Due to the recent bombing activities and international threats, the United Nations, as well as the surrounding countries, have decided to cut off trade routes to North Korea, limiting the country’s resources and putting its people in a bind.
UN stopped imports of oil and refined products, as well as textile exports, from North Korea, despite the materials being some of the few stable foreign currency earners of the country. China also caused a curb on NK’s fuel sales, eliciting the majority of the 97 percent drop in gasoline exports compared to last year.
Chinese bank branches in the northeastern part of NK have been denying doing business with the locals. Chinese traders also refused to offer their services to the North Korea’s fear of them not getting paid. Aside from these, Chinese officials were said to be focusing more on stopping fuel smuggling across the border, which has been a great source of fuel in the northern parts of North Korea.
A foreign resident of NK said that the living expenses in the country have “gone up.” Petrol prices rising has also caused fewer vehicles to be seen in the streets. Also, according to him, the only supply that grew cheaper was the coal after China banned North Korean imports earlier in the year.
For A Better Economy
The South Korean government assures that relationship with the United States is intact despite the building tension between its neighboring countries.
South Korean President Moon Jae-In said in a meeting with American financial heads at the New York Intercontinental Hotel, “Korea and the United States are in agreement that sanctions and pressure (against the North) must be resolved through diplomatic and peaceful means. Although we cannot say there is no ‘North Korea risk,’ the Korean economy is steadily growing solid.”
Moon also stated that the ROK-US alliance is now focusing on a “people-center economy,” wherein household incomes will be raised by both countries as a solution to “economic inequality and holding back the growth of our economies.”
On the other hand, Deputy Prime Minister and Finance Minister Kim Dong-Yeon said in a meeting held to discuss the pending economic policies and situation in Korea that “North Korea risk would be short-lived.” Kim also explained that the recent foreign sell-off on Korea’s main stock market, over the past eight trading days — worth some 1.05 trillion won ($914 million) — was “an act of profit-taking” and is in no way related to the risk in North Korea.
However, this did not mean that they will be taking the situation lightly. Precautions are still in place and according to Kim, “authorities will maintain 24-hour monitoring of foreign markets and take immediate measures when necessary.”
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