December 31, 2007: South Korea has a
new president, former head of Hyundai corporation Lee Myung Bak. He's a
conservative and wants to take a harder line on North Korea. Meanwhile, the
situation up north gets more chaotic. The northern bureaucracy has become obsessed
with the rapid growth of the market economy. Faced with economic collapse, the
northern officials allowed markets to open up all over the country. These have
become wildly successful, but are out of control. Illegal (smuggled), as well
as legal goods are offered. Police sent to clean up markets are often bribed to
just pretend to do their work. The northern government has now discovered that
the corruption extends to the most sensitive areas of the defense
establishment. Everyone, it seems, wants in on the action. The Chinese warned
the North Koreans that this would happen, but the North Koreans believed they
were different. They weren't, and now the disciplined security force that has
maintained control for over half a century is being compromised by bribes and
imported luxuries.
Meanwhile, the northerners are refusing
to completely dismantle their Yongbyon nuclear reactor. They insist on leaving
some of the structure intact, and will not surrender unused nuclear fuel. This
sort of double dealing is so typical of the North Koreans, and even the South
Koreans are tired of it. In response, South Korea is increasing its defense
spending nine percent. In the north, the military continues to fall apart from
lack of money.
