25/09/2012 03:05:00

Cash-Starved North Korea Secretly Sells Gold

SEOUL -- North Korea has been secretly selling gold to make up for shortages of hard currency after it spent millions of dollars celebrating the 100th birthday of its founder, a news report said Tuesday.

The Chosun Ilbo daily quoted sources in China as saying that the impoverished communist state had cashed more than two metric tons of gold worth $100 million in China over the past year.

"North Korea has been exporting not only gold ingots it had obtained from mines or stored in government agencies but gold trinkets it had collected from ordinary people," an ethnic Korean businessman told the daily.

"North Korean trading companies in China have been cashing the gold in secrecy," the source said. "For this purpose, North Koreans are compelled to sell gold trinkets to government authorities."

The movement reportedly began after Kim Jong Eun took the reins from his late father Kim Jong Il, who died of heart attack in December last year.

North Korea has been starved of hard currency after economic exchanges with South Korea came to a halt following its alleged torpedoing of a South Korean warship with the loss of 46 lives in March 2010, the report said.

It was estimated to have spent millions of dollars on celebrating Kim Il Sung's 100th birthday in April this year and launching a space rocket in a disguised test of a long-range missile.

North Korea produces up to two tons of gold every year in mines, mostly in the northwestern provinces.

The North is to convene its rubber-stamp parliament Tuesday in a rare second session of the year.

Experts said the Supreme People's Assembly was likely to approve measures aimed to rejuvenate its moribund socialist economy with moderate market-style incentives in order to support the third-generation succession.

(END) Dow Jones Newswires

September 24, 2012 22:05 ET (02:05 GMT)

Post comment

Related debate

  • 1 week
  • 1 month
  • 1 Year
03 Feb
FING-B
OK Moderator - jeg bliver bare så vred, når vi, der abbonnerer på EI - gang på gang bliver provokere..
32
05 Feb
OMXC20
  Inden jeg starter med at forklare, hvad det er der aktuelt sker på aktiemarkedet, vil jeg henvise ..
25
01 Feb
FING-B
Jeg forstår ikke, hvorfor myndighederne ser den anden vej, når hedgefonde helt åbenlyst forsøger at ..
24
05 Feb
 
    En lærerinde i 3. klasse stillede sine elever det evigt relevante spørgsmål:"Hvad vil du gerne..
20
02 Feb
I:SP500
Så er vi der igen - volatilitet som dybest set kun gavner de spekulanter i markedet, som reelt intet..
17
31 Jan
EXQ
Hvad angår prostatakræft, som jeg fik konstateret for 1½ år siden, og som jeg er i behandling for - ..
17
05 Feb
FING-B
Vi 8 har snakket med flere analysefirmaer i dag som jeg ikke lige kan huske navnene på, og de fortæl..
14
03 Feb
FING-B
Citat af TOP10 ovenfor: " Det gode ved en fingerprint scanner, hvis man vil stjæle oplysninger, er a..
12
05 Feb
NOVO-B
Købte NN i kurs 247,60 i 2014. Solgte i december 2015 i kurs 293,20. Købte Danske Bank i januar i ku..
11
01 Feb
25NYK01EA47
Ville blot lige markere, at jeg stædigt holder fast i, at de store indeks stadig ikke har brudt mods..
11

Novae Group plc : Notice of Results

05/02/2016 15:47:43
5 February 2016                                                                                     For immediate release Novae Group plc NOTICE ..

Form 8.3 - Sainsbury (J) plc

05/02/2016 12:11:02
FORM 8.3 PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE ..

Alliance Trust PLC : Transaction in Own Shares 5 February 2016 correction

05/02/2016 09:55:55
5 February 2016 Alliance Trust PLC TRANSACTION IN OWN SHARES (Correction) The announcement released this morning was incorrectly headed Net asset Value A..

Most read news

  • 24 hours
  • 48 hours
  • 1 week

Buy and sell signals

  • Trend
  • Moneymachine

Copyright Euroinvestor A/S 2016   Disclaimer and Terms of Use
Quote information is delivered by Interactive Data.
Data is delayed 15-20 minutes according to the distribution agreements set by the different exchanges.
 
06 February 2016 23:21:35
(UTC) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20160125.1 - EUROWEB2 - 2016-02-07 00:21:35 - 2016-02-06 23:21:35 - 1000 - Website: OKAY