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
26 May
 
Jeg har igennem lang tid brugt dette forum til at få gode ideer, selvfølgelig med forbehold for de f..
43
24 May
NOVO-B
Ved godt der er en lang Novo tråd lige nedenfor, men synes Elliot fortjener en selvstændig tråd som ..
26
26 May
GS
Kan se at DONG nu værdisættes til mellem 83 og 106 milliarder. Så nu kan vi beregne prisen på Corydo..
21
22 May
ZEAL
Hvorfor der sker et frasalg har jeg ingen klar ide omkring men der har været en fransk forbindelse s..
20
24 May
ZEAL
Jeg har nærlæst af briefing dokumentet igår aftes, og stiller mig noget undrende overfor nogle af de..
19
25 May
FING-B
Rigtigt mægler - og helt ubegribeligt at derivatmarkedet med dets mange spekulationsformer er tillad..
17
08:44
FING-B
Ja , de har delt aktien i 4, og du beholder 1/4 resten gået ubeskåret til De sultne i Afrika
16
26 May
FING-B
ADVARSEL:HUSK AT DEM DER HAR SAT SL i FPC og har købs ordre, at det kan blive udløst ved splittet SÅ..
16
22 May
BAVA
Du får ikke på puklen af mig, jeg er ligeglad.   Men nu siger jeg det igen, selv om jeg er ret sikke..
14
21 May
E:THIN
Det er jo altid et spørgsmål om tro, når man invisterer i teknologiaktier og specielt i ny teknologi..
14

#

EuroInvestor: In Focus
#

#

EuroInvestor: In Focus
#

#

EuroInvestor: In Focus
#

Most read news

  • 24 hours
  • 48 hours
  • 1 week
1
BIGBEN INTERACTIVE announces they have signed a licence agreement with the studio Appeal to publish the remake of the cult video game OUTCAST
2
Empresas ICA Announces First Quarter 2016 Unaudited Results
3
Result of Elections of Scrip Dividend Scheme
4
Fagron NV: Disclosure of received notifications
5
RomReal :First Quarter (Q1) 2016 Financial Results and Investor Presentation

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.
 
27 May 2016 15:08:11
(UTC) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20160526.3 - EUROWEB4 - 2016-05-27 16:08:11 - 2016-05-27 15:08:11 - 1000 - Website: OKAY