ID :
88043
Fri, 11/06/2009 - 01:04
Auther :
Shortlink :
https://www.oananews.org//node/88043
The shortlink copeid
N. Korea holds larger-than-expected foreign currency: professor
SEOUL, Nov. 5 (Yonhap) -- North Korea may have accumulated a larger-than-expected
amount of foreign currency over the past decade, a South Korean professor said
Thursday, dismissing speculation that the communist country might be suffering a
dollar drought due to global financial and economic sanctions.
The claim was made in a paper unveiled by Chang Hyung-soo, a professor at the
division of economics and science of Hanyang University. It was cited by the
Korea Development Institute, South Korea's state-run think tank.
"It is highly likely that the North has posted a net foreign currency surplus
annually from 2000 to 2008 and if the dollars earned from weapon trading and
illegal import are included, Pyongyang would have posted a significant surplus,"
Chang said.
"Especially in 2008, the North posted a large surplus in its foreign currency
balance despite a steep decline in trading of weapons and other illegal
activities caused by global sanctions and suspended aid of fertilizer and rice
from the South," he added.
Chang, however, didn't provide detailed figures and how the North obtains foreign
currencies.
His claim counters speculation that the North might be suffering from a dollar
drought as trade has been restrained by economic and financial sanctions. The
level of sanctions were heightened after the country went ahead with its second
nuclear test in May in defiance of warnings by the international community.
The North's holding of dollars draw attention from many countries as they suspect
the communist country of using the money in developing its missile and nuclear
technologies. The North earns most of its dollars from its trade with South Korea
and China.
Chang, however, said that the amount of money used in pursuing its nuclear
ambitions must be smaller than many media have reported as it is far-fetched to
apply the same level of labor and technology costs used by advanced countries.
"It is a little unreasonable to calculate the amount of money the North spends on
its missile and nuclear tests by using data from advanced countries where labor
costs are expensive and top-notch technologies are employed," Chang said.
(END)
amount of foreign currency over the past decade, a South Korean professor said
Thursday, dismissing speculation that the communist country might be suffering a
dollar drought due to global financial and economic sanctions.
The claim was made in a paper unveiled by Chang Hyung-soo, a professor at the
division of economics and science of Hanyang University. It was cited by the
Korea Development Institute, South Korea's state-run think tank.
"It is highly likely that the North has posted a net foreign currency surplus
annually from 2000 to 2008 and if the dollars earned from weapon trading and
illegal import are included, Pyongyang would have posted a significant surplus,"
Chang said.
"Especially in 2008, the North posted a large surplus in its foreign currency
balance despite a steep decline in trading of weapons and other illegal
activities caused by global sanctions and suspended aid of fertilizer and rice
from the South," he added.
Chang, however, didn't provide detailed figures and how the North obtains foreign
currencies.
His claim counters speculation that the North might be suffering from a dollar
drought as trade has been restrained by economic and financial sanctions. The
level of sanctions were heightened after the country went ahead with its second
nuclear test in May in defiance of warnings by the international community.
The North's holding of dollars draw attention from many countries as they suspect
the communist country of using the money in developing its missile and nuclear
technologies. The North earns most of its dollars from its trade with South Korea
and China.
Chang, however, said that the amount of money used in pursuing its nuclear
ambitions must be smaller than many media have reported as it is far-fetched to
apply the same level of labor and technology costs used by advanced countries.
"It is a little unreasonable to calculate the amount of money the North spends on
its missile and nuclear tests by using data from advanced countries where labor
costs are expensive and top-notch technologies are employed," Chang said.
(END)
