Introduction
It’s essential to understand how North Korea makes money for two reasons: first, to comprehend how the regime sustains itself, and second, to identify ways to target and decrease these revenue streams. By exploring these revenue sources, we can also understand the political and economic motivations behind North Korea’s actions.
North Korea’s Coal Export Business
Despite international sanctions, North Korea continues to sell coal to its neighboring countries. China, in particular, is North Korea’s largest coal customer. Some experts estimate North Korea earns between $1 billion and $3 billion a year from coal exports, comprising a significant portion of the country’s economy.
To decrease North Korea’s coal export business, the international community could continue to impose sanctions specifically targeting North Korea’s coal industry. Additionally, countries like China could implement stricter regulations and more thorough inspections of the goods they import from North Korea.
Labor Exploitation in North Korea
North Korea sends around 100,000 workers overseas, primarily to China and Russia, but also to other countries in Asia, the Middle East, Europe, and Africa. The workers are sent to provide cheap labor to various industries, and their wages go directly to the North Korean government. Reports indicate that North Korean workers suffer from harsh conditions and few labor rights, while the government profits millions of dollars from their labor.
To decrease North Korea’s labor exploitation, governments could impose regulations requiring companies that employ North Korean laborers to provide better working conditions and fair wages. Additionally, governments could take measures to prevent the importation and use of North Korean labor.
North Korea’s Weapons Sales Business
North Korea is known to export ballistic missile technology, ammunition, and other military equipment to countries such as Syria and Iran. Reports suggest that North Korea earns billions of dollars a year from its weapons sales business.
To decrease North Korea’s weapons sales business, the international community could focus on imposing stricter sanctions specifically targeting the country’s arms trade. Governments could also increase efforts to intercept and prevent the trafficking of North Korean weapons.
North Korea’s Illegal Businesses
North Korea is involved in counterfeiting, drug trafficking, and cybercrime. The country has been known to produce high-quality counterfeit currency and engage in drug trafficking to earn foreign currency. Additionally, North Korea has reportedly engaged in state-sponsored hacking and cybercrime, targeting banks and financial institutions to earn money illicitly.
To decrease North Korea’s involvement in illegal businesses, governments could focus on implementing stricter regulations and international cooperation to prevent North Korea from engaging in counterfeiting, drug trafficking, and cybercrime. Additionally, governments could take measures to increase awareness about North Korea’s involvement in these illicit activities to prevent unwitting support for the country’s illegal businesses.
North Korea’s Tourism Industry
Foreign tourists who visit North Korea are required to travel in groups and are mostly prevented from traveling freely throughout the country. The government earns significant revenue from tourism, with some estimates suggesting that upwards of $100 million per year are generated from tourism-related activities.
To decrease North Korea’s tourism industry, financial measures could be implemented to restrict foreign currency flows into the country. Additionally, governments could discourage tourism to North Korea by providing detailed information about the country’s human rights violations and other troubling issues.
North Korea’s Financial Crimes
North Korea engages in money laundering and other financial crimes to evade international sanctions and support its illicit activities. The country reportedly uses shell companies and front companies to disguise its financial transactions and hide its sources of income.
To decrease North Korea’s involvement in financial crimes, governments could focus on implementing stricter regulations and creating international cooperation to prevent North Korea from engaging in money laundering and other financial crimes. Additionally, countries could take measures to increase transparency and monitor financial transactions with North Korea more closely.
Conclusion
North Korea sustains its economy through a variety of revenue streams, from coal exports to the tourism industry to illegal activities. It’s crucial to understand how North Korea makes money to comprehend the country’s motivations and identify ways to decrease its income streams. To address these revenue sources, the international community must work together to implement appropriate regulations and sanctions.