Where North Korea Takes Money if Sanctions Act Against It - ForumDaily
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Where does North Korea take money if sanctions are against it

Photo: video frame

The French magazine L'Obs understands how North Korea manages to finance itself and why world sanctions do not prevent Pyongyang from developing a nuclear program, writes RFI.

First, as the newspaper writes, only partial embargo is applied to North Korea. Therefore, Pyongyang can still make profits from exports abroad. The United States, in spite of the harsh statements of the country's leadership, according to the magazine, cannot yet decide on a full embargo. Since the economic blockade will affect not only North Korea, but also China, India, Russia, Brazil, Germany and even France.

According to the North Korean state ideology “Juche”, which is based on national communist ideas, the republic can exist if it does not depend on external political and economic influences.

The DPRK positions itself as a self-sufficient economy and adheres to isolationist policies. However, as the French magazine writes, Pyongyang is not as closed from the world as it may seem. Despite sanctions and an international blockade, the country continues to receive billions from absolutely legal trade deals.

In the 2015 year, for example, North Korea exported goods to 2,8 billion euros. 34% of this amount was coal, another 29% was obtained for textiles. 4,9% of the total amount was metals.

According to L'Obs, France, which does not maintain any diplomatic relations with Pyongyang, is at the same time its main European client. The Ministry of Foreign Affairs of France confirmed this information to the journal L'Obs and recalled that this refers only to the limited scope of trade. “Products from North Korea account for only 0,002% of total imports. We are talking about mechanical and electrical devices, plastics and rubber, ”said the French ministry.

The main economic partner of the DPRK, as before, is China. North Korea supplies more than 80% of its products to China. Because of the UN sanctions in August, 2017 Beijing stopped importing North Korean iron, iron ore and seafood. However, as Les Echos writes, Pyongyang can still sell dozens of other goods, including gravel, sand, chemical products, soybean oil, and textiles.

L'Obs believes the United Nations will not decide on a complete economic embargo against North Korea. Why? No one wants to be responsible for the new famine in the country.

According to the French edition, non-governmental organizations also help North Korea to exist. The European Commission, for example, from 1995 to 2015, transferred about 135 million euros to the needs of the local population.

According to the UN, more than 60 thousands of North Koreans work abroad. They bring in the country from 1,2 to 2,3 billions of dollars a year. According to the organization, their salaries in China, Russia and the Middle East are transferred to structures under the control of the North Korean regime, which pay employees only 20% of the official amount.

According to the BBC, the North Korean regime is also brought money by the arms trade through front companies with countries in Africa, the Middle East and Southeast Asia. In addition, as reported by the British TV and Radio Company, the North Korean state organization Division 39 is engaged in drug trafficking, counterfeit banknotes and patents. Les Echos is estimated that for this activity, North Korea receives about 100 million dollars per year. In addition, the DPRK, through its diplomats, writes L'Obs, smuggles rhino horns from Africa and sells them on the black market to Chinese customers. For the latter, by the way, rhino horns powder is a powerful aphrodisiac and cancer treatment.

Cybercrime, as L'Obs writes, also brings profit to the Kim dynasty. By launching the WannaCry virus into the network and committing a cyber attack on the Central Bank of Bangladesh, the North Korean regime and the associated cybercrime group Lazarus enriched themselves with 800 million dollars over the year.

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