Price Measures Useless without Supply

first_img Facebook Twitter News AvatarNamgung Min SHARE South Korea’s Ministry of Unification has again reiterated that due to the failure of the currency redenomination, the North Korean authorities’ efforts to introduce more food and resume markets will face limitations unless they find a way to expand supplies.The Ministry’s report, “The Current North Korean Situation and Issues in Inter-Korean Relations,” submitted to the Diplomacy, Commerce and Unification Committee of the National Assembly, notes that current market prices and exchange rates have been tending downwards since the authorities got more food onto the market and strengthened price regulations in order to try and mitigate the side effects of the currency redenomination.”However, the report asserts, “For as long as supply capacity is not expanding, price regulations and other measures will be restricted. Therefore, North Korea may choose in the future to focus on attracting foreign investment from and economic cooperation with foreign countries.” As of now, mid-April, rice in North Korean markets is around 500-600 won per kilogram, which is a drastic drop compared to the price in mid-March. The dollar exchange rate is 600-700 won, dropping from more than 2,000 won in mid-March. The report also addresses North Korean propaganda targeting South Korea: denouncements of President Lee Myung Bak by name, which had been suspended since August last year, restarted on March 12 when President Lee’s commemorative speech at a ceremony marking Korean Independence Movement Day was heavily criticized, while the North continues to criticize South Korean high officials of all types. Regarding foreign relations, the report says North Korea has recently been attempting to highlight issues related to the U.S. in several cases, notably the North Korean Panmunjom Mission’s suggestion that U.S. soldiers’ remains in North Korean territory be recovered, the trial of an American citizen, Aijalon Mahli Gomes, and the North Korean Foreign Ministry statement about the Nuclear Posture Review and so on. Entire border patrol unit in North Hamgyong Province placed into quarantine following “paratyphoid” outbreak North Korea tries to accelerate building of walls and fences along border with China RELATED ARTICLESMORE FROM AUTHORcenter_img News News News Price Measures Useless without Supply By Namgung Min – 2010.04.13 2:44pm There are signs that North Korea is running into serious difficulties with its corn harvest last_img read more