North Korea Embassy Dynamics and Economic Strains in Spain and Global Diplomacy

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Spain has witnessed a dramatic shift in its embassy relations with North Korea, a decade marked by expulsions of officials and heightened tension against the media. The end of this period seems to have emerged from a quiet note by the People’s Communist Party of Spain and was later echoed by Yonhap, the official South Korean news agency, without revealing the specific reason. It is widely considered to be tied to budgeting pressures.

Last week a statement from the deputy ambassador, So Yun Sok, announced that the North Korean delegation would be closed and that the Italian delegation would handle diplomatic affairs with Spain. The move followed similar steps by Pyongyang, with North Korea’s ambassadors to Uganda and Angola reportedly departing, and reports from Japanese press that a closure of the consulate in Hong Kong was near. South Korean media suggests Pyongyang might reduce its 53 diplomatic missions across 159 countries, potentially sacrificing a dozen embassies, three consulates, and three representative offices.

Economy is in crisis

The retreat to the barracks is seen as a response to worsening epidemics and an economic downturn compared with Seoul. The Unification Ministry argues that recent events have strained Pyongyang’s funds. International sanctions and taxes tied to the arms program hinder foreign currency inflows. Self-financing measures were imposed on many delegations, forcing some businesses to cover costs and send surpluses back to Pyongyang. Although North Korean ambassadors did not fully comply with the economic requirements of the diplomatic corps, life abroad reportedly remained somewhat more comfortable than at home. In decades past, North Korean embassies, especially in Nordic countries, were suspected of facilitating illicit trade to fund operations in Pyongyang.

The open economy has not stood still. North Korea reportedly faced a challenging mix of pandemic constraints, border controls, and sanctions that affected trade and tourism. Health measures and limited access to regional markets have pressured the system, while Beijing and other partners have played roles in stabilizing certain channels. The country has faced a slowing of international engagement in the wake of denuclearization talks collapsing and new sanctions weighing on public finances.

Embassy attack

Madrid and Pyongyang established diplomatic ties in 2001, and it took more than a decade for the North Korean embassy to open in Spain. Kim Hyok-chol held the post for a period before being forced to leave in 2017 after being declared persona non grata by the Spanish government due to Pyongyang’s nuclear and missile activities. The Madrid embassy building in the Aravaca district has remained without a formal ambassador since then.

Members of the activist group Free Joseon, which aims to challenge Kim Jong-un’s regime, once entered the embassy, restraining and assaulting staff. The attackers left with computers, USB drives, and mobile devices when police arrived hours later after an injured officer jumped from a window. Spanish authorities linked the assailants to terrorist acts. A former US Marine, Christopher Phillip Ahn, later turned over stolen material to US intelligence. Spanish authorities sought extradition for the attackers, who received prison sentences ranging from 12 to 28 years, but extradition efforts did not succeed.

Reasons behind the attack are debated. Some believe the assailants sought information about Kim Hyok-chol, the ambassador who had left the post and had been leading talks with the former US president on denuclearization. The broader goal appeared to be exposing and disrupting Pyongyang’s diplomatic and intelligence networks rather than a single policy outcome.

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