North Korean guards detail border arrest of Americans



BEIJING // On Christmas Eve, North Korean TV had a special programme celebrating the 18th anniversary of the country's leader, Kim Jong Il, assuming the commander-in-chief post of the nation's army. The programme also featured two soldiers, Son Yong Ho and Kim Chul, who in March had arrested Laura Ling and Euna Lee, two journalists who worked for the San Francisco-based Current TV. For the first time, the North Korean border guards publicly described how they had come to arrest the Americans.

The pair were working on a report about the trafficking of North Korean women across the border with China, where they are often forced into prostituion. Kim Jong Il honoured the soldiers with a "Kim Il Sung Meritorious Award" and also gave them special leave to visit their hometown, South Korea's Yonhap news agency reported. Kim Il Sung was the founder of North Korea, and Kim Jong Il's father. "When I arrived at the entrance of my hometown, I noticed all the residents in town gathered there holding flowers," Mr Son, a low-level sentry witout a known official rank, said on the programme. "I wondered what it was about and stood there momentarily. Then, the head of the military unit there held me up and gave a ride on his shoulder. I marched into the town receiving a hero's welcome."

For the first time, the North Korean guards publicly described how they had come to arrest the Americans. "It was about six o'clock in the morning, full of fog. We heard the sound of a car stopping across the Chinese side of the border. We became alert. A few people crossed the frozen Tumen River into North Korea [and were] starting to film the surrounding area." From the state news agency's report, it was unclear which sentry was being interviewed.

"We overpowered them at gunpoint, judging they entered [our country] with hostile intention." The journalists were sentenced to 12 years of hard labour for committing a "grave crime" against North Korea and illegally entering the country, North Korea's state-run Korean Central News Agency said at the time. They were released in August after the former US president Bill Clinton flew to the secretive country and met with Kim Jong Il, who issued a special pardon for the pair.

While Ling and Lee were seen in the United States as victims of a repressive government for simply doing their jobs, they also were criticised by human rights advocates and Christian organisations for endangering the very people they tried to cover. Their notes and videotapes fell into the hands of the authorities, resulting in the raids of safe houses of North Korean refugees hiding in China and the deportation of a South Korean Christian activist who helped them.

The journalists defended their actions. "During rigorous, daily interrogation sessions, we took care to protect our sources and interview subjects. We were also extremely careful not to reveal the names of our Chinese and Korean contacts, including Chun," they said in a statement posted on their company's website. "Chun" is Chun Ki-won, a Christian pastor in Seoul who helped arrange the duo's trip to the border region. In an earlier interview with The National, Mr Chun said he had warned them against venturing into North Korean territory, which the pair has admitted they did. His network has helped smuggle hundreds of North Koreans out of China.

"We are not on speaking terms to each other because of the different understandings we had with each other on this matter," Mr Chun said about his current relationship with the two Americans. "But - it's a past story now. What good is there now to bring it up?" Kang Soo-jin, of the Coalition for North Korean Women's Rights, a Seoul-based support group, said the media coverage of the incident has indeed helped highlight the plight of North Koreans refugees. But she described the conflicting desires of activist Christian aid groups, which on the one hand want to do their work secretly, but on the other hope their efforts gain attention that helps attract financial resources to fund their work.

Ms Kang, who defected to South Korea in 2002 via China, also said that the Christian groups' contradictory goals, and what she claimed are exaggerations, are endangering North Korean Christians rather than helping them. "The Christian groups say there are Christians being persecuted in North Korea. They say there are underground churches in North Korea. How come I didn't know about it when I was in North Korea?," she said. "It's impossible to imagine in North Korea for two or three people to secretly gather and pray in an underground church. I am telling you that doesn't happen.

"That's the story Christian organisations tell people. It's their job and they need to draw people's attention," she said. "In North Korea, if you have any link to Christianity, you are regarded as a spy. You will be sent to a gulag for political prisoners. When they publicly say there are underground churches in North Korea, they are actually killing them, rather than helping them." @Email:foreign.desk@thenational.ae

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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