Japan Institute for National Fundamentals
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Speaking out

Yoichi Shimada

【#187】Lead S. Korea to Stop Hard Currency Supply to North

Yoichi Shimada / 2013.04.03 (Wed)


 

April 1, 2013

  
      I visited Washington in the latter half of March. The most impressive during the visit was the following remark by a senior White House official:
      "South Korea must look squarely to accurate history. She should cease any stupid efforts to impair Japan-U.S.-South Korea cooperation against China and North Korea by claiming that the Japanese Imperial Army had abducted Korean women and made them sex slaves... Prime Minister Shinzo Abe should not obscure facts and put South Koreans who are eager to correct the comfort women fiction into any difficult position."

Ratings of and requests to Abe administration
       This is an April Fool lie. The remark is not by a senior White House official. The first half of the remark is my common sense view based on South Korean President Park Geun-hye's speech at a March 1 ceremony to mark Independence Movement Day. The second half is a reorganization of words by Professor Emeritus Ahn Byung-jik of Seoul National University. Ahn's real remark (in Seoul in March 2007 when Japan was under Abe's first administration) was: "Prime Minister Abe should not take any attitude of apologizing for the purpose of avoiding troubles. It may mislead discussions in South Korea."
       In Washington, in fact, dominant opinions call on Japan, not South Korea, to exercise self-restraint on the comfort women issue. I feel anew that the reversal of the situation is a challenge that Japan must be “united and persistent” to tackle if I may use the pet expression by Japanese diplomats.
      During my Washington visit, many U.S. political insiders pointed to the impact on the United States of Prime Minister Abe's offer for Japan's participation in the Trans-Pacific Partnership free trade negotiations. The TPP is a focus of attention in the U.S. political world. Some welcome Japan's participation in the TPP talks, while others are cautious about it. Anyway, Abe might have been growingly viewed as a leader who can make decisions. In this sense, Japan's presence has increased. The increased presence will lead to greater influence.
      Nevertheless, security experts questioned when Prime Minister Abe would revise the government's interpretation of the Constitution in regard to Japan's collective defense right. Such question indicates their embryonic complaint. His image as a strong leader may evaporate in a few months if it takes him long time to make the next key decision.

Kaesong project affecting international sanctions
      The largest topic regarding North Korea was the Kaesong Industrial Region project that even the South Korean Unification Ministry admitted as playing a role in allowing North Korea to use foreign currencies earned through its trade with the South to expand its trade with China. The North-South joint industrial development project in North Korea's Kaesong has worked to annually provide more than $1.8 billion to North Korea in the form of South Korean companies' payment (effectively paid by the South Korean government to cover their losses) for North Korean employees. The sum is equivalent to about 40% of the North's annual budget, serving as the largest financial resources for Pyongyang's nuclear missile development. Unless the Kaesong project is deemed as violating U.N. Security Council resolutions for international sanctions on North Korea, the North's external trade may fail to be regulated. The Kaesong project loophole could become a black hole to attract loopholes involving other countries.
      In South Korea, however, opponents against the Kaesong project are limited to a minority including up-and-coming journalist Kim Sung-uk. A majority including conservatives hopes to continue the Kaesong project and even seeks to export products manufactured in the region to the United States, a former senior U.S. government official said. Japan and the United States should not leave the project untouched. The termination of the Kaesong project may work to slowdown China-North Korea relations. Japan and the United States should increase pressure on the South Korean government that is breaking ranks of international sanctions against the North.

Yoichi Shimada is Planning Committee Member, Japan Institute for National Fundamentals, and Professor at Fukui Prefectural University.