Tag Archives: South Korea

South Korea’s diehard Trump supporters hail ‘guardian of liberty’

A member of a conservative right-wing civic group attends an anti-North Korea and pro-U.S. protest in Seoul, South Korea, August 4, 2018. REUTERS/Kim Hong-Ji

By Jeongmin Kim and Minwoo Park

SEOUL (Reuters) – Every time an image of U.S. President Donald Trump appears on TV in South Korea, 69-year-old Vietnam War veteran Chung Seung-jin solemnly salutes.

The U.S. flag Chung keeps in his home in Seoul gets similar respect every morning.

Vietnam War veteran Chung Seung-jin poses for photographs after an interview with Reuters at his home in Suwon, South Korea, July 31, 2018. REUTERS/Kim Hong-Ji

Vietnam War veteran Chung Seung-jin poses for photographs after an interview with Reuters at his home in Suwon, South Korea, July 31, 2018. REUTERS/Kim Hong-Ji

“I salute President Trump and the U.S. flag every day to show how much I trust him,” Chung told Reuters as he attended a recent anti-North Korea rally in the sweltering summer heat in downtown Seoul.

“I salute to pay respect to Mr. Trump, supporting his reign as the leader of the world and guardian of liberty.”

For many South Korean conservatives who liked Trump’s initial tough talk against North Korea’s Kim Jong Un, his abrupt embrace of the autocratic leader at their historic Singapore summit in June was nothing short of a betrayal.

Trump, who ridiculed Kim as “rocket man” last year, has since called the North Korean leader “funny” and “smart” and even praised his ability to retain his authoritarian grip on power.

“Trump said Kim is an ‘amazing leader’, thus legitimizing him. This makes us, the patriotic citizens, feel betrayed,” said Cho Won-jin, leader of the right-wing Korean Patriots’ Party.

Members of a conservative right-wing civic group attend an anti-North Korea and pro-U.S. protest in Seoul, South Korea, August 4, 2018. REUTERS/Kim Hong-Ji

Members of a conservative right-wing civic group attend an anti-North Korea and pro-U.S. protest in Seoul, South Korea, August 4, 2018. REUTERS/Kim Hong-Ji

But for a colorful handful of Trump supporters who gather regularly on the streets of Seoul to call for aggressive action against North Korea, faith in the U.S. president is unshaken.

“I have saluted Trump today as always with utmost sincerity,” said 76-year-old demonstrator Lee Yoon-jo, nodding at a large picture of a beaming Trump at a demonstration in downtown Seoul.

As he saluted, demonstrators held giant U.S. and South Korean flags in front of the U.S. embassy, alongside banners in Korean and English reading “The United States is a thankful brother country that has been devoted to a free Korea”.

Gratitude for U.S. support in the 1950-1953 Korean War, as well as anti-communist rhetoric used by the South’s military rulers in the 1970s still resonate with many older South Koreans, said analyst Jeong Chan-dae of Sungkonghoe University.

“To these elderly conservatives, the U.S. is more than just an ally and more of a ‘savior’,” he said.

Holding a faded black-and-white photograph from his time he fought alongside American allies in the Vietnam War in 1968, Chung said: “Without the U.S., South Korea would never have been able to exist.”

Trump and Kim met in Singapore in June, where they announced an agreement in which Kim reaffirmed his “unwavering” commitment to denuclearize. Little progress on that front has been made in the weeks since.

A Gallup Korea poll conducted just after the summit found 48 percent of South Korean conservatives thought the meeting went well, compared to 79 percent of progressives.

Standing on a corner in Seoul, surrounded by flags and anti-North Korean banners, the small knot of demonstrators are unfazed by the shift in tone, noting that Trump could still resort to “regime change” if a denuclearisation deal doesn’t pan out.

“President Trump has always masterfully guided and protected South Korea and the free world and always will,” Lee said, again giving a military salute. “Thank you, Mr. President.”

(Reporting by Jeongmin Kim and Minwoo Park; Writing by Josh Smith; Editing by Nick Macfie)

When to end the war? North Korea, U.S. at odds over path to peace

FILE PHOTO: U.S. President Donald Trump shows the document, that he and North Korea's leader Kim Jong Un signed acknowledging the progress of the talks and pledge to keep momentum going, after their summit at the Capella Hotel on Sentosa island in Singapore June 12, 2018. At right is U.S. Secretary of State Mike Pompeo. REUTERS/Jonathan Ernst/File Photo

By Josh Smith

SEOUL (Reuters) – Washington’s reluctance to declare an end to the Korean War until after North Korea abandons its nuclear arsenal may put it at odds not only with Pyongyang, but also with allies in South Korea.

The 1950-1953 Korean War ended in an armistice rather than a peace treaty, leaving the U.S.-led United Nations forces technically still at war with North Korea.

Friday marks 65th anniversary of the truce, which will be commemorated by the United Nations Command in a ceremony in the fortified demilitarized zone that has divided the two Koreas since the war. North Korean veterans of the war, which left more than 1.2 million dead, will gather in Pyongyang for a conference.

In their April summit, the leaders of North and South Korea agreed to work this year with the United States and China, which also played a major role in the war, to replace the armistice with a peace agreement.

In June, U.S. President Donald Trump and North Korean leader Kim Jong Un signed a statement saying they would seek “to establish new U.S.–DPRK relations in accordance with the desire of the peoples of the two countries for peace and prosperity,” using the initials of the North Korea’s official name, the Democratic People’s Republic of Korea.

Kim has broadly committed to the “denuclearization of the Korean peninsula” if the United States and its allies drop their “hostile” policies and the North has made clear it sees an official end to the state of war as crucial to lowering tensions.

Many experts and officials in Washington, however, fear signing a peace deal first could erode the international pressure they believe led Kim to negotiate. It could also endanger the decades-long U.S. military alliance with South Korea, and may undermine the justification for the U.S. troops based on the peninsula.

“Broadly speaking, one side wants denuclearization first, normalization of relations later, and the other wants normalization of relations first, then denuclearization later,” said Christopher Green, a senior advisor at the International Crisis Group.

North Korea says it has taken steps to halt its nuclear development, including placing a moratorium on missile and nuclear bomb testing, demolishing its only known nuclear test site, and dismantling a rocket facility.

American officials have praised those moves, but remain skeptical. U.S. Secretary of State Mike Pompeo told Congress on Wednesday North Korea was continuing to produce fuel for nuclear bombs.

A spokesperson for the U.S. State Department said while “peace on the Korean Peninsula is a goal shared by the world,” the international community would not accept a nuclear armed North Korea.

“As we have stated before, we are committed to building a peace mechanism with the goal of replacing the Armistice agreement when North Korea has denuclearized,” the spokesperson said in an emailed statement.

DOUBTS ON BOTH SIDES

In recent weeks Pyongyang has renewed calls for a declaration of the end of the war, calling it the “first process for peace” and a key way the United States can add heft to its guarantees of security.

“The adoption of the declaration on the termination of war is the first and foremost process in the light of ending the extreme hostility and establishing new relations between the DPRK and the U.S.,” North Korean state media said in a statement on Tuesday.

After Pompeo visited Pyongyang in June for talks, state media quoted a spokesman for the North’s Ministry of the Foreign Affairs criticizing the U.S. delegation for not mentioning the idea of a peace regime.

“It seems quite obvious that even if North Korea is negotiating sincerely, they aren’t going to be willing to give up their nuclear capacity in the absence of a peace system that gives them regime security,” Green said.

Many officials in Washington appeared concerned that an early declaration of peace could lead to the collapse of the U.S.-South Korea alliance with calls for U.S. troops to leave the Korean peninsula, he added.

OTHER PLAYERS

South Korean leaders in 1953 opposed the idea of a truce that left the peninsula divided, and were not signatories to the armistice. The treaty was signed by the commander of North Korea’s army, the American commander of the U.N. Command, and the commander of the “Chinese People’s volunteers”.

While South Korean officials say they are committed to the full denuclearization of North Korea, they have shown more flexibility in the timing of a peace agreement than their U.S. allies.

South Korea’s Unification Minister Cho Myoung-gyon said on Tuesday it is possible to declare an end to war this year.

“We are in consultations with the North and the United States in that direction,” he told a parliamentary session, adding that a three-way declaration would be part of an initial phase of denuclearization.

China says it is open to participating in the process.

Meeting North Korean Foreign Minister Ri Yong Ho in Pyongyang on Thursday, Chinese Vice Foreign Minister Kong Xuanyou said China supported the reconciliation process between the North and the United States, China’s Foreign Ministry said.

China is willing to work hard with all sides to promote the process of establishing a “peace mechanism” for the Korean peninsula, Kong added, without elaborating.

(Additional reporting by Hyonhee Shin in Seoul and Ben Blanchard in Beijing; Editing by Lincoln Feast and Clarence Fernandez)

Japan’s heat wave drives up food prices, prison inmate dies

A woman uses a parasol on the street during a heatwave in Tokyo, Japan July 25, 2018. REUTERS/Kim Kyung-Hoon

TOKYO (Reuters) – Vegetable prices in Japan are spiking as much as 65 percent in the grip of a grueling heat wave, which drove temperatures on Wednesday to records in some areas hit by flooding and landslides, hampering clean-up and recovery efforts.

As many as 65 people died in the week to July 22, up from 12 the previous week, government figures show, while a prisoner in his forties died of a heat stroke in central Miyoshi city, amid what medical experts called an “unprecedented” heat wave.

An agriculture ministry official in Tokyo, the capital, warned against “pretty severe price moves” for vegetables if predictions of more weeks of hot weather held up, resulting in less rain than usual.

“It’s up to the weather how prices will move from here,” the official said. “But the Japan Meteorological Agency has predicted it will remain hot for a few more weeks, and that we will have less rain than the average.”

The most recent data showed the wholesale price of cabbage was 129 yen ($1.16) per kg in Tokyo on Monday, the ministry said, for example, an increase of 65 percent over the average late-July price of the past five years.

Temperatures in Japan’s western cities of Yamaguchi and Akiotacho reached record highs of 38.8 Celsius (101.8 Fahrenheit) and 38.6 C (101.5 F), respectively, on Wednesday afternoon.

In Takahashi, another western city and one of the areas hit hardest by this month’s flooding, the mercury reached 38.7 C (101.7 F), just 0.3 degrees off an all-time high.

In Miyoshi, where the prisoner died after a heat stroke, the temperature on the floor of his cell was 34 degrees C (93 F) shortly before 7 a.m. on Tuesday. The room had no air-conditioning, like most in the prison.

Authorities who found him unresponsive in his cell sent him to a hospital outside the prison, but he was soon pronounced dead, a prison official said.

“It is truly regrettable that an inmate lost his life,” Kiyoshi Kageyama, head of the prison, said in a statement. “We will do our utmost in maintaining (prisoners’) health, including taking anti-heat stroke steps.”

On the Tokyo stock market, shares in companies expected to benefit from a hot summer, such as ice-cream makers, have risen in recent trade.

Shares in Imuraya Group, whose subsidiary sells popular vanilla and red-bean ice cream, were up nearly 10 percent on the month, while Ishigaki Foods, which sells barley tea, surged 50 percent over the same period.

Kimono-clad women using sun umbrellas pause on a street during a heatwave in Tokyo, Japan July 25, 2018. REUTERS/Issei Kato

Kimono-clad women using sun umbrellas pause on a street during a heatwave in Tokyo, Japan July 25, 2018. REUTERS/Issei Kato

In neighboring South Korea, the unremitting heat has killed at least 14 people this year, the Korea Centers for Diseases Control and Prevention said.

The heat wave was at the level of a “special disaster”, South Korean President Moon Jae-in said on Tuesday, as electricity use surged and vegetable prices rose.

(Reporting by Kiyoshi Takenaka in Tokyo and Jeongmin Kim in SEOUL; Additional reporting by Ritsuko Ando and Aaron Sheldrick in TOKYO; Editing by Clarence Fernandez)

Exclusive: North Korean fuel prices drop, suggesting U.N. sanctions being undermined

FILE PHOTO: North Koreans take a truck through a path amongst the fields, along the Yalu River, in Sakchu county, North Phyongan Province, North Korea, June 20, 2015. REUTERS/Jacky Chen/File Photo

By Hyonhee Shin

SEOUL (Reuters) – Gasoline prices in North Korea have nearly halved since late March, market data analyzed by Reuters shows, adding weight to suspicions that fuel is finding its way into the isolated economy from China and elsewhere despite U.N. sanctions.

The United Nations Security Council passed a resolution in December to ban nearly 90 percent of refined petroleum exports to North Korea over its nuclear and missile programs.

But as North Korean leader Kim Jong Un has moved to improve relations with the United States, China and South Korea, concerns have grown that the policy of “maximum pressure” through sanctions and isolation, is losing steam.

Kim and U.S. President Donald Trump agreed to work toward denuclearization at their summit in Singapore on June 12. Experts say any fuel aid in breach of sanctions could erode the diplomatic progress.

China said on Tuesday it strictly abided by U.N. sanctions, but indicated it may have resumed some fuel shipments to North Korea in the second quarter of this year.

Gasoline was sold by private dealers in the North Korean capital Pyongyang at about $1.24 per kg as of Tuesday, down 33 percent from $1.86 per kg on June 5 and 44 percent from this year’s peak of $2.22 per kg on March 27, according to Reuters analysis of data compiled by the Daily NK website. Diesel prices are at $0.85 per kg, down about 17 percent from March.

The website is run by North Korean defectors who collect prices via phone calls with multiple traders in the North after cross-checks to corroborate their information, offering a rare glimpse into the livelihoods of ordinary North Koreans.

In North Korea, gas is sold via informal channels such as street stalls and informal markets and by weight rather than by volume, as it is in South Korea, the United States and elsewhere, so North Koreans prefer to quote “per kg” rates, said Kang Mi-jin, who works at Daily NK. A 200 liter barrel of petrol holds around 180 kg.

U.S. prices stand at around 75 cents per liter or $2.839 per gallon.

“My assessment is that there was a greater inflow (of fuel supplies) from abroad, especially China since Kim’s trips there,” said Kang, who speaks regularly to sources inside North Korea.

Kim first visited China to meet President Xi Jinping in March, and they held two more summits, in May and June.

SANCTIONS

The latest fuel data comes amid mounting suspicion in Washington that North Korea may be using the recent diplomatic thaw to get a lifeline from China.

North Korea gets most of its fuel from China, its biggest trading partner, and some from Russia. Washington and Seoul officials have said the North imports some 4.5 million barrels of refined petroleum products and 2 million barrels of crude oil each year.

Last year’s U.N. resolution capped refined imports at 500,000 barrels a year.

Chinese Foreign Ministry spokesman Geng Shuang told reporters on Tuesday that China has consistently and strictly abided by U.N. Security Council resolutions on North Korea.

China had exported 7,432 tonnes of refined oil products to North Korea in the first six months of this year, out of a total of 60,000 tonnes a year stipulated by the U.N. sanctions.

China had reported its exports to the Security Council’s sanctions committee in a timely manner, Geng added.

“The relevant situation is totally open and transparent,” he said, without elaborating.

Since official Chinese customs data showed no gasoline and diesel exports to North Korea from January to March, Geng’s comments suggested China resumed some shipments some time after Kim and Xi’s first meeting.

Overall, China’s trade with North Korea in the first half of this year tumbled 56 percent on the back of the tightening sanctions, customs data showed on Monday.

Last week, U.S. Secretary of State Mike Pompeo accused North Korea of “illegally smuggling petroleum products into the country at a level that far exceeds quotas” established by the UN.

“Illegal ship-to-ship transfers are the most prominent means by which this is happening. Every UN member state must step up enforcement,” he wrote on Twitter, without naming any country.

China and Russia delayed a U.S. push last week for a UN Security Council panel to order a halt to refined petroleum exports to North Korea, asking for more detail on a U.S. accusation that Pyongyang breached sanctions, diplomats said.

The United States provided a list to the committee earlier this month of 89 illicit North Korean transactions and a few select photos, seen by Reuters.

Seoul’s foreign ministry said last week that the authorities were investigating two ships with Panama and Sierra Leone flags suspected to have illegally transferred North Korean coal into South Korea via Russia.

NO MAJOR SUFFERING

North Korean rice prices have also been stable since a spike last September, when the UN Security Council imposed new sanctions. Rice has hovered around $0.62 per kg throughout this year.

Stable fuel and rice prices suggest no immediate signs of major suffering in North Korea despite South Korea’s recent estimates the impoverished state’s economy contracted at its sharpest rate in two decades last year.

South Korea’s central bank said North Korea’s gross domestic product shrank 3.5 percent last year, marking the biggest decline since 1997, citing international sanctions and drought.

While other defectors reported some suffering in remote rural regions, Daily NK’s Kang said fuel demand has been steady in North Korea, and overall living conditions have improved in line with a booming unofficial market economy.

The unofficial markets, known as jangmadang, have grown to account for about 60 percent of the economy, according to the Institute for Korean Integration of Society.

“I’ve seen signs the economy was slowly improving over the past five years, and in last year things are still developing but perhaps not as fast as before,” a Western consultant who makes regular trips to North Korea told Reuters.

Kim, who vowed not to let the people “tighten their belt again” in his first-ever public speech in 2012, announced in April a shift in focus from nuclear programs to the economy. Analysts say that will be difficult while sanctions remain in place.

“I don’t think there is an outcry in the markets now, but there could be one toward the end of this year,” said Kim Byeong-yeon, a North Korea economy specialist at the Seoul National University.

(Reporting by Hyonhee Shin. Additional reporting by Josh Smith and Cynthia Kim in SEOUL and Ben Blanchard in BEIJING. Editing by Lincoln Feast.)

South Korea says sanctions shrank North Korean economy at sharpest rate in 20 years

FILE PHOTO: A North Korean man is photographed from the Chinese side of the border near the town of Changbai, China as he rides a bicycle along the Yalu River in the North Korean town of Hyesan, November 23, 2017. REUTERS/Damir Sagolj/File Photo

By Cynthia Kim and Hayoung Choi

SEOUL (Reuters) – North Korea’s economy contracted at the sharpest rate in two decades in 2017, South Korea’s central bank estimated on Friday, as international sanctions and drought hit growth hard, with signs living conditions were beginning to deteriorate.

Gross domestic product (GDP) in North Korea last year shrank 3.5 percent from the previous year, marking the biggest decline since a 6.5 percent drop in 1997 when the isolated nation was hit by a devastating famine, the Bank of Korea said.

North Korea does not publish economic data, and comprehensive public figures on social conditions are nonexistent.

However, analysts believe wider sanctions last year are likely to make the economic deterioration in 2018 worse than 2017, which could add to humanitarian need in the politically isolated state.

“The sanctions were stronger in 2017 than they were in 2016,” Shin Seung-cheol, head of the BOK’s National Accounts Coordination Team said.

“External trade volume fell significantly with the exports ban on coal, steel, fisheries and textile products. It’s difficult to put exact numbers on those but (export bans) crashed industrial production,” Shin said.

Both Seoul and Washington argue that increasingly strict international sanctions imposed over North Korea’s nuclear weapon and ballistic missile program have been instrumental in leader Kim Jong Un’s decision to impose a ban on weapons testing and to negotiate with international leaders.

North Korea has called the sanctions “vicious” but rejects suggestions that the pressure led them to pursue diplomatic talks.

The situation also worsened last year with international experts fearing North Korea was facing the worst drought in 16 years, though late summer rains helped avoid acute food shortages.

North Korean leader Kim Jong Un in April vowed to switch the country’s strategic focus from the development of its nuclear arsenal jump starting his economy, but analysts say that will be difficult while sanctions remain in place.

“As long as exports of minerals are part of the sanctions, by far the most profitable item of its exports, Pyongyang will have no choice but to continue with its current negotiations with the U.S.,” said Kim Byeong-yeon, an economics professor at the Seoul National University who specializes in the North Korean economy.

U.S. President Donald Trump has said that sanctions won’t be lifted until Kim moves to give up his nuclear and missile arsenal.

INDUSTRY TAKES A HIT

North Korea’s coal-intensive industries and manufacturing sectors have suffered as the UN Security Council ratcheted up the sanctions in response to years of nuclear tests by Pyongyang.

Industrial production, which accounts for about a third of the nation’s total output, fell 8.5 percent. That marked the steepest decline since 1997 as factory production collapsed on restrictions of flows of oil and other energy resources into the country. Output from agriculture, construction industries fell by 1.3 percent and 4.4 percent, respectively.

China, its biggest trading partner, suspended coal purchases last year which cut North Korea’s main export revenue source while its suspended fuel sales into to country sparked a surge in gasoline and diesel prices, data reviewed by Reuters showed earlier.

Since then, however, fuel prices have stabilized and even dropped in recent weeks, according to a report published last week on the North Korean Economy Watch website.

“My best guess is that it’s a combination of increased smuggling, perhaps aided by China’s declining vigilance in enforcing sanctions and restrictions against illicit trade across the border,” analyst Benjamin Katzeff Silberstein wrote in the report.

North Korea’s black market, or Jangmadang, has grown to account for about 60 percent of the economy, according to the Institute for Korean Integration of Society.

“Shrinking trade first hits the Kim regime and top officials, and then later affects unofficial markets,” said Kim at Seoul National University, noting the squeeze would also be felt in household income and private consumption.

China’s total trade with North Korea dropped 59.2 percent in the first half of 2018 from a year earlier, China’s customs data showed last week.

The BOK uses figures compiled by the government and spy agencies to make its economic estimates. The bank’s survey includes monitoring of the size of rice paddy crops in border areas, traffic surveillance, and interviews with defectors.

HUMAN TOLL

Prices for food staples like rice and corn have remained stable under changing sanctions, and there are signs that a growing number of North Koreans have access to electronic appliances, often powered by solar panels, according to data gathered by the DailyNK website.

North Korean defectors in the South, however, say they hear reports of increased suffering.

“The economic status in Hamgyong area was very bad, according to my sources within North Korea,” said Kim Seung-cheol, a defector who heads the NK Reform Radio station in Seoul, referencing an area near the border with China.

“In South Hamgyong, some people died of hunger. Since trade with China fell significantly, foreign traders in the border area are suffering from poverty.”

The United Nations’ top aid official visited the country last week and said there was “clear evidence of humanitarian need.”

Other U.N. officials warn that aid groups face difficulties accessing international banking channels, transporting goods into the North Korea, while rising fuel prices hinder aid delivery.

North Korea’s Gross National Income per capita stands at 1.46 million won ($1,283.52), making it about 4.4 percent the size of South Korea’s, the BOK said.

Overall exports from North Korea dropped 37.2 percent in 2017, marking the biggest fall since a 38.5 percent decline in 1998, the BOK said on Friday, citing data from the Korea Trade-Investment Promotion Agency.

($1 = 1,137.5000 won)

(Additional reporting by Cynthia Kim,; Editing by Sam Holmes)

South Korea scraps annual government war drill as talks with North go on

FILE PHOTO - South Korean President Moon Jae-in and North Korean leader Kim Jong Un meet in the truce village of Panmunjom inside the demilitarized zone separating the two Koreas, South Korea, April 27, 2018. Korea Summit Press Pool/Pool via Reuters

SEOUL (Reuters) – South Korea said on Tuesday it has decided to scrap an annual government mobilization drill this year as part of a suspended joint exercise with the United States but will carry out its own drills to maintain readiness. The ministers of safety and defense made the announcement at a media briefing on Tuesday. The drill, called the Ulchi exercises, usually takes place every August in tandem with the joint Freedom Guardian military drill with the United States.

Seoul and Washington said in June they would halt the joint exercise after U.S. President Donald Trump pledged to end war games following his summit with North Korean leader Kim Jong Un in Singapore on June 12.

Seoul’s presidential office has said the suspension of the combined exercise could facilitate ongoing nuclear talks between North Korea and the United States.

South Korea would develop a new drill model by incorporating Ulchi and the existing Taeguk command post exercises, which would be aimed at fighting militancy and large-scale natural disasters, the ministers said.

That incorporated exercise would be launched in October when the Hoguk field training drill takes place, the ministers said.

“Our military will carry out planned standalone drills this year and decide on joint exercises through close consultations with the United States,” Defence Minister Song Young-moo said.

(Reporting by Hyonhee Shin, Christine Kim; Editing by Paul Tait)

Trump says nuclear talks with North Korea ‘going well’

FILE PHOTO: U.S. President Donald Trump and North Korea's leader Kim Jong Un walk together before their working lunch during their summit at the Capella Hotel on the resort island of Sentosa, Singapore June 12, 2018. Picture taken June 12, 2018. REUTERS/Jonathan Ernst

WASHINGTON (Reuters) – U.S. President Donald Trump said on Tuesday that talks with North Korea were “going well” as U.S. officials seek to reach an agreement with Pyongyang over a denuclearization plan following last month’s summit between Trump and North Korean leader Kim Jong Un.

The White House has characterized ongoing meetings as positive but not commented on recent news reports of U.S. intelligence assessments saying North Korea has been expanding its weapons capabilities.

In a Twitter post, Trump said that North Korea has conducted “no Rocket Launches or Nuclear Testing in 8 months.”

On Monday, the White House said U.S. Secretary of State Mike Pompeo would travel to North Korea this week to continue talks on denuclearization of the Korean Peninsula.

A U.S. delegation met over the weekend with North Korean counterparts at the border between North and South Korea to discuss the next steps to implementing the June 12 summit’s declaration, according to the U.S. State Department.

“Many good conversations with North Korea-it is going well!” Trump said in his Twitter post, echoing his sentiments following the historic meeting with Kim in Singapore.

(Reporting by Susan Heavey; Editing by Doina Chiacu and Jeffrey Benkoe)

North Korea seen looking to China, not U.S., for help in any economic transformation

FILE PHOTO: A vendor is pictured in a shop in a newly constructed residential complex after its opening ceremony in Ryomyong street in Pyongyang, North Korea April 13, 2017. Picture taken April 13, 2017. REUTERS/Damir Sagolj/File Photo

By Cynthia Kim and Christian Shepherd

SEOUL/BEIJING (Reuters) – U.S. President Donald Trump may have promised that North Korea will become “very rich” on the back of American investment if Pyongyang ditches nuclear weapons but economists and academics who have studied the isolated country say it is China not the U.S. that will be the engine of any transformation.

The nearest template would not be based on American-style capitalism, but China’s state-controlled market economy first championed by Deng Xiaoping, who became China’s leader in 1978, these experts said. China was just coming out of the turmoil of the 27-year reign of Mao Zedong, a period during which capitalism was banned and private businesses and property were seized by the state and placed under collective ownership.

Deng introduced wrenching reforms that are widely regarded as creating the foundations of China’s economic miracle in the past 40 years. The changes were massive, the growth phenomenal, but most importantly the Chinese Communist Party has achieved all of this while not only retaining power but increasing its control over the country.

And in the run up to the unprecedented summit between Trump and North Korean leader Kim Jong Un on Tuesday in Singapore, it has been China that Pyongyang has been increasingly turning to.

Kim has made two visits to meet Xi since March, while a high-level delegation from his ruling Workers’ Party toured China’s industrial hubs in an 11-day visit in May that focused on China’s high-tech urban transport and latest scientific breakthroughs.

That delegation went to China only weeks after Kim declared an end to nuclear and missile tests and vowed an all-out effort toward “socialist economic construction.” Chinese media labeled Kim’s announcement North Korea’s “opening and reform”, shorthand for Deng’s policies, sparking a flurry of investment in housing in Dandong, the Chinese border town.

“Kim is talking to Trump because he needs to get the United States to back off sanctions. After that, headlines will be all about Kim and Xi Jinping,” said Jeon Kyong-man, an economist at the Institute for Korean Integration of Society, with reference to the Chinese president.

China is already North Korea’s most important ally and biggest trade partner. And since Kim assumed power in 2011 the trade relationship has become even more important. China now represents more than 90 percent of Pyongyang’s trade, making it just about North Korea’s only economic lifeline.

CHINA EYES NORTH KOREA’S “OPENING” .

Stagnating economic growth in China’s northeastern rustbelt has also spurred interest in ramping up Chinese economic ties with North Korea, according to Adam Cathcart, an expert on China-North Korea relations at Leeds University in the United Kingdom.

China’s model of shifting from a planned economy to a market economy is attractive for Pyongyang because it was achieved with political, economic and social stability, according to Zhang Anyuan, chief economist at Dongxing Securities in Beijing.

“Taking into consideration geographic location, economic system, market size, economic development stage, China-North Korean economic cooperation has advantages that are irreplaceable and hard to replicate,” Zhang said.

But Cathcart said that progress on economic liberalization would likely be slow because North Korea will want to be careful about the increased political risks that could come from relaxing restrictions on the currency and migration.

As well as China, North Korea may also look to other economies where tight top-down control has been kept, including Vietnam or even the ‘chaebol’ business structures of South Korea, which could allow something closer to “a capital dictatorship,” according to Cathcart.

Xi, under intense pressure from Trump, started enforcing sanctions strictly in the second half of 2017. By March this year, China imported no iron ore, coal or lead from North Korea for a sixth month in a row, in line with U.N. Security Council sanctions.

That has hurt North Korea’s coal-intensive heavy industries and manufacturing sectors. But more importantly, plunging trade with Beijing has been “killing the most thriving part of the economy” – unofficial markets where individuals and wholesalers buy and sell mostly Chinese-made consumer goods and agricultural products, Jeon said.

“More than anything, it was China’s decision to enforce sanctions that squeezed the economy and made removing of the sanctions an urgent task for Kim,” he said.

MOSQUITO-NET STYLE

Even after sanctions are lifted, North Korea will likely pursue state-managed growth because loosening controls is potentially destabilizing for the regime, says Kim Byung-yeon, an economics professor at Seoul National University. “It could leave Kim Jong Un with less than half the power he has now.”

As part of efforts to maintain control, any opening could initially be limited to “special economic zones,” where Pyongyang has sought to combine its cheap labor with China’s financial firepower and technological know-how, according to BMI Research, a unit of Fitch Group.

The Wonsan Special Tourist Zone in the east coast, or the suspended inter-Korean factory park in the North’s border city of Kaesong are some other examples Kim might pursue to maintain state controls over the economy, experts say.

In Wonsan, Kim has already built a ski resort and a new airport to turn the city of 360,000 people into a billion-dollar tourist hotspot.

“These are the sorts of projects that are most likely to get underway first if the sanctions are eased,” BMI Research said.

Jeon says this is “mosquito-net style” reform – similar to Deng Xiaoping’s model – with limited foreign investment and market liberalization contained within firm strictures of state control.

Deng championed a string of special economic zones along China’s east coast where unique local legislation encouraged foreign investment in manufacturing joint-ventures that sold to export markets, while protecting Chinese industries from going head-to-head with multinationals.

“Deng designated Shenzhen as a special economic zone and made that sleepy fishing village to a manufacturing hub of the world,” Jeon said. “Kim will be eager for those, especially as he will want minimal changes to other parts of the economy.”

(Additional reporting by Jeongmin Kim and Hyonhee Shin in SEOUL, Brenda Goh in SHANGHAI; Editing by Soyoung Kim and Martin Howell)

Trump, Kim agree on denuclearization, U.S. promises security guarantees

U.S. President Donald Trump shakes hands with North Korean leader Kim Jong Un at the Capella Hotel on Sentosa island in Singapore June 12, 2018. REUTERS/Jonathan Ernst

By Steve Holland, Soyoung Kim and Jack Kim

SINGAPORE (Reuters) – U.S. President Donald Trump said North Korean leader Kim Jong Un pledged at a historic summit on Tuesday to move toward complete denuclearization, while the United States promised its old foe security guarantees.

The start of negotiations aimed at banishing what Trump described as North Korea’s “very substantial” nuclear arsenal could have far-reaching ramifications for the region, and in one of the biggest surprises of the day, Trump said he would stop military exercises with old ally South Korea.

But Trump and Kim gave few other specifics in a joint statement signed at the end of their summit in Singapore, and several analysts cast doubt on how effective the agreement would prove to be in the long run at getting North Korea to give up its cherished nuclear weapons.

“President Trump committed to provide security guarantees to the DPRK and Chairman Kim Jong Un reaffirmed his firm and unwavering commitment to complete denuclearization of the Korean Peninsula,” the statement said, referring to North Korea by the initials of its official name, the Democratic People’s Republic of Korea.

The two leaders had appeared cautious and serious when they arrived for the summit at the Capella hotel on Singapore’s Sentosa, a resort island with luxury hotels, a casino and a Universal Studios theme park.

Body language expert said they both tried to project command as they met, but also displayed signs of nerves.

After a handshake, they were soon smiling and holding each other by the arm, before Trump guided Kim to a library where they met with only their interpreters. Trump had said on Saturday he would know within a minute of meeting Kim whether he would reach a deal.

Trump later told a news conference he expected the denuclearization process to start “very, very quickly” and it would be verified by “having a lot of people in North Korea”.

U.S. Secretary of State Mike Pompeo and North Korean officials would hold follow-up negotiations “at the earliest possible date”, the statement said.

Despite Kim announcing that North Korea was destroying a major missile engine-testing site, Trump said sanctions on North Korea would stay in place for now.

John Hopkins University’s North Korea monitoring project 38 North said last week North Korea had razed a facility for testing canister-based ballistic missiles.

U.S. President Donald Trump shows North Korean leader Kim Jong Un his car, nicknamed "The Beast", during their walk around Capella hotel after a working lunch at a summit in Singapore, June 12, 2018, in this still image taken from video. Host Broadcaster/via REUTERS ATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY. NO RESALES. NO ARCHIVES. BROADCASTERS: NO USE AFTER 72 HOURS; DIGITAL: NO USE AFTER 30 DAYS.

U.S. President Donald Trump shows North Korean leader Kim Jong Un his car, nicknamed “The Beast”, during their walk around Capella hotel after a working lunch at a summit in Singapore, June 12, 2018, in this still image taken from video. Host Broadcaster/via REUTERS ATTENTION EDITORS – THIS IMAGE WAS PROVIDED BY A THIRD PARTY. NO RESALES. NO ARCHIVES. BROADCASTERS: NO USE AFTER 72 HOURS; DIGITAL: NO USE AFTER 30 DAYS.

Trump said the regular military exercises the United States holds with South Korea were expensive and provocative. His halting of the drills could rattle South Korea and Japan, which rely on a U.S. security umbrella.

Trump said the exercises would not be revived “unless and until we see the future negotiation is not going along like it should”.

Earlier, Kim said he and Trump had “decided to leave the past behind. The world will see a major change”.

However, several experts said the summit failed to secure any concrete commitments by Pyongyang for dismantling its nuclear arsenal. They also noted the statement did not refer to human rights in one of the world’s most repressive nations.

TRADING FOR A PROMISE

Anthony Ruggiero, senior fellow at Washington’s Foundation for Defense of Democracies think-tank, said it was unclear if negotiations would lead to denuclearization, or end with broken promises, as had happened in the past.

“This looks like a restatement of where we left negotiations more than 10 years ago and not a major step forward,” he said.

Daniel Russel, formerly the State Department’s top Asia diplomat, said the absence of any reference to the North’s ballistic missiles was “glaring”.

“Trading our defense of South Korea for a promise is a lopsided deal that past presidents could have made but passed on,” he said.

North Korea has long rejected unilateral nuclear disarmament, instead referring to the denuclearization of the peninsula. That has always been interpreted as a call for the United States to remove its “nuclear umbrella” protecting South Korea and Japan.

People watch a TV broadcasting a news report on summit between the U.S. and North Korea, in Seoul, South Korea, June 12, 2018. REUTERS/Kim Hong-Ji

People watch a TV broadcasting a news report on summit between the U.S. and North Korea, in Seoul, South Korea, June 12, 2018. REUTERS/Kim Hong-Ji

The document made no mention of the sanctions on North Korea and nor was there any reference to a peace treaty formally ending the 1950-53 Korean War, which killed millions of people and ended in a truce.

But the joint statement did say the two sides had agreed to recover the remains of prisoners of war and soldiers missing in action, so they could be repatriated.

Trump said China, North Korea’s main ally, would welcome the progress he and Kim had had made.

“Making a deal is great thing for the world. It’s also a great thing for China,” he said.

China, which has opposed North Korea’s nuclear ambitions, said it hoped North Korea and the United States could reach a basic consensus on denuclearization.

“At the same time, there needs to be a peace mechanism for the peninsula to resolve North Korea’s reasonable security concerns,” China’s top diplomat, state councillor Wang Yi, told reporters in Beijing.

Russia’s Deputy Foreign Minister Sergei Ryabkov said the Kremlin had a positive assessment of the summit but “the devil is in the details”, the TASS news agency reported.

If the summit does lead to a lasting detente, it could fundamentally change the security landscape of Northeast Asia, just as former U.S. President Richard Nixon’s visit to China in 1972 led to the transformation of China.

But Li Nan, senior researcher at Pangoal, a Beijing-based Chinese public policy think-tank, said the meeting had only symbolic significance.

“There is no concrete detail on the denuclearization of the Korean peninsula and the provision of security guarantees by the United States,” Li said. “It is too early to call it a turning point in North Korea-U.S. relations.”

The dollar retreated after jumping to a 3-week high but global shares crept higher on news of the agreement.

Graphic: https://tmsnrt.rs/2l2UwW7

HARD NEGOTIATOR

Trump said he had formed a “very special bond” with Kim and relations with North Korea would be very different in future. He called Kim “very smart” and a “very worthy, very hard negotiator”.

Just a few months ago, Kim was an international pariah accused of ordering the killing of his uncle, a half-brother and hundreds of officials suspected of disloyalty. Tens of thousands of North Koreans are imprisoned in labor camps.

Trump said he raised the issue of human rights with Kim, and he believed the North Korean leader wanted to “do the right thing”.

Trump also said U.S. college student Otto Warmbier did not die in vain days after he was released from North Korean custody in 2017, as his death helped initiate the process that led to the summit.

“I believe it’s a rough situation over there, there’s no question about it, and we did discuss it today pretty strongly … at pretty good length, and we’ll be doing something on it,” Trump said.

During a post-lunch stroll through the gardens of the hotel where the summit was held, Trump said the meeting had gone “better than anybody could have expected”.

Kim stood silently alongside, but he had earlier described the summit as a “a good prelude to peace”.

Trump also rolled out what amounted to a promotional video starring the two leaders before the talks, which was watched by the North Korean officials on an iPad.

As the two leaders met, Singapore navy vessels, and air force Apache helicopters patrolled, while fighter jets and a Gulfstream 550 early warning aircraft circled high overhead.

Within North Korea, the summit is likely to go down well.

“Signing the joint statement would show North Korean citizens that Kim Jong Un is not a leader just within North Korea but also in international society, especially with his position equivalent to Trump,” said Ahn Chan-il, a defector from North Korea who lives in the South.

(Additional reporting by Dewey Sim, Aradhana Aravindan, Himani Sarkar, Miral Fahmy, John Geddie, Joyce Lee, Grace Lee, Matt Spetalnick and David Brunnstrom in Singapore and Christine Kim in Seoul; Editing by Raju Gopalakrishnan, Robert Birsel)

As Kim arrives in Singapore, no North Korean comrades in sight

FILE PHOTO: A view of the entrance of the North Korean embassy in Singapore May 24, 2018. Picture taken May 24, 2018. REUTERS/Edgar Su/File Photo

By John Geddie and Fathin Ungku

SINGAPORE (Reuters) – Stella Choi, the principal of a Korean language school in a drab tower in downtown Singapore, works just across the elevator lobby from the modest suites that make up North Korea’s embassy.

Yet the South Korean national, who runs the iSpeak Korean Language Centre, says she has neither seen nor spoken to any of her Northern neighbors or people entering the embassy since they moved in two years ago.

Choi’s experience is consistent with the extremely low profile Singapore’s small community of North Koreans has kept in recent years as diplomatic pressure on their home country made traveling and working abroad increasingly difficult.

But they have disappeared in recent years as U.N. sanctions tightened around Pyongyang, and Singapore has been among the countries that have dutifully implemented resolutions to cut trade ties, ban transactions with North Korean banks and cancel the work passes of its citizens.

North Korea’s place in the world – and that of its diaspora – comes into focus in Singapore next week, when the city-state hosts the first ever summit between a sitting U.S. president and a North Korean leader. Donald Trump and Kim Jong Un will discuss ending the North’s nuclear weapons and missile programs in return for diplomatic and economic incentives.

Singapore, a global trading and financial hub, was once home to a close-knit group of a few dozen North Korean diplomats and businessmen responsible for channelling money, fuel and goods to the secretive state.

While it still maintains diplomatic ties, North Korea’s embassy has moved from a three-storey property in a lively neighborhood of heritage shop-houses to its present unassuming home.

“I hope to see them one day. Since the North and South Korean relationship is getting better, I may even be able to speak to them,” said Choi.

Reuters has visited the North Korean embassy multiple times over the last year but on all but one occasion there appeared to be nobody there. Reuters did once meet the embassy’s first secretary, Ri Pyong Dok, while he was entering the embassy in February 2017, but he declined comment.

In a call in recent weeks to the embassy to ask about preparations for the summit, a North Korean staffer also declined comment.

The Singapore foreign ministry has four North Korean officials and their spouses in its list of diplomatic and consular staff as of June 2018.

STRATEGICALLY MANAGED

“The sanctions and the pressure that was put on by the U.S. and its allies were definitely … key motivating forces that encouraged him (Kim Jong Un) to consider engaging more, and to come out and have this summit,” said Nicholas Fang, director of security and global affairs at the Singapore Institute of International Affairs.

North Korea has always strategically managed its expatriate population, mainly sending them to allies like China and Russia, where they feel they will not be corrupted by Western ideals.

Singapore is probably the most diplomatically neutral place where they’ve based people historically – more for trade reasons than diplomacy, said John Kim, a Korean-American businessman who advises a non-profit offering training in entrepreneurship and business in North Korea.

Kim said he had not spoken to a North Korean in Singapore in around five years. The last person John Kim spoke to told him there were around 50 North Koreans operating in the city-state, mainly in industries like shipping, although there are no official figures of the size of the community.

In contrast, there are about 20,000 South Koreans living in Singapore.

In November, Singapore suspended all trade with North Korea to comply with tightening U.N. regulations.

In March, Singapore said it had revoked the work permits of all remaining North Koreans in the country.

A long-time South Korean resident of Singapore who did not want to be named said until a few years ago, groups of North Koreans would come into South Korean-run restaurants for barbecue dinners and would sometimes strike up casual conversations with the South Korean patrons or staff.

They would be relaxed and friendly, though there was occasionally tension in the banter, reflecting the rivalry between the two states, he said.

One more prominent North Korean figure in Singapore was Kim Jong Nam, the half brother of the current leader who was assassinated at Kuala Lumpur airport last year.

A socialite, he often drank at a plush bar on the top of the iconic Marina Bay Sands hotel or in one of the city-state’s many karaoke joints, according to one of his friends, who declined to be named, citing safety reasons.

The friend said Kim Jong Nam was down-to-earth, self-deprecating and open to jokes about his family connections.

“We would always ask, ‘So Kim, what do you think about communism?’ and he’s was always saying, ‘I’m all about peace and love.”

(Reporting by John Geddie, Fathin Ungku and Jack Kim; Editing by Sam Holmes and Raju Gopalakrishnan)