U.S. secondary sanctions hurting North Korea, defector says

Dec. 11 (UPI) -- The United States' secondary sanctions on firms conducting trade with North Korea have had an impact on the Kim Jong-un regime, but more pressure needs to be applied, a defector said.

Ri Jong-ho, a U.S.-based North Korean defector who previously headed Korea Daehung Trading Corp., managed by Room or Office 39, told Voice of America's Korean service North Korea's foreign currency reserves have dried up in the wake of heavy U.S. sanctions.

The sanctions have made a visible impact on state-run enterprises in North Korea, including stores and restaurants that accept foreign currency. Ri said sanctions have led to decreased consumption but also inflation, according to the report.

Ri's statement comes days after the U.S. Department of Treasury blacklisted companies, including firms in China, for alleged trade in North Korean coal, a violation of United Nations Security Council sanctions. North Korean coal was banned in 2017.

The former North Korean official said secondary sanctions have raised the pressure on Pyongyang and its foreign enablers, but more needs to be done.

Chinese companies have been able to circumvent sanctions by secretly importing North Korean coal. North Korean coal feeds into a demand chain in China's steel industry. Other Chinese factories employ illegal North Korean labor, which can only be blocked by strict and irreversible sanctions, Ri said.

Ri also said the Kim regime continues to deploy skilled workers, including IT experts or software engineers, who earn foreign currency in Chinese border cities like Dandong.

North Korean computer hackers and others earn about $1 billion for Pyongyang in countries like China. The United States should increase sanctions on those firms, Ri said.

North Korea analysts remain divided over sanctions.

Geoffrey See, founder of Choson Exchange in Singapore, a non-governmental organization supporting entrepreneurship in North Korea, said in an article published by the World Economic Forum last month sanctions have a "severe humanitarian impact" on the North and governments should seek alternative solutions.