North Korea’s cabinet to tighten control of economy

Screen shot 2013-12-31 at 9.52.20 AM

North Korea’s cabinet will tighten its grip on the economy after the shock execution of leader Kim Jong-un’s uncle, whose control over key sectors weakened the country’s finances, a senior official said on Friday.

Jang Song-thaek, the once powerful uncle and political regent to the young leader, was executed on December 12 on charges of corruption and plotting a coup, but his growing influence over lucrative minerals business angered Kim Jong-un and other top officials.

Jang’s excessive intervention contributed to the North’s economic troubles, Kim Jong-ha, chief secretary of the secretariat of the cabinet said in an interview with the Choson Sinbo, a pro-Pyongyang newspaper in Japan.

“The cabinet will fulfill its function properly as a control tower of the economy,” he said, adding that it was trying to regain control over projects and put them in order.

North Korea will also move to independently produce and reprocess coal and other natural resources for exports, the official said.

The impoverished but mineral-rich North has sought for years to bolster its crumbling economy by increasing exports of minerals.

It has sold mining rights to China investors who control much of its resources business.

Jang’s purge and execution sparked speculation that he had lost out in a power struggle with hardline army generals, but South Korea’s spy chief Nam Jae-joon told parliament on Monday that it had stemmed from his attempt to control lucrative state businesses especially related to coal.

Choson Sinbo backed Nam’s claim and quoted the cabinet official as saying that Jang had put state businesses under his control.

About 88 per cent of North Korea’s total foreign trade last year involved China, according to figures earlier this year from the South’s Korea Trade-Investment Promotion Agency.

It said exports to China, mostly coal and iron ore, were worth US$2.4 billion in 2012.

South Korea estimates the total value of mineral deposits in the North at US$6.3 trillion dollars.

Source : Channel News Asia | January 3, 2014


About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
This entry was posted in Business, Economy, Global Sourcing and tagged , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s