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North Korea

US to Impose New Financial Sanctions on N. Korea

2010-08-05

Korea, Today and Tomorrow

Washington’s new financial sanctions on North Korea are beginning to take shape. U.S. coordinator of North Korea sanctions Robert Einhorn held a series of meetings with high-ranking South Korean government officials in Seoul earlier this week and announced the so-called “measured sanctions” against North Korea. Einhorn pointed out that North Korea earns hundreds of millions of dollars each year from illegal activities, such as counterfeiting U.S. currency notes and narcotics smuggling, and that the money could be used for manufacturing nuclear weapons and purchasing luxury goods. He said a blacklist of North Korean institutions, companies and individuals subject to the new sanctions would be announced within weeks. As for the method of the sanctions, the U.S. will isolate North Korea from the international financial system by publicly naming the target firms and also take measures to urge financial institutions in third-world countries to stop transactions with those on the list. Einhorn added, however, all these measures are meant to draw North Korea into dialogue or negotiations, not to pressure the communist nation. Here’s Dong Yong-seung from the Samsung Economic Research Institute to brief us on the characteristics of Washington’s additional financial sanctions on Pyongyang.

What the U.S. is going to impose on North Korea is financial sanctions that would materialize the U.N. Security Council Resolution 1874. The sanctions will particularly focus on stopping the trade of conventional weapons and luxury goods as well as illegal financial activities. In a significant move, Einhorn, the engineer of new sanctions on North Korea, recently visited South Korea to discuss this matter, and while in South Korea, he asked for cooperation from China. But one thing is clear: these are not sanctions for sanctions’ sake. The most important message is that the U.S., allied with South Korea, is ready to lift the sanctions anytime as long as North Korea takes appropriate actions as a responsible member of the international community. Also, the U.S. stresses once again that it can block North Korea from engaging in any forms of illegitimate activities.

Most notably, the number of target entities has increased drastically. North Korea has so far been restricted in financial transactions related to its nuclear and missile programs, due to U.S. sanctions. Still, the reclusive nation has made up for inadequate foreign currency through illicit activities, such as counterfeiting of U.S. currency, drug trafficking and money laundering. But the newly announced sanctions are designed to fully block these activities and even the purchase of luxury goods. Therefore, the fresh sanctions are expected to put great pressure on the North Korean leadership. However, some point out that the sanctions are weaker than those targeting Iran, since there are no particular means to punish third-world countries conducting financial transactions with North Korea. Why is the U.S. applying different measures to Iran and North Korea?

The U.S. says North Korea and Iran are two different cases, and sanctions on Pyongyang will be tailored differently from those imposed on Iran. That is, Washington seeks to slap sanctions that will be effective to each country in a “country-specific” approach. Given the sizable Iranian economy and the nation’s dependence on foreign trade, sanctions against Iran should not be the same as those against North Korea. Pyongyang, as the U.S. says, is considered insignificant in terms of foreign trade, so the U.S. thinks the “country-specific” sanctions will be enough when it comes to North Korea.

The U.S. government is pushing for new sanctions on North Korea, issuing an administrative order rather than seeking approval from Congress, which could take longer. The U.S. seems to have concluded that it will be appropriate to deal with North Korea, unlike Iran, through an administrative order that can be executed right away following the president’s decision. The preparations for sanctions on Iran have been drafted over a long period of time, while the U.S. can’t afford to stall for time when imposing sanctions on Pyongyang since the measure is a response to the Cheonan incident.

An administrative order is flexible and swift. Once Einhorn announces a sanction list, relevant actions will follow quickly. If North Korea takes an unexpected action in that process, the U.S. can respond to that immediately. If the North’s measures become stronger, the U.S. can quickly move to an even stronger stage.

Many experts note that China’s cooperation is essential for effective sanctions. The anticipated result from the economic sanctions will be hard to achieve without cooperation from China, which the North Korean economy heavily depends on. However, the chances that China will cooperate on new sanctions are not good, so the effect of Washington’s administrative order will be limited. North Korea and China agreed to strengthen bilateral strategic communication during their summit in May and the two communist allies are restoring their traditional blood ties. Given the circumstances, experts predict that the ongoing regional tension, fueled by Seoul and Washington increasing pressure on North Korea, will likely continue for some time.

North Korea could feel the pinch acutely due to the financial sanctions, just as the nation learned a painful lesson from the Banco Delta Asia case in the past. But it’s unlikely that the obstinate country will adopt a submissive attitude just to avoid the sanctions. Rather, North Korea could become more aggressive, creating renewed tension in the region. North Korea doesn’t want a change, hoping to negotiate within the same old dialogue frame, while South Korea and the U.S. want Pyongyang to change. South Korea and the U.S. will continue pressuring the North, which could then react strongly. Their confrontation is expected to drag on, and it depends on how effectively Seoul and Washington will be able to deal with a potential crisis triggered by North Korea.

At present, it is more important to elicit North Korea’s denuclearization than to impose sanctions on the North. Needless to say, it’s crucial to draw North Korea to the dialogue table over the long term. Involved countries need to make efforts on a wide front to ease the regional conflict in a comprehensive way.



[Interview] Training Program Designed to Teach Standard S. Korean Language to N. Korean Newcomers
The National Academy of the Korean Language, located in Banghwa-dong, western Seoul, held a two-day training session from July 27 for teachers and social workers at Hana Centers, which are government-run facilities designed to help improve the welfare of North Korean defectors living in South Korea. The training is designed to give teachers a solid understanding of the linguistic characteristics of North Korean defectors and utilize them when educating the newcomers. Let’s listen to Kim Mun-oh, researcher at the Korean language academy.

The latest training session is the second of its kind this year. We received positive responses from those who participated in the first session, which was held in February this year, so we decided to hold another round of training in July. The training is designed to help the teachers learn the differences between South and North Korean vocabularies and how they can better teach the standard South Korean language to newcomers from North Korea. If the teachers are well aware of North Koreans’ linguistic characteristics, like the pronunciation of sounds, as well as effective teaching techniques, they can provide more practical help to the learners.

The academy’s research shows that it takes about three years for North Korean defectors to adjust to the standard South Korean language. Also, many newcomers are found to have faced discrimination and many other difficulties due to their North Korean accent. For the North Korean expatriates, the most difficult part is the South Korean intonation and foreign words.

The pitch of the South Korean language doesn’t fluctuate—it is not too high, not too low. In contrast, the North Korean standard language features a high pitch in the beginning, followed by a low pitch. To South Koreans, intonation like this may sound aggressive, which makes it harder for the North Korean newcomers to accommodate to South Korean society. Also, South Koreans use countless foreign words, such as “Internet” and “portal site,” which are rather difficult for the North Koreans to understand.

The training is focused on these particular difficulties so the teachers can help the newcomers learn the pronunciations and intonation of the standard South Korean language more easily. In addition, the Korean language academy uploaded a video clip about typical North Koreans pronunciations on its Web page to encourage the teachers to utilize them even after they complete the training. The organization is also planning on creating a variety of educational materials about the South Korean language, including animated films and flash programs, to be used in the newcomers’ everyday lives. Mr. Kim says these programs are useful, of course, but it’s also important for South Korean citizens to open their minds to their brothers and sisters from the North.

Those newcomers know both North and South Korean societies. Their knowledge and experience could become the foundation for the future reunification of Korea. We, South Koreans, need to take a step closer to them as a comfortable neighbor and help them adjust to a new environment well so they won’t feel they are being discriminated. We’re going to hold regular training sessions for teachers as well as the educational courses on the South Korean language for newcomers every year.

The Korean language has evolved differently in South and North Korea for the last sixty years. Due to the long national division, the language gap between the Koreas is widening further, making it more difficult for North Korean defectors to resettle in the South. With the number of North Korean escapees coming to South Korea ever rising, systematic language education programs are becoming increasingly necessary. And more importantly, South Koreans need to show more interest and lend their warm support to the newcomers.

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