March 17, 2008

Skyrocketing grain prices seen to stir unrest in North Korea

The current surge in international grain prices is predicted to worsen North Korea's agricultural problems, a think-tank said.

In a report released on Sunday, the Hyundai Economic Research Institute said soaring international grain prices will further worsen North Korea's food shortage and encourage more North Koreans to flee the country. This in turn may create instability for Northeast Asia as well.

The institute has called on South Korea to enhance its food self-sufficiency and lay a stable foundation for food supply by strengthening cooperation with neighboring countries in cultivating food crops on undeveloped land.

Analysts expect severe crop failure in the North and surging global prices for food and tougher behavior by donors, particularly South Korea and China this year.