Japanese Media: "North Korea's Threats to South Korea Due to Foreign Currency Shortage"

Kim Yo-jong, First Deputy Director of the Workers' Party and younger sister of North Korean State Affairs Commission Chairman Kim Jong-un / Photo by Yonhap News

[Asia Economy Intern Reporter Kang Juhee] Japanese media recently analyzed that North Korea's increasing threat level toward South Korea is due to the depletion of foreign currency caused by international sanctions.

On the 16th, the Japanese outlet Yomiuri Shimbun reported from Seoul that sources involved in South Korea-US-Japan negotiations analyzed that North Korea, which is under economic sanctions from the UN Security Council and the United States, may run out of foreign currency reserves by 2023.

Based on this, Yomiuri Shimbun analyzed that North Korea's tough stance toward South Korea, using leaflets sent by defector groups as a pretext, reflects its anxiety over the difficulties caused by sanctions.

Since the UN Security Council resolution in 2017, North Korea has been banned from exporting coal, iron ore, textiles, seafood, and other products, losing 90% of its total exports and imports. Additionally, since the end of last year, overseas employment of North Korean workers has been restricted, cutting off a source of foreign currency earnings.

Yomiuri reported that sources involved in South Korea-US-Japan negotiations said, "While North Korea's foreign currency reserves were decreasing due to these sanctions, the spread of the novel coronavirus led to the closure of the Chinese border at the end of January this year, causing delays in the distribution of goods even in Pyongyang, where the elite reside."

It also reported remarks from a South Korean government official that North Korea's continued hardline approach toward the South is due to the uncertainty over US President Donald Trump's re-election, making it impossible to be optimistic about the lifting of sanctions against North Korea.

Yomiuri cited a South Korean government official saying that North Korea hopes the South Korean government will resume inter-Korean cooperation projects such as the Mount Kumgang tourism and the Kaesong Industrial Complex if US sanctions are lifted.

Furthermore, it added that there are observations that if the lifting of US sanctions becomes difficult, North Korea intends to create a situation after the presidential election where the US government prioritizes addressing North Korean issues by continuing ballistic missile launches and nuclear tests.

This content was produced with the assistance of AI translation services.