With China's order to leave, North Korean workers likely headed to Russia

Following China's directive that North Korean workers leave, Pyongyang has reportedly decided to relocate them to Russia in a bid to maintain its foreign currency earnings.

North Korean workers check in for their Air Koryo flight to Pyongyang at Beijing Capital International Airport in mid-July, as shown in this photo provided by a source. [JOONGANG PHOTO]

Following China's directive that North Korean workers with expired visas return home, Pyongyang has reportedly decided to relocate them to Russia.

The move aligns with Pyongyang's growing focus on Moscow, particularly after President Vladimir Putin's visit to North Korea in June, amid strained relations with Beijing.

China "recently demanded the repatriation of North Korean workers," a source familiar with the matter told the JoongAng Ilbo, an affiliate of the Korea JoongAng Daily, on Wednesday. In response, Pyongyang has "planned to redispatch its IT workforce, previously stationed in China, to Russia," the source added.

North Korean workers check in for their Air Koryo flight to Pyongyang at Beijing Capital International Airport in mid-July, as shown in this photo provided by a source. [JOONGANG PHOTO]

This decision follows Beijing's increased enforcement of United Nations sanctions prohibiting the employment of North Korean workers.

Pyongyang has been striving to maintain its foreign currency earnings, a critical revenue source for the cash-strapped regime.

In 2017, the UN Security Council adopted Resolution 2397, banning UN member states from employing North Korean workers. China, however, had permitted the workers to stay using various subversive visa arrangements, including student visas.

A UN report published in March revealed that North Korea earns between $750 million and $1.1 billion annually from its overseas workers, nearly three times the amount earned before the sanctions. The country had earlier deployed around 50,000 workers to China, including hundreds of IT specialists. Given the rise in earnings, this number is believed to have increased over time.

During the Covid-19 pandemic, North Korea’s border closures prevented the return of its workers as well as the dispatch of new ones, which even caused unrest in some factories in China. With the pandemic subsiding and the borders reopened, Beijing has decided not to tolerate North Korean workers with expired visas any longer, according to the source.

Facing financial setbacks, North Korean leader Kim Jong-un has reportedly turned to Russia. The redeployment of IT workers is particularly significant, as this sector has become a major source of illicit income, funding the regime and its nuclear and missile programs through hacking and other cyber activities.

North Korea capitalized on the booming big tech and cryptocurrency markets during the pandemic by deploying IT workers for activities such as cryptocurrency hacking and illegal website operation. The workers also secured employment in IT companies overseas, such as in the United States, under false identities, generating significant revenue.

The planned redeployment of IT workers to Russia signals North Korea's intent to sustain its foreign currency earnings. Concurrently, Pyongyang is reportedly preparing to repatriate workers from other sectors in China, such as construction and manufacturing, and send the labor forces to Russia.

North Korean workers' luggage is spotted at Beijing Capital International Airport for the flight back to their home country, as shown in this photo captured in mid-July provided by a source. [JOONGANG PHOTO]

Recent observations at Beijing Capital International Airport confirmed the departure of many North Korean workers.

Russia is expected to employ North Korean workers through similar nonworker visa arrangements. Both countries benefit from this cooperation: North Korea needs stable foreign income, while Russia requires skilled labor for its Far East development. Intelligence agencies have been monitoring these developments since the two countries' summit last September.

The cooling of North Korea-China relations and the warming of Pyongyang's ties with Moscow are evident in various fields, including sports.

"I heard that North Korea recently canceled a friendly basketball game with a Chinese team in the southeast region that was previously scheduled for early July," another source familiar with the matter said. "But it is strengthening sports exchanges with Russia, hosting two friendly matches between the women's football teams of both countries in Moscow on July 12 and July 15."

North Korean workers' luggage is spotted at Beijing Capital International Airport for the flight back to their home country, as shown in this photo captured in mid-July provided by a source. [JOONGANG PHOTO]

Experts predict that North Korea will continue to leverage its relationships with both China and Russia for maximum benefit. North Korea and Russia have conducted over 20 public exchanges this year alone, expanding cooperation in a range of sectors.

"North Korea has experience maximizing its interests through equidistant diplomacy during the Sino-Soviet split in the 1960s," said Oh Gyeong-seob, a researcher at the Korea Institute for National Unification. "While it seeks to strengthen ties with Russia, especially amid the war with Ukraine, it likely believes it can restore relations with China, its so-called blood ally, whenever necessary."

The Chinese government denied rumors of strained relations with North Korea.

"This year marks the 71st anniversary of the Korean War armistice. Seventy-one years ago, the Chinese People's Volunteer Army fought alongside the North Korean people and military, achieving great victories in both China's War to Resist U.S. Aggression and Aid Korea and [the Korean War]," Chinese Foreign Ministry spokesperson Lin Jian said during a briefing on Thursday, as quoted by Yonhap News Agency.

“During this process, China and North Korea forged a traditional friendship through blood,” Jian added. “Despite significant changes in the international landscape, the consistent stance of our party and government to value and develop the traditional friendly and cooperative relationship between China and North Korea remains unchanged.”

Update, August 1: Added comments by Chinese Foreign Ministry spokesperson.

BY CHUNG YEONG-GYO,SEO JI-EUN [seo.jieun1@joongang.co.kr]