Korean Peninsula

‘Korea Now’ introduces major news in Korea. Reporter Choi Won-ki has arrived.

Host) Welcome.

Reporter) Hello.

Host) What news is there today?

Reporter) We would like to inform you that the 1st wire rod plant at Pohang Steel Works in Korea has been closed. There is also news that prices and exchange rates are rising rapidly in North Korea.

Host) First, let’s look at the news about Pohang Steel, Korea’s representative steel mill.

Reporter) Yes, Pohang Steel Mill’s first wire rod plant has been closed. Pohang Steel announced on the 19th that Wire Rod Plant No. 1 was closed after 45 years and 9 months of operation. This closure of the No. 1 wire rod plant is the second closure following the Pohang No. 1 steel mill in July.

Host) But please explain what a ‘wire factory’ is.

Reporter) Seonjae is a translation of ‘wire rod’ in English. It refers to a product obtained by rolling semi-finished steel products into thin lines. So, steel wires, wire ropes, welding rods, nails, screws, etc. were made using the wire rods made this way, but this time it was shut down.

Host) Why was the wire rod factory closed?

Reporter) In short, it was because we could not withstand the low-price offensive of Chinese products. Pohang Steel has had a lot of fun making wire rod products, but now things have changed. There is currently an oversupply in the global steel market due to Chinese steel. Last year, global demand for wire rod was 90 million tons, but supply reached 200 million tons. Among these, China’s wire rod production capacity amounts to 140 million tons. Therefore, Pohang Steel had no choice but to close the wire rod factory.

Host) If the wire rod factory disappears, how will products such as nails and screws be made?

Reporter) Pohang Steel has four wire rod factories, but the one that was closed this time is the oldest and oldest factory. The necessary wire rods will be produced at other factories, and employees working at the first wire rod factory will be reassigned. In addition, Pohang Steel plans to reduce the proportion of inexpensive products such as wire rods and instead focus on producing high value-added products such as special bolts for automobiles, spring steel, and bearing steel.

Host) Let’s move on to the next news. I heard that prices and exchange rates are rising steeply in North Korea.

Reporter) Yes, prices and exchange rates are skyrocketing in North Korea’s markets. According to Asia Press, a Japanese media outlet specializing in North Korea, as of November 15, the price of rice is 8,200 won per kg, the price of corn is 3,700 won, and the exchange rate is 18,500 won per dollar.

Host) Let’s go through them one by one. The price of rice was around 5,000 won in January of this year. Why did it rise so much?

Reporter) It appears that the amount of rice supplied to the market has decreased. According to China’s General Administration of Customs, from January to June this year, North Korea imported $5.71 million worth of rice from China. This is one-tenth of the $50 million imported in the same period last year. Rice imports have decreased significantly.

Host) If the price of rice rises like this, a person earning 3,000 won per month will not be able to buy even 1 kg of rice even if he or she receives his salary.

Reporter) According to Daily NK, a South Korean media outlet specializing in North Korea, North Korean residents are experiencing significant difficulties these days due to rising food prices. According to sources in North Hamgyong Province, as the prices of rice and corn, which are staple foods, are rising, more and more residents are reducing their consumption of rice or replacing their meals with ‘corn porridge’ made by boiling cornmeal with vegetables.

Host) Also, the exchange rate was around 8,000 won per dollar, but it has almost doubled.

Reporter) Yes, North Korea’s won/dollar exchange rate was 8,300 won in January, but more than doubled to 18,500 won in November. It is unprecedented for the North Korean exchange rate to rise like this.

Host) How should we view the reason why the exchange rate has risen so much?

Reporter) Experts say there are three factors. First of all, the Kim Jong-un regime is known to have raised workers’ wages at the end of last year. However, as a lot of money was released into the market through wage increases, inflation and rising prices occurred, which led to an increase in the exchange rate.

Host) What is another factor?

Reporter) The second factor is that trade with China has resumed as the new coronavirus situation is resolved. To trade with China, you need dollars. Therefore, as the number of people willing to buy dollars in the market increases, the natural exchange rate rises.

Host) Are there any other factors?

Reporter) The exchange rate may have risen due to the ‘20×10 local development policy’ promoted by Chairman Kim Jong-un. Currently, the North Korean leadership is building factories in various local areas. The central party in Pyongyang is building the factory building using the military, but the local party must provide the factory equipment and raw materials on its own. Therefore, local parties have no choice but to import equipment and raw materials from China, and this process requires dollarization, which may have encouraged the rise in exchange rates.

Host) If prices rise without income increasing, do you think residents will experience difficulties?

Reporter) You should look at it that way. Experts say that if residents’ income does not rise and inflation and rising prices continue, residents will inevitably become poorer.

Host) Korea is now reporter Choi Won-ki.

**How might the‍ economic crisis in North Korea, characterized by soaring prices and a volatile exchange rate, exacerbate existing social and political tensions within the country?**

## ⁣World Today News Interview: Economy in ⁣Korea

** Host:** Welcome to World Today News. Today, we’re joined by two experts to ‍discuss recent economic developments ‍in both South and North Korea. Joining us: [Guest 1 Name],⁢ a specialist in South Korean industrial economics, and [Guest 2 Name], an expert on North ‍Korean economics and society.

**Section 1: Solar Eclipse on Steel: ⁢The Closure of Pohang’s⁣ Wire Rod Factory**

** ​Host:** [Guest 1 Name], let’s ⁢start with the news of ⁢the closure ⁤of Pohang Steel Works’ first wire rod plant. This is a significant event ⁣for South Korea’s steel industry. ‌Can you provide some ‍context on the reasons behind this closure? What ⁤does this tell us about the current state of the global⁣ steel market?

** [Guest 1 Name]:**

*

**Host:** This⁢ closure highlights the intense ‌competition from Chinese steel production. [Guest 1 Name], how do you think the⁢ South Korean steel industry can adapt to this new reality? Can innovation and diversification be the key to survival?

**[Guest 1 Name]:** ⁣

**Section 2: Economic Turmoil in the North: ‍Soaring Prices and a Volatile⁤ Exchange Rate**

**Host:** [Guest 2 Name], turning our attention to North Korea, the article mentions ​a ​dramatic rise in both food prices and the ‌exchange rate.

What are the potential underlying ⁢causes of this economic turmoil in North Korea?

​**[Guest 2 Name]:**

*

**Host:** Can you‍ elaborate on the impact ⁢of ⁤these rising prices‌ on the everyday lives⁣ of ordinary North Koreans?

**[Guest 2 Name]:**

*

**Section 3: Looking Ahead: Diverging Paths**

** Host:** This divide‌ between‌ North and South ‌Korea in terms of economic development is​ stark.

[Guest 1 Name], what future do you see​ for the ​South ⁤Korean steel industry in light of ⁤these ⁤global challenges? Do you think the South ⁤Korean ‍government is ‍doing enough to support‌ the industry?

**[Guest 1 Name]:**

*

**Host:** [Guest 2 Name], what ⁢are the potential long-term consequences of ⁢the current economic situation in‍ North Korea? What⁣ changes, if ⁢any, are likely to occur in the near future?

** [Guest 2 Name]:**

**Closing**

**Host:**

Many thanks to [Guest 1 Name] and [Guest 2 Name] for sharing their insights‍ into these ⁤fascinating and complex developments.

For our viewers, ⁣we encourage you to continue following this crucial story ⁢and stay informed about the changing economic landscape in the Korean peninsula.

This has been World Today News.

North Korea claimed that South Korean drones had infiltrated Pyongyang and ordered artillery units near the border with South Korea to be ready to fire. The South Korean government has strengthened its stance against North Korean provocations by adopting an ambiguity strategy that avoids immediately responding to North Korea’s claims. Let’s connect with reporter Kim Hwan-yong in Seoul to find out more about the situation.

Host) North Korea ordered troops in the border area with South Korea to be ready to fire?

Reporter) Yes, in order to respond to the possibility of additional infiltration of Pyongyang by South Korean drones, the North Korean People’s Army General Staff issued a preliminary operational order on the 12th to the joint artillery unit near the border and units assigned to important firepower missions to be fully prepared to fire. The official Korean Central News Agency reported on the night of the 13th.

According to the Korean Central News Agency, the preliminary operational order included the following: “Eight artillery brigades fully armed in wartime reserve order should be converted to a shooting standby posture by 20:00 on the 13th, and various operational security projects should be completed.”

The General Staff also ordered units at all levels to prepare thorough countermeasures, assuming a situation where a Korean drone crosses the border again and strikes an object, and the strike escalates into an armed conflict.

The General Staff also ordered units and divisions at each level to strengthen surveillance and guard duty, and increased anti-aircraft surveillance posts in Pyongyang.

Host) What is the basis for North Korea’s claim that South Korean drones infiltrated Pyongyang?

Reporter) At 8:10 p.m. on the 11th, North Korea announced an important statement by the Ministry of Foreign Affairs on the Korean Central News Agency and claimed that South Korea infiltrated a drone and distributed leaflets in the late night of the 3rd, 9th, and 10th.

North Korea also released photos taken in seconds showing a drone dropping an object from the sky at 1:13-14 a.m. on October 9, 2024, and something contained in the object falling.

The leaflet was blurred, but the words ‘Kim Jong-un, who is busy enjoying himself’ were identified at the top, and a photo of a luxury watch favored by Chairman Kim Jong-un and a luxury coat worn by his daughter Joo-ae was also attached.

On the 11th, North Korea’s state-run media, Korean Central News Agency, posted a photo with a press release claiming that it was a bundle of drones and leaflets sent by South Korea to Pyongyang. (Photo source: Korean Central News Agency)

Host) How is the South Korean government reacting to these claims from North Korea?

Reporter) South Korean Minister of National Defense Kim Yong-hyun, who attended the National Assembly audit held at the Ministry of National Defense building at the time of the announcement of the North Korean Foreign Ministry’s statement, responded to North Korea’s claims of drone infiltration by saying, “There has never been such a thing.” “We cannot confirm whether this is the case,” he said in an official statement.

In response to this, Labor Party Vice Minister Kim Yo-jong issued a statement on the 12th, accusing the Ministry of National Defense of being the main culprit or an accomplice, saying it could not confirm the facts.

Vice Minister Kim said, “I am not at all interested in the subject of the drone provocation or whoever those actors are,” and threatened that if a Korean drone is discovered again in Pyongyang, “a terrible catastrophe will definitely occur.”

The battle between North and South Korea continued on the 13th.

On the 13th, South Korea’s Ministry of National Defense issued a statement regarding Vice President Kim’s statement, criticizing North Korea, which has continued to make provocations and even raised waste balloons, calling it “a hostile behavior aimed at intimidating our people, let alone reflecting on it.”

This is Seongjun Lee, Director of Public Affairs at the Joint Chiefs of Staff of the Republic of Korea.

[녹취: 이성준 공보실장] “They claim that a drone appeared in the skies over Pyongyang, but they are not able to confirm where the drone came from or where it came from, and they are putting the blame on the South. Also, they are keeping quiet about their responsibility for sending drones to our side about 10 times. “It can’t be anything other than a hostile situation.”

Then, Vice Minister Kim Yo-jong also made a statement again on the same day and made harsh criticism, such as saying, “The thugs in Seoul are still unable to properly judge the situation,” and added, “We must act quickly to ensure that provocative acts that invade other countries’ airspace are prevented from recurring.” He claimed that

A spokesperson for North Korea’s Ministry of Defense also announced in a separate statement, “We believe that the South Korean military forces participated in the drone provocation,” and that if the drone appears again, it will be considered a declaration of war and “we will act according to our judgment.”

Host) Then, how is South Korea responding to the North Korean General Staff’s order to prepare artillery units for fire?

Reporter) The South Korean Ministry of National Defense stated, “We clearly warn that if any harm is done to the safety of our citizens, that day will be the end of the North Korean regime.”

It has been reported that the Joint Chiefs of Staff issued instructions to subordinate units to strengthen surveillance and firepower readiness against North Korea in response to North Korea’s heightened threat level toward South Korea.

Lee Seong-jun, head of the Joint Chiefs of Staff Public Affairs Office, said in a regular briefing on the 14th, “Our military is closely monitoring North Korean military movements and is fully prepared for the possibility of actual provocation.”

Haeanpo port on the North Korean coast, taken on October 14, 2024, on the west coast of Korea.

Host) Reporter Kim, North Korea believes that the South Korean government is involved in drone infiltration, and the South Korean government is responding with a kind of ambiguity strategy. What analysis are experts providing on the drone in question?

Reporter) Experts in South Korea say it is North Korea’s own play and the deviant behavior of private organizations in South Korea. All possibilities, including Korean government intervention, are being raised.

Dr. Cho Han-beom of the Korea Institute for National Unification, a national research institute under the South Korean government, pointed out the content of the leaflets released by North Korea and the lack of skill in distributing them, and said that it does not appear to be the work of private organizations in South Korea that have been sending leaflets to North Korea. However, the GPS used this time, etc. He explained that unmanned aerial vehicles equipped with this are at a level that can be implemented at the private level.

[녹취: 조한범 박사] “If you look at what was done this time, the content of the leaflets was very poor and the leaflet distribution technology was very poor. It just fell out entirely. They tied up flyers again. Then it won’t be released. So, general organizations don’t use that method.”

Dr. Yang Wook of the Asan Institute for Policy Studies, a private research institute, also analyzed, “It is possible that other private organizations with expertise in drones did it rather than the organizations that have been distributing leaflets against North Korea.”

If you launch a drone from the border between North and South Korea, the distance to Pyongyang is about 150 km one way, or about 300 km round trip.

It is not easy for a civilian drone in South Korea to penetrate this distance inland and go to North Korea because it must penetrate the air defense networks of the United States, South Korea, and North Korea, and some analyzes say that a detour to the West Sea is possible.

The possibility of North Korea acting on its own is being raised, but there are conflicting opinions that it is unnatural for North Korea to carry out its own shooting while announcing to the public and outside the country that it has failed to defend its airspace, especially the airspace above the Workers’ Party headquarters building.

Host) Reporter Kim, why is the Korean government adopting an ambiguity strategy?

Reporter) In response to this, National Security Office Director Shin Won-sik appeared on a current affairs program on the Korean public broadcaster KBS1 TV on the 13th and said, “Confirming whether South Korean drones have infiltrated Pyongyang’s airspace will in itself cause the conflict within us that North Korea wants.” He said, “According to my experience, the best answer is to ignore it.”

Experts believe that it is difficult for the South Korean government to acknowledge North Korea’s claims.

If it is said that the drone was created by a private organization, the Korean military would be admitting that there is a hole in the drone air defense network again.

Recognizing that the Korean government intervened directly or indirectly would be a violation of the armistice agreement and could result in criticism from the international community for responsibility for the situation in the future.

There is speculation that the failure to deny it is intended to be used as a kind of pressure card on North Korea.

Dr. Jang Yong-seok of Seoul National University’s Institute for Peace and Unification said that it appears that South Korea’s intention is to use this as a deterrent against North Korea by hiding its ability to covertly access Pyongyang’s skies in parentheses.

Host) It is said that North Korea unusually informed its citizens of this incident. Is there any political intention behind it?

Reporter) That’s right.

North Korea’s Labor Party’s official newspaper, Rodong Sinmun, reported the statement between Vice Minister Kim Yo-jong and the Ministry of National Defense spokesperson on the 13th on the front page of its 14th issue, inciting residents’ hostility toward South Korea.

Since North Korea issued a statement condemning the distribution of anti-North Korea leaflets last May, it has continued to send garbage balloons to South Korea, but has not disclosed this fact to its residents.

This is the content of Koo Byeong-sam, spokesman for the Ministry of Unification of the Republic of Korea, at a briefing on the 14th.

[녹취: 구병삼 대변인] “North Korea has continuously created, exaggerated, and utilized external crises and tensions in order to rally within its weak system and control its population. “I believe this sudden and unusual drone incident had a similar intention.”

Park Won-gon, a professor of North Korean studies at Ewha Womans University, said that North Korea appears to be using the current situation to accumulate justification for constitutional amendment based on Chairman Kim Jong-un’s two-state theory of inter-Korean relations, which denies unification and nationhood.

[녹취: 박원곤 교수] “It is impossible to confirm whether the constitution was revised at this Supreme People’s Assembly or not, but the fact that it was not announced confirms once again that North Korea has no vision for a replacement. “Then, this time, we are doing a kind of build-up, and I wanted to bring up again the question of what kind of nation we are when people in the Republic of Korea are doing things like that.”

Host) What is your outlook on the possibility that North Korea will actually take military action due to the drone incident?

Reporter) Koh Yu-hwan, professor emeritus at Dongguk University, said that unless it is North Korea’s own act, military action by North Korea cannot be ruled out if a drone enters North Korea again.

Professor Emeritus Koh explains that since North Korea’s top leadership has pledged to punish its people against South Korea, it is heading towards a situation where it has no choice but to take some kind of action.

[녹취: 고유환 명예교수] “Even if the government authorities did not intend to do so, if they sent (a drone) to the private sector or something like that to provoke a real war, there could be a conflict if they do so in a situation where the other side has no choice but to shoot. That’s the problem. “This is a situation where the possibility of an unintended collision cannot be ruled out.”

Dr. Cho Han-beom said that the dangerous situation is not being managed because all communication channels between North and South Korea have been cut off, and that in order to calm the current situation, which has escalated into a drone incident, the North and South Korean authorities must comprehensively discuss distributing anti-North Korean leaflets, loudspeaker broadcasts, and trash balloons. .

When asked at a regular briefing whether President Yoon Seok-yeol proposed a dialogue consultative body when announcing the August 15 Unification Doctrine, spokesman Koo Byeong-sam responded, “There is nothing further to confirm at this stage.” .

This is Kim Hwan-yong of ‘VOA News’ in Seoul.