Home Blog Page 12620

Fish, missiles, tanks, and trawlers: Mozambique’s strange trade with North Korea

By David McKenzie

NORTH KOREA may be focused on a public relations drive in Pyeongchang right now, but its efforts to hoodwink the international community extend way beyond the Korean peninsula. When it comes to circumventing economic sanctions, they extend into the most unexpected places, like Maputo, the leafy port city that is Mozambique’s capital.

Fishing is big business in this southern African country. North Korea has discovered that a slice of that business can be obtained with relative ease, using fishing boats that are simple to move and conceal. The trawlers represent just one area of illicit trade between the two countries. A CNN investigation has uncovered a web of “front” companies, as well as military cooperation and elite forces training deals — all, say UN investigators, in violation of international sanctions. The contracts are worth millions of dollars; the cash is quietly funnelled through regionally based North Korean diplomats.

According to a not-yet published UN report, North Korea earned $200 million between January and September last year by exporting banned commodities. The same report indicates that the pariah state is flouting resolutions by using global oil supply chains, complicit foreign nationals, offshore company registries, and the international banking system.

In short, the efforts of the UN and US to put the squeeze on the country do not appear to be working.

trade

The trade goes way beyond fish.

Military equipment is also driving cash into North Korean coffers. “Air missiles, manned portable surface-to-air missiles, military radar, air defence systems, the refurbishment of tanks — it’s a long list,” says Hugh Griffiths, chief investigator of the UN Panel of Experts monitoring the trade. The currency and revenues generated from all this activity can be used to fund North Korea’s nuclear and ballistic missile programmes, he added.

UN and US investigators are taking a much closer look at African countries’ relationships to North Korea, investigating at least eleven different nations. Many African liberation movements had ties and support from the North Korean regime before independence and through the Cold War, though the extent of the connections has been questioned.

Maputo has one obvious reminder of Mozambique’s relationship with Pyongyang: a bronze statue of Samora Machel, the country’s founding president, erected in 2011 and built by North Korea. It is another example of Pyongyang’s strange statue-making business, which was targeted by fresh UN sanctions in 2016.

Mozambique, one of the world’s poorest countries, faces the difficult choice between lucrative North Korean contracts and keeping the US and UN happy. The country received more than half a billion dollars from US agencies in 2016 alone.

For its part, Mozambique denies any wrongdoing: “At this moment, we are implementing all the sanctions that were declared by the United Nations against North Korea,” Alvaro O’da Silva, a director at Mozambique’s foreign ministry, told us. But he later backtracked, saying he didn’t have “detailed information” about sanctions.

Amid this swirl of evidence, the North Korean fishermen remain in their boats. Occasionally wandering into Maputo for a little shopping, they quietly go about their business, unfazed by the geopolitical implications of their stay.

 

David McKenzie is an international correspondent of CNN.

677 tourism road projects in 2018 priority list

ABOUT 1,688 kilometers of roads from 677 separate projects are due to be built under the P30.9-billion 2018 Tourism Road Infrastructure Program.

The Department of Public Works and Highways (DPWH) said in a statement that TRIP, a program run by the DPWH and the Department of Tourism (DoT), calls for road projects to be built across 16 regions in 2018.

The tourism road projects include access roads leading to Mapita Tribal Community in Pangasinan; as well as works in New Clark City; the Callao Caves in Tuguegarao City; Buscalan in Kalinga, home of a famous tattoo artist; Seven Cities in Iloilo; La Paz, Zamboanga City; Dahilayan Adventure Park in Bukidnon; and Island Garden City of Samal (IGACOS) in Davao del Norte.

Coastal roads leading to nature and marine reserves in Pasacao-Balatan in Camarines Sur; Gilutongan and Nalusuan Marine Sanctuary in Cebu; and Canopy Forest in Eastern Samar are also listed as priority projects under TRIP.

In 2012, the DPWH and the DoT signed an agreement to boost tourism infrastructure in priority destinations. In the last five years, the program has completed over 1,500 roads nationwide. — Patrizia Paola C. Marcelo

No love withheld with RR No. 6-2018

Love is a concept we do not usually associate with taxation. In fact, one could say that the two are quite the opposite: while love entails giving, tax involves taking.

Nonetheless, taxpayers must have felt the love when they heard about Revenue Regulations (RR) No. 6-2018 in January. The RR explicitly revokes one of the notable tax regulations previously issued by the Bureau of Internal Revenue (BIR), specifically RR No. 12-2013, which was an amendatory regulation on the requirements for deductibility of certain expenses. So, why would taxpayers feel any love for this new RR?

REVENUE REGULATIONS NO. 12-2013
Five years ago, RR No. 12-2013 amended Section 2.58.5 of the consolidated withholding tax regulations or RR No. 2-98, covering the requirements for deductibility of expenses. According to RR No. 12-2013, no deduction for income tax purposes shall be allowed where there was failure to withhold tax notwithstanding subsequent payment of such withholding tax at the time of audit investigation or reinvestigation/reconsideration.

Effectively, a deficiency withholding tax assessment on an otherwise deductible expense would have also resulted in a deficiency income tax assessment since the expense would still be disallowed, regardless of the payment of deficiency withholding tax during a tax audit. Additionally, both of these deficiency taxes would also have been subjected to surcharge and interest penalties.

The 2013 RR was most impactful on taxpayers classified as Top 20,000 Private Corporations for withholding tax purposes since they are required to withhold taxes on their regular purchases of goods and services from local suppliers at the rate of 1% and 2%, respectively. Most taxpayers would agree that no matter how diligent the finance people are in a company, there are practical challenges that make it difficult to be 100% compliant in terms of withholding taxes on suppliers.

REVENUE REGULATIONS NO. 6-2018
With the issuance of RR No. 6-2018, the aforementioned 2013 regulation was revoked and the previous provisions of Section 2.58.5 of RR No. 2-98 have been reinstated. Accordingly, the prevailing rule now states that an expense shall be allowed as a deduction provided that the required withholding tax is remitted to the BIR, even if such remittance is done belatedly, during a tax audit and with the concurrent penalties as a result of under-withholding or non-withholding.

Therefore, settlement of a deficiency withholding tax assessment during a tax audit will effectively address the issue on the disallowance of the related expense and correspondingly, the related deficiency income tax assessment should be cancelled.

It must be emphasized that regardless of the applicable RR, the withholding tax requirement for the deductibility of expenses is clearly mandated under Section 34(K) of the Tax Code. However, the reinstated rule under RR No. 6-2018 qualifies that satisfying the requirement to pay withholding tax, even belatedly during a tax audit, will suffice for purposes of income tax deduction.

RETROACTIVE OR PROSPECTIVE APPLICATION?
When does this reinstated rule actually become effective?

RR No. 6-2018 states that the regulations shall take effect 15 days following its publication in any newspaper of general circulation. Generally, an RR has no retroactive effect. Does this general rule apply in the case of an issuance like RR No. 6-2018, which revokes another RR and reinstates a previously effective rule?

The principle of non-retroactivity of rulings under Section 246 of the Tax Code provides that any revocation, modification, or reversal of any rules and regulations promulgated in accordance with the Tax Code (e.g., revenue regulations) shall not be given retroactive effect if the revocation, modification, or reversal will be prejudicial to the taxpayer.

A careful reading of this provision reveals that the non-retroactivity of a revoked, modified, or reversed RR is couched on the condition that such revocation, modification, or reversal would prejudice the taxpayer. Inversely, if the revocation, modification or reversal is beneficial to the taxpayer, would the RR have retroactive effect?

A 2011 Supreme Court case has tackled this question. In its decision, the high court applied a particular RR retroactively — the RR promulgated in 1999 was applied to a transaction in 1995 — and noted that “while revenue regulations as a general rule have no retroactive effect, if the revocation is due to the fact that the regulation is erroneous or contrary to law, such revocation shall have retroactive operation as to affect past transactions, because a wrong construction of the law cannot give rise to a vested right that can be invoked by the taxpayer.”

Applying the ruling, if it can be successfully argued that RR No. 12-2013 was prejudicial to taxpayers and based on a wrong construction of the law, there may be basis to apply its revocation under RR No. 6-2018 retroactively. We can, however, expect that the BIR would most likely disagree with this argument during the course of a tax audit.

But for now, the fact that RR No. 6-2018 was even promulgated is something taxpayers may consider laudable.

It is a step in the right direction in terms of taxpayer-friendly rules and regulations. While the BIR’s tax campaign of “I love Philippines, I pay taxes” attempts to evoke a sense of patriotism among the taxpaying public, this author likewise wishes to appeal to the tax authorities’ love for their dutiful taxpayers by continuing to issue sensible, reasonable, and practical rules and regulations, especially in light of the on-going evolution of our tax laws with present and future tax reform packages. Perhaps there is love in taxation after all.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.

Marion D. Castañeda  is a manager belonging to the tax services department of Isla Lipana & Co., the Philippine member firm of the PwC network.

(02) 845-2728 local 3273

marion.d.castaneda@ph.pwc.com

Peso sinks to P52:$1 level on data

THE PESO sank below the P52-per-dollar level on Wednesday amid market caution ahead of the release of Japan and Eurozone’s economic growth data as well as the pivotal US consumer price index (CPI).

The local currency ended Wednesday’s session at P52.12 against the greenback, plunging 14 centavos from its P51.98-to-a-dollar finish on Tuesday.

This was a fresh low for the peso as it was its worst finish in more than 11 years or since it ended at P52.165 against the greenback on July 21, 2006.

The peso opened the session at P52.03 to the dollar. Its worst showing for the day was seen at its closing at P52.12, while its intraday peak was at P51.905 against the US currency.

Dollars traded declined to $939.9 million on Wednesday from the $1.02 billion that changed hands in the previous session.

“The peso breached the P52 level [yesterday]… as Eurozone and Japan GDP (gross domestic product) figures, which can weaken the dollar’s strength, are seen otherwise to likely come softer,” a trader said in an e-mail.

Meanwhile, two traders said the local unit weakened as market players wait for US CPI data, a gauge used to measure inflation. Market players worry that if inflation continues to rise, the US Federal Reserve will be inclined to hike its rates more aggressively.

To add, a third trader said there was dollar selling in the morning due to expected remittance inflows this weekend, driving the peso to its P51.905-per-dollar high.

For Thursday, Feb. 15, a trader sees the peso moving between P51.90 and P52.20 against the greenback, while the second trader gave a P51.95-P52.20 reading.

The other trader, meanwhile, sees the peso moving within a wider range of P51.80 to P52.20 versus the dollar.

“The peso might recover…as the market would likely to lock in recent gains from the stronger dollar this week,” the first trader noted.

In contrast, most Asian currencies strengthened on Wednesday as the dollar fell ahead of US inflation data that could raise or lower expectations of faster rate hikes globally.

The greenback fell 0.3% against a basket of currencies with investors on edge ahead of CPI numbers. Headline consumer price inflation is expected to slow to an annual 1.9% and core inflation to 1.7%. — KANV with Reuters

Shares eke out gains as market concerns ease

LOCAL STOCKS managed to post gains amid see-saw trading on Wednesday, tracking the increase in global markets after concerns on higher inflation and rate hikes started to ease.

The 30-member Philippine Stock Exchange index (PSEi) climbed 0.32% or 27.97 points to end at 8,598.11 yesterday.

The broader all-shares index likewise added 0.38% or 19.59 points to 5,072.80.

“Philippines and US stocks eked out small gains, but were still showing signs of renewed intraday turbulence, as markets struggled to comprehend a new set of volatilities, ahead of key inflation data and doubts that last week’s brutal selling will be short-lived,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said.

Overnight, the Dow Jones Industrial Average gained 0.16% or 39.18 points to 24,640.45. The S&P 500 index edged higher by 0.26% or 6.94 points to 2,662.94, while the Nasdaq Composite Index was up 0.45% or 31.55 points to 7,013.51.

“Local equities may have also taken their cue from gains in the US market last night. Recall that inflation expectations have turned benign, easing concerns of a faster-than-expected pace of Fed[eral Reserve] rate hikes,” Papa Securities Deputy Head of Research Arabelle C. Maghirang said in an e-mail on Wednesday.

The market saw the release of full-year financial results of Ayala Land, Inc. on Wednesday. The property firm reported a 21% growth in attributable profit to P25.3 billion, lifted by a 14% increase in revenues to P142.3 billion. 

Ms. Maghirang said these factors helped offset the drop in Metro Pacific Investments Corp.’s (MPIC) stock price by 8.65% to P5.60 each. The infrastructure conglomerate disclosed on Wednesday that the government filed an application with the High Court of Singapore to set aside the arbitral award for Maynilad Water Services, Inc.

The industrials sector was the lone sub-index that ended in the red yesterday, although with a modest dip of 0.76 point to 11,396.87. 

Property led gainers as it climbed 1.23% or 47.60 points to 3,916.20, followed by mining and oil, which added 0.88% or 101.27 points to 11,498.04. Services rose 0.72% or 12.30 points to 1,719.21; financials inched up 0.23% or 5.12 points to 2,211.13; while holding firms was flat with an increase of 0.39 point to 8,709.17.

Some 1.80 billion issues switched hands for a value turnover of P8.92 billion, up from Tuesday’s P7.66 billion. Decliners trumped advancers, 124 to 85, while 50 issues were unchanged.

Foreigners were sellers for the 15th consecutive day, posting net outflows of P719.46 million, although lower than the P841.65 million recorded on Tuesday.

MPIC is one of three Philippine subsidiaries of Hong Kong-based First Pacific Co. Ltd., the others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., maintains interest in BusinessWorld through the Philippine Star Group, which it controls. — Arra B. Francia

Tourism road projects worth P30.9-billion to be implemented this year

About 1,688 kilometers of tourism roads are programmed for implementation in the P30.9-billion 2018 Tourism Road Infrastructure Program (TRIP).

The Department of Public Works and Highways (DPWH) said in a statement that under the TRIP, a convergence program of the DPWH and the Department of Tourism (DoT), about 677 road projects, spanning 1,688 kilometers, across 16 regions in the country are programmed for implementation in the 2018 TRIP allocation.

Among the tourism road projects in the 2018 Program include access roads leading to Mapita Tribal Community in Pangasinan; New Clark City; Callao Caves in Tuguegarao City; Buscalan in Kalinga which is also known as the home of the last mambabatok, Apo Whang Od; Seven Cities in Iloilo; La Paz, Zamboanga City; Dahilayan Adventure Park in Bukidnon; and Island Garden City of Samal (IGACOS) in Davao del Norte.

Coastal roads leading to nature and marine reserves in Pasacao-Balatan in Camarines Sur; Gilutongan and Nalusuan Marine Sanctuary in Cebu; and Canopy Forest in Eastern Samar are also in the priority projects under TRIP.

In 2012, the DPWH and the DoT signed an agreement to boost tourism infrastructure in priority destinations. For the last five years, the convergence program has completed over 1,500 tourism roads nationwide. — Patrizia Paola C. Marcelo

DoubleDragon acquires another Iloilo property for industrial use

DoubleDragon Properties Corp. has acquired a 3.9-hectare Iloilo property to be developed by its industrial unit, as it looks to construct manufacturing facilities across the country.

In a statement on Wednesday, Feb. 14, the listed firm said this will be the second complex under CentralHub Industrial Centers, Inc. The company will be constructing standardized multi-use warehouses suited for commissaries, cold storage, light manufacturing, and logistics distribution centers within the property.

Once fully developed, the facility will offer 22,000 square meters (sq.m.) of leasable space. This will bring DoubleDragon’s industrial leasing portfolio to 54,000 sq.m., as the company is also developing CentralHub Tarlac with a total leasable space of 32,000 sq.m. — Arra B. Francia

Group seeks high court TRO on renewable energy law

A science and technology group has asked the Supreme Court to issue a temporary restraining order (TRO) against the law on renewable energy (RE) as it claims some of its provisions are unlawful, specifically those on renewable portfolio standards (RPS) and the feed-in-tariff (FiT) system.

The group, Alyansa ng mga Grupong Haligi ng Agham at Teknolohiya para sa Mamamayan (Agham), said consumers should be rightly concerned about the implementation of Republic Act No. 9513, the law the promotes the development, utilization and commercialization of RE resources.

In a statement, the group said based on its study, consumers would shoulder up P821 billion during the 20 years that the private sector would develop renewable energy.

“Magandang opsyon naman talaga ang renewable energy o likas-kayang enerhiya gaya ng kuryenteng malilikha mula sa sikat ng araw (solar energy), hangin (wind energy) at pagdaloy ng tubig (hydro-electric energy). Subalit, wika nga, bakit tayo igigisa sa sarili nating mantika?” it said.

Sought for comment, Energy Regulatory Commission Chairman Agnes T. Devanadera said her agency would refer the matter to the Office of the Solicitor General. — Victor V. Saulon

Trump attorney paid $130,000 of own money to porn star

WASHINGTON — President Donald J. Trump’s personal lawyer told the New York Times Tuesday he paid $130,000 of his own money to a porn star who once said she had an affair with Mr. Trump.

The attorney, Michael Cohen, said that he was not reimbursed for the payment to the actress, whose real name is Stephanie Clifford and goes by Stormy Daniels, the Times said.

Mr. Cohen told the newspaper the payment was legal, and he declined to give details such as why he made it.

“Neither the Trump Organization nor the Trump campaign was a party to the transaction with Ms. Clifford, and neither reimbursed me for the payment, either directly or indirectly,” Mr. Cohen said, according to the Times.

“The payment to Ms. Clifford was lawful, and was not a campaign contribution or a campaign expenditure by anyone.”

US media reports have said the payment was made one month before the November 2016 election to keep the liaison quiet.

Mr. Trump was a private citizen when the 2006 sexual encounter with Ms. Clifford allegedly took place.

Mr. Trump was married at the time and his wife, Melania, had given birth to their son less than four months earlier.

The payment was first reported last month by the Wall Street Journal.

Mr. Trump, through his lawyers, and Ms. Clifford, 38, have both denied anything ever went on between them.

But In Touch magazine published a 2011 interview with Ms. Daniels last month in which she expounds at length and in detail on their relationship and what she described as their “textbook generic” sex. — AFP

New York bomber sentenced to life

NEW YORK — A US restaurant worker inspired by Osama bin Laden was sentenced to life in prison Tuesday for wounding 31 people in a 2016 New York bombing, branded “extremely dangerous” by a federal judge.

Afghan-born Ahmad Khan Rahimi, 30, told the court that he became radicalized after being “harassed” by the FBI and “singled out” for his religion, but showed no remorse for inflicting the bloody injuries.

Prosecutors told his two-week trial last year it was a “miracle” that nobody was killed in the September 17, 2016 attack.

A second bomb forced the cancellation of a US Marine Corps run in the New Jersey town of Seaside Park. He was convicted on all eight counts.

Police also defused another device in Chelsea and found additional pipe bombs in Mr. Rahimi’s hometown of Elizabeth, New Jersey, where he worked in his family’s fried chicken restaurant.

Mr. Rahimi was critically wounded in a shoot-out with police on Sept. 19 before being captured, and was found with a handwritten journal lauding Osama bin Laden and US-born Al-Qaeda recruiter Anwar al-Awlaki.

He moved to the US in 1995 with his family and became a naturalized citizen in 2011.

Addressing the court at length, Mr. Rahimi said he understood why there were frustrations between Muslim countries and Americans.

“I have been here for more than 20 years, I had American friends and Muslim friends,” he said. Things started to change, he said, after he started acting and dressing like a devout Muslim.

“I was harassed by the FBI,” he said, referring to going on holiday to the Dominican Republic. He claimed he was “singled out just because of my attire” after returning from a trip to Pakistan.

“I was never discriminated for my religion until I started following it,” he said.

Mr. Rahimi’s father contacted the FBI in the months leading up to the attack, warning them about his son’s militant sympathies.

“I did not hear an ounce of justification,” US District Judge Richard Berman.

“There is no comparison between the grievances that you may feel and the actions you took… The conclusion is inescapable that you remain extremely dangerous,” the judge added.

“Innocent people on a Saturday night, it is inexplicable that anybody would do that deliberately. But you did. It was you.”

Since Mr. Rahimi’s arrest, two other lone-wolf attackers have carried out bombings in New York. A Bangladeshi driver detonated a bomb in a subway passageway, wounding himself and three other people in December.

On Oct. 31, an Uzbek immigrant, also reportedly inspired by the Islamic State extremist group, killed eight people on a bike path by ramming his truck into cyclists.

New York retains stringent security, which was drastically stepped up after the Sept. 11, 2001 Al-Qaeda hijackings brought down the Twin Towers. — AFP

UK grabbing attention with S. China Sea mission — paper

BEIJING — Britain’s Defense Ministry is trying to justify its existence and grab attention with a planned mission by a British warship to the disputed South China Sea next month, a Chinese newspaper said on Wednesday.

A British warship will sail through the South China Sea to assert freedom-of-navigation rights, British Defense Secretary Gavin Williamson said in remarks published on Tuesday during a visit to Australia.

British officials first flagged the voyage six months ago and the journey is likely to stoke tensions with China, who claim control of most of the area and have built military facilities on land features in the sea.

Brunei, Malaysia, the Philippines, Taiwan and Vietnam also have claims to the energy-rich sea through which billions of dollars in trade pass each year.

The widely read state-run tabloid the Global Times said Mr. Williamson needed to state clearly the purpose of the mission.

“If not provocation, the Royal Navy should behave modestly when passing through the South China Sea,” it said in editorials published in its English and Chinese-language editions.

“By acting tough against China, Britain’s Ministry of Defence is trying to validate its existence and grab attention,” it said.

The paper wondered whether the Royal Navy could actually complete the trip, considering budget cuts and problems with a new aircraft carrier that has a leak.

“As the Royal Navy has been hit by news such as a leaky aircraft carrier and the UK government has a tight budget, it appears a difficult mission for the Royal Navy to come all this way to provoke China,” it wrote.

China has repeatedly accused countries outside the region — generally a reference to the United States and Japan — of trying to provoke trouble in the South China Sea while China and its neighbors are trying to resolve the matter through diplomacy.

Speaking of Britain’s plan, China’s Foreign Ministry said on Tuesday it hoped “relevant sides don’t try to create trouble out of nothing.”

Britain, which will be leaving the European Union next year, has looked to China as one of the countries it wants to sign a free trade deal with once it leaves the bloc. British Prime Minister Theresa May ended a largely successful trip to China earlier this month. — Reuters

North’s ‘army of beauties’ reveal cultural divide

GANGNEUNG — North Korea’s red-clad “army of beauties” cheerleaders are a key weapon in Pyongyang’s arsenal for its Winter Olympics charm offensive — but to some Southerners they illustrate the cultural divide across the Demilitarized Zone.

The 200-strong group — all in their late teens or early 20s and said to be handpicked from elite universities after strict background checks — chant “Cheer up” at events, clap and wave in unison, and sing traditional songs.

The Koreas’ separation — which dates back nearly seven decades during which the two countries have followed radically different paths — makes citizens of the North an object of some fascination for South Koreans.

“They look just like us,” said Kim Mi-hyun, 59, as the young North Koreans walked by in a neat double line on an excursion to a beach in Gangneung, the east coast city where the Winter Games ice events are being held.

“Looking at them makes me yearn for reunification,” she added, filming the sight on her smartphone.

Others were struck by their chunky trainers and white woolly hats.

“They look like Koreans from a long time ago,” said 30-year-old Lee Jung-hoon.

Younger South Koreans tend to be more wary of the North having spent their adult lives in a culturally vibrant democracy regularly menaced and occasionally attacked by Pyongyang, which stands accused of widespread human rights abuses.

The cheerleaders are under tight surveillance from their Northern escorts, always moving in groups in the presence of a minder and rarely conversing with South Koreans.

They said nothing in response to Southerners’ calls of welcome at the beach, opting instead for a coy smile or friendly wave.

“They don’t speak,” said Yoo Hong-sik, 31, from Daejeon. “I think they received orders not to and that’s disappointing because I would like to interact with them.”

TEARS IN RAIN
The Northern supporters’ every move is trailed by an army of South Korean journalists, with some camping outside their hotel for photos of the women going for a morning jog or ironing their clothes.

It is the fourth cross-border visit by a North Korean cheer group and the initial enthralment has changed over time, as Pyongyang pursues the nuclear and missile ambitions which have seen it subjected to multiple rounds of UN Security Council sanctions.

Dubbed an “army of beauties” by the South’s media, there was so much interest in the squad sent for the 2003 Universiade in Daegu that the facility where they stayed was turned into a museum displaying personal items left behind — including unused tampons and empty toothpaste tubes.

On that trip, a tearful group of cheerleaders frantically ran off their bus to retrieve a banner of then-North Korean leader Kim Jong Il that was getting wet in the rain.

In 2005, former North Korean cheerleader Cho Myung-Ae — whose looks had gained her a huge following in the South — appeared in a television commercial for a Samsung mobile phone with South Korean pop star Lee Hyo-Ri.

Now, though, the cheerleaders are part of a charm offensive by Pyongyang aimed, analysts say, at easing the measures against it and trying to drive a wedge between Seoul and its protecting ally Washington.

At the unified women’s ice hockey team’s 8-0 drubbing by Sweden on Monday — which guaranteed its elimination at the group stage — the cheerleaders chanted and waved in red, blue and white tracksuits.

“I hope they come more often,” said Kang Seok-joong, 61, adding the visit would bring the two countries closer together.

But Noh Seung-Hyuk, a 29-year-old office worker in the stands, was disturbed by the Northerners’ lockstep choreography.

“Of course it is nice to see them but they give me the chills,” he said. “Honestly, they feel distant.”

Many older South Koreans on both sides of the political divide harbor a nostalgic longing for some form of reunification — conservatives through the North’s collapse and conquest by the South, liberals through a more amicable arrangement.

But younger people have far less interest in unification and fear its social and economic consequences.

A poll last year found almost 50% of over-60s believed the two Koreas can be reunified, while just 20.5% of those in their 20s agreed.

“We look the same but I feel bad because they don’t have any freedom,” said Kim Jung-ah, a 22-year-old student from Seoul at the match.

Her friend Lee Eun-mi added: “I think they are very different, they are so robotic.”

As popular girl group TWICE’s “Cheer up” blared from the loudspeakers across the arena, two young South Korean spectators danced jovially.

The North Koreans paused — and began bellowing out a 600-year-old Korean folk song, waving their unification flags in synchronized moves.

“They are like the military, I pity them,” said Lee Min-woo, a 20-year-old student from Seoul.

“I haven’t given any thought to reunification.” — AFP