Lee In-young's Absurd 'Misstep'... Withdrawal of Inter-Korean Barter Plan Due to North Korea Sanctions

Business Attempting North Korean Alcohol-South Korean Sugar Exchange
North Korean Company Confirmed as Subject to Sanctions

Minister of Unification Lee In-young is speaking during a meeting with the chairpersons of the Kaesong Industrial Complex Enterprises Association at the Government Seoul Office Building on the afternoon of the 21st.

The Ministry of Unification has withdrawn the inter-Korean barter trade project it was promoting as a way to open the door to inter-Korean cooperation. The plan was to exchange South Korea’s sugar for North Korea’s alcohol, but it was revealed that the North Korean business entity involved is a company subject to sanctions against North Korea. Criticism has arisen that the Ministry of Unification hastily pushed forward without thoroughly reviewing the sanctions.

According to Kim Byung-gi of the Democratic Party and Ha Tae-kyung of the United Future Party, the floor leaders of the National Assembly Intelligence Committee, the Ministry of Unification announced during a closed-door briefing on the 24th that it had withdrawn the business plan with the North Korean Kaesong Koryo Ginseng Trading Company, which was part of the inter-Korean barter trade project. Seo Ho, the Vice Minister of Unification, attended the briefing.

Minister of Unification Lee In-young has expressed the idea of opening the door to inter-Korean exchange and cooperation through a ‘small trade’ barter method that can avoid violating international sanctions against North Korea. Even before his inauguration, he proposed exchanging North Korea’s waters from Mount Kumgang and Mount Baekdu, and Daedonggang alcohol for South Korea’s rice and medicines.

Subsequently, a barter contract was made between a South Korean civic group and the North Korean Kaesong Koryo Ginseng Trading Company to exchange North Korean Kaesong Koryo Ginseng alcohol and wild berry alcohol for South Korean sugar, and the Ministry of Unification had been actively reviewing import and export approvals.

However, the Kaesong Koryo Ginseng Trading Company is presumed to be a foreign currency earning company under the Workers’ Party Office No. 39 and has been confirmed as a company subject to sanctions by the United States and the international community. Accordingly, the Ministry of Unification decided to cancel the project.

Representative Ha said, “It seems the Ministry of Unification did not properly verify the target company with the National Intelligence Service,” and added, “This project should be considered completely withdrawn.”

However, the Ministry of Unification stated that the barter trade project itself is not being scrapped. Only the alcohol-sugar exchange project with the Kaesong Koryo Ginseng Trading Company has been canceled, but the ‘small trade’ concept such as barter remains valid.

During the Intelligence Committee meeting, issues regarding communication between the Ministry of Unification and the National Intelligence Service were also raised. Representative Kim said, “There were criticisms that information exchange between the Ministry of Unification and the National Intelligence Service is not very smooth,” adding, “The issue related to the unauthorized discharge at Hwanggam Dam is also similar.”

Meanwhile, concerns that the Kaesong Koryo Ginseng Trading Company might be included in the list of sanctioned entities and that careful review was necessary had already been raised. Joshua Stanton, a U.S. sanctions expert and attorney, warned earlier this month on his Twitter that “if the trading partner is a subsidiary or shell company of a UN or U.S. sanctioned North Korean entity, it constitutes a sanctions violation,” and that the burden of confirming that this is not the case lies with the South Korean government and companies.

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