A unified Korean Peninsula is a future that
everyone dreams of. But what kind of unification is imagined by the specialists
who are actually working hard in their own fields for this cause? It’s
time for “Unification Table Talk”, where we draw a more detailed
assessment of a unified peninsula with guest specialists.
Transparency International annually
investigates 177 countries all over the world on a Corruption Perceptions
Index. North Korea has ranked the most corrupt country in the world for four
consecutive years. Today we will discuss the rampancy of corruption in North
Korea and the influence of such corruption on society. Joining us is Professor
Lee Geun Young from Seoul National University.
1.
Recently, there have been a series of purges of high level officials. It’s been
reported that Kim Jong Un made an order to “scrounge out the acts of corrupt
cadres and wage a strong war against them.” He demanded the eradication of
corruption by cadres. Why did Kim Jong Un suddenly make such orders?
Many
interpretations are possible but first of all, I think the strongest purpose
behind such orders by Kim Jong Un is control. Secondly, although these people were
regarded as positive influences in establishing the leadership of his father
and himself during Kim Jong Il’s era, it seems he now considers them obstacles
to overcome in demonstrating his own leadership. So the orders were made to
strengthen control and establish his leadership.
There
are obstacles that must be overcome in order to more clearly express his
policies and I think those obstacles are political reforms. Therefore, due to
the heavy focus on high level cadres there are occurrences of non-socialist
developments, right? My analysis is that the order was intended for the
eradication of such occurrences.
2.
Is corruption in North Korea an issue that can be resolved with a single order
from Kim Jong Un?
Research
shows that cases of corruption and non-socialist behavior have somewhat decreased
temporarily. This is because first of all, one of the stronger developments
since Kim Jong Un’s leadership has been the trend of globalization pushed for
by Kim Jong Un. There are clear rights that come with foreign trade and if Kim
Jong Un makes a command in order to strengthen control of foreign trade, it is
inevitable that signs such as a decrease in the frequency or cost of corruption
become visible. However, fundamentally, the phenomenon of non-socialism or
corruption cannot be resolved with a command or order.
3.
Truthfully, corruption is an issue in any country. There are issues of
corruption even in democratic nations. However, it seems the traits of
corruption in countries with well-developed democracies and countries without
well-developed democracies, especially North Korea, are quite different. What
do you think?
You’re
correct. Corruption also occurs in developed nations as well as in developing
and less developed nations. When looking at the theme of corruption and the
situation of development in a nation, the phenomenon of corruption somewhat
contributes to the development of the country. Corruption does not have a
negative influence on all parts of society.
On
the other hand, there is always a debate of pros and cons in discussions about
whether corruption makes continuous growth possible. There is not much
corruption in developed nations because administrative systems and structures
are sound and trusted. However, one characteristic of corruption in developed
nations is that most instances occur for the gain of the organization and what
could be considered corruption occurs from a difference in interests. This is
true for the U.S., Japan, and South Korea. There is no set division of good and
evil as these instances arise from a difference in interests.
But
with less developed nations for example, they do not have anything in place of
the administrative systems and market structures, or the same degree of shared
information among social classes. Therefore, acts of corruptions such as kickbacks, bribes, or nepotism
though connections play the role of replacing the excessive administrative
weaknesses. Then like grease on a wheel, once the administration is advances, these
acts are able to develop and emerge as a phenomenon of corruption. It could be
said that when looking at the phenomenon of corruption in nations like
socialist countries with an underdeveloped democracy or less developed nations,
the least noticeable and most important characteristic is that it begins with
something very small then becomes a part of everyday life.
4.
And in the midst of that, what does corruption in North Korea look like?
Corruption
in North Korea is like looking at a living organism. In the past, honestly,
nothing in North Korea was referred to as corruption. However, the word
“corruption” started to appear in Kim Il Sung and Kim Jong Il’s works. If you search
for the content, it mostly refers to acts of non-socialism. For example,
everyone should engage in political activity for the party and as a member,
should be a contributing revolutionary but anyone who does not do so and cares
for his or her own safety or seeks monetary reward is referred to as a
corrupt individual.
It
uses a similar method as the one used in chasing out of landowners during land
reforms in 1960. What was recognized as corruption by Kim Il Sung or Kim Jong
Il at the time was the sloth of laborers. The method was used in that manner
then but during the “Arduous March” of the 1990s when famine became an issue and
when the nation could not fulfill its duties, the black market became the
alternative for North Koreans. In private locations, there were minor acts such
as bartering, transactions with small bills, and trade but now such acts have
become somewhat standardized, and it could be said that such behavior has
become even more systematized by collusion and collaboration among mid-level Party officials.
4-1.
I want to take a closer look at the aspects of corruption in North Korea. It
seems corruption at the highest level, with mid level cadres, and among average
North Koreans differ slightly. First, what does corruption at the highest
level, including Kim Jong Un, look like?
When
looking at corruption, or in other words cases of non-socialist situations, at the highest
levels, it is first of all committed by those with a certain level of status
and those who are called revolutionaries. The most representative act of
corruption is the business of making foreign money. In the past, when laborers
were sent to Russia as loggers or when Kim Jong Il launched a politics of gifts
through delegates or diplomats in Europe, many pocketed a portion during the
process of importing many expensive goods or procuring maintenance expenses for
the party system. However, one characteristic of corruption committed by the
highest officials including Kim Jong Un is that the acts have become bolder,
committed on a larger scale, and done through a greater variety of distribution
routes.
For
example, during Kim Jong Il’s time, consumption-oriented items such as
expensive watches, cars, and liquors were at the center of corruption. Now more
interest is leaning towards raw materials. For example, North Korea is
currently facing international sanctions on the import of tools and materials.
It could be said that a slightly different characteristic under this situation
is that high level officials are now using such routes as a means for making
foreign money.
4-2.
Then what type of corruption is being committed by mid-level cadres such as enterprise managers, State Security Department officials, and Party cadres?
It
could be said that one trait of mid-level managers is that they are the people
who can best maintain a relationship with average citizens. For example, North
Korea talks about party cells, generally individuals who systematically manage
5 or more people. These people are managers who also have groups like job
unions and women’s unions. Therefore, as a part of self criticism or the
political work in each province, they come to take on the role of commanding,
regulating, and managing whatever orders are sent from the party. The
corruption committed by party cells is support of residents or members of
party cells with acts that can be tolerated under their authority while
receiving compensation in return.
In
most of these cases, it’s a carton of “Cat Cigarettes”. It’s said that the
preferred amount is one carton, or one “stick” as North Koreans call it. When
looking particularly at the most desired bribes by mid-level managers, there
seems to be a longing for a western lifestyle and society. For example, seeing
how things like South Korean Cuckoo rice cookers, kimchi refrigerators, Hallyu
dramas, or CDRs are being used as bribes, I wonder if interest about the
outside world has slowly increased.
4-3. According to defectors, anyone who doesn’t lie and lives
an honest life is called a fool. Are average North Koreans who aren’t cadres
also involved in corruption?
Of
course. Corruption is a phenomenon that is always relative and occurs through
interaction. Obviously, corruption is rampant in North Korea and there is an
increasing amount of behavior running contrary to socialism without the recognition that they
are spreading through daily life.
Conversely,
we cannot overlook the fact that there is some logic for corruption firmly
maintaining the North Korean system for 70s years. Therefore, the North Korean
people are also involved in corruption but because a considerable portion of
corruption occurs in economic issues, personal issues, or social issues between
individuals, I don’t think everyone is like that.
There
is a trend of North Korean authorities also allowing a considerable amount of
corruption. The most representative example is the economic reform measure of
July 1, 2002. In South Korean terms, it’s the case that we pay taxes according
to what we make and everything else is acknowledged as ours to keep. The
notable example of late is the vegetable management system. In the past, a few
party cells would gather to cultivate a garden based on its size but now
backyard gardens submit crops to the party through a family farming system and
the rest is kept. Therefore, in order to create a greater profit, people have
more reason to strongly push for economic life.
5.
If that’s so, it seems corruption in North Korea is not an issue limited to
individuals or one class but it’s that the entire society is structured with
corruption. I wonder if corruption isn’t the system that runs society. How do
you see it?
It
seems North Korean authorities realize that a large part of corruption or
non-socialist behavior are having a somewhat negative effect. But when limited
to such acts, there were many cases attempting to prevent corruption such as
accompanying and controlling non-socialist groups but these days, authorities
are showing actions of making sure that such corruption contributes to the
system of preserving the party.
For
example, since the stimulation of the economy, mobile phones were distributed.
As you know, in order to communicate via mobile phone, there must be a network
provider but there is no network provider in North Korea. Border areas near
China use Chinese network providers but the North Korea cabinet has the
communications department. South Korea has one too, right? Under the
communications department, state enterprises have already been paralyzed to a
point of where economic activity is close to impossible but in the past, an
Egyptian mobile communications called Orascom was its substitute. So the
structure was established so that the greater the use of mobile phones, the
more money Orascom made.
However,
the communications department merged with Orascom to launch a mobile
communications company called Koryeo Link. From North Korea’s perspective,
after creating Koryeo Link, increased use of mobile phones was advantageous. They
had regulated and controlled the use of mobile phones in the past but now
pushing for use of mobile phones was a matter of national interest. It could be said that the slight change in direction in order to assist reconstruction of
North Korean state enterprises is a small change in attitudes starting from the
Kim Jong Un era. It could be said that North Korean authorities’ stance or view
on corruption has changed a little bit.
6.
What effects do you think the structuralization of corruption in North Korea
has had on its economy?
North
Korea displays all the traits of a typical undeveloped country. Many may
disagree on the particulars regarding North Korea’s status as a state but like in the case of other
underdeveloped nations, structured corruption could be seen as having somewhat
of a positive effect on North Korea’s economy.
However,
whether or not the North Korean system can handle corruption is a different
matter. When the developed economic situation rises to a certain level,
corruption will most definitely begin to have a negative effect on economic
development. The current structure of corruption has somewhat contributed to
general economic growth but after some time, it will become a large nuisance.
Since corruption is a phenomenon that conflicts with the Juche ideology and the
most basic ideologies needed to preserve North Korea’s system, how to accept or
dispose of the phenomenon will become the greatest task facing the Kim Jong Un
system.
7. Since when did corruption become so widely rampant like it
is now?
According
to my research, non-socialist behavior started occurring in the late 1980s.
Such cases used to be extremely rare. But escape from North Korea for political
reasons began in the early 1990s, and economic issues began to be brought up
among them around the same time. In 1989, Germany was unified. In the early
1990s, the Soviet Union collapsed and the eastern European countries that
followed went through system transformations or unification. Therefore from
North Korea’s perspective, countries that imported raw materials and nonaligned
nations disappeared. Its brothers disappeared.
China
was also becoming bound to South Korea through diplomacy so in some ways, North
Korea’s routes to resources were being blocked off. North Korea passed through
the late 80s to 1990 in this manner and due to extreme chaos and economic hardship
in North Korean society caused by Kim Il Sung’s death in 1994, life was so difficult
enough for everyone from the high level officials to the people that the times
were called the Arduous March. Sporadic distribution of rations did occur but
the times would have felt like an immense crisis.
In
South Korea, don’t we also buy things like ramen or flour at the supermarket
during times of economic crisis? That’s not because of an immediate lack of
food, it’s in order to stock up. I think a similar phenomenon would have
occurred in North Korea. Public distribution was minimal at the time so it was
a socialist phenomenon and the system would have had to maintain a closed
structure but seeing how high the inflation was under that structure, it seems
true that the lives of the people would have been very difficult.
8. Ultimately, the Kim family of Kim Il Sung, Kim Jong Il,
and Kim Jong Un gave a sense of superiority and compensation to the special
class while turning a blind eye to corruption by cadres. Kim Jong Un himself is
maintaining the regime with corruption but will he be able to take lead in
eradicating corruption?
Maintenance
of the system through the earning of foreign money or bribes by middle
management falls under the economic field and Kim Jong Un’s calls for
eradication of corruption seem to correspond with the economic reform.
Economics
and politics ought to be looked at separately but only just last year, Kim Jong
Un purged sixty people. Looking at the purge list of the sixty, they were all
marked as “corrupt” for political aims but it seems that they were dispelled as
obstacles to political reform or as hindrances to be overcome for Kim Jong Un’s
displays of leadership. So the donjuLiterally "masters of money," donju refers to people who hav... More who have built up economic power through
corruption are not supposed to be permitted in a socialist state but there are no cases
of such people being punished or purged.
9. The issue of corruption in North Korea: how can it be
solved?
It
must be a great concern for Kim Jong Un as well. The internationally accepted
Corruption Perceptions Index is released annually and North Korea always ranks
last place with Somalia However, there has been some change. In 2010 and 2011,
North Korea received 1 point out of 100. But looking at recent documents from
2012 up until last year, North Korea received 8 points. This is because North
Korea is perceived to have opened up economically and another reason is because
it seems there have also been some forces change in aspects of North Korean
society that were deemed unacceptable according to views of outside world.
Yet
the pace of change is slow and exchange is necessary to resolve the problems of
corruption. North Korea must meet with the outside world and it is necessary
for North Korea to self-reflect on how it must change in order for people from
other countries to trust it during interactions.
Additionally,
in order to decrease political corruption, North Korea’s task is to share
information. So the sharing of information is the constant dilemma in economics
and in politics. Therefore, corruption can contribute somewhat to the growth of
the nation but in the end, come back to bite the North Korean system.
Yes,
in today’s “Unification Table Talk” we spoke with Professor Lee Geung Young from Seoul
National University about North Korea’s chronic corruption – where it is a
problem and when the cycle of corruption can be ended. If North Korea’s problem
of corruption is not resolved, it seems that it will not only be difficult to
maintain the Kim Jong Un regime but corruption will become a large obstacle to
the economic growth of the people. Professor, thank you so much for your
helpful words today.
