How North Korea’s Economy Survive Against Sanction

This past couple of month U.S. and North Korea entangle with a deadlock of war of words. As North Korea, the isolationist nation test-fired missile which flies over Japan before crashing into the Pacific Ocean. This year alone 2017 until this article is written there has been 15 missile tests. It sparked international outrage resulted to call for much tougher sanction than ever. But why North Korea Economy survive dispute massive effort against it to destabilized it's economy? ((North Korea’s economy: How does Kim Jong-un’s communist state survive financially?))

 

North Korea stay tougher against magnitude of economic sanctions. Click To Tweet

geralt / Pixabay

When Kim Jong-Un (김정은) succeeded his father Kim Jong-il (김정일) he continued to develop nuclear weapons. On September 3, 2017, USGS reported a magnitude 6.3 seismic activity similar to an earthquake. North Korea claimed to have successfully tested a thermonuclear bomb which was estimated to be 250 kilotons based from data. Together with multiple missile test launch during these past few months over Japan resulted in tensions between North Korea and the United States that end up into threats of bombing each other.

Last May 2017, the North Korean official claim that the Central Intelligence Agency (CIA) of the United States and the South Korean National Intelligence Service (NIS) ((North Korea accuses CIA of biochemical plot to kill Kim Jong-un)) commissioned a North Korean lumberjack who worked in Russia to plot an assassination attempt to Kim Jong-un with a "biochemical weapon" that was both radioactive and nano-poisonous, and whose effect would have been delayed by a few months. They added that they would seek extradition of anyone involved in the assassination attempt.

Determination to evade sanctions

North Korea has been known to do extreme measure to evade sanctions such as identity fraud for an agent to moved money, people, and goods. One of the benefactors of this was China which imports coal as they grab the opportunity of buying at the low price due to supply and demand being the only one who could buy the product. This allows North Korea to sustain its economy upon the bombardment of effort from western countries to pressure them.

terimakasih0 / Pixabay

Another product of N. Korea which China patronize was garment industry,  which generated more than $500 million for the hermit nation for 2016 alone. Since they lack the product reputation, and they often us a label “Made in China” in their garment product to make them easier to sell. China has kept insisting that North Korea’s garment sector should be whitelisted from United Nations sanctions, pointing out punishing it further would hurt ordinary people and not military programs with the same is also used in North Korea’s food industry.

How China back North Korea's Economy. Click To Tweet

 

((How North Korea Cheats Sanctions))

Russia and China water down sanctions

One of the known ally of N. Korea, Russia together with China help lessen the burden of sanctions to an ordinary citizen. As Mr. Putin said recently, North Koreans will “eat grass” before they give up nuclear weapons. This is not to say that sanctions are wrong or fruitless, but they will not halt North Korea’s nuclearization.

 ((Why Russia Won't Help More on North Korea))

U.S. has a lot to lose than to gain in sanctions

U.S. a dominating economy has rolled out recently sanctions against various countries including Russia and Venezuela. In Russia case alone there are five largest companies in Western Europe to halt their business activities on a gas pipeline. This implies a domino effect down the supply chain in terms of cargo's being much costly which could potentially hurt the global economy too.

U.S. has a lot to lose than to gain in sanctions. Click To Tweet

U.S. Sanctions Are Very Bad News - Unless You're North Korea via CNBC

Underground Economy

Room 39 is a secret room believe to be inside of Workers' Party building in Pyongyang. it is said to be responsible for dealing with the black market to fund the country. Created by the late Kim Jong-il of the central party department called “Office No. 39”, which was named after the arbitrary office number where it began operations. It is responsible for counterfeiting foreign currency especially USD as well as producing drugs and other illegal activities.

Inside North Korea's Most Secret Room via Eskify

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