SEOUL — When North Korea’s leader Kim Jong-un rose to power more than a decade ago, he repeated two promises his family has made since he founded the country in 1948: to strengthen the military and improve the economy.
On the military front, Kim, 38, has ramped up the country’s nuclear and missile programs.
On the economic front, it has struggled, with an already isolated country further isolated by years of international sanctions over its nuclear program and border closures since the coronavirus pandemic.
With its international trade devastated, North Korea is scrambling for US dollars and other currencies. He is smuggling coal and stealing cryptocurrency. It is also trying to squeeze cash from the public, selling smartphones and other imported goods to the wealthy class.
Parastatal stores are a fundamental piece. Customers can use US dollars to pay for international brands of instant noodles, deodorant and diapers, while change is returned in North Korean won.
Such transactions and other illicit activities have given Kim the means to expand the country’s arsenal and capabilities, including testing a new intercontinental ballistic missile this month. The arsenal is not only a war deterrent, but also a negotiating lever. Kim seems to have come to the conclusion that trading some of his arsenal for sanctions relief is his best hope for financial gain.
Kim’s economic drive is most clearly on display in Pyongyang, home to the loyalist elite. The shelves of the City’s supermarkets are more crowded with imported and nationally produced products. Its skyline is dotted with new apartment towers. Much of the change is cosmetic, with many decrepit buildings covered in pastel paint. North Korea has opened a new terminal at the international airport, renovated subway stations and opened amusement parks.
These reforms have done little to improve economic prospects. Last year, Kim warned of a possible food crisis. The trade deficit may run to at least $1.9 billion, according to the Institute for National Security Strategy, a think tank affiliated with South Korea’s National Intelligence Service.
To keep her promises, Kim needs cash. Missile tests this year alone have cost North Korea hundreds of millions of dollars, South Korean and US researchers have estimated.
To entice spenders with foreign savings, department stores are packed with imported goods, including Rolex and Tissot wristwatches, Sony and Canon digital cameras, as well as Dior and Lancôme cosmetics, all luxury items banned under UN sanctions. .
By: Choe Sang-Hun and Pablo Robles
BBC-NEWS-SRC: http://www.nytsyn.com/subscribed/stories/6494472, IMPORTING DATE: 2022-12-14 23:20:09
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