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| China-Japan-Koreas |
| Hyundai in quagmire of North Korea politics |
| 2005-10-26 |
| Axis of Evil update, via Damian Penny: More than any other company, Hyundai Group has been at the forefront of South Korea's efforts to pry open North Korea through economic cooperation. Hyundai buses and trucks now lumber across the world's most heavily armed border, taking South Korean tourists to a Hyundai-run mountain resort in North Korea and carrying back kitchen utensils and garments from a Hyundai-built industrial park in the North. Visionary as the company may look, however, Hyundai is finding itself in a quagmire in the North. Its experience serves as a cautionary tale for any company trying to venture into North Korea, where the business mind-set of the Communist leaders is out of step with international norms. Some analysts say the rift between Hyundai and North Korea demonstrates that Pyongyang is capable of flouting international business deals as readily as it did international nuclear nonproliferation treaties. "The North Koreans are very good at talking big, but they seldom keep their promises," said Chung Se Hyun, a former South Korean cabinet minister who spent most of his government career as a negotiator on North Korea. "It's amazing that they don't seem to realize that what they are doing is damaging their international creditability." For weeks, North Korea and Hyundai Asan, Hyundai Group's North Korean business arm, have been at odds over the dismissal of Kim Yoon Kyu, a Hyundai executive accused in August of embezzling money. North Korea has demanded that Kim be reinstated. It argued that, whatever Hyundai had discovered about him, Kim should be Hyundai's point man in North Korea because he has had the extremely rare privilege of meeting the North Korean leader, Kim Jong Il, on several occasions. Hyundai has held its ground, calling the dismissal an internal company matter. Last week, North Korea accused Hyundai of "deception and hypocrisy" and said it was reconsidering all its business deals with Hyundai. It also blocked the visits to North Korea of Hyundai officials who wanted to discuss new projects, but it did not mention returning any of the $500 million it had received from Hyundai for business rights. Keep this in mind the next time the US gets flak for not treating Shorty like an adult. Read the rest at the link. |
| Posted by:Seafarious |
| #2 "It's amazing that they don't seem to realize that what they are doing is damaging their international creditability." Nonsense. As long as Hyundai keeps cooperating, the Norks can keep doing what they've been doing. I just love these 'nadless wonders who blather about how the Norks/Iranians etc. will get dirty looks from the "international community" if they don't behave, and seriously expect the Commies and mullahs to be impressed by such threats. Is there anyone more naive than a "sophisticate"? |
| Posted by: dushan 2005-10-26 13:30 |
| #1 ...where the business mind-set of the Communist leaders is out of step with international norms. 1. You pay us lots of money. 2. We keep it. 3. If you're very, very lucky, we might do some of the things we agreed to. 4. If not, oh well. Kimmie and the boys are still rich. Must be some real geniuses in charge at Hyundai. |
| Posted by: tu3031 2005-10-26 13:00 |