Quotes of the Day:
“There is no greater evil one can suffer than to hate reasonable discourse.”
- Socrates in Plato's Phaedo
“…the Socratic style of thought is what our culture needs right now. It’s an antidote to social media and to the toxic state of our politics.”
- Ward Farnsworth
"Get your facts first, then you can distort them as you please."
- Mark Twain
1. Joint Statement on the U.S.-Japan-Republic of Korea Trilateral Ministerial Meeting
2. Top diplomats of S. Korea, U.S., Japan urge N. Korea to halt provocations, resume dialogue
3. Pence tells world peace rally that U.S. must show strength in face of North Korean provocations
4. Behind China-South Korea skating row, a deeper cultural rift
5. N. Korean leader Kim Jong-un attends 2nd groundbreaking ceremony for housing project
6. Chinese, Russian envoys for N. Korea discuss situation on Korean Peninsula
7. FOCUS: North Korea's excessive military provocations may irritate China
8. Experts: North Korea May Be Ready for ICBM Deployment
9. Hefty rice rations highlight prosecutors’ clout in hungry North Korea
10. Why does Kim Jong-un keep launching missiles? Exploring the Truth and Objectives (2) Amazing development speed, but mass production is not easy.
11. Guilty verdicts handed down in S.Korea's biggest crypto scam
1. Joint Statement on the U.S.-Japan-Republic of Korea Trilateral Ministerial Meeting
This is in keeping with one of the ten major lines of effort in the new Indo-Pacific strategy. The question is did they make progress on this front? Can we get the ROK and Japan to buy into this?
EXPAND U.S.-JAPAN-ROK COOPERATION
Nearly every major Indo-Pacific challenge requires close cooperation among the United States’ allies and partners, particularly Japan and the ROK. We will continue to cooperate closely through trilateral channels on the DPRK. Beyond security, we will also work together on regional development and infrastructure, critical technology and supply-chain issues, and women’s leadership and empowerment. Increasingly, we will seek to coordinate our regional strategies in a trilateral context.
Joint Statement on the U.S.-Japan-Republic of Korea Trilateral Ministerial Meeting - United States Department of State
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Joint Statement on the U.S.-Japan-Republic of Korea Trilateral Ministerial Meeting
Media Note
February 12, 2022
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The following is the joint statement released by the Secretary of State of the United States and the Foreign Ministers of the Governments of Japan, and the Republic of Korea.
Begin Text
U.S. Secretary of State Antony J. Blinken, Japanese Foreign Minister Hayashi Yoshimasa and Republic of Korea (ROK) Minister of Foreign Affairs Chung Eui-yong met today in Honolulu, Hawaii, to reaffirm the critical importance of strong U.S.-Japan-ROK trilateral cooperation as we seek to address the most pressing 21st Century challenges. The U.S. alliances with the ROK and Japan span decades, and our enduring friendship and shared values guide us in our efforts to achieve a prosperous and secure future.
The 21st Century has brought not only new and unprecedented challenges but also tremendous opportunities for our three countries to work together. Underscoring the importance of trilateral cooperation as we navigate an increasingly complicated world, the Secretary and Foreign Ministers committed to expand cooperation and collaboration across a range of regional and global security and economic priorities.
The Secretary and Foreign Ministers emphasized their three countries share a common view of a free and open Indo-Pacific, which is inclusive, and shared respect for the rules-based international order and pledged to further expand their cooperative relationships. The Foreign Ministers welcomed the United States’ newly released Indo-Pacific Strategy.
The Secretary and Foreign Ministers condemned the DPRK’s recent ballistic missile launches and expressed deep concern about the destabilizing nature of these actions. They committed to close trilateral cooperation to achieve complete denuclearization and lasting peace on the Korean Peninsula. They called for full implementation by the international community of relevant UN Security Council resolutions relating to the DPRK and called on the DPRK to cease its unlawful activities and instead engage in dialogue. The Secretary and Foreign Ministers emphasized they held no hostile intent towards the DPRK and underscored continued openness to meeting the DPRK without preconditions. The Secretary and Foreign Ministers reaffirmed that the U.S.-Japan and U.S.-ROK alliances are essential to the maintenance of peace and stability in the region. In this context, they committed to advance trilateral security cooperation. They commended the frequent trilateral discussions between the respective Special Representatives for the DPRK. The Secretary and Foreign Ministers discussed the importance of reuniting separated Korean families, and the swift resolution of the abductions issue.
The Secretary and Foreign Ministers discussed the Russian military build-up along Ukraine’s borders and shared unwavering support for Ukraine’s sovereignty and territorial integrity. They committed to work closely together to deter further Russian escalation.
Noting their shared concern about activities that undermine the rules-based international order, the Secretary and Foreign Ministers reaffirmed their desire for a peaceful and stable region that would allow all countries to reach their potential. They expressed strong opposition to any unilateral actions that seek to alter the status quo and increase tensions in the region. The Secretary and Foreign Ministers reiterated their governments’ longstanding support for international law, highlighting in particular the importance of compliance with international law as reflected in the United Nations Convention on the Law of the Sea. They emphasized the importance of peace and stability in the Taiwan Strait. The Secretary and Foreign Ministers reaffirmed support for the unity and centrality of ASEAN, which is currently chaired by Cambodia, as well as ASEAN’s efforts to resolve the crisis in Myanmar. They also condemned the Myanmar regime’s violence committed against the people of Myanmar and committed to intensify efforts toward the immediate cessation of all violence, the release of those who are arbitrarily detained, and a swift return to the path of inclusive democracy.
The Secretary and Foreign Ministers emphasized the importance of trilateral cooperation to strengthen the rules-based economic order and ensure prosperity in the Indo-Pacific region and the world. They discussed common approaches to address priorities including the climate crisis; critical supply chains; gender equality and empowerment; development finance; and global health security including efforts to end the COVID-19 pandemic and prevent the next. They highlighted the importance of collaboration to strengthen information and cyber security, and also to improve economic security, including by promoting innovation of critical and emerging technologies based on democratic values and respect for universal human rights.
Reaffirming their commitment to U.S.-ROK-Japan trilateral cooperation that is grounded in our shared values and desire for regional peace, stability, and prosperity, the Secretary and Foreign Ministers pledged to continue regular trilateral ministerial consultations.
2. Top diplomats of S. Korea, U.S., Japan urge N. Korea to halt provocations, resume dialogue
(6th LD) Top diplomats of S. Korea, U.S., Japan urge N. Korea to halt provocations, resume dialogue | Yonhap News Agency
(ATTN: UPDATES with S. Korean official's briefing in last 3 paras)
By Byun Duk-kun
HONOLULU, Feb. 12 (Yonhap) -- The top diplomats of South Korea, the United States and Japan on Saturday urged North Korea to halt its destabilizing actions and return to dialogue.
The joint call came after a trilateral meeting between South Korean Foreign Minister Chung Eui-yong, U.S. Secretary of State Antony Blinken and Japanese Foreign Minister Yoshimasa Hayashi in Honolulu.
"We condemn the DPRK's ballistic missile launches and its unlawful nuclear ballistic programs, which are clear violations of U.N. Security Council resolutions," Blinken said in a joint press conference, referring to North Korea by its official name, the Democratic People's Republic of Korea.
"And we continue to work to find ways to hold the DPRK accountable," he added.
The foreign ministerial talks came after North Korea staged seven rounds of missile launches in January, marking the largest number of missile tests it has conducted in a single month.
Its missile launches also included the firing of an intermediate-range ballistic missile, the longest-range ballistic missile fired by North Korea since late 2017.
Chung said the North Korean missile launches were "clearly wrong."
"North Korea's recent missile tests are clearly wrong activities. We especially regret North Korea's firing of an intermediate-range missile," he said in the joint press conference with his U.S. and Japanese counterparts.
"We are strongly urging North Korea not to repeat such wrongful activities," he added.
Blinken noted the possibility of North Korea continuing its missile tests amid the growing tension between the U.S. and Russia over a possible Russian invasion of Ukraine.
"I certainly don't rule out that North Korea could engage in further provocative actions as things are happening in other parts of the world, including in Europe with regard to Ukraine," the top U.S. diplomat said when asked about the possibility of North Korea staging an intercontinental ballistic missile (ICBM) test.
Blinken said the U.S. is and will be able to deal with North Korea if necessary, even as it faces other global challenges.
"The bottom line is, and I think in a sense this week is a reasonable demonstration of that, we walk and chew gum at the same time," he told the press conference.
As a way of holding North Korea responsible for its actions, the top diplomats called for a full implementation of U.N. Security Council resolutions.
"The Secretary and Foreign Ministers condemned the DPRK's recent ballistic missile launches and expressed deep concern about the destabilizing nature of these actions," said the joint statement issued at the end of their trilateral talks.
"They called for full implementation by the international community of relevant UN Security Council resolutions relating to the DPRK and called on the DPRK to cease its unlawful activities and instead engage in dialogue," it added.
They still reaffirmed their commitment to dialogue with North Korea.
"The Secretary and the Foreign Ministers emphasized they held no hostile intent towards the DPRK and underscored continued openness to meeting the DPRK without preconditions," the joint statement said.
North Korea remains unresponsive to the U.S. outreach. It has also avoided any denuclearization talks since late 2019.
Blinken, Chung and Hayashi highlighted the importance of trilateral cooperation between their countries in dealing with North Korea.
"In this context, they committed to advance trilateral security cooperation," the joint statement said, without providing further details.
Chung earlier said this week's meetings in Honolulu were partly aimed at finding ways to bring North Korea back to dialogue.
He said the have discussed "various ways" to engage with North Korea, but that it was too early to discuss them publicly.
"I believe we may be able to introduce them at an appropriate time in the future," he said.
A South Korean official later explained one of the ways discussed Saturday was designed to send a stronger signal to the North.
"I can say there were discussions on a way that can better relay the U.S.' willingness to engage," the official told reporters while speaking on condition of anonymity.
"Our thoughts were delivered today and so it might take some time to assess such thoughts and make a decision," the official added, noting the new way was proposed by Seoul. "The reason we cannot say what exactly was discussed at this stage is because it takes time to review the proposal internally and make decisions."
In a separate background briefing for reporters in Seoul, another official said Chung and his counterparts had "productive consultations," during which he put forward "several proposals" to manage the Korean Peninsula situation with stability and restart dialogue with the North at an early date.
"The U.S. side listened to (the ideas). For now, we can't make details public, and we plan to explain those at an appropriate occasion, continuing consultations with the U.S.," the official said.
The trilateral meeting followed Chung's bilateral talks with the Japanese foreign minister.
Their first formal face-to-face talks as foreign ministers were held in a "serious and friendly" mood, added the official.
bdk@yna.co.kr
(END)
3. Pence tells world peace rally that U.S. must show strength in face of North Korean provocations
Pence tells world peace rally that U.S. must show strength in face of North Korean provocations
Former Vice President Mike Pence told a gathering of world leaders and international dignitaries on Friday that there is still hope for a peaceful resolution to the North Korean nuclear crisis, but stressed that America must show strength in the face of rising missile tests and other provocations from Pyongyang.
“Weakness arouses evil, and a resurgence of missile tests and provocations from Pyongyang, [including] this week’s promises to shake ‘the world,’ are a testament to this truth,” Mr. Pence said, referencing North Korea’s claim in recent days to be confronting the U.S. by “‘shaking the world’ with missile tests.”
While he did not mention the Biden administration by name, Mr. Pence suggested Washington is not responding aggressively enough to a growing wave of missile tests by Pyongyang, asserting that former President Donald Trump’s diplomatic breakthrough with North Korean leader Kim Jong-un proved that “peace follows strength.”
The former vice president made the remarks at a summit to promote world peace and mobilize hope behind efforts to end the North Korean nuclear crisis and the decades-old conflict between North and South Korea.
The “World Summit 2022” event was organized by the Universal Peace Federation and is bringing participants from every continent together, both virtually and at an in-person program in Seoul, where Mr. Pence was a featured speaker at an opening ceremony Friday.
Other top officials of the former Trump administration, including former Secretary of State Mike Pompeo and Secretary of Defense Mark T. Esper, were slated to address the gathering in Seoul over the weekend.
During Friday’s opening ceremony, Mr. Pence said the former administration showed that “the dream of peace on the Korean peninsula is possible.”
“Under our administration we proved to the astonishment of the world that peace is possible when America is strong,” the former vice president said. He referenced direct summits that Mr. Trump held with Mr. Kim after exerting economic and other pressure on Pyongyang in response to a surge in North Korean missile tests and nuclear provocations in 2017.
“Few people imagined that they would see the leaders of the United States and North Korea sitting down to discuss peace, but that’s exactly what happened at that historic summit in Singapore in 2018 and the summit and meetings that followed,” said Mr. Pence. “President Donald Trump showed it was possible, the nuclear testing stopped, the missile testing stopped and we began a productive dialogue for peace between our nations.”
The historic diplomacy ultimately failed to achieve a breakthrough denuclearization deal. Mr. Trump walked away from a second summit with Mr. Kim in 2019, saying the North Korean side had demanded sweeping relief from sanctions in exchange for only a limited commitment to destroy part of the nuclear arsenal it has been building for decades in violation of repeated U.N. Security Council resolutions.
Attempts at diplomacy with the North Koreans have gone nowhere during the years since, while the Kim regime engages in increasingly brazen new missile tests.
Mr. Pence’s sobering remarks on the situation came amid speeches by a range of other prominent international figures at Friday’s opening ceremony for the World Summit, an event being hosted by Hak Ja Han Moon, the co-founder of UPF, and co-hosted by Cambodian Prime Minister Hun Sen and former U.N. Secretary General Ban Ki-moon.
Mrs. Moon, the widow of the Rev. Sun Myung Moon, is the leader of the Unification movement that grew from the Unification Church that the Rev. Moon founded in 1954 — a year after war between North and South Korea was frozen by a U.S.-backed armistice. She and her late husband devoted their lives to the reunification of the Korean Peninsula and to the promotion of world peace. They founded The Washington Times in 1982.
A range of prominent political figures and current world leaders are participating in this weekend’s summit, including Nigerian President Muhammadu Buhari, Albanian President Ilir Meta, Senegal President Macky Sall and former European Commission President Jose Manuel Barroso.
Mr. Pence and other speakers praised the work of Mrs. Moon on Friday. Former House Speaker Newt Gingrich, who also addressed the gathering in Seoul, praised participants for coming together in the name of peace for the world and for the Korean peninsula.
“The human race will move forward to safety, to prosperity and to freedom only if good people take the time, show the courage, and get involved,” Mr. Gingrich said.
“The human race is at one of those amazing turning points, when the technology that brings us together can also be the technology that destroys us, and I think these efforts, this commitment to talk together, to bring together the kind of really remarkable groups that come from all over the world to this kind of conference, to make friendships, to go back home realizing that you have things in common that allow you to build a better future, I think all this is very, very vital,” he said. “So I want to commend everyone — both people who are here, people who are … with us virtually, and people who will, in the future, see all of this on social media.”
Mr. Pence spoke of humankind’s inexhaustible thirst for freedom, asserting that the U.S. plays a special role in promoting freedom around the world.
“In the face of such renewed belligerence from North Korea, of Russian tanks on the border of Ukraine, of China’s warplanes flying into Taiwan’s defense zone in record numbers, you can be sure of this: The American people will always stand for freedom and we will always stand with the people of the Republic of Korea,” the former vice president said.
“America will always be freedom’s greatest champion, liberty’s greatest protector and the armed forces of the United States will remain the greatest force for good the world has ever known,” he said.
“As our administration proved. … Much can be accomplished through a combination of strength and engagement,” he said. “Based on the progress that I saw under the Trump-Pence administration, I remain supremely confident that a brighter future is on the horizon, for the United States, for the people of the Korean peninsula, the Asia-Pacific and the world.”
“No oppressive regime can last forever,” Mr. Pence said. “For inside every human heart is an unquenchable fire that burns to be free. Inside every human soul is an insatiable desire for freedom.”
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4. Behind China-South Korea skating row, a deeper cultural rift
In the soft power battle with South Korea, China has self inflicted wounds.
Behind China-South Korea skating row, a deeper cultural rift
AP · by KIM TONG-HYUNG · February 12, 2022
SEOUL, South Korea (AP) — Chinese and South Korean short-track speedskating fans are duking it out online over allegations of foul play, tapping into the historical rivalry between their countries.
South Korea was angered by the disqualifications of two of its short-track speedskaters at the Beijing Games this week. A protest was filed, and South Koreans online called for the team to withdraw in protest.
Instead, they stayed. And Hwang Daeheon won gold in the men’s 1,500 meters on Wednesday, giving South Korea its fourth such title in six Olympics.
Hwang and teammate Lee Juneseo had been disqualified in the semifinals of the 1,000 two days earlier, prompting the South Korean contingent to complain to the International Skating Union and International Olympic Committee.
The tetchiness over a relatively obscure sport underscores the intense competition between the Asian superpower and the scrappy, high-tech democracy that has thrived despite the ever-present threat from China’s ally North Korea.
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Chinese nationalists say that over the centuries, Koreans have adopted Chinese customs and sought to make them their own. South Koreans say China seeks to diminish their uniqueness and accuse the government of cultural appropriation, most recently at last week’s Olympics opening ceremony, when a performer representing China’s Korean minority wore the traditional women’s national dress known as hanbok.
That set off a howl of protest on the South Korean internet, which was met by an equally vociferous response from Chinese netizens asserting China’s cultural dominance and accusing South Korean skaters of deliberately fouling to seek advantage on the track.
While no clear connection has been established, the assault of a Chinese student in the South Korean city of Busan on Wednesday also prompted an unusual statement of concern from China’s Foreign Ministry.
“We are paying great attention to the matter,” spokesperson Zhao Lijian said Friday. “We will do our best to safeguard the legitimate rights and interests and safety of Chinese citizens overseas.”
China has also stirred nationalism with a pair of box office hits lionizing the role of Chinese troops in the 1950-53 Korean War, which ended without a peace treaty. Chinese propaganda paints the U.S. and its allies as the aggressors in the conflict that began after North Korea invaded the south and expanded with China’s dispatch of a massive army to aid the North.
Short-track speedskating, a chaotic sport where skaters constantly jostle for position while racing around a tight track with no lanes, has long been plagued by bitter judging disputes.
But tempers had rarely reached the levels of South Korea’s national outrage this week. The reaction underscored the pent-up frustrations from years of disputes over history and culture — and echoed broader unease about China’s growing military and economic influence.
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South Korea had entered the Beijing Games with a record 24 gold medals in past Olympic competitions, more than double China’s 10 golds. But the disqualifications of Hwang and Lee, both penalized for illegal contact, ensured a slow start for South Korea.
A series of South Korean editorials accused China of abusing its home advantage, while one newspaper temporarily published an online article that repeated the same sentence: “Just let host China take all the medals, just let host China take all the medals.”
The skating dispute crossed over into politics as South Korean presidential candidates, locked in heated campaigns ahead of a March vote, called out the Olympic hosts for allegedly stealing medals in a sport the country has proudly dominated for years.
The Chinese Embassy in Seoul published an irritated response on Facebook, expressing “serious concern” about South Korean politicians and media fanning “anti-China sentiment.”
Yet the Embassy was also quick to congratulate Hwang over his 1,500-meter win and said the people of China have “positive” views about his “excellent skills.”
The ruling Communist Party newspaper Global Times sought to downplay the dispute, while also pointing to South Korean anxieties over “regional geopolitics as well as the reliance on the U.S. for security.”
“Some shift this sentiment toward China, which is why minor incidents sometimes escalate,” the paper said in an editorial Friday.
South Korea and China developed close ties driven by trade since the early 1990s, but relations have deteriorated in recent years as Beijing became more assertive toward its neighbors while competing with Washington for regional influence.
Bilateral relations took a significant hit in 2017 when South Korea installed an advanced U.S. missile defense system to counter nuclear and missile threats from North Korea. The decision angered China, which claimed that the anti-missile system in South Korea could be reconfigured to peep into its territory.
Beijing retaliated by suspending Chinese group tours to South Korea and obliterating the China business of South Korean supermarket giant Lotte, which had provided land for the missile system.
Alongside politics, frictions have long been driven by cultural issues, even including the origin of kimchi, a Korean national dish of fermented cabbage that China claims as its own concoction.
The sides also have an ongoing dispute over the history of ancient kingdoms whose territories stretched from the Korean Peninsula to Manchuria.
South Koreans see these kingdoms as Korean, but China began to claim them as part of its national history in the early 1980s. Experts say Beijing’s intent was to provide ideological support for its policies governing ethnic minorities, including the approximately two million ethnic Koreans living in northeastern China.
In the heat of the presidential campaign, candidate Lee Jae-myung of the ruling Democratic Party warned China against usurping Korean culture.
His campaign spokesman linked the hanbok-wearing performer at the opening ceremony with South Koreans’ anger over a Chinese government-backed academic project launched in the early 2000s, which produced a series of studies arguing the kingdoms of Goguryeo (37 B.C.-A.D. 668) and Balhae (698–926) were Chinese.
Yoon Suk Yeol, a conservative candidate locked in a tight race with Lee, also embraced the sentiment, describing Goguryeo and Balhae as “shining components of Korean history.”
AP · by KIM TONG-HYUNG · February 12, 2022
5. N. Korean leader Kim Jong-un attends 2nd groundbreaking ceremony for housing project
Someone on social media suggested the amount of construction projects is the regime's attempt to keep the people "exhausted." There is likely some truth to that. If they are only working and attending ideological training sessions there is no time for collective action to develop resistance to the regime. This is what authoritarian regimes do to remain in power.
N. Korean leader Kim Jong-un attends 2nd groundbreaking ceremony for housing project | Yonhap News Agency
SEOUL, Feb. 13 (Yonhap) -- North Korean leader Kim Jong-un has attended the second groundbreaking ceremony for 10,000 homes in the capital, calling the project a "long-cherished desire" of the country, Pyongyang's state media reported Sunday.
The official Korean Central News Agency (KCNA) said North Korea broke ground in the Hwasong area Saturday on the second part of the housing project and Kim delivered a speech at the ceremony.
"The construction of 10,000 flats in the Hwasong area, one of the top priority tasks facing the construction sector this year, is not only the second project for carrying out the long-term goal for housing construction in Pyongyang City, a long-cherished plan of the Party whose implementation started last year, but also the first-stage construction for turning the area into a new modern town," Kim said.
"The construction units deployed in the Hwasong area would dedicate all their wisdom, enthusiasm and high spirit to the sacred construction campaign by taking the lead in the campaign and becoming examples to the builders of other construction sites," he said.
At the eighth congress of the ruling Workers' Party meeting last year, North Korea announced its aim of building 50,000 apartments in Pyongyang by 2025, or 10,000 units each year.
A groundbreaking ceremony for the first stage of the project to build 10,000 homes in the eastern Pyongyang was held in March last year, with Kim also attending, and the apartment complex is now reportedly in the final stage.
Among the attendees at Saturday's event were Jo Yong-won, secretary of the Central Committee of the ruling Workers' Party, Kim Tok-hun, premier of the cabinet, Ri Il-hwan and O Su-yong, secretaries of the Party Central Committee, and Pak Hun, vice premier of the Cabinet.
brk@yna.co.kr
(END)
6. Chinese, Russian envoys for N. Korea discuss situation on Korean Peninsula
Not to be outdone, China and Russia likely discussed how to help north Korea evade sanctions and they probably exchanged "best practices" on how best to deny human rights to their people and to Koreans from the north. (not all sarcasm)
Chinese, Russian envoys for N. Korea discuss situation on Korean Peninsula | Yonhap News Agency
SEOUL, Feb. 12 (Yonhap) -- The Chinese and Russian ambassadors to North Korea met Saturday to discuss the latest situation around the Korean Peninsula, the Russian embassy in Pyongyang said.
Russian Ambassador to North Korea, Alexander Matsegora, and China's charge d'affaires ad interim to North Korea, Sun Honglian, held the meeting at the Chinese embassy in the reclusive state.
"The diplomats exchanged views on the situation around the Korean Peninsula and shared their assessments of the state of bilateral relations with the friendly neighbor, the Democratic People's Republic of Korea," the embassy said in a statement posted on Facebook, referring to North Korea's official name.
Their meeting follows North Korea's seven rounds of missile tests in January, which marked a record number of missile tests it conducted in a single month.
Matsegora met with North Korean Deputy Foreign Minister Im Cheon-Il on Monday to discuss the international situation in the context of events around Ukraine and the Korean Peninsula, according to Russia's Sputnik News Agency.
ejkim@yna.co.kr
(END)
7. FOCUS: North Korea's excessive military provocations may irritate China
Perhaps. But I think China prefers that rather than war or instability and collapse on the peninsula. And the regime's provocations provide greater dilemmas for the ROK and US and allow the north to be a spoiler in strategic competition.
Frankly, I think the PRC likely believes there will not be a military response to north Korean provocations by our administration. In 2017 I think they were deathly afraid that the Trump administration would take military action. Therefore they were supportive of UN sacntions,not to eign in north Korean behavior, but to satisfy the US so as not to "provoke" a US military response which the PRC desperately wants to avoid. (A 1950 do over will again hurt PRC efforts with its strategic goals toward Taiwan).
FOCUS: North Korea's excessive military provocations may irritate China
Speculation is mounting that North Korea's latest spate of missile launches, apparently aimed at getting the United States to resume talks over sanctions relief, may eventually irk China, Pyongyang's most influential economic and security ally.
North Korea has recently hinted at restarting nuclear and intercontinental ballistic missile tests to put more pressure on the administration of U.S. President Joe Biden, which is unlikely to readily make concessions on its demands for denuclearization and the sanctions measures imposed on Pyongyang.
But if it goes too far, North Korea could lose the backing of China, which for years has been calling for the lifting of the sanctions set by the U.N. Security Council on the grounds that the country has suspended nuclear and ICBM tests.
North Korean leader Kim Jong Un attends a meeting held by the Political Bureau of the Central Committee of the ruling Workers' Party of Korea in Pyongyang on Jan. 19, 2022. (KCNA/Kyodo)
The Chinese leadership under President Xi Jinping would especially not tolerate new North Korean nuclear tests, given that China has long been worried about potential radioactive contamination from the neighboring nation, foreign affairs experts say.
China, seen as keen to successfully host the 2022 Beijing Winter Olympics slated to start Friday to enhance national prestige, has also been concerned at the prospect of a North Korean nuclear or ICBM test disrupting the global sporting event, they say.
North Korea claims no COVID-19 infections have been found in the country, having kept its borders largely sealed for more than two years in a bid to prevent the entry of the novel coronavirus, first detected in the central Chinese city of Wuhan in late 2019.
While the resumption of freight train operations between the neighbors was announced Jan. 17, land traffic restrictions have dragged down North Korea's trade with China, dealing a crushing blow to the country's broader economy.
In addition to a plunge in trade with China, agricultural devastation caused by powerful typhoons and flooding has cemented the view that North Korea has suffered a serious food crisis and that its citizens have not received adequate daily necessities.
As North Korea faces economic difficulties, strengthening the country's "national defense capabilities" will enable leader Kim Jong Un to bolster his grip on power, said Junya Nishino, a professor at Keio University.
North Korea, meanwhile, has put emphasis on deepening relations with China to overcome several challenges including the economic deterioration, Nishino said in a report for the Nakasone Peace Institute in Tokyo.
Pyongyang has launched projectiles seven times since early 2022. On Sunday, it fired its longest-range ballistic missile since 2017. South Korea reacted by accusing the North of moving closer to scrapping its moratorium on nuclear and ICBM tests.
In November 2017, North Korea launched what it said was its "most powerful" ICBM, capable of delivering a nuclear warhead to anywhere in the continental United States. Pyongyang's last nuclear test, its sixth, took place in September that year.
North Korea formally declared in April 2018, two months ahead of the first-ever U.S.-North Korea summit, that it would discontinue nuclear tests and intercontinental ballistic rocket firings.
By unveiling its upgraded weapons and intensifying security tensions in the region, home to U.S. allies Japan and South Korea, the North might be trying to bring Washington back to the negotiating table to discuss sanctions relief, pundits say.
So long as the Biden administration remains preoccupied by Russia's massive military buildup on the Ukrainian border and is indifferent to issues surrounding the Korean Peninsula, Pyongyang will not stop efforts to develop its arsenal, they say.
On Jan. 20, Biden's first anniversary in the White House, North Korea said it may restart all "activities" that it had temporarily suspended to build trust with former U.S. President Donald Trump, who held talks with Kim three times starting in June 2018.
A key ruling party meeting convened on Jan. 19 concluded that North Korea should take "practical action to more reliably and effectively increase our physical strength" to counter the United States, the official Korean Central News Agency reported.
Stephen Nagy, a senior associate professor at International Christian University, said, "The recent tests are a demonstration of the expanding missile capabilities of North Korea and a warning to the United States that ignoring North Korea will put them in peril."
"It might be an effort to get sanctions and COVID-19 relief as the combination of U.N. sanctions and the pandemic are stressing Pyongyang's ability to feed its people and generate economic growth," Nagy said.
North Korea test-fires two tactical guided missiles on Jan. 27, 2022. (KNS/Kyodo)
Nevertheless, it is "unlikely we will see a major shift in the dynamics between Pyongyang and Washington with these tests unless Pyongyang agrees to some kind of freeze in testing and development," he added.
Indeed, the Biden administration, which had expressed eagerness to hold talks with North Korea, has begun to impose additional sanctions against Pyongyang in the wake of its ballistic missile tests in January, seen as violation of U.N. Security Council resolutions.
To turn around the economic situation in North Korea, Kim has to concentrate on boosting cooperation with China under the current circumstances, a diplomatic source said. North Korea relies on China for over 90 percent of its trade.
China and North Korea fought together in the 1950-1953 Korean War against the U.S.-led United Nations forces and have been described as "blood brothers."
China, however, would shy away from stretching out a helping hand to North Korea if it dares to carry out ICBM or nuclear tests, since Beijing is "proud" of having prevented Pyongyang from "running out of control," the source said.
If North Korea conducts such tests, "China would lose face and be forced to be wary of radioactive contamination," he said.
"Should North Korea test-fire an ICBM or stage a nuclear test during the Beijing Olympics, Xi would get very angry and may stop providing economic assistance to North Korea. This is the worst-case scenario for Kim," he added.
Some observers say North Korea has been attempting to steadily develop new weapons based on the decisions made in January 2021 at the first congress of the Workers' Party of Korea in nearly five years.
Kim has pledged to develop ICBMs with the use of solid fuel, which can shorten the time required for prelaunch preparations.
According to another diplomatic source, North Korea seems to be upgrading its existing weapons rather than developing new ones, meaning "we do not have to be careful about the quality too much."
Nevertheless, Pyongyang "will continue testing weapons and threaten peace and stability in East Asia," the source added.
North Korea will mark the anniversary of the founding of the country's army on Feb. 8 and the birthday of the late leader Kim Jong Il, the father of Kim Jong Un, on Feb. 16, during the Beijing Olympics through Feb. 20.
Related coverage:
8. Experts: North Korea May Be Ready for ICBM Deployment
Here are my complete comments that I provided to the journalist. (of course only a sound bite makes it into the final article - not a complaint, just reality - I always try to provide enough remarks so the journalist will find something useful for the article). The question I was answering was about the implications of the suspected ICBM launch base that is located near the Chinese border. And when I provide my comments to VOA and RFA, I consider them from the perspective of providing information to the regime and the Korean people living in the north. Hopefully my intended messages to the regime are self-evident.
There should be no doubt in anyone's mind that Kim Jong-un intends to have an ICBM and nuclear capability to strike the US homeland. This is one indication of Kim's clear intent to possess the capability.
The location is significant for reasons related to geography, firing capability, and survivability. The location is chosen to give it some protection from attack. The mountainous area and underground facilities provide some protection from ROK and US attack. The terrain provides sufficient road networks to maneuver and disperse the launch systems (TELs) and sufficient flat spaces from which to launch missiles. The location being within 25KM of the Chinese border is also likely assessed to deter the US from attacking the sites because of the close proximity to the border and the threat such an attack would be to China. Kim may believe that the US will be reluctant to strike the base because of the potential response from China. This is actually based on lessons learned from the Korean War. However, Kim's assessment is very likely wrong, in fact dead wrong. If the US assesses that this is an ICBM launch base and that it will be used to strike the US it will be attacked regardless of the possible response. The duty and responsibility is to protect the homeland..
Furthermore, we can be sure that the open-source satellite imagery we are seeing is sufficient for military targeteers to develop detailed target folders that would have strike packages of missile systems and aircraft ready to completely destroy the site and all its support activities when ordered. The more detailed intelligence imagery would provide greater resolution for intelligence analysis. This launch base would not survive if the ROK/US alliance chose to attack it.
We can be absolutely sure that this base is on a target list ready for immediate destruction should the north choose to launch an ICBM at the homeland.
That said, we should understand that the north knows our intelligence capabilities. They have access to the same commercial open source imagery as 38 North. They know we can see them. We have to ask why the regime wants to show us this launch base? Is this a real launch base or is this a deception to draw our attention both to support its political warfare strategy and blackmail diplomacy (the use of increased tensions, threats, and provocations to gain political and economic concessions) and to actually protect a real site (or multiple sites) that the regime intends to use for warfighting. After all, all warfare is based on deception (Sun Tzu).
Experts: North Korea May Be Ready for ICBM Deployment
February 11, 2022 9:09 PM
washington —
Experts say an undeclared North Korean intercontinental ballistic missile base near China, detected via satellite imagery, indicates that Pyongyang has expanded its locations from which it can deploy long-range missiles to attack the U.S. mainland.
North Korea has diversified the missiles in its arsenal, as evidenced by the 11 missiles tested in January. It tested what it called hypersonic missiles, tactical guided missiles, cruise missiles and an intermediate-range ballistic missile capable of striking the U.S. territory of Guam. It stopped short of testing an ICBM.
North Korea's Foreign Ministry boasted Tuesday of its capability to strike the U.S. "There's only our country on this planet that can shake the world by firing a missile with the U.S. mainland in its range," Pyongyang said.
Jeffrey Lewis, director of the East Asia Nonproliferation Project at the Middlebury Institute of International Studies at Monterey, said commercial satellite photos indicate Pyongyang is ready to station ICBMs at the Hoejung-ni missile base in Chagang province after having tested them several times in 2017. The province borders on China's Jilin and Liaoning provinces.
FILE - Soldiers gather in Kim Il Sung Square in Pyongyang, North Korea, July 6, 2017, to celebrate the test launch of North Korea's first intercontinental ballistic missile two days earlier.
Possible ICBM deployment
"This isn't a sign of an ICBM test," Lewis said, referring to the satellite photos indicating the completion of the base. "This is a sign that North Korea is deploying some ICBMs. … It's an operation base to use the missiles in a war."
He continued: "The [ICBM] tests that they did in 2017 validated two ICBM designs. They are probably deploying some of those ICBMs at this location, which is why we saw the big uptick in construction in 2018."
North Korea tested three ICBMs in 2017 and conducted its sixth nuclear test, drawing wide condemnation from the international community.
"Although construction began almost 20 years ago," the CSIS report said, "the Hoejung-ni missile operating base represents one of the latest Strategic Forces bases to be completed." North Korea's strategic forces include short-range and intermediate ballistic missiles.
Joseph Bermudez, one of the authors of the report and a senior fellow for imagery analysis at CSIS, said, "This missile operating base is reported to be selected for the deployment of ICBMs."
Of North Korea's approximately 12 missile bases, two to three are for ICBMs, according to Lewis.
Ian Williams, deputy director of the Missile Defense Project at CSIS, said the missile base shows North Korea is expanding locations from where it can launch attacks.
"What we're seeing is North Korea building a number of locations from which it can fire missiles," Williams said. "By spreading [the bases] out more, you can make them more resilient to attack and harder to destroy before they launch."
The Hoejung-ni missile base is in the remote rugged mountains of north-central Chagang province. North Korea launched its Hwasong-12 intermediate-range ballistic missile from the province on January 30.
"The more enemy territory you have to traverse to get to your target, generally considered, a bit more challenging" to attack, said Williams.
"It's still a tough challenge for North Korea to keep their missiles invulnerable from an attack" because it is a small country, "which I think is one of the reasons why they've been diversifying not only their locations but their delivery platforms," he said.
Proximity to China
Experts also noted the base's location, which, at 25 kilometers from the Chinese border, poses a deterrent to a U.S. or South Korean attack.
Bruce Bennett, a senior defense analyst at the Rand Corporation, said that "having the base close to China will make the ROK/U.S. less likely to fire a preemptive attack at the base because of the risk that a ROK/U.S. missile or aircraft attacking the base might accidentally enter Chinese territory and start a war." "ROK" stands for Republic of Korea, South Korea's official name.
David Maxwell, a senior fellow at the Foundation of Defense for Democracies, said, "If the U.S. assess that this is an ICBM launch base and that it will be used to strike the U.S., it will be attacked regardless of [a] possible response" from China.
VOA's Korean Service contacted the Chinese Embassy in Washington and North Korea's Mission to the U.N. asking for comments but received no response.
Responding to the CSIS satellite report, U.S. Pentagon spokesperson Lieutenant Colonel Martin Meiners told VOA's Korean Service that the U.S. does not speak to "matters of intelligence or commercial imagery analysis."
"However, we have been very clear on the threat posed by the Democratic People's Republic of Korea's missile programs, and our commitment to the defense of the ROK, Japan and the U.S. homeland," said Meiners, who used North Korea's official name in his response on Tuesday.
Responding to VOA Korean Service's question about North Korea's ICBM base Wednesday, State Department principal deputy spokesperson Jalina Porter said, "The United States has a vital interest in deterring the DPRK."
Porter continued: "That includes defending against its provocations or use as a force, limiting the reach of its most dangerous weapons programs, and, above all, keeping the American people, deployed forces and our allies safe."
Young Gyo Kim contributed to this report.
9. Hefty rice rations highlight prosecutors’ clout in hungry North Korea
But still not enough to drive any kind of collective action.
“The ordinary residents do not receive any food rations at all. Officials of the provincial party committee or the provincial people’s committee, which are the most powerful organizations in the province, receive the national food ration. But even they don’t get rice like the prosecutor’s office,” he said.
The official said he was aware that the prosecutor’s office was powerful, but he never knew just how much privilege they enjoyed.
“The prosecutor’s office belongs to the local distribution system and receives food from the local food administration office… The fact that the prosecutor’s office was able to receive an entire year’s worth of rations all at once, and all of it was rice, proves how privileged and powerful they are,” the source said.
Hefty rice rations highlight prosecutors’ clout in hungry North Korea
Eating rice is a luxury reserved for elites, while ordinary workers get corn.
2022.02.11
Authorities in North Korea are supplying officials at the powerful prosecutor’s office with yearly rations of coveted rice at a time when the country cannot even supply most people with corn, sources in the country told RFA.
Though rice is a basic staple in other East Asian countries, it has become a luxury in North Korea, which suffers from food shortages made worse by the coronavirus pandemic. Steamed rice at a North Korean dinner table is a status symbol, and daily meals of rice separate the haves from the have nots.
Ordinary people are aware that prosecutors are provided with a year’s supply of glutinous and white rice, and they are becoming resentful, an official in the city of Chongjin in the northeastern province of North Hamgyong told RFA Wednesday.
“On the 3rd, I heard about it from my wife. She was at a college friend’s birthday party… and her friend’s husband is a chief prosecutor at the provincial prosecutor’s office. He bragged to them about it,” said the source, who requested anonymity for security reasons.
“The ordinary residents do not receive any food rations at all. Officials of the provincial party committee or the provincial people’s committee, which are the most powerful organizations in the province, receive the national food ration. But even they don’t get rice like the prosecutor’s office,” he said.
The official said he was aware that the prosecutor’s office was powerful, but he never knew just how much privilege they enjoyed.
“The prosecutor’s office belongs to the local distribution system and receives food from the local food administration office… The fact that the prosecutor’s office was able to receive an entire year’s worth of rations all at once, and all of it was rice, proves how privileged and powerful they are,” the source said.
“The provincial food administration bureau workers who allocate food to each region and unit would have had a hard time filling the request of the prosecutor’s office… Since the prosecutor’s office took all the rice, the bureau did not have enough to put it in rations for workers in steel mills and coal mines, and they received their rations in corn instead,” said the source.
“I am not sure if the city prosecutors and district prosecutors also received preferential rations like the provincial prosecutors did, but either way it is an outrage because ordinary people are having a difficult time without receiving any rations at all,” he said.
Since prosecutors interpret the law, they wield the most power, an official in the city of Hyesan, about 140 miles to the west of Chongjin, told RFA Thursday.
“We all know that prosecutors live better than officials at other agencies,” said the second source, who requested anonymity to speak freely.
“If the prosecutor’s office carries out a general inspection or investigation… people start trembling. What the prosecutor’s office wants, they can get,” he said.
The Chongjin official said the prosecutor’s office is an exclusive group staffed by only 50 people, compared to the party committee and the people’s committee, which have hundreds.
“There are many things that the prosecutors get for free. Though their numbers are small, they are at the highest level,” he said.
“Since corruption and bribery is so common, prosecutors who can inspect, investigate, and prosecute can increase their wealth by just doing their job. I know several prosecutors, but none of their wives need to work for a living,” the second source said.
Women are typically the primary breadwinners in North Korean society, as the men must work at government-assigned jobs and earn a salary too low to live on. Most families must start businesses of their own and only the women have time to run them.
“So, my friend, who has connections, was moved to the prosecutor’s office from the city party organization department. People at the party organization scoffed at him and showed sarcastic responses about him becoming a prosecutor, but they actually seemed envious,” the Chongjin official said.
“The largest and most beautiful buildings in any city are not the People’s Committee buildings, or those of various government organs, but the buildings of law enforcement. The tyranny and corruption of prosecutors, state security officers, and police officers in this county are severe, so the people's resentment against them is very high.”
Translated by Leejin Jun. Written in English by Eugene Whong.
10. Why does Kim Jong-un keep launching missiles? Exploring the Truth and Objectives (2) Amazing development speed, but mass production is not easy.
Why does Kim Jong-un keep launching missiles? Exploring the Truth and Objectives (2) Amazing development speed, but mass production is not easy.
(Photo) A picture of what is believed to be a train-launched missile test. Quoted from the Labor News, in January 2022.
◆ Successful testing does not mean actual deployment and mass production.
North Korea conducted another ballistic missile test on January 30. This is the 7th time this year. Oh Sowon, a former North Korean agent born in Japan, explains the missile barrage while deciphering domestic developments, including the 4th Plenary Meeting of the 8th Central Committee of the Workers' Party of Korea, which was convened at the end of 2021 (Editor).
The author believes that at the general meeting of the Central Committee of the Workers' Party of Korea held at the end of 2021, a decision was made to complete the development of hypersonic missiles and "mass produce" them for field deployment as a goal and plan for 2022. However, a successful test and mass production for actual deployment are entirely different stories.
To explain weapons production in North Korea briefly, after development is completed at the National Defense Academy of Sciences, the Ministry of People's Armed Forces submits the deployment plan to the Second Economic Commission, which is in charge of munitions production. After the committee reviews the project and offers the budget and production plan to the Central Military Commission of the Workers' Party for approval, mass production will begin as a "national standard product."
This is called "serial production" in North Korea's munitions industry. The fact that the January 17 launch was called an "inspection and firing test" means, in short, an inspection of the "products" produced at the munitions factory before delivery. After " inspection," they are delivered to the military and deployed.
As a matter of course, the military pays the "bill " to the Second Economic Commission from the military budget. The Academy of National Defense Science and the army's budget are decided by the Central Military Commission of the Workers' Party and are drawn from the national budget for expenditure. Therefore, the munitions factories under the Second Economic Commission cannot pay wages when weapons production stops. In a sense, it is an independent profit-making system.
As for the foreign currency budget required for weapons development and production, the Munitions Industry Department of the Workers' Party takes the lead in "earning foreign currency" through its affiliated trading companies. It also operates a specialized bank for the management of military funds.
Since the munitions industry department of the Workers' Party of Korea has the right to export non-ferrous metals, coal, weapons, etc. (i.e., "concessions") to obtain foreign currency, it appears to have a relatively large amount of foreign currency compared to other sectors, but this is not the truth.
◆ Are Arms Exports Profitable?
In the late 1980s, I was told by a banker involved in the export of "Mars 3" Scud missiles to Iran that each missile was exported for 3 million US dollars.
However, since more than 70% of the materials were imported to produce the missiles, the production cost was high, and the net profit was low. Therefore, he lamented that there was almost no foreign currency left for mass production, not to mention funds for developing new weapons such as ICBMs and the development of nuclear weapons as instructed by the leader.
The company would give 30% of its sales = 900,000 dollars to the leader (Kim Jong-il at that time), contribute 10% = 300,000 dollars to the military as a fund to strengthen national defence, and use the remaining 1.8 million dollars to pay for the development of new weapons and the import of materials needed for production, but there was an absolute shortage.
He said they were running an accounting deficit because they were borrowing from the government due to the lack of North Korean domestic currency needed to pay for labour and utilities.
Even though the "domestic production rate" of materials is increasing, imported materials are still essential, so foreign currency is needed continuously for mass production. Moreover, North Korea's arms exports are now under much stricter international scrutiny.
(Photo) Kim Jong-un observes a missile launch test. Kim Jong-un observes a missile launch test. There was also Kim Yo-jong. Quoted from the Labor News, in January 2022.
◆ Low-quality power causes disorders.
As for the development of advanced weapon proto-models, even if Kim Jong Il and the other departments of the Workers' Party in charge of the munitions industry give priority to the use of imported items and foreign currency, it will not be easy when it comes to the stage of series production due to the lack of foreign currency. Therefore, it is essential to expand production line facilities and secure materials, and above all, it is essential to secure stable electrical power.
Electricity issues cannot be resolved solely by the Military Industry Department of the Workers' Party or the Second Economic Commission, which is the administrative body in charge of military production. Although there are priority power transmission measures for the military-industrial sector, the quality (frequency) is the problem. Precision machinery is sensitive to fluctuations in the frequency of electricity, and if the frequency becomes unstable even slightly, it will stop.
In the past, when one of the largest coal mines in North Korea, the Anju mine in North Pyongan Province, was flooded and the tunnels were submerged; they tried to pump out the water using a Japanese-manufactured pump but, the frequency was so unstable that the pump stopped several times a day and could not operate properly.
China has developed to the point where it is now called the "world's factory," but until about 20 years ago, the electric power was unstable, and the defect rate of precision processed products was high. The stability of electric power was essential to improve the quality of Chinese products, which had long been called "You get what you pay for."
A person who had worked at the 2.8 Machinery General Factory in Jagang Province who defected around 2010 testified that even if nearly half of the automatic rifles produced were defective, the military personnel who came to inspect them were bribed to deliver them as good products.
For your information, there is a clause in the military law that if more than 30% of defective products are produced in a munitions factory, the factory manager will be put on military trial and sentenced to death. Quality control (QC) is limited to a small number of prototypes, and when it comes to series production (mass production), North Korea's production sites immediately become rife with defective products.
It is reported that in the era of Kim Jong-un, equipment to stabilize voltage and electric power has been introduced from overseas to precision fabricated goods factories.
In the past, I witnessed an expensive Chinese-made power ballast installed in a munitions factory producing electronic components for weapons, but it could not withstand the sudden and significant fluctuations in voltage and current being transmitted to it, and its operation was interrupted. In my opinion, the fundamental improvement of the conditions that allow for serial production has not yet been made.
◆ The Dragon's Head and the Snake's Tail: Is Mass Production Possible?
In other words, the actual deployment of weapons in North Korea is not proceeding as planned. Repeated delays and the eventual scaling back of deployment, and the deployment of a significant number of dummies are common occurrences.
In North Korea, many projects are unsustainable and have unsettling inertia that leaves their completion in limbo. I have seen subordinates at work whispering without any sentimentality that the executive in charge is unlucky if he is upset by the leader in the process.
Since the beginning of the era of the temperamental Kim Jong-un, there has been a growing tendency to avoid being selected for high-ranking executive positions where the probability of getting the wrong end of the stick is high.
It is common knowledge that it takes time for any product to go from development to market, but if we underestimate that there is still time before North Korea's weapons become a full-fledged threat, we will be badly wounded.
The United States is mainly responsible for taking a lax view of the current situation in North Korea. North Korea's weapons development has become much faster than in the past. It is necessary to fundamentally rethink our strategy to see whether the threat can be controlled only by a "contradiction and shield" development race.
At a Workers' Party Politburo meeting on January 20, Kim Jong Il indicated that he would consider resuming nuclear and ICBM tests, saying that he would "totally reconsider" confidence measures against the US. The official announcement of the lifting of the moratorium has caused quite a stir in the South Korean media. I wonder how far the Kim Jong-un regime is willing to go. (End)
Oh So-won (pseudonym)
A man in his 60s. A former official of an organization affiliated with the Workers' Party of Korea. He was born in Japan and returned to North Korea as a teenager as a repatriation project. After graduating from a university in Pyongyang, he worked for a trading company affiliated with the Workers' Party of Korea and then engaged in espionage activities against South Korea. He defected to South Korea in the 1990s and worked as a company employee before retiring. He is the author of "Naked North Korea" (Shinchosha), and his column "Pyongyang Watch" was serialized in the Tokyo Shimbun (2010-2012). He has also contributed numerous articles to the monthly magazines "Shincho 45" and "Factor", and the information website "Foresight".
※The contributions of external authors may not be consistent with the editorial policy of ASIAPRESS.
11. Guilty verdicts handed down in S.Korea's biggest crypto scam
Guilty verdicts handed down in S.Korea's biggest crypto scam
Seven executives of V Global, who were accused of misappropriating nearly US$1.9 billion, were found guilty on Friday, with former CEO Lee Byung-gul being sentenced to 22 years in prison.
Six other executives — accomplices in the crypto fraud — received four to 14 years, depending on their degree of involvement.
At least 52,419 investors lost their funds in the now-defunct South Korean crypto exchange, some of them their whole life savings.
South Korea’s verdict on the largest crypto fraud scheme in its history may set a benchmark for the legal punishment of scams targeting the newer, less traceable asset class. In 2021 alone, South Korean police nabbed 219 cases of fraud crimes involving crypto — a few resembled V Global’s crypto-based pyramid scheme, but none matched its magnitude.
“Most of the victims were middle-aged or senior citizens who dreamed of a stable life after retirement,” attorney Han Sang-jun of the Daegun law firm, who is representing the group of V Global investors, told Forkast.
Han revealed that at least one victim has taken their own life after being scammed.
The prosecutors revealed that V Global gathered investors by guaranteeing a 300% profit on a deposit of 6 million won (about US$5,000), which was the prerequisite for joining the digital exchange.
It promised that if investors deposited 6 million won, it would give 18 million V Cash, its self-issued cryptocurrency, in return. Then-investors anticipated an even greater return, thinking V Cash would grow in value as promoted by the exchange.
Some investors did receive a portion of the promised return, but prosecutors said those funds had been taken from the deposits of newer customers.
V Global ran a pyramid scheme-like operation where it guaranteed a 1.2 million won, or US$1,000 commission, to those who referred new customers to the exchange.
“There were a lot of cases where a family member or a close friend recommended [V Global] to another,” Han said.
The lawyer said in such pyramid schemes, high rankers in the organization would gather curious investors through offline seminars and lectures. Having V Global as a running cryptocurrency exchange played a factor in creating trust in the investors.
Today, the ringleaders of V Global were given close to the highest level of punishment in South Korea’s legal framework for property crimes. However, Han says the sentence is insufficient when compared to the amount of damage.
“I am not sure if there will be another case [this grand], but I think this sentencing will become an important benchmark,” Han said.
Another expert agreed that it does not correspond to the amount of damage investors have faced.
Hwang Suk-jin, professor of information security at Dongguk University, says offenders in a similar case might have received an 80- to 100-year prison term in the United States, where causing disorder to the market economy is taken more seriously.
“In cases like these, the stolen money is usually hidden somewhere unknown,” Hwang said, adding that the offenders do not take their civil liabilities to pay back seriously. “So the victims remain victims.”
Nevertheless, Han, the lawyer for V Global victims, says that even after serving time, their civil liabilities will remain intact — and more of the damages will be recovered after confiscating the hidden properties of the operators.
V/R
David Maxwell
Senior Fellow
Foundation for Defense of Democracies
Phone: 202-573-8647
Twitter: @davidmaxwell161
FDD is a Washington-based nonpartisan research institute focusing on national security and foreign policy.
