As Kim Jong Un shifts the focus of the
country to resolving economic problems through his New Year’s Address, members
of the international trading sector in North Korea, who are engaged in
educational training related to his speech, hold out hope for improvements in
North-South relations that might lead to increased economic development.
On the 5th, our Daily NK reporter spoke
with a source in China with ties to North Korea, Chinese ties, who told
us that North Korean traders residing in China had been participating in
education and activities related to the New Year’s Address for the past two
days at the consulate in Shenyang. Every member of the community was there,
learning the contents of the speech and discussing how to put the main points
into action. It was the majority opinion of the North Korean traders that a
thaw in North-South relations will be necessary to facilitate true economic
development in their country.
This was corroborated by an additional
North Korean source residing in China for trading purposes.
“Every year after the New Year’s Address,
there is a period of formal study, so although it is not particularly
inspiring, the dual emphasis this year on economic development and improved
North-South relations stirred new feelings of optimism in the North Korean
trading community,” he explained.
Last year, he added, many companies
suffered losses or went bankrupt as a result of worsening relations between
China and North Korea. However, at the end of the year many returned to North
Korea to re-obtain business licenses with high hopes for big profits this year.
Following the education sessions over the
New Year’s Address, the traders were abuzz with talk of how easy it would be to
make money if North-South relations were to really improve. Because current
regulations block the import of South Korean goods, the Chinese market is their
only recourse. Owing to changes in Chinese regulations two years ago, the
amount of North Korean coal imported to China dropped drastically over the last
year, and it’s not the only item that suffered.
“Our items can only
enter the Chinese market, so we’re suffering. Traders are hoping that they will
be able to penetrate the South Korean market. Even if we only gain access to
business with private South Korean enterprises through improved relations, it
will be enough so that we won’t have to worry about trade with Russia or China.
We can do away with unnecessary steps like bribing customs officials or
disguising products as being of Chinese origin to get South Korean products
into the country as well,” the source said.
“Just look at last year–even placing South Korean products on the
import statistics charts was considered contrary to ‘socialist ideals,'” he noted, elaborating that a thawing of
relations would improve conditions under which a real survey of the North
Korean market could be taken.
According to the source, traders overwhelming hope for the door
to foreign-currency earning to be flung open and they see South Korea as a gleaming key. If North Korea can partner with South Korean businesses in China to import products directly and grasp market
share, these entities would compete solidly in the Chinese market and easily pull in foreign currency they say, expressing hopes that “this New Year’s Address
will translate into real profits by creating a favorable environment and not
just remain a theoretical idea.”
