South Korean officials say North Korea could be getting ready to test-fire a missile. They think it could happen as early as today. The North gave a warning yesterday to foreigners in South Korea. It told them to find shelter, or leave the country in case an armed conflict started. American commanders say the U.S. is ready to help defend its friends in the region, like South Korea. 

 

Another one of those U.S. allies, Japan, says it’s putting missile defense systems around Tokyo. That would help it protect against a possible North Korean missile test. 

 

North Korea’s economy is in bad shape. Its manufacturing industry started crumbling decades ago. The nation isolates itself from most of the rest of the world, so it doesn’t have many trading partners. Officials estimate that North Koreans face regular food shortages. Twenty-five percent of the country’s people don’t have enough to eat, and a military conflict can be expensive. So, how does North Korea take in money? Chris Lawrence looks at some ways.

 

When it comes to selling technology, the launch-pad is Kim Jong-un’s show room. And the missile test doubles as a marketing tool.

 

It’s telling other countries, look what you could have also for a price.

 

Libya and Iran have been willing clients, but former U.S. intelligence official Joe DeTrani says sanctions have cut into sales. Kim is profiting off illegal weapons, but brings in 20 to 100 million dollars less than his father.

 

How important is money to Kim Jong-un?

 

Money is key. He’s got to keep the elites happy.

 

North Korea has its own version of the one percent. Kim needs that money stream to keep them on his side. Fortunately for Kim, North Korea has legal goods and a willing trade partner right next door.

 

Who is Kim’s link to China?

 

It has to be Jang Sung-Taek.

 

And Jang is part of the family. Kim elevated his uncle to number two. Jang Sung-Taek oversees some of the state-run trading companies, which mine reserves like coal and iron ore. Jang uses his connections to sell those minerals to China, and the profits come back to Kim. 

 

This is the man who can cut the deal with China. He has a lot of credibility with the Chinese.

 

Thanks, in part, to Kim’s uncle, trade with China is booming. From one billion a few years ago to five billion now. 

 

We’ve accounted for the weapons and the minerals, how else is he getting money?

 

He’s getting money through illicit transactions. 

 

U.S. officials say North Korea is exporting illegal drugs like meth, producing knockoffs of popular cigarettes and pharmaceutical drugs, even counterfeiting good old Ben Franklin. 

 

A U.S. official tells us that the illicit stuff is still pretty small scale, but the North does get a bit more from tourism and foreign investment from South Korea and China. But, in a country where residents don’t pay taxes and the country’s not connected to the international trading market, the official says basically it’s minerals and weapons that are the cash cows keeping Kim in power. Chris Lawrence, CNN, Washington.