South Korean intelligence agency reports changes to North Korea’s economy

Posted on : 2012-07-27 15:39 KST Modified on : 2012-07-27 15:39 KST
Kim Jong-un apparently spearheading moves to extend cabinet control, improve efficiency
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By Park Byong-su, staff reporter  

The head of the National Intelligence Service (NIS) reported on July 26 that North Korea is running a task force for changes to the country’s economy on the orders of new leader Kim Jong-un.

The remarks were made by NIS chief Won Sei-hoon to the National Assembly Intelligence Committee and reported by the New Frontier Party’s representative on the committee, lawmaker Yoon Sang-hyun.

Previous reports and observations indicated that the Kim Jong-un regime was moving to reform the country’s economy, but this marks the first time an intelligence authority has reported such changes.

Won also reportedly said North Korea was working to put Workers’ Party of Korea and military economic efforts under the control of the Cabinet, reduce subunit staffing at cooperative farms, expand company autonomy, and raise wages for workers.

But the NIS chief added that fundamental reforms and openness were unlikely, as Kim’s guidelines insisted on “adherence to socialist principles.”

The NIS recently characterized the ouster of People’s Army Chief of General Staff Ri Yong-ho as a “purge,” saying he was removed as punishment for not cooperating with Kim as the young leader attempted to strengthen his control over the military.

As evidence for this, the service pointed to the deletion of footage of Ri in the July 21 reairing of a documentary on Kim and his father, Kim Jong-il, on North Korean television. The date in question was one day before the politburo meeting where Ri was officially relieved of his duties.

The NIS suggested that possible reasons for Ri’s reprimand included the response to the hereditary succession in the military and the issue of economic leadership being transferred to the Cabinet, Yoon reported.

The Kim Jong-un regime also appears to be giving larger roles to family members, with aunt Kim Kyong-hee providing spiritual support and her husband, Jang Song-thaek, offering policy advice.

It further noted the placement of associates in key administrative positions, with WPK official Choe Ryong-hae tapped as politburo chief and Kim Won-hong named to handle military oversight as Minister of State Security, a seat that had previously sat empty for 25 years.

 

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