Defying international sanctions, North Korea’s Cabinet has ordered its trading companies to boost exports of banned goods and explore new global markets in a bid to inject foreign currency into its struggling economy.
Speaking on condition of anonymity, a source in Pyongyang told Daily NK on Monday that North Korea’s Cabinet gave orders in mid-July for large trading companies such as the Korea Mangyong-Sogam Trading Corporation and the Unha Yaksu Trading Corporation to increase their export volume by the end of August.
Specifically, the Cabinet ordered more exports of key mineral resources such as iron ore and coal. The North Korean authorities appear set on earning foreign currency through mineral exports, in disregard of the total ban on such exports in U.N. Security Council Resolution 2371.
In its directive, the Cabinet made clear that the fundamental goal for trading companies is to earn more foreign currency through trade to stabilize the economy.
In addition, the Cabinet told trading companies they need to expand their exports of frozen and processed seafood, textiles and electronic devices.
At the same time, trading companies were ordered to find diverse trade channels so they can boost imports. The Cabinet stressed the need to diversify vendors so that North Korean products can be exported not only to the North’s main trading partners of China and Russia but to other countries as well.
“The Cabinet said it was necessary to gradually expand trade by finding trade channels not only in Southeast Asian countries such as Vietnam and Thailand but also in the Middle East and in South American countries such as Brazil and Argentina. According to the Cabinet, that’s how North Korea can reduce economic uncertainty and stabilize the economy,” the source said.
Cabinet also orders imports to support regional development
In the same orders, the Cabinet said that there is an urgent need to increase not only exports but also imports and that priority should be placed on bringing in the latest machinery and equipment for the development of domestic industry.
These orders may reflect the need for the import of various equipment for running the regional factories that are being built as part of “20×10 regional development policy.”
“Thorough measures should be taken to acquire equipment for our vigorous push to build regional factories, and raw and supplementary materials need to be diligently collected so that the party’s regional development policy can exert a vital impact in the first year of operation,” North Korean leader Kim Jong Un said during the 10th Enlarged Plenary Session of the Eighth Central Committee of the Workers’ Party of Korea, which was held from June 28 to July 1.
In its recent order, North Korea’s Cabinet also expressed the need to import more construction materials such as cables, tiles and paint; more software and electronic devices equipped with the latest technology; and more food and medications that are needed in people’s everyday lives.
Since the Cabinet has set the end of this month as the deadline for implementing these orders, North Korea’s large trading companies are likely to exert themselves to boost exports and imports over the next month.
Daily NK works with a network of sources living in North Korea, China, and elsewhere. Their identities remain anonymous for security reasons.
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