By Kang Hyun-kyung
North Korea has increased its rare earth exports to China amid worries within the international community that its mineral exports could weaken the effect of sanctions imposed on the reclusive state.
The cash-strapped communist country exported goods to the value of $550,000 and $1.33 million in May and June, respectively, according to the Korea International Trade Association (KITA).
Last January, the North exported elements worth nearly $25,000 to China for the first time and continued them this year. The country has an estimated 20 million tons of rare earth elements.
The North's resources exploitation have stirred speculation that the impoverished state may further diversify mineral exports to China, where it has previously mostly exported anthracitic and iron ore.
The KITA report identified the changing trend in North Korea's earnings from mineral exports.
In the first half of this year, earnings from anthracitic and iron ore exports decreased 23 percent and 5 percent, respectively.
These earning deficits were compensated for by exports of rare earth elements. There has been a sharp increase in global demand over the last recent decade because several high-tech devices, including smartphones, and other high technology devices use them in core components. Rare earth elements are a group of 17 elements on the periodic table referred to by the US Department of Energy as "technology metals" because of their use and application.
The communist country relies heavily on mineral exports as a major source of hard currency after international sanctions were imposed on the Pyongyang regime for its continuing missile launches and testing of nuclear weapons.
Natural resources account for 73 percent of North Korea's bilateral trade with China in 2012. The North exports 11 million tons of anthracitic to China annually.
Some experts allege that China is taking advantage of international sanctions on North Korea as it is the only country doing business with the North in natural resources.
In the late 1980s or early 1990s, a Japanese company reportedly operated a factory in the North to exploit rare earth elements there.
But the company pulled its business out after United Nations-led sanctions were imposed on the North for launching ballistic missiles and conducting nuclear tests.
Choi Kyung-soo, president of the Seoul-based non-profit think tank North Korea Resources Institute, voiced concern about the long-term effect of North Korea's diversification of mineral exports on South Korea.
"President Park Geun-hye's optimistic view about reunification of the two Koreas is largely based on North Korea being endowed with rich natural resources," he said.
Choi's remarks were construed as meaning that unification would be a bonanza for the two Koreas as President Park predicted, but only when South Korea's technology and available capital marries with the North's rich natural resources.
Therefore, he indicated, if unification occurs with a resources drain in the North as a result of the poor country's continued selling of minerals to China, such optimism may turn out to be baseless.
Choi called on Seoul officials to come up with a roadmap to exploit North Korean natural resources and also develop tailor-made technology to develop mineral resources there.
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| Rare earth elements |
The cash-strapped communist country exported goods to the value of $550,000 and $1.33 million in May and June, respectively, according to the Korea International Trade Association (KITA).
Last January, the North exported elements worth nearly $25,000 to China for the first time and continued them this year. The country has an estimated 20 million tons of rare earth elements.
The North's resources exploitation have stirred speculation that the impoverished state may further diversify mineral exports to China, where it has previously mostly exported anthracitic and iron ore.
The KITA report identified the changing trend in North Korea's earnings from mineral exports.
In the first half of this year, earnings from anthracitic and iron ore exports decreased 23 percent and 5 percent, respectively.
These earning deficits were compensated for by exports of rare earth elements. There has been a sharp increase in global demand over the last recent decade because several high-tech devices, including smartphones, and other high technology devices use them in core components. Rare earth elements are a group of 17 elements on the periodic table referred to by the US Department of Energy as "technology metals" because of their use and application.
The communist country relies heavily on mineral exports as a major source of hard currency after international sanctions were imposed on the Pyongyang regime for its continuing missile launches and testing of nuclear weapons.
Natural resources account for 73 percent of North Korea's bilateral trade with China in 2012. The North exports 11 million tons of anthracitic to China annually.
Some experts allege that China is taking advantage of international sanctions on North Korea as it is the only country doing business with the North in natural resources.
In the late 1980s or early 1990s, a Japanese company reportedly operated a factory in the North to exploit rare earth elements there.
But the company pulled its business out after United Nations-led sanctions were imposed on the North for launching ballistic missiles and conducting nuclear tests.
Choi Kyung-soo, president of the Seoul-based non-profit think tank North Korea Resources Institute, voiced concern about the long-term effect of North Korea's diversification of mineral exports on South Korea.
"President Park Geun-hye's optimistic view about reunification of the two Koreas is largely based on North Korea being endowed with rich natural resources," he said.
Choi's remarks were construed as meaning that unification would be a bonanza for the two Koreas as President Park predicted, but only when South Korea's technology and available capital marries with the North's rich natural resources.
Therefore, he indicated, if unification occurs with a resources drain in the North as a result of the poor country's continued selling of minerals to China, such optimism may turn out to be baseless.
Choi called on Seoul officials to come up with a roadmap to exploit North Korean natural resources and also develop tailor-made technology to develop mineral resources there.
