• Title/Summary/Keyword: Sanctions against North Korea

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Finding Loopholes in Sanctions: Effects of Sanctions on North Korea's Refined Oil Prices

  • KIM, KYOOCHUL
    • KDI Journal of Economic Policy
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    • v.42 no.4
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    • pp.1-25
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    • 2020
  • The international community's sanctions against North Korea, triggered by North Korea's nuclear tests and by missile development in the country, are considered the strongest sanctions in history, banning exports of North Korea's major items and limiting imports of machinery and oil products. Accordingly, North Korea's trade volume decreased to the level of collapse after the sanctions, meaning that the sanctions against North Korea were considered to be effective. However, according to this paper, which analyzed the price fluctuations of refined petroleum products in North Korea through the methodology of an event study, the market prices of oil products were only temporarily affected by the sanctions and remained stable over the long run despite the restrictions on the volumes of refined petroleum products introduced. This can be explained by evidence that North Korea has introduced refined oil supplies that are not much different from those before the sanctions through its use of illegal transshipments even after the sanctions. With regard to strategic materials such as refined oil, the North Korean authorities are believed to be desperately avoiding sanctions by, for instance, finding loopholes in the sanctions to meet the minimum level of demand.

The Implications of Economic Sanctions on North Korea via Case Studies of Sanctions on Iran and Iraq (이란·이라크 경제제재 사례를 통해 본 대북 제재의 함의)

  • Kim, Yiyeon
    • Journal of International Area Studies (JIAS)
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    • v.22 no.1
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    • pp.135-160
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    • 2018
  • This study aims to predict the likely effect of economic sanctions on North Korea by examining case studies of Iran and Iraq. While UN sanctions against Iraq had immediate negative consequences for society, such as causing famine and reinforcing the authoritarian regime, sanctions against Iran had some productive consequences after they were reinforced by the U.S. and EU in significantly reduced oil exports and government expenditure, which in turn led to regime change and willingness to negotiate nuclear programs for economic recovery. Apart from these distinct differences, sanctions in both countries caused high inflation, shortage of necessary supplies, and increased unemployment. Case studies of Iran and Iraq also reveal that the sanctions disproportionately affected women and children, which implies that the recently reinforced economic sanctions of the U.S. and China against North Korea will cause more suffering of similarly socially marginalized groups in North Korea.

The Effect of Economic Sanction against North Korea on North Korea-China Trade

  • Cho, Sung-Taek;Kim, Hyuk-Hwang
    • International Area Studies Review
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    • v.20 no.3
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    • pp.23-44
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    • 2016
  • This study attempts to scrutinize the effectiveness of the international economic sanction on North Korea by analyzing the determinants of the North Korea-China trade with Chinese Customs House data classified under general, border, processing, bonded warehouse. The result shows that after international economic sanctions, North Korea-China trade was increased across types of trade. In particular, sanction-sensitive items were increased after sanctions and China also weakened the effectiveness of sanctions. To put it concretely, North Korea's food and fuel imports from china increased in processing and border trade. In the case of luxury good, it was increased in general trade. Strategy goods (weaponry) increased only in bonded warehouse trade. For China's import from North Korea, food and fuel were increased in total, border and bonded warehouse trade. Considering the features of each type of trade, these increase are presumed to have been playing a decisive role in weakening the effect of international sanction on North Korea.

An assessment of sanctions on North Korea and the prospect (대북 제재 조치 평가 및 전망)

  • Cheon, Seong- Whu
    • Strategy21
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    • s.31
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    • pp.5-26
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    • 2013
  • The South Korean society has experienced many changes since the sinking of ROKS Cheonan. The government reviewed its defense posture and adopted the 5·24 Measure in its relations with North Korea. As a result, the people of South Korea became more conscious of security situations on the Korean peninsula while North Korea's economy suffered badly. Meanwhile, the South Korean government has taken a flexible stance toward North Korea in terms of exchange and cooperation since September 2011. The flexible stance was to manage inter-Korea relations in a stable manner and relieve the hardships of the North Korean people while preserving the spirits and purposes of the 5·24 Measure. The UN Security Council adopted twenty-six resolutions and statements on North Korea since June 25, 1950. They include thirteen U.N. Security Council resolutions including those concerning nuclear weapons or missile programs, nine Presidential statements, and four press statements. Resolution 82, the first U.N. resolution on North Korea, came when the Korean War broke out. Resolution 825, the first one related to nuclear or missile programs, was adopted in response to North Korea's withdrawal from the NPT. Apart from these U.N. resolutions, the United States has imposed separate sanctions against North Korea. North Korea's nuclear weapons program can be considered in comparison with that of Iran in terms of the consequences they create for the regional security. The Security Council has adopted six resolutions on Iran so far. One should note that the resolutions on Iran have had much stronger sanctions compared to those imposed on North Korea. That is, while the North Korea case may be viewed as a more serious threat to international security from the perspective of nuclear weapons development or proliferation, tougher sanctions have been placed on Iran. There are two approaches that South Korea should take in addressing the related issues. First, we should aim to reduce the gap between sanctions imposed on Iran and North Korea. It is difficult to understand that a country with more serious problems is rewarded with lighter sanctions. We should take measures through the Security Council Sanctions Committee to make individuals and groups in North Korea that play a central role in developing nuclear weapons and missiles subject to additional sanctions. Second, we have to change. Other countries in the international community have become tired of North Korea's nuclear issue and now they look to South Korea for initiative. We should correctly understand this current situation and play a leading role within our capacity. Knowingly and unknowingly, the notion that the North Korean nuclear issue may be left to South Korea has been spread around the international community. Although the situation is grave, we should try to open a new horizon in ushering in the unification era by taking the initiative with confidence that there is a looming hope ahead of us. For these tasks, we should stop thinking in the old way that has been ossified for the last two decades. We should not be pushed around by neighboring great powers in dealing with North Korea related issues anymore; we should take the initiative with resolution that we will play our role at the center of four great powers and with confidence that we can do it. Based on the confidence that the Republic of Korea has become a country with enough capacity to take the initiative, we should establish a 'National Grand Strategy' representing South Korea's strategic vision that the unification is the ultimate solution to the problems related to North Korea's nuclear weapons program.

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UNSC Resolution against North Korea and ROKN's Reactions (유엔 안보리 대북제재 결의와 우리 해군의 대응)

  • Park, Chang Kwoun
    • Strategy21
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    • s.39
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    • pp.82-113
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    • 2016
  • This paper analyzes the contents and the effects of the UNSC 2270, and its implications to South Korea's defense strategy and navy. The UN Security Council passed strong sanctions against North Korea which punish North Korea's 4th nuclear test. The sanctions compared to the previous ones require international society to take practical actions such as comprehensive trade bans as well as diplomatic isolation which will put significant pains on North Korea. Especially, these measures would greatly hamper economic development policy of Kim Joung-un regime. Because Kim Jung-un regime has inherent legitimacy problems which stems from the third family succession of the power, economic difficulties may play an important cause on the regime instability in the long term. In fact, the United States sees this possibility as an option to coerce North Korea in which North Korea choose denuclearization for its regime survival. Nevertheless, the prospects of the UN sanctions are not so optimistic. Considering North Korea's willingness for nuclear development and its level of nuclear technology, North Korea will try to play a gambit with the US and South Korea by exploiting its strategic advantages. North Korea's response will have three following strategies. First, it would actively pursue political and economic survival strategy by using China's support for the regime, strengthening its power grip in the name of countering US hostile policy, and enhancing peace propaganda. Second, North Korea will accelerate efforts to position its status as a nuclear de facto state. For this purpose, it could create nuclear crisis on the peninsula. Third, it would exploit local provocations as an exit strategy to get over the current situation. In order to counter North Korea's actions and punish North Korea's behavior strongly, South Korea needs following strategies and efforts. It should first make all the efforts to implement the UN sanctions. Strong and practical nuclear deterrence strategy and capability with the U.S. should be developed. Effective strategy and capabilities for the prevention and deterrence of North Korea's provocation should be prepared. For this purpose, North Korea's provocation strategy should be thoroughly reviewed. Active international cooperation is needed to punish and coerce North Korea's behavior. Finally, South Korea should prepare for the possible occurrence of North Korea's contingency and make use of the situation as an opportunity to achieve unification. All these strategies and efforts demand the more active roles and missions of South Korea's navy and thus, nullify North Korea's intention militarily.

Analysis of China's Aid to North Korea: Focusing on The Two-level game theory (중국의 대북지원 결정요인에 관한 연구: 양면게임이론을 중심으로)

  • Kim, Hyun-Jung;Park, Sunhwa
    • Korea and Global Affairs
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    • v.2 no.1
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    • pp.113-136
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    • 2018
  • The purpose of this study is to start from the recognition of the problem of why the sanctions of the international community could not indicate a great effect. In order to find answers to this question, this study focuses on China's aid to North Korea and analyzes the determinants of support for North Korea. Despite a tough international community's sanctions against North Korea, China has taken a dual stance on sanctions and support for North Korea. As for this dual attitude of China, this study approaches the internal and external situation of the support to the North with the rationale for the Two-level game theory. China's sanction against North Korea could be divided into two categories: external factors and domestic factors. These factors include strengthening supremacy in China, checking the US, playing a responsible role in China, securing resources in North Korea, sustaining stable growth in China, maintaining the legitimacy of China's socialist political system, and spreading the Beijing consensus. Based on the analysis of these factors, it could be expected that China's aid for North Korea will be official, informal, or continuous, and it will be difficult for the North to stop supporting North Korea or deteriorating North Korea- China relations.

North Korea, Apparel Production Networks and UN Sanctions: Resilience through Informality (북한 의류 생산네트워크와 UN 제재)

  • Lee, Jong-Woon;Gray, Kevin
    • Journal of the Economic Geographical Society of Korea
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    • v.23 no.4
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    • pp.373-394
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    • 2020
  • The strengthening of multilateral international sanctions against North Korea has raised questions as to how effective they are in exerting pressure on the country's economy. In this paper, we address this question by examining their impact on the country's integration into regional and global apparel production networks. North Korea has in the past decade become an increasingly competitive exporter of apparel on the basis of consignment-based processing arrangements. Official trade data shows a sharp drop in North Korean exports of clothing since the sectoral ban in 2017. There is evidence to suggest, however, that exports have continued on a more informal and clandestine basis. North Korea's integration into apparel production networks has also taken the form of the dispatch of workers to factories in China's northeastern border regions. Yet there is evidence that the recent sanctions imposed on such practices has similarly led to illicit practices such as working on visitors' visas, often with the help of Chinese enterprises and local government. The resilience of North Korea's integration into apparel production networks follows a capitalist logic and is result of the highly profitable nature of apparel production for all actors concerned and a correspondingly strong desire to evade sanctions. As such, the analysis contributes to the literature on sanctions that suggests that the measures may contribute to emergence of growing informal and illicit practices and to the role of the clandestine economy.

North Korea's negotiating tactics and the corresponding direction -Based on the agreement concluded by inter-Korean high-level contacts- (북한의 협상전술과 대응방향 -남북 고위급접촉 및 공동합의문 타결을 중심으로-)

  • Kim, Gyu Nam;Lee, hyun Hee
    • Convergence Security Journal
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    • v.15 no.5
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    • pp.61-70
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    • 2015
  • North Korea invaded South Korea on June 25, 1950 and the armistice agreement was reached on July 27, 1953. After that, there have been about 5,000 provocations large and small. In particular, North Korea attacked a naval vessel called "Cheonanham" on March 26, 2010. After the attack, Korean government announced the sanctions against North Korea, so called "May 24 sanctions". North Korea bombarded Yeonpyeong provocation on November 23, 2010 and they planted wood box mines in the DMZ on August 4, 2015. The explosion of them resulted in injuring two Korean soldiers. In response to this accident, Korean government resumed loudspeaker broadcasting against North Korea in 11 years which had developed as the psychological warfare. After this, North Korea declared "being a state of war" and intensified tension. Suddenly North Korea suggested talks and two countries reached an agreement through inter-Korean high-level contacts. But we should review whether the agreement was reached with ease and in haste. This paper focuses on the North Korea's negotiating tactics and suggests our corresponding directions for the future.

Efficacy of UN's Sanctions on North Korea's Nuclear and North Korea's Regime Survival Strategy (유엔의 북핵 대북제재조치의 실효성과 북한의 체제생존전략)

  • KIM, JOO-SAM
    • Korea and Global Affairs
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    • v.2 no.1
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    • pp.69-92
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    • 2018
  • North Korea conducted a total of six nuclear tests from the 1st test of 2006 to September, 2017. North Korea developed an armed forces security strategy at the level of regime protection and defense to respond to U.S. hostile policy. However, it is certain that strategic goals of North Korea's nuclear test were to overcome a crisis in North Korea's regime through US-North Korea negotiation and complete nuclear armed forces for socialist unification on the Korean Peninsula. North Korea's continuous nuclear test is a direct factor in threatening peace on the Korean Peninsula and an indirect factor in security dynamics of Northeast Asia. The U.N. Security Council has enforced sanctions against North Korea through six resolutions against North Korea's reckless nuclear test for the past 10 years. However, Kim Jong-Un's regime is in a position to stick to simultaneous pursuit of nuclear and economic development in spite of anti-North sanction of international society including U.N. and U.S.A. It is understood that North Korea was stimulated to conduct intense nuclear test as U.N. and U.S.A's anti-North sanction was not effective on North Korea. Full-scale and local wars are expected as military options, one of anti-North sanctions of the Trump administration. The Trump administration has attempted diplomatic pressure strategy as a secondary boycott unlike previous administrations. Nevertheless, North Korea has stood against U.N. and U.S.A's anti-North sanction with brinkmanship tactics, announcing full-scale military confrontation against U.S. It is judged that North Korea will pursue simultaneous nuclear weapons and economic development in terms of regime survival. North Korea will have less strategic choices in that its regime may collapse because of realistic national strategy between U.S.A. and China.

The Mutual Assistance System and Cooperation between South Korea, the U.S. and China for the North Korean Nuclear Issue and Unification of the Korean Peninsula (북핵과 한반도 통일에 대한 한·미·중 3국 공조체제와 협력)

  • Kim, Joo-Sam
    • Korea and Global Affairs
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    • v.1 no.1
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    • pp.71-96
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    • 2017
  • This study speculates on responses to the nuclear threats of North Korea and mutual assistance and cooperation between South Korea, the U.S. and China for the unification of the Korean Peninsula. As for the North Koreas nuclear issue and unification of the Korean Peninsula, South Korea is the subject of national division, the U.S. is a responsible country in international issues and does not have diplomatic ties with North Korea. China is a traditional socialist nation and a supporter of North Korea. As North Korea's strategic weapons including nuclear weapons and ballistic missiles are international issues, to defend against Kim Jung-Eun's unexpected acts, the three countries should actively cooperate with each other and develop countermeasures. However, with respect to the road map of the North Koreas issue, there are subtle differences between the U.S. and China in recognition of and sanctions against North Korea as a resolution of the U..N. Security Council. The U.S. has continued a deterrence policy and sanctions against North Korea based on joint threats between South Korea and the U.S. while China has showed a negative position in the process of solving the North Korean nuclear issue because of the unstable security derived from the U.S. 's intervention in the Korean peninsula. North Korea should change its diplomatic policy in a more concrete way towards world peace although it has continued trade of strategic weapons with Middle Eastern countries to maintain its political system. For example, to restart the summit talks and open multilateral security channels. Although the issue of unification of the Korean peninsula should be resolved by South and North Korea themselves, it is strange that South and North Korea depend on the logic of powerful countries for the resolution of a national problem. As for North Koreas nuclear and the Unification issues, peaceful solutions presented by South Korea seem more persuasive than the solution presented by North Korea which did not secure any international support. However, South Korea, the U.S. and China need to develop uni-directional two-tract strategies for sanctions against North Korea and talks with North Korea for peace on the Korean peninsula, and should continue to support the economic independence of North Korea.