How does North Korea finance its missile tests? AP explains

The missile launch test series of North Koreaincluding Wednesday’s record of at least 23, raises an important question about its weapons program: How does the impoverished country pay for seemingly endless testing?

LOOK HERE: North Korea fired an artillery barrage, says South Korea

While some experts estimate that each launch could cost between 2 and 10 million dollars, others say there is no way to accurately estimate given the hermetic nature of Pyongyang. They believe that North Korea probably manufactures weapons at a much cheaper cost than other countries due to free labor and possible clandestine support from China and Russia.

Whatever the answer, there is no sign that the country’s economic difficulties are holding up its weapons tests. Instead, the barrage of evidence indicates that leader Kim Jong Un is determined to prove that he has the capability to launch nuclear strikes against South Korea and the United States to win future concessions.

Here’s a look at the financial dimensions of North Korea’s missile tests.

CHECK HERE: Why North Korea is deliberately ratcheting up tensions with its neighbors

HOW MUCH DOES EACH TEST COST?

North Korea launched at least 23 missiles on Wednesday and six more on Thursday, adding to its record pace of weapons tests this year. Many were nuclear-capable ballistic missiles designed to destroy targets of South Korea and the United States.

The tests are likely to include a Hwasong-17 intercontinental ballistic missile under development, surface-to-air missiles and a variety of short-range ballistic missiles. North Korea It has a reputation for frequent missile tests, but has never launched so many in a single day.

Soo Kim, security analyst at RAND Corporationbased in California, puts the cost of a North Korean missile test at about $10 million, which would be lower than similar tests in other countries, in part because North Korean labor is cheap.

LOOK HERE: Germany condemns North Korea’s nuclear threat, stresses support for Japan

Bruce Bennet, another expert from RAND Corporationtold Radio Free Asia that Wednesday’s short-range missiles cost between $2 million and $3 million each and the total cost for the day was between $50 million and $75 million. RFA said the top estimate is about the amount of money Pyongyang spent on importing rice from China in 2019 to cover the grain shortage that year.

Lee Illwoo, an expert at the Korea Defense Network in South Korea, said it is impossible for outsiders to accurately estimate the production costs of North Korean weapons. “There is no way we can find out at what cost North Korea produces certain weapons parts. They could have made them themselves, or China could have given them to them for free or at an extremely low price.”said.

According to the Institute of Korea Defense Analysis, a Seoul government body, North Korea is estimated to have spent as much as $1.6 billion on its nuclear program since the 1970s. The report used analyzes of nuclear development programs in other countries. Some observers advise against using foreign data because Pyongyang does not have to pay for labor or land.

CHECK HERE: North Korea fired intercontinental missile, but probably missed, South Korea says

HOW ARE RELEASES FUNDED?

North Korea’s economic difficulties have worsened due to COVID-19, but there have been no reports of substantial social unrest or food shortages.

Its weapons development is driven by a Soviet-style partisan-military complex where the party leadership surrounding Kim Jong Un exercises full control over defense industries and faces few budget constraints for weapons development, Hong Min said, analyst at the Korea Institute for National Unification, in Seoul.

In addition to the record number of missile tests this year, there are also signs that North Korea is expanding its munitions facilities, possibly with the idea of ​​mass-producing newly developed weapons, Hong said.

LOOK HERE: Ukraine says it has removed the Russian flag from the administrative headquarters of the occupied city of Kherson

Soo Kim, an analyst at the RAND Corporation, said it’s crucial to track how North Korea funds its weapons programs despite US-led economic sanctions and self-imposed isolation.

“This is where sanctions-violating activities come into play, including (North Korea’s) recent foray into cybercrime and cryptocurrency hacking,” said. “And, of course, having willing partners in Beijing and Moscow who help break sanctions also helps the regime’s weapons development thrive.”

Hong said Russia’s war in Ukraine appears to have opened up a new opportunity for North Korea amid accusations from Washington that the North is covertly sending an amount “significant” of artillery shells to Russia. Hong said that in return, North Korea can seek transfers of Russian technology and supplies needed to expand its military capabilities.

CHECK HERE: Ukraine says it has removed the Russian flag from the administrative headquarters of the occupied city of Kherson

WHAT DOES NORTH KOREA GAIN?

Each of North Korea’s nuclear and missile tests provides its scientists “valuable data” on weapons development and also helps solidify Kim Jong Un’s leadership as he shakes up the alliance between South Korea and the United States, according to Kim Taewoo, former head of the Seoul-based Korea Institute for National Unification.

“Some people say that we should let North Korea keep firing missiles into the sea so that they use up their resources. But I would say that is an extremely naive opinion.” he pointed.

South Korean media reported that the launch of the Hwasong-17 on Thursday failed because it did not follow a normal flight and fell into the ocean after a staged separation. In the previous test, in March, the Hwasong-17 exploded shortly after takeoff.

“The missile is under development. Therefore, this is not the time to say that his launch was a failure and laugh at him.”explained Lee of the Korea Advocacy Network. “This time the missile had a staged separation and I think they have made a lot of technological progress.”

LOOK HERE: US condemns North Korea’s missile fire, says it violates UN resolutions

North Korea he has argued that his missile tests are a warning against a series of joint US-South Korean military exercises that he sees as an invasion drill. Considering that, the North Korean tests are likely to continue as Washington and Seoul hold drills regularly.

North Korea is estimated to have some 1,000 ballistic missiles, more than enough to continue its pressure campaign until the 2024 US presidential election to try to win sanctions relief and other concessions, he said. Go Myong-hyunan analyst at the Asan Institute for Policy Studies, in Seoul.

“What North Korea wants to demonstrate before 2024 is that its arsenal of nuclear weapons is very advanced, that it has been completed and that it represents a much more important threat than before”, Go stated. “It is crucial for them to maintain that threat perception with the United States and they are not going to calm down suddenly.”

Source: AP

Source: Elcomercio

Ronald Payne

I, Ronald Payne, am a journalist and author who dedicated his life to telling the stories that need to be said. I have over 7 years of experience as a reporter and editor, covering everything from politics to business to crime.