Government: "US Also Agrees on Inter-Korean Barter Trade" → Suddenly Corrects to "No Agreement Reached"

US 'Sympathizes' with Plan to Evade North Korea Sanctions?
Unification Ministry: "Misunderstood the Question... No Consultations Held"
"US Sympathized with North Korea Aid via WFP"

Minister of Unification Lee In-young is delivering opening remarks at the Ministry of Unification brainstorming session held on the 28th of last month at the Government Seoul Office in Jongno-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

The government announced that the United States had "expressed sympathy" for its plan of 'small trade' involving barter between the South and North, but soon corrected the statement, saying "there has been no consultation."

The interpretation that the U.S. had expressed 'sympathy' for the government's barter plan to circumvent sanctions on North Korea had predicted repercussions, but it turned out to be a misunderstanding caused by a government official's misinterpretation.

Yeo Sang-gi, spokesperson for the Ministry of Unification, said at a regular briefing held at the Government Seoul Office on the 10th, "We (the government) have explained several times to the U.S. side as we start small trade," and added, "The U.S. side also conveyed that they sympathize with this intention." This was seen as a green light for the government's policy direction, which had announced an independent drive for inter-Korean cooperation.

However, just about 30 minutes later, the Ministry of Unification corrected the announcement. In a message sent to reporters after the briefing, the Ministry stated, "Small trade is currently under review within the government, and there has been no consultation between South Korea and the U.S." This explanation was completely different from the earlier announcement in both intent and content.

There was a risk of controversy over the government making a 'false announcement' on an issue that had not been consulted with the U.S., but it was a situation caused by a misunderstanding by a government official.

A Ministry of Unification official said, "There was a confusion about the question," and explained, "We have communicated with the U.S. side regarding aid to North Korea through the World Food Programme (WFP), but it is true that there has been no consultation with the U.S. on barter." In other words, the issue on which the U.S. had communicated and expressed sympathy was not the barter plan but the aid to North Korea through the WFP.

The official added, "If necessary, we will communicate with the U.S., but the small trade plan between South and North is still under review, and no concrete action has been taken, so we have not explained it to the U.S."

So far, the Ministry of Unification has been promoting 'small trade' with North Korea through barter. Minister of Unification Lee In-young had proposed exchanging North Korea's Geumgangsan water, Baekdusan water, and Daedonggang liquor for South Korea's rice and medicine even before taking office.

The Ministry believes that adopting a barter method would avoid issues with sanctions since there would be no bank transactions or large cash transfers with North Korea. On the 5th, Minister Lee reportedly discussed possible inter-Korean barter methods within the framework of sanctions during a meeting with Lee Do-hoon, the Ministry of Foreign Affairs' Special Representative for Korean Peninsula Peace and Security Affairs, who is in charge of U.S.-North Korea nuclear negotiations.

On the 5th, the South Korean Nam-South Korea Federation of Unification Agriculture Cooperative announced that at the end of June, it signed a contract with North Korea's Kaesong Koryo Ginseng Trading Company and others to exchange North Korea's Kaesong Koryo Ginseng liquor and Deuljjuk liquor for South Korea's sugar. The Ministry of Unification is currently reviewing import and export approval for this case.

Minister of Unification Lee In-young (right) is speaking while presiding over the Inter-Korean Exchange and Cooperation Promotion Council at the Government Seoul Office Building on the morning of the 6th. On the left is Kim Hyun-jong, Deputy Director of the National Security Office at the Blue House.

However, some have pointed out that this plan could violate sanctions on North Korea. Especially if the North Korean companies or organizations involved in the trade are subject to UN or U.S. sanctions, it could be problematic.

Joshua Stanton, a U.S. sanctions expert, told Radio Free Asia (RFA) on the 6th (local time), "If the trading partner is a subsidiary or a shell company of an entity subject to UN or U.S. sanctions on North Korea, it would be a violation of sanctions," and argued that the burden is on the South Korean government and companies to verify that this is not the case.

Stanton pointed out the need to verify whether the Kaesong Koryo Ginseng Trading Company, which agreed to exchange North Korean liquor for South Korean sugar, is the same company as the Chosun Kaesong Koryo Ginseng Trading Company, which the South Korean government previously identified as a foreign currency earning company operated by the Daesong Guidance Bureau under the Workers' Party Office 39. Office 39 is subject to sanctions by the U.S. and the UN.

Regarding the possibility that the Kaesong Koryo Ginseng Trading Company is an institution under Office 39, spokesperson Yeo said, "We are comprehensively reviewing all relevant matters."

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