Trading the financial market in dollars could lead to execution in North Korea. According to the Financial Times The country recently executed an investor for trading another country’s fiat currencies in North Korea.
The execution of the trader served as the imposition of the Kim Jong-un regime for the people’s foreign exchange investments. The move is part of a broader context in which the North Korean leader is pushing for the country’s economy to be shut down to encourage the strengthening of the local currency, the won (₩).
The trader’s death is the result of the country’s restrictive measures. In the past few months, the earned currency has appreciated an impressive 20% against the US dollar. As quoted by the Financial Times, this appreciation of the won against the US dollar can be viewed as one of the largest gains the currency has seen in recent years.
The trader’s investigation revealed that the trader’s execution was part of a number of other measures that Kin Jong-Un had taken in relation to the foreign exchange market.
The state exports the dealer
The execution served as a red flag for other traders currently trading in the country. With the execution, Kin Jong-un wants to demonstrate his power over all of North Korea and at the same time try to strengthen the local economy through repression.
The execution of the merchant, whose name was not disclosed, was reported by member of the Intelligence Committee of the South Korean National Assembly, Kim Byung-kee.
Change in the economy
South Korea has tracked the rise in North Korean fiat currency in recent months after the country changed its position on foreign market investment.
For Andrei Lankov, an expert at Kookmin University in Seoul, the North Korean economic regime is undergoing structural change. According to Lankov, the economy in the country is closed.
The specialist says in an interview with the Financial Times that North Korea has started to interfere in private business, in addition to this “day trader”.
“For a long time, under Kim Jong Un, they did not interfere in private business. They not only tolerated decentralization and the shifting of market relations between industrial companies and individuals, but also encouraged them. Now they are trying to come back.”
North Korea’s economy may be badly affected by the new coronavirus. Although the country has not recorded any cases of the disease, South Korea believes in the instability of the currency it won. Kim Jong-un’s siege of dollar investments and the international market could mask a major economic crisis in the country.