By Park Sung-hee
The failed currency reform in 2009 and the following downsizing of the urban housing plan in North Korea came at the cost of the leadership credentials of its next leader.
Won Sei-hoon, director of the National Intelligence Service (NIS), was quoted as saying Wednesday that the two events had dealt a serious blow to Kim Jong-il’s third son, Jong-un who will replace his father as next leader.
North Korea recently scaled back the plan to build 100,000 housings in Pyongyang for a lack of financial resources.
The spy agency chief said the North Korean authorities could afford to build only 500 housings.
“This, along with the failed currency reform, has undermined Jong-un’s leadership credentials,” Won was quoted as saying by Rep. Hwang Jin-ha of the ruling Grand National Party.
Hwang was one of the intelligence committee members having participated in the closed-door meeting where the NIS chief briefed lawmakers on updated intelligence on North Korea.
North Korea implemented the devaluation of its currency in November 2009 in order to curb the spread of markets across the nation.
Those who earned money from their business in market reportedly made it difficult for the North Korean authorities to control their residents.
The currency reform, however, went failure. Soaring prices and acute food shortages followed.
The failed reform made it more difficult for the residents to lead normal lives, leading to growing discontent among North Koreans.
Months after, the North Korean authorities allowed people to open market.
There was a report on Tuesday that the central authority in North Korea has imported a great number of tear gas, shields, and helmets from China to cope with increasing public discontent.
South Korean government officials remained skeptical about the prospects of large scale demonstrations in the Stalinist state. But they expressed worries over a possibility of genocide and other human rights abuses.
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