In spite of the United Nation’s sanctions and strong international condemnation, North Korea continues to pull in bank. The hermit state has been using a complex web of fishing boats, front companies, and plain old smuggling to pull in hundreds of millions of dollars. It might be easy to turn a blind eye if the money was being used to feed North Korea’s starving population. However, the funds make it easier for the rogue state to pursue nuclear weapons technology and other unsavory ambitions.
The policies written up by the UN are harsh, but tough words on paper don’t translate to tough action, as North Korea continues to prove.
Between January and September of 2017, North Korea pulled in roughly $200 million through illicit trade. The estimate comes from the United Nations, which has been tasked with keeping the lid on North Korea’s economy. The policies written up by the UN are harsh, but tough words on paper don’t translate to tough action, as North Korea continues to prove. The nation’s weapon technologies continue to advance, and illegal trade will ensure that the needed resources keep flowing.
So How Is North Korea Circumventing the United Nations?
As hard as it might be to believe, the United Nations does have some teeth. Baby teeth to be sure, but teeth nonetheless. As such, North Korea hasn’t been openly flouting the rules but instead using a complex web of front companies and overseas investments to move goods and drum up money.
For example, in Mozambique, North Korean fishermen have been operating two fishing boats (Susan 1 & 2, rusty but still functioning) out of the sleepy fishing town of Maputo. After selling the fish, the fishermen funnel the money through nearby North Korean embassies. Embassies are allowed to use mail pouches that are not subject to inspection, making them perfect for money laundering.
North Korean fishing vessels Susan 1 and Susan 2 are reportedly used by the regime to launder money. (Credit/Facebook/Syience)
North Korea’s involvement in Mozambique goes far beyond fishing. Indeed, North Korea owns a web of companies and operations across the country. The two nations also engage in frequent cross-military training, helping to prep their own elite forces for combat.
Mozambique is far from the only revenue stream for North Korea. While North Korea isn’t exactly overflowing with natural resources, it does have some considerable deposits. North Korea holds the 23rd largest coal reserves out of any country. That coal has been funneled illicitly, with the aid of forged documents, to China, Malaysia, Russia, and Vietnam.
North Korea holds the 23rd largest coal reserves out of any country. That coal has been funneled illicitly, with the aid of forged documents, to China, Malaysia, Russia, and Vietnam.
This list shouldn’t come as much of a surprise. Russia and China are America’s chief rivals on the international stage. While relations between Vietnam and America have improved over the years, Vietnam is far from America’s best friend in Asia. Malaysia has long been on good terms with the United States; however, a dropping ringgit (Malaysian currency) has the government looking for ways to cut costs. North Korean coal might well be one way to do so.
North Korea is rich in other natural resources, including iron, magnesite, tungsten, and zinc. It’s believed that North Korea is making money off of these commodities as well. For the Trump administration and UN, this represents a serious challenge. How can the United States corral North Korea when the government can still generate hundreds of millions in revenues?
