“If they do not follow the emerging power, even traders will be ruined.”
Kang, a trader residing in Beijing and operating within the patronage of Kim Jong Nam, has realized that the sponsorship of Kim Jong Il’s eldest son has reached its limit now that Kim Jong Eun has seized power, so he is currently trying his best to forge fresh connections. He may be in favor now, but if he loses his backing he fears he will rapidly become nothing.
The reason why employees with North Korean trading companies are afraid of returning to North Korea is because they can enjoy an upper class Chinese standard of living and give their children an education which far surpasses anything on offer in the North, even in Pyongyang.
Ri, who is in his mid-40s and living in Dalian, says he enjoys extravagance which he could never have imagined in North Korea. “The Cheonan incident and other issues are complicated,” he explains, “I now believe here (China) is my hometown and where I will live.” He drives two foreign cars and says he owns two houses, each worth $300,000, in an economic development zone in the city. He says he plays golf and is able to send his children, who he says have a talent for art, to Europe to study.
To his acquaintances, he advises, “When trying to export North Korean commodities, there are no alternatives to minerals or marine products. Try to mediate the importation of necessities for the Cabinet, military authorities or the Ministry of Light Industry, and avoid other industrial goods.”
In the process of supplying goods to North Korea, these men commonly obtain additional money illegally. North Korea’s light industries are not well developed, which means that there are a lot of opportunities to import daily necessities. There are countless traders who have accumulated considerable wealth by conspiring with North Korean officials during the process.
Of course, Kang admits that he has exaggerated his costs when delivering goods to North Korea, and that he has lived until now thanks to the power of the military authorities and his background with Kim Jong Nam. He regards it is inevitable for a merchant, asking, “If I did not use such a method, how could I afford my $2 million house?”
The North Korean authorities are trying to undermine this corruption by sending money directly to product suppliers, but it has had little effect.
Even if money is accumulated through underhand methods, the authorities can be pacified with sufficient money provided to the right person. The size of these transfers is a standard for evaluating ability in some quarters..
Now that the outline of the succession is swimming into focus, traders affiliated with Kim Jong Nam like Kang are looking opportunistically for chances to affiliate with Kim Jong Eun. The relationship between Kim Jong Nam and Jang Sung Taek was not good, but now they both have experience of losing Kim Jong Il’s favor, they are said to have restored their relationship.
According to Kang, Kim Jong Eun does not even recognize Kim Jong Nam as a competitor, and Kang clearly wishes to affiliate himself to Kim Jong Eun. “When it comes to authority, we cannot even believe our own family, which means that the relationship between half brothers can never be good. I believe ‘Captain Kim’, who is close to my son’s age and has studied abroad, is the man.”
Kim, a worker with the General Federation of Rear Services who is visiting Dandong for trade purposes, agrees. “People affiliated with Kim Jong Nam are the ones in trouble in China. They have reported false sales to the North Korean authorities or received corrupt payments, which means that they need to have powerful backers. They appear to be very concerned.”
Kim explained that there is a way out of this, though. Recent personnel movements on the National Defense Commission have announced to domestic and international audiences the fact that Jang Sung Taek’s dominance has begun.
Bearing this in mind, Kim explains, “Kim Jong Nam has a relationship with Jang Sung Taek, which means that there is the possibility of traders asking for an introduction while covering their backs. I keep hearing of people who have accumulated individual wealth corruptly throwing out big money to get one.”
