Chương 614: Chapter 614: Currency Reform? Right Now?
North and South.
The Republic of Korea and the Democratic People's Republic of Korea.
A single nation that has pointed its guns at each other for half a century.
The leaders of both countries stood together, shook hands in the same place.
This was a historic moment that would one day be called the March 29th Inter-Korean Joint Declaration.
After their handshake, the two men stood side by side in front of their respective podiums.
Domestic reporters, as well as foreign correspondents, kept clicking their shutters, broadcasting the entire scene live to the world.
Yoon Chang-ho was the first to hold the press conference.
"Dear citizens of North and South, and overseas Koreans. Chairman Jang Seong-taek and I have just concluded a historic agreement at the Seoul North-South summit, fulfilling the hopes for peace that both sides desire…"
Yoon Chang-ho's calm voice continued to deliver his statements.
"The North's declaration and actions regarding nuclear abandonment carry significant meaning. I declare that this will be the cornerstone for the denuclearization of the Korean Peninsula, marking the first step toward cooperation and mutual prosperity instead of conflict."
We agreed to take the lead in determining the fate of our nation and decided that North and South will unite in efforts to gain support and cooperation from the international community.
Furthermore, we have pledged to march forward toward a declaration of an end to the war.
At the mention of the declaration of an end to the war, the reporters momentarily forgot to click their shutters and inhaled sharply.
"Thanks to the decisive decision of Chairman Jang Seong-taek, we are now able to present good news to the people of North and South."
Today is also a special occasion. I understand that it is the first time a leader from the North holds a press conference in the capital of the Republic of Korea, Seoul, in front of the world's media."
Let us give a round of applause to Chairman Jang Seong-taek for his bold and courageous actions. Thank you."
As President Yoon Chang-ho's statement concluded, thunderous applause erupted.
Next, Chairman Jang Seong-taek conducted the press conference.
"Dear fellow compatriots in the North and South. Today, President Yoon Chang-ho and I had our first meeting here in Seoul with great responsibility and mission on our shoulders."
I would like to express my deepest gratitude to President Yoon Chang-ho and the officials from the South for their efforts in successfully holding this summit.
Taking a brief pause, Jang Seong-taek continued speaking.
"We, President Yoon Chang-ho and I, will closely communicate and cooperate to ensure that the agreement we signed today does not become another loud but empty promise like past agreements between the North and South."
In this regard, North and South agreed to relocate their troops stationed at the front line back by ten kilometers each. Additionally, both sides agreed to open liaison offices in Pyongyang and Seoul to facilitate close communication.
I hope that this agreement will become a future filled with dreams and hopes for the people of the North and South who are watching with bated breath.
I extend my warmest greetings once again to the North and South, as well as all overseas compatriots who have shown great interest in our historic meeting. Thank you.
Applause erupted once more. After a longer round of applause than before, Jang Seong-taek and Yoon Chang-ho faced each other, shook hands, and even embraced.
Immediately after the press conference concluded, a statement signed by President Yoon Chang-ho and Chairman Jang Seong-taek was delivered to all media outlets.
[Joint declaration for peace, denuclearization, and cooperation on the Korean Peninsula.
1. North and South will strive for a comprehensive and groundbreaking improvement and development in inter-Korean relations.
2. North and South will work to alleviate military tensions and reduce the risk of war on the Korean Peninsula.
3. North and South will work toward a permanent and solid peace framework and the denuclearization of the Korean Peninsula.
4. North and South will begin economic cooperation, starting with the Kaesong Industrial Complex.
5. North and South will work to connect the Gyeongui Line and Donghae Line railways.
6. North and South will hold regular summits and establish liaison offices in Seoul and Pyongyang for continued close communication.
7. North and South, along with the United States and China, will strive to convert the armistice agreement reached in 1953 into a permanent peace treaty through a four-party meeting for peace on the Korean Peninsula.]
The specifics outlined in the declaration from the press conference were nothing short of shocking.
Media outlets broadcasted the joint declaration from the North and South as breaking news.
It was only natural that both the media and the public were abuzz with excitement.
Thus, the splendidly concluded inter-Korean summit held in Seoul over five days came to an end.
* * *
One hour before Jang Seong-taek was to return to Pyongyang.
I headed to the hotel where he was staying to meet him.
After completing routine identity checks in the underground parking lot, I made my way directly to the top floor where Jang Seong-taek was.
"Thank you for your hard work, Chairman."
As soon as I entered the room, I bowed slightly as a greeting, and Jang Seong-taek lightly embraced me.
"Not at all. It's you, Chairman Kim, who put in the hard work. Thanks to you, I can return to Pyongyang with good results."
While I made the arrangements, in the end, the agreement was reached because of the two of you—Chairman and President. If it weren't for your significant decisions, even the best circumstances wouldn't have brought such results.
Even if the opportunity is set, there are many who can't take advantage of it. In fact, there are fools who would reject it even if it is handed to them on a silver platter.
That's true in transactions between individuals, so imagine how it is in transactions between nations.
Yet, these two managed to reach an agreement after just three meetings.
Jang Seong-taek and I sat facing each other.
"When are you planning to hold the groundbreaking ceremony for the Kaesong Industrial Complex?"
"We're planning to have it in June."
"That's the month when the Korean War erupted, isn't it? Did you choose that date intentionally? It would carry great significance."
Jang Seong-taek nodded. It seemed he had indeed chosen the date on purpose.
If the groundbreaking ceremony were held in June, the month the 6·25 Korean War broke out, it would surely get people talking.
"You're well-informed. We did intend to hold it then. I heard that as soon as the UN sanctions are lifted, Daehyeon Construction will start the foundational work immediately."
"That works. The Kaesong Industrial Complex is only the beginning. North Korea will develop day by day. Starting with Kaesong, massive foreign investments will flow into Nampo, Sinuiju, and Rajin, leading to rapid economic growth in North Korea."
"That sounds great just to hear. I'm looking forward to it too."
The gentle nodding of Jang Seong-taek's head revealed he seemed more positive than ever.
"What did you think of your visit to Seoul and Korea?"
"It was quite different from my previous visit. Seoul is growing at an incredible pace. I hope our Republic can develop like this too."
"It will happen soon. If Chairman remains focused and unwavering, there's nothing left for our two nations but to join hands and grow together."
While this summit bore substantial benefits, losses were certain as well.
Jang Seong-taek nodded with a serious expression.
"When do you plan to start the development of Nampo City? I hope it progresses as quickly as possible. Being the city closest to Pyongyang, it could significantly improve the lives of the citizens there. The lives of the Pyongyang citizens, who support the Republic, need to improve for my foundation to be solid."
"Are you thinking of deploying Pyongyang citizens to work on the Nampo City project?"
"Of course. I'm planning to completely end the nominal rationing economic system. The planned economy is a failed policy after all."
Jang Seong-taek spoke with resolve.
Just as he said, North Korea's planned economy and rationing system was already in tatters.
Rations had been cut long ago, forcing people to open markets to trade for necessary goods.
Even in Pyongyang, where the last rations were distributed, due to tightening sanctions, even that had stopped.
If rations had ceased in Pyongyang, it was obvious to imagine how bad the situation would be in other regions.
"…So you plan to fully adopt a market economic system."
"That's right. That's why I want to hear your advice."
I nodded at his willingness to hear even blunt criticisms.
Then Jang Seong-taek asked earnestly.
"Chairman Kim, is it alright to implement currency reform in the current state? The currency circulating in North Korea is nothing but scraps of paper. Most transactions are done in dollars, and even restaurants and hotels run by the Party only accept dollars. However, if we don't revive our own currency, no matter how much economic growth we achieve, it will all be meaningless, right?"
I widened my eyes without thinking. Is he really considering currency reform in this climate?
"Currency reform? Right now?"
"Yes. That's right. Once investments start flowing in and abundant dollars begin to enter North Korea, an economy where everyone uses dollars will begin to operate. We can't just stand by and watch that happen, can we?"
There was no wavering in Jang Seong-taek's expression as he spoke of currency reform. It was clear he was serious about it.
"…It won't be easy. What is the current exchange rate?"
"Officially, the currency exchange rate set by the Republic is 100 won to 1 dollar. However…"
Jang Seong-taek trailed off, as though realizing how awkward his words were.
"It's alright. Please continue. What is the market exchange rate?"
"According to the black market, the exchange is said to be around 5,000 won for 1 dollar. But that's not certain either."
"What about foreigners?"
"Foreigners are using dollars. In the past, they exchanged for a special currency only for foreigners."
"5,000 won for 1 dollar… That's still a surprisingly decent exchange rate."
As time passes, the exchange rate will likely drop lower, but it seems to be holding steady around 5,000 won for now.
"Chairman, the reason you want to implement currency reform is crucial. Is it perhaps to forcefully convert the dollars paid as wages for the development of the Kaesong Industrial Complex and various special economic zones into North Korean currency?"
At my probing, Jang Seong-taek sighed softly, as if I had seen through him. He then slowly nodded.
"What do the experts in North Korea think?"
"So far, nobody but me knows. It's such a critical matter that could bring drastic changes… I'm trying to keep it as confidential as possible. That's why I'm asking for your insights instead of the experts within the Republic's government."
Well, one look at the declaration reveals how rapidly this summit could change North Korea.
But if he's saying he would also push for currency reform…
"If we proceed with currency reform, we plan to print and circulate currency from abroad. We need to implement currency reform quickly and stabilize it before foreign capital investments begin pouring in. Only then can our currency establish its position when full-fledged development commences."
Jang Seong-taek's intention to reform the currency before capital begins flowing into North Korea made sense.
Once foreign capital starts to pour in, implementing currency reform will become even more difficult.
"May I ask one thing? Are you planning to set limits on how much currency can be exchanged, as you have done in the past?"
"…"
"If that's the case, please erase any thoughts of currency reform from your mind. It's absurd for someone who claims to be opening up the economy and shifting to a market economy to still hold onto such outdated ideas."
"The government doesn't have any money right now."
In response to his excuse, I firmly replied.
"However, if you intend to restrict quantities when implementing currency reform, limiting the time frame, and also switching from old to new currency to assess the people's wealth, you will never succeed. If you genuinely care for the value of North Korean currency, do not covet the sweet fruit that lies before you, but conduct a true currency reform. Then, I will assist you."
Jang Seong-taek let out a faint sigh.
I too thought that eventually, currency reform in North Korea was necessary.
However, if the method remains the same as before, the effects will be minimal and chaos will only increase.
"If the planned economy were functioning properly and the socialist system was operating smoothly, currency reform like in the past would be feasible. But that is not the case now. Back then, cash meant little to them, but now cash represents their whole assets and their rights to survive. If you try to take away their wealth under the guise of currency reform…"
I concluded while looking directly into Jang Seong-taek's eyes.
"That position could be dangerous."
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