Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
Dow 12,801.20 -89.23 -0.69%
S&P 500 1,342.64 -9.31 -0.69%
Nasdaq 2,903.88 -23.35 -0.80%
Ticker Volume Price Price Delta
STOXX 50 2,480.76 -41.58 -1.65%
FTSE 100 5,852.39 -43.08 -0.73%
DAX 6,692.96 -95.84 -1.41%
Ticker Volume Price Price Delta
Nikkei 8,947.17 -55.07 -0.61%
TOPIX 779.07 -5.42 -0.69%
Hang Seng 20,783.90 -226.15 -1.08%
Gold 1,725.30 -0.91%
EUR-USD 1.3237 0.2965%
Nasdaq 2,903.88 -0.80%
Dow 12,801.20 -0.69%
S&P 500 1,342.64 -0.69%
FTSE 100 5,852.39 -0.73%
STOXX 50 2,480.76 -1.65%
DAX 6,692.96 -1.41%
Oil (WTI) 98.67 -1.17%
U.S. 10-year 1.986% -0.050
8411:JP 124.00 -1.59%
8306:JP 385.00 -2.78%
Live TV

North Korea's First Party Congress in 30 Years May Discuss Kim's Successor

North Korea’s ruling party is preparing its biggest political gathering in 30 years, fueling speculation Kim Jong Il may use the forum to legitimatize a transfer of power to his youngest son Kim Jong Un.

Delegates from the ruling Workers’ Party of Korea held meetings in the past week to pledge loyalty to Kim Jong Il, according to reports published by the official Korean Central News Agency. The North Korean leader’s own takeover was ensured at a 1980 party summit.

North Korea hasn’t announced the dates for the congress, saying June 26 the party will meet early this month to elect “its highest leading body.” Good Friends, a Seoul-based rights group that claims to have sources in the communist country, said on its website last week it may be held from Sept. 4 to Sept. 7. The Associated Press cited unidentified analysts as saying it may start tomorrow.

Kim Jong Il, 68, made his second trip this year to China in late August in what analysts said was an effort to win the endorsement of his closest ally for a power transfer to his son. Chinese Premier Wen Jiabao lauded the congress as “a political event of great significance,” KCNA said Sept. 2.

“It is clear that Kim Jong Il’s visit is related to the September congress,” said William Callahan, professor of international politics at the University of Manchester. “It is popular now to read Chinese diplomacy in terms of its imperial tributary system. Korean kings always had to seek the recognition from the Chinese emperor.”

Nuclear Talks

The North Korean leader signaled to Chinese President Hu Jintao during his trip that he is willing to resume six-party talks to dismantle North Korea’s nuclear weapons program, China’s state-run Xinhua News Agency reported Aug. 30. The forum, which also includes Japan, the U.S., Russia and South Korea, hasn’t met since December 2008.

Little is known outside North Korea about Kim Jong Un, who may be in his late 20s. He attended the International School of Berne in Switzerland, according to media reports, including the Seoul-based Dong-A Ilbo newspaper.

KCNA has never mentioned the son by name and China didn’t say whether he accompanied his father during the most recent visit as speculated by South Korean media.

The congress may be aimed at “the reorganization of its leadership structure,” according to South Korea’s Unification Ministry. Kim Jong Il cemented his position as successor to his father, North Korean founder Kim Il Sung, in the 1980 meeting, getting elected to key party posts.

Dependent on China

Speculation of a power transfer comes as North Korea becomes increasingly dependent on China to improve its faltering economy, a key element of its goal to become a “strong and prosperous country” by 2012.

North Korea’s economy shrank 0.9 percent to 24.7 trillion won ($21 billion) in 2009, with trading falling 11 percent, after the United Nations toughened sanctions against the country for its second nuclear test in May last year, according to the Bank of Korea in Seoul.

China, host of the six-party nuclear talks, is also spearheading diplomatic efforts to resume the discussions, sending its special envoy for the Korea peninsula affairs, Wu Dawei, to South Korea and the U.S.

South Korea, backed by the U.S., refused to resume the disarmament negotiations after it accused North Korea of torpedoing one of its warships in March, which killed 46 sailors.

To contact the reporter responsible for this story: Bomi Lim at blim30@bloomberg.net

Sponsored Links

Headlines