N.Korean exports plummet with S.Korea, jump twofold with China

Posted on : 2011-07-07 14:19 KST Modified on : 2019-10-19 20:29 KST
N.Korea’s strengthening economic ties with China have shifted political influence away from S.Korea

By Ryu Yi-geun 
 
North Korean exports to South Korea fell to one-fortieth their previous numbers in the wake of the government’s “May 24 measures,” while exports to China more than doubled over the same period, a Korea Development Institute analysis shows.
The KDI announced Wednesday that North Korean exports to South Korea, which averaged $40 million per month over the period from January to May 2010 prior to the measures, fell sharply to $1 million per month over the period from January to April 2011.
The measures in question were taken on May 24 of last year following the announcement of findings from the investigation into the Cheonan sinking. At the time, President Lee Myung-bak suspended nearly all inter-Korean relations, declaring, “Any further exchange and cooperation [with North Korea] is meaningless.”
Along with the drop in exports to the South, the same period saw a sharp rise in exports to China. Average monthly North Korean exports to China rose from $50 million prior to the measures to $130 million in recent months.
North Korean overseas trade amounted to $6.1 billion for 2010, a 19.5 percent increase from the year before, despite the May 24 measures and United Nations sanctions against the country. North Korea-China trade totaling $3.5 billion boosted the number over the same period, representing a 29.3 percent increase.
“The North Korean economy is fighting with exchange rates, resident livelihood worries such as rising food prices, and stagnation in the real economy as problem in the foreign affairs sector impact the domestic economy,” said KDI.
Rice prices have risen from previous levels of 500 to 600 won ($0.47 to $0.56) per kilogram to 2,000 to 2,200 won per kilogram since the second half of 2010. The exchange rate nearly tripled over the same period.
  
Please direct questions or comments to [englishhani@hani.co.kr]
 
 

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