Is North Korea Undergoing a Restructuring?

North Korea has been undergoing a “major restructuring” of its party, government and military organizations since the New Year.

North Korean leader Kim Jong Il instructed on Dec. 29 that all of the regime’s institutions, including the Workers` Party, the cabinet, the military and national security agency, reduce their bureaucracies and the number of senior officials by 30 percent beginning in 2008, according to a well-informed source on Pyongyang’s internal affairs.

“High ranking officials are very anxious about the restructuring since those who may lose their posts will either be forced to retire or be transferred to the workforce,” according to the source.

Some organizations responsible for customs administration were reportedly downsized by Jan. 1, 2008. Employees of the National Security Agency, the National Intelligence Command, the Customs, Immigration and Quarantine Office and Foreign Product Inspection Office work in the North’s customs office, but the employees of the regional headquarters have stopped working since Jan. 1.

Although detailed plans for the restructuring have not been announced, speculation is rife among high ranking officials that the first target of the reform will be each institution’s agencies linked to earning foreign currency, given that an excessive number of those agencies had been established.

The communist regime has a huge organization system. The National Defense Commission consists of one committee and two departments, while the cabinet is made up of three committees, 30 sections, one institute, one bank and two departments. The Workers` Party also runs five committees, two departments, 14 bureaus and one research center. Each of them has increased their size by launching an agency that can earn foreign currency, since the so-called “March of Hardship” in the mid-1990s.

“There is even a saying that one farmer feeds seven executives in North Korea,” said the informed source. “A lot of people complain that there are an excessive number of executives who wield absolute power.” The source added that hundreds of thousands of senior officials will be laid off if Kim’s instruction is followed.

North Korea is reportedly expecting the restructuring to boost efficiency and vitality to organizations as a large number of old, high-ranking officials will be asked to leave their posts.

However, questions remain as to how strictly the reform measure will be implemented as many of Kim’s recent instructions have lost their effectiveness as time passes.

In addition, it cannot be ruled out that the regime’s solidarity and stability may be undermined due to a strong backlash from assigning officials to the workforce.