life in prison with hard labor.

[Associated Press]

North Korean diplomats storm out of UN after spat with defectors

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North Korean diplomats stormed out of a U.S.-organized event on the country’s human rights at the United Nations Thursday after they insisted on reading a statement of protest, amid shouts from defectors.

The U.S. ambassador to the U.N., Samantha Power, tried to quiet the diplomats at the event that featured more than 20 North Korean defectors. Power called the country’s statements “totally self-discrediting.”

The North Korean diplomats did not comment as they stormed out of the chamber following Ri Song Choi’s statement in protest of the event, even as North Korean defectors stood and shouted in their faces. North Korea has previously referred to defectors who cooperated with the inquiry as “human scum.”

Defectors stood up and shouted in Korean as Power and others called for calm and a U.N. security team assembled. An observer who speaks Korean said the shouts included “Shut up!” ”Free North Korea!” ”Down with Kim Jong Un!” and “Even animals know to wait their turn.”

A North Korean diplomat read a statement that referred to “ungrounded allegations” and “hostile policy” toward his country. As soon as the North Korean diplomat stopped his speech and the next defector stepped up, the North Korean diplomats walked out.

“They’re so rude,” Jay Jo, a North Korean defector, said later, adding that she wished that the diplomats had stayed so she could have spoken with them. The U.S. said North Korea had been informed before the event that it would have a chance to speak.

The brief chaos came minutes after U.N. Assistant Secretary-General for Human Rights Ivan Simonovic told the audience that North Korea had shown “new signs of engagement” on human rights issues in recent months.

But after the uproar, South Korean Ambassador Oh Joon told the crowd that “we thought there was a glimmer of hope … but the delegation of the DPRK today disappointed us. I think it’s a pity.” He was referring to the country’s official name, the “Democratic People’s Republic of Korea.”

As the event came to a close, Power said the “true weapons of mass destruction” in North Korea was the tyranny of its government against its citizens. Power also called on countries in the region, particularly China, to stop sending North Koreans seeking asylum back into the country, which was one of the inquiry’s concerns.

[The Associated Press]

The jangmadang market system of North Korea

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An informative yet entertaining new book, “North Korea Confidential: Private Markets, Fashion Trends, Prison Camps, Dissenters and Defectors” by journalists Daniel Tudor and James Pearson is exactly what one would want from people who know a few of the country’s secrets. It reads like a CIA fact sheet mixed with juicy anecdotes—and the authors have reassured readers that everything in it has been verified by three sources.

“The main cause of North Korea’s recent social change is actually a tragic one: the famine of the mid 1990s,” the authors write. That famine, which they estimate caused at least 700,000 people to die from starvation, gutted the control Pyongyang and the government had on the country as a whole. The reason is that when the government could no longer feed its citizens, North Koreans turned to a “quasi-capitalist market economy” to feed themselves. This undermined not only the power of the state, which lost a major source of its power (the collection and redistribution of food), but simultaneously opened up the country to a form of capitalism reliant on the outside world.

In the aftermath of the famine, an illegal but countenanced market system called the jangmadang took root. Under jangmadang, members of a family, usually married women who are exempt from state-mandated work units, sell a variety of goods. These can be family possessions, DVD players, phones, foreign currency, and so on. Families rely on income from these markets, as the official and unofficial exchange rates with foreign currencies have imploded, and the government has left much of the country outside of Pyongyang to fend for itself. The markets are so ingrained in society, the authors claim, that families not known to engage are often suspect because it is assumed they are obtaining wealth from defector relatives. One side effect of these markets is that women are often bringing home more money than their husbands, which undermines the traditionally patriarchal society.

The new North Korea depicted by the authors is dominated by this semi-capitalist form of life, and while most would imagine that would be difficult given the dictatorship’s image as a suffocating leviathan, the country has a new king—cash. Throughout the book, the authors stress that nearly every crime, from political to petty, can be resolved with a bribe. Get caught trying to cross the border? Pay the guard a bribe. Caught with foreign DVDs? Pay the inspector a bribe. Need anything? Pay a bribe.

[The Daily Beast]       Read more

How North Koreans make money

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A lawless form of marketization has replaced the iron rice bowl of work in state companies, and many North Koreans think in terms of trade and profit.

There are a variety of ways one can make money in North Korea. For government officials (whose official salaries are neglible) it is access to things like the diplomatic pouch (for smuggling), the army (which is used more for construction projects than fighting), foreign North Korean-owned restaurants, weapons deals, or food rations that can be turned into cash.

For the average citizen, the entrepreneurial spirit is pretty astounding. In various neighborhoods in every major city, the authors claim, there is a middle-aged woman who rents apartments for sex by the hour. “Her preferred time will be in the afternoon, when her children are at school, and her husband is at work,” they write.

Or one can learn to perform a plepharoplasty, which is the surgery that gives people fold lines along the eyelids. “Those who do it well,” the authors note, “will benefit from word of mouth, and be able to make a good living.”

There are also those who have managed to get a Chinese phone that connects to the Chinese network. “Over half of those who have made calls out of North Korea with Chinese phones do not actually possess one themselves,” the authors explain. Instead there are phone owners who make their living renting out time on their illegal phones.

“North Korea’s new ‘system’ is unfair and Darwinian,” the authors write, “but at least gives the average person a sense of agency.”

[The Daily Beast]          Read more

Dispelling the myth of a brainwashed North Korean populace

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Dispelling the myth of a brainwashed populace is one of the main goals of the book “North Korea Confidential: Private Markets, Fashion Trends, Prison Camps, Dissenters and Defectors”.

Despite horrific prison camps, lack of Internet, and a national fabric called “vinylon,” most people still take the risk to watch a foreign film, regularly consume South Korea pop culture, party, and even argue with the police.

The authors claim that, contrary to what one might expect, young people actually look forward to that time when they are sent away for compulsory agricultural labor because “it is an opportunity to party every night and meet members of the opposite sex.”

All of this, of course, raises the question of the country’s future. The authors Tudor and Pearson spend a chunk of the book outlining and explaining the North Korean power structure largely orchestrated by Kim Jong Il, from the Kim family itself to the shadow government dubbed—with true Communist rhetorical flourish—the Organization and Guidance Department.

Despite the slight erosion of central power, the authors don’t really think the regime is going away anytime soon. In fact, the authors compare the current shift to that which took place in the 16th and 17th centuries in Korea. At that time, the kingdom was under assault from both the Japanese and the Chinese, which partially cleared the decks among the ruling aristocracy and allowed the rise of a new group of merchants. Instead of trying to take over, however, the merchant chose to marry aristocratic families that had fallen on hard times, giving the new money status and the old fresh cash and blood.

Today, the authors contend, “The new, rising capitalist class generally seeks to join the existing elite through marriage and business ties, rather than undermine it.” But then again, this is North Korea, so who really knows what will happen.

[The Daily Beast]

S. Korean spy agency claims Kim Jong Un ordered 15 executions this year

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North Korean leader Kim Jong Un ordered the execution of 15 senior officials this year as punishment for challenging his authority, South Korea’s spy agency told a closed-door parliament meeting on Wednesday.

A vice minister for forestry was one of the officials executed for complaining about a state policy, a member of parliament’s intelligence committee, Shin Kyung-min, quoted an unnamed National Intelligence Service official as saying.

“Excuses or reasoning doesn’t work for Kim Jong Un, and his style of rule is to push through everything, and if there’s any objection, he takes that as a challenge to authority and comes back with execution as a showcase,” Shin said. “In four months this year, fifteen senior officials are said to have been executed,” Shin cited the intelligence official as saying.

In 2013, Kim purged and executed his uncle, Jang Song Thaek, once considered the second most powerful man in Pyongyang’s leadership circle, for corruption and committing crimes damaging to the economy, along with a group of officials close to him.

Kim has also reshuffled close aides and senior officials repeatedly since taking office.

 [Reuters]

North Korean defectors say US should do more

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A group of North Korean defectors converged Monday to call on the Obama administration to do more to help them topple dictator Kim Jong-un’s oppressive regime.

Scholte introduced some two dozen defectors at a National Press Club event to kick off the 12th annual North Korea Freedom Week. Their efforts to get information in and out of North Korea—through radio broadcasts, balloon drops, and other means—have led the country into the information age, ignited capitalism that is curbing starvation, and helped some 26,000 persons escape, Scholte said.

The defectors include a variety of organization leaders, prison camp survivors, and eyewitnesses to human trafficking, drug smuggling, propaganda dissemination, and illegal weapons trading. They will participate in various events throughout the week, including providing testimony to Congress on Wednesday, and at the United Nations in New York on Thursday. Twice this week the defectors will gather for events outside the Chinese Embassy in Washington, which has refused to treat North Koreans as refugees.

Scholte said defectors have proven highly effective at influencing the regime’s activities, but they don’t have the resources they need to do their jobs. The State Department has ended North Korea programs or severely cut funding over the last five years.

Despite that, he said, defectors refuse to quit: “The North Korean regime continues to threaten the people in this room, but they will not be intimidated.”

[WNG.org]

Addressing North Korean clichés and half-truths: Ignorance about the World

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Excerpts from “North Korea: Markets and Military Rule” by Hazel Smith, as printed in The Guardian:

Perhaps the most pervasive myth is that North Koreans are ignorant of the world outside, and believe everything the government tells them. This is extended by the assumption that North Koreans are educationally backward, and lack the sophistication to understand the world beyond their borders.

North Koreans are anything but ignorant. With almost universal literacy, and despite economic deterioration, school enrolment – for girls and boys – remains near universal. About 35% of high school graduates went on to university education in 2002.

North Koreans are indeed subject to a relentless socialization campaign that glorifies the exploits of the Kim family and inflicts sanctions on those who criticize the country’s rulers. Yet despite the best efforts of the North Korean government, the picture of the DPRK as an absolutely closed society is far from the truth today.

The North Korean government works hard to prevent the free flow of information into the country. Students studying in Pyongyang have access to the major state libraries in the capital, which contain foreign books and films, but are only permitted to access these resources if they can demonstrate a “need” to do so, while access to the internet is limited.

However, a small number of students study abroad – about 500 were in Asia and Europe in 2002; in 2012, 96 North Korean students were studying at China’s Northeastern University alone.

Chinese traders and local trading networks have also provided routes for non-state sanctioned information for nearly a quarter of a century. Many Chinese traders and visitors are of Korean ethnicity, and three of North Korea’s north-eastern provinces border the Chinese prefecture of Yanbian, which is populated by ethnic Koreans of Chinese nationality.

Pyongyang’s population of three million frequently come into contact with foreigners in the service sector – hotels, shops, bars – and workplaces where foreigners also work. Outside Pyongyang, the port towns of Nampo, Chongjin and Rajin also host foreigners; so too has the southern tourist development zone of Kumgangsan, and the South Korea-sponsored free-trade zone of Kaesong.

It’s true that short-term visitors to the country are carefully “minded” by accompanying North Korean officials, but long-term residents have more freedom. They are permitted to obtain North Korean driving licenses, learn Korean and freely operate without permanent watch.