hankyoreh

A new Executive Order for sanctions against North Korea went into effect in the United States a few days ago. These sanctions are even more stringent than before, blocking exports to the United States not only of completed products made in North Korea but also products containing North Korean parts and technology, among other things. As a result, goods made in the Kaesong Industrial Complex after the effective date of the South Korea-United States Free Trade Agreement (KORUS FTA), which is currently awaiting ratification, are completely prohibited for export to the United States, as are products made through North Korean-Chinese economic cooperation. It has been reported that even joint North Korea-South Korea film productions could be among the targets for regulation, including the “Pororo” animated children’s series, which has been exported to some 110 countries.

It remains in question, however, how much of an effect the increased pressure on North Korea will have. Indeed, it appears likely to have to a greater effect in driving the South Korean businesses that have adopted economic cooperation with North Korea as a survival strategy into dire straits. Not long ago, U.S. Assistant Secretary of State for East Asian and Pacific Affairs Kurt Campbell said Washington had made it clear to Seoul that it would not be importing goods produced in North Korea even after the KORUS FTA takes effect. Direct exporting of North Korean products to the U.S. has long been cut off.

It remains highly likely that the biggest victim of these measures will be South Korean small and medium enterprises (SMEs) and other marginal companies. In the case of “Pororo,” where only 22 of the 52 works in the first run were produced by North Korea’s Samcholli General Trading Company, it is impossible to know right now how much of a blow it will suffer. But all similar inter-Korean collaborations will need to undergo a case-by-case review by the United States if they are to be exported there.

Stepping up sanctions against North Korea has a strong chance of negatively impacting those living on the Korean Peninsula by fomenting tensions through restrictions on the inter-Korean contact surface, and by fanning Cold War-style antagonism between North Korea and South Korea with measures that, rather than having the desired effect of isolating North Korea, will instead spur on collusion between Pyongyang and Beijing.

In addition, the measures, which also have the aim of disrupting economic cooperation between North Korea and China, lead one to suspect ulterior motives having to do with hegemonic competition with Beijing. U.S. Congressional Research Service researcher Dick Nanto declared that the U.S. sanctions would be the “biggest obstacle” to China and North Korea’s development of the Hwanggumpyong and Rason special districts and exports to the United States. At this point, one cannot help asking whether the U.S. is a mediator for peace, or a disrupter of it.

If the U.S. decision to ramp up North Korea sanctions is an extension of a battle for “G2” hegemony, there is no reason South Koreans should become innocent victims. Yet, Unification Minister Hyun In-taek responded to Campbell’s remarks by saying that “whether something is North Korean-made or South Korean-made is an issue for the importing country to determine.” It is sad to see that someone so insensitive to damages inflicted upon his own fellow citizens is a Cabinet minister.

Please direct questions or comments to [englishhani@hani.co.kr]