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- <text id=94TT0768>
- <link 94TO0165>
- <title>
- Jun. 13, 1994: Diplomacy:Kim Il Sungs Money Pipeline
- </title>
- <history>
- TIME--The Weekly Newsmagazine--1994
- Jun. 13, 1994 Korean Conflict
- </history>
- <article>
- <source>Time Magazine</source>
- <hdr>
- COVER/DIPLOMACY, Page 27
- Kim Il Sung's Money Pipeline
- </hdr>
- <body>
- <p>By Edward W. Desmond/Tokyo, with reporting by Hiroko Tashiro/Tokyo
- </p>
- <p> Every few weeks a sleek white ship sails from Japan to the
- North Korean port of Wonsan. On board are scores of Koreans
- eager to visit relatives--along with a cargo that until recently
- often included such high-tech items as powerful computers and
- troves of cash, much of it exported in violation of Japanese
- law. Because Tokyo is reluctant to antagonize either the Kim
- Il Sung government or the North Koreans who live in Japan, customs
- officials had previously turned a blind eye.
- </p>
- <p> Any effort to choke the Kim regime economically would have to
- crack down on the traffic between Pyongyang and the liner's
- sponsor, Chongryun, the secretive 250,000-member General Association
- of Korean Residents in Japan, which is under the direct control
- of Pyongyang. The group is at the heart of a shadowy fund-raising
- effort that sends between $600 million and $1 billion annually
- to North Korea, most of it for the Kim regime itself. The funds
- are Pyongyang's biggest source of hard currency. Japanese intelligence
- says Chongryun also covertly purchases equipment for the North's
- nuclear and missile programs.
- </p>
- <p> The Japanese are worried that an attempt to curb Chongryun might
- spark violent reprisals, even sabotage. At the least, they expect
- angry street protests charging that Japan is once again oppressing
- Koreans--an accusation that stings because many of the 1.5
- million Koreans in Japan at the end of World War II were conscripted
- laborers, and those who stayed still suffer discrimination.
- In the 1950s and '60s, many believed that Kim Il Sung's North
- Korea, which was faring better than the chaotic South, was the
- best bet for Korea's future. About 40% of the 600,000 Koreans
- who stayed in Japan swore allegiance to Chongryun--and Kim--as the defenders of Korean interests.
- </p>
- <p> Chongryun has since become a substantial force. It has built
- 140 schools and a university for the Korean community, where
- 20,000 young people study the basics--and the wisdom of Kim
- Il Sung. The association has established a powerful credit union
- and launched numerous publications. By the mid-1970s, Chongryun
- Koreans were starting to prosper; they now control most of Japan's
- pachinko parlors. Former Chongryun officials say North Korea
- made it clear that the well-being of loved ones back home depended
- on how often--and how much--their relatives in Japan were
- willing to contribute to the Kim regime. The blackmail money
- goes through Chongryun to the government.
- </p>
- <p> Though association officials deny the charges, Japanese officials
- claim that the group was integral to North Korean intelligence
- operations through the 1970s. In the early '80s, the officials
- say, Chongryun shifted focus to concentrate on siphoning foreign
- exchange into the North.
- </p>
- <p> But none of this assistance guaranteed the safety of relatives
- in Korea. An unknown number wound up in concentration camps
- or before firing squads. As families in Japan have learned of
- their fate, Chongryun's hold over its members has loosened.
- A small but vocal group of former members now openly attacks
- the organization, despite threats from its hierarchy.
- </p>
- <p> Chongryun is fighting back by arguing that Washington, Tokyo
- and Seoul have jointly conspired to drive away its supporters.
- The U.S. has been pressing Japan hard to tighten export controls.
- If sanctions are approved, Tokyo will have to take direct action
- to shut down the money and technology pipeline--which it has
- said it would do. A government official admits that Chongryun
- could still route funds and cargo through third countries. Yet
- even for the inured North Koreans, the loss of so much support
- would take a toll.
- </p>
- </body>
- </article>
- </text>
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