PIIE Blog | North Korea: Witness to Transformation
The Peterson Institute for International Economics is a private, nonprofit, nonpartisan
research institution devoted to the study of international economic policy. More › ›
Subscribe to North Korea: Witness to Transformation Search
North Korea: Witness to Transformation

New Threats of War from North Korea: Part II

by | April 10th, 2013 | 11:18 am

The second part of my interview with Steve Weisman has been posted.  In it, Steve asks how we might get out of this mess.  North Korea’s call yesterday for foreigners (and foreign business) to flee South Korea was a transparent attempt to put pressure on South Korean President Park Geun-hye by undermining the South Korean economy.  (Who knows, maybe Kim Jong-un has shorted the KOSPI as well.) But as observed in an earlier post, North Korea actually does more damage to itself than South Korea when it engages in this kind of brinkmanship.  (Sadly, they don’t seem to care.) Kempinski’s announcement that it was pulling out of the Ryugyong Hotel rehabilitation project, stating that it would be “unable to manage Ryugyong Hotel according to the standards of the Kempinski Hotel and Resorts under present circumstances,” is a useful reminder of this truth.  A few more own-goals like this one, and maybe, just maybe Kim Jong-un will decide that threatening nuclear mayhem is not in North Korea’s interests.