'NK losing $300 million every year for bad behavior'

By Kang Hyun-kyung

A high-ranking government official said North Korea is paying the price for the bellicose acts it committed last year. He warned that the reclusive nation will eventually find it difficult to survive as long as it refuses to change its course of action.

"Approximately $300 million in hard cash has dried up annually in North Korea after South Korea severed trade with the North on May 24 last year," he told reporters on condition of anonymity. "In other words, we can say that the same amount of tax is levied on the North."

South Korea cut off trade with the North months after the North sank the 1,200-ton frigate Cheonan in the West Sea on March 26. The maritime disaster took the lives of 46 sailors. North Korea denied its involvement in the tragedy.

In a seminar with reporters last Friday, the official noted that Seoul's sanction-oriented North Korea policy is showing signs of bearing fruit.

From early this year, North Korea has "pleaded" with the South to have dialogue through a variety of channels and this indicates that the sanction-oriented North Korea policy is working, he added.

"Time is not on North Korea's side. The North keeps trying to buy time on denuclearization, but this only deteriorates the situation facing the nation," the government official stressed.

If North Korea admits its culpability regarding the Cheonan and Yeonpyeong attacks and offers apologies for these incidents, he said, the door to dialogue will be open wide.

He dismissed speculation that there could have been a policy shift toward North Korea if a unification minister had been replaced in a recent Cabinet reshuffle.

His remarks came amid rumors that President Lee Myung-bak hoped to replace the unification minister with his close aide, who has his ear, in an attempt to establish his legacy, such as a diplomatic breakthrough in inter-Korean relations by holding a summit in his later presidency.

Unification Minister Hyun In-taek retained his post in Friday's reshuffle, defying widespread speculation that former Ambassador to China Yu Woo-ik would replace him.

"No matter who serves as head of the unification ministry, they will engage with the North if it comes up with the above actions," he underscored.

Analysts didn't rule out the possibility that Yu could be appointed to another key post, such as presidential chief of staff in a future shakeup.