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Category: NK Economics

July 21, 2007

‘Pyongyang Soju’ Importer Arrested

A Korean American businessman has been arrested by the U.S. Federal Bureau of Investigation on charges of hiding his activities as a spy for the South Korean government, AP reported Thursday. According to court documents obtained by the wire agency, Park Il-woo, also known as Steve Park, was a legal resident in the U.S. for the past 20 years and conducted business with North Korea. Park provided information he obtained from his frequent trips to North Korea to the South...
Categories Human Trafficking/NK Economics/U.S. Law
July 5, 2007

The FTA and ‘Fortress Korea’

It can be disturbing to find so  much to agree with in the writings of someone who doesn’t share your  outlook on  the bigger picture.  I generally favor the lowering of trade barriers and oppose the protection of domestic industries  from the competition of  a fair and open market.  Note the key caveat in that last sentence, for defining “fair and open” is where the devil is.  I suspect Alan Tomlinson defines it more narrowly than I do, and that...
Categories NK Economics/U.S. & Korea/U.S. Politics
June 20, 2007

North Korean Money and the Fed

Kevin Hassett, Director of Economic Policy Studies at the  American Enterprise Institute, asks, “Why did the Fed help North Korea launder money?”  I’m no economist, so I’m interested in how the transaction  could affect the Federal Reserve system.  Hassett thinks  this transaction simultaneously  inseminated the Fed with dirty money and politics, and he doesn’t think we’re going to like what we see at the end of the gestation.  You ought to read the whole piece, but here’s a graf: It...
Categories Money Laundering/NK Economics/U.S. Politics
June 18, 2007

Lee Myung-Bak Proposes ‘Kaesong Archipelago’

Would you trust this man?  If you were one of those hoping that the next South  Korean election would be the end of our long international nightmare, you were mistaken: Former Seoul Mayor Lee Myung-bak, the front-running opposition presidential aspirant in December’s election, proposed Monday creating a “Manhattan-like” island near the border with North Korea and building an inter-Korean industrial park there to ease military tension. Dubbed “Na-deul,” which means a narrow waterway in Korean, the manmade island would be...
Categories Human Rights/NK Economics/Proliferation/U.S. & Korea/U.S. Politics/WMD
June 12, 2007

Win the Battle, Lose the War: How South Korea’s Brilliant Negotiation Skills May Have Killed the FTA

[Update:   The USTR will reportedly call for renegotiation of the entire deal, in part to make the draft FTA compliant with U.S. labor standards.  More at the bottom of this post.] Absolutely stomach-turning.  After all of the Bush Administration’s brave rhetoric about  “forced labor” and  “material support” for  “atrocities,” it ended up signing a free-trade  agreement that could very well have allowed slave-made, axis-of-evil  Kaesong imports into the United States.  Then, because there was no denying the staggering hypocrisy...
Categories Anju Links/Human Rights/Human Trafficking/NK Economics/U.S. Politics
May 14, 2007

FTA Update

The N.Y. Times reports: Peru and Panama are considered most likely to win early Congressional approval. Colombia is more problematic, because Democrats are demanding that, besides the new measures, more protections be added to prevent violence against activists trying to organize workers. The South Korea accord, if put in place, would lead to the largest amount of increased trade. But it is opposed in its current version by Democrats who want greater access to that country’s markets for American beef,...
Categories NK Economics/U.S. Politics
May 7, 2007

Soju for You = Hennessey for You-Know-Who

[Update:   I’ve made indirect contact with a North Korean defector familiar with how Pyongyang Soju is made.  Based on that information, the product is not manufactured in a forced labor camp.  I  hope to  have more specific information about the materials and labor practices later.]   The Chicago Tribune and the  Hankook Ilbo are both reporting that North Korea is about to export of shipment of soju to the United States. US-North Korean trade is rare as Washington imposes...
Categories Google Earth/Human Rights/Human Trafficking/NK Economics/U.S. Law/Uncategorized
April 24, 2007

Anju Links for 24 April 2007: China and South Korea Claim Their Largesse Has Limits, Another Fresh-Faced Septuagenarian Rises in Pyongyang, and Why the Defunding Debate Should Focus on the U.N., Not Our Troops

*   North Korea is now eleven days past the April 13th deadline by which  it agreed to shut down and seal the Yongbyon reactor, make a meaningful showing at another session of six-party talks,  begin discussions about the full extent of its nuclear programs, and invite U.N. inspectors back in.  As of today, it has failed to fulfill any of those conditions.  I  just  wanted to point that out in case Chris Hill is reading or Kim Jong  Bill...
Categories "United" Nations/Appeasement/China/China & Korea/Human Rights/Human Trafficking/Kremlinology/NK Economics
April 3, 2007

FTA Hits Opposition in U.S. Congress

The Economist’s blog reports, After a long drawn out, and highly fraught, negotiation that pushed right up against the deadline, America and South Korea have inked a new trade deal. It is the largest America has signed since NAFTA. However, tensions between the Bush administration and resurgent protectionists in America’s new Democratic Congress make it highly uncertain that the pact will be ratified. I don’t yet know if the opposition will be enough to defeat the deal, but some key...
Categories Human Trafficking/Korean Politics/NK Economics/U.S. Politics
April 1, 2007

FTA Agreement Reached FTA Talks Near Failure: The Death of an Alliance, Part 66

[Update 2:   Well, as it turns out, the two sides did reach an agreement, although it’s not clear how comprehensive.  Both sides — mainly us — made major last-minute concessions.  Talks were ongoing until minutes before the legal deadline. Beef tariffs will be phased out over  15 years, which is a long time.  (We’ll see if the Koreans actually accept the next shipment.)   Korea also gets to protect its rice market.  There’s really only one bright spot I...
Categories Anti-Americanism/Korean Politics/NK Economics/The Fifth Column/U.S. & Korea/U.S. Politics
March 31, 2007

An FTA Pre-Post Mortem

At this hour, it looks like free trade talks with South Korea are about to fail, despite their extension for another 48 hours.   It may be  a bit  early for  the Chosun Ilbo  to have  published this post-mortem, but any free-trade agreement we reach now will be unworthy of the name and hardly worth doing from an American perspective.  Yes, I still  believe an US-Korean FTA is a good idea, but it’s pretty hard to  write a good one when...
Categories An Alliance?/Anti-Americanism/Korean Politics/NK Economics/U.S. & Korea/U.S. Politics
March 27, 2007

Colin McAskill Threatens to Sue Over Release of Funds to DPRK Gov’t

McAskill, the man who sells Kim Jong Il’s gold and  who recently bought  the  bank through which most of North Korea’s European investment is channeled, has heretofore been  a strident and articulate advocate of releasing the  $25 million  frozen in BDA.  Overnight, he has become the main obstacle: In two letters sent to the Monetary Authority of Macao, [Daedong Credit Bank] has said that it will take legal action if any of its frozen funds are moved in accordance with...
Categories Counterfeiting/Diplomacy/Money Laundering/NK Economics/Six-Party Talks/WTF?
March 20, 2007

N. Korea Boycotts Talks Over Funny Money Proceeds

[Talks stall; See updates below] BEIJING – International talks on North Korea’s nuclear program stalled again Tuesday, with Pyongyang refusing to take part until it receives $25 million from a bank blacklisted by the United States, Japan’s chief envoy said. Kenichiro Sasae said a meeting scheduled for Tuesday afternoon between the chief delegates of the six nations involved in the disarmament talks was canceled because Pyongyang refused to attend. “There was no progress at all today,” Sasae said. “China as...
Categories Counterfeiting/Diplomacy/Money Laundering/NK Economics/Six-Party Talks/WMD
March 19, 2007

Anju Links for 3/19

*    Radio Megumi.  An international body has granted Japan  permission to increase broadcasts into North Korea.  The broadcasts will be directed  at a small audience:  its abducted citizens.  I tend to think that Japan would see them home again sooner if it broadcast words of dissent and subversion to the North Korean people. *   Short-Selling Appeasement.   Japan now stands alone in standing up to the North Koreans in Beijing:  not one Yen until you give us back...
Categories Appeasement/Diplomacy/Drugs & N Korea/Japan & Korea/Media Criticism/NK Economics/Terrorism/Iraq
March 16, 2007

N. Koreans May Have Given U.N. Counterfeit $100 Bills

[A]  new twist now emerging in the Cash-for-Kim scandal is that while the UNDP has been giving Kim real money, Kim’s regime may have been handing over counterfeit banknotes to the UNDP–which apparently had a stack of counterfeit $100 bills sitting in its office-safe in Pyongyang.  [National Review] We owe this revelation to — who else? — Claudia Rosett.
Categories "United" Nations/Appeasement/Counterfeiting/Money Laundering/NK Economics/WTF?
March 15, 2007

North Korea’s Blood Gold

Question:  How can a banker and investor in overseas  gold mines  get sympathetic innocent-victim treatment from the International Herald Tribune?  Answer:  Go into business with this man. That’s the upshot of this IHT story on Colin McAskill, successor to Nigel Cowie as the new primary foreign stakeholder in the Pyongyang-based Daedong Credit Bank.  Reporter Donald Greenless writes that among McAskill’s other functions, he is  “helping to operate North Korea’s foreign gold sales.”  McAskill offers “dossiers” of proof to disprove any...
Categories Human Rights/Human Trafficking/NK Economics/The Camps
February 11, 2007

¿Plata o Plomo?

That title, btw, is a  tip of my  sombrero to my many  Spanish readers today.  As I write, the latest efforts to talk North Korea out of its nukes appear to be making exactly as much progress as they’ve made for the last 15 years.  It’s at least comforting to see our government  moving forward with  other options.  Most of those come in the forms of long-overdue appropriations for  budget authorizations from the North Korean Human Rights Act of 2004:...
Categories Counterfeiting/Deprogramming/Money Laundering/NK Economics/Refugees
February 5, 2007

Wobble Watch: Kaesong

In a one-hour meeting with Unification Minister Lee Jae-joung, U.S. Ambassador Alexander Vershbow said that while it is unrealistic to recognize the goods made in the border city of Kaesong as South Korean, there is room left to negotiate within the proposed free trade agreement (FTA) between the two countries, Unification Ministry officials said. “Lee stressed that U.S. recognition of the goods produced in Kaesong as South Korean will contribute to bringing about a lasting peace on the Korean Peninsula....
Categories Appeasement/Human Rights/Human Trafficking/NK Economics