North Korean leader Kim Jong-un at the ruling party congress in Pyongyang on January 8, 2021. AP
North Korean leader Kim Jong-un at the ruling party congress in Pyongyang on January 8, 2021. AP
North Korean leader Kim Jong-un at the ruling party congress in Pyongyang on January 8, 2021. AP
North Korean leader Kim Jong-un at the ruling party congress in Pyongyang on January 8, 2021. AP

North Korea conducts second missile test in less than a week


Soraya Ebrahimi
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North Korea fired what was believed to a ballistic missile on Tuesday, South Korea's military and the Japanese coastguard said.

It was the second missile launch in less than a week after leader Kim Jong-un demanded more military advances.

The launch was detected about 7.27am from an inland area of North Korea towards the ocean off its east coast, South Korea's Joint Chiefs of Staff said.

The projectile appeared to have landed outside Japan's exclusive economic zone, the Kyodo news agency reported, quoting government sources in Tokyo.

The launches by nuclear-armed North Korea underscored Mr Kim's New Year's vow to strengthen the military against an unstable international situation amid stalled talks with South Korea and the US.

"The [South Korean] military is maintaining a readiness posture while closely monitoring related trends under close co-operation between [South Korea] and the US in preparation for additional launches," the joint chiefs said.

South Korean and US intelligence agencies are conducting detailed analysis for additional information, it said.

Japan's Prime Minister Fumio Kishida said North Korea's repeated missile launches were "very regrettable".

Last week, South Korean military officials cast doubts on the capabilities of a "hypersonic missile" North Korea claimed to have tested on Wednesday, saying it appeared to represent limited progress on Pyongyang's ballistic missiles.

Tuesday's launch came a day after the US mission to the UN, joined by France, Ireland, Japan, the UK and Albania, condemned last week's test.

"These actions increase the risk of miscalculation and escalation and pose a significant threat to regional stability," US ambassador Linda Thomas-Greenfield said on Monday.

Such tests not only improve the North's capabilities, but expand what it can offer illicit arms clients and dealers around the world, Ms Thomas-Greenfield said.

"[North Korea] makes these military investments at the expense of the well-being of the North Korean people," she said.

  • North Korean leader Kim Jong-un attends the eighth conference of military educationists of the Korean People's Army at the April 25 House of Culture in Pyongyang. Korean Central News Agency / AFP
    North Korean leader Kim Jong-un attends the eighth conference of military educationists of the Korean People's Army at the April 25 House of Culture in Pyongyang. Korean Central News Agency / AFP
  • Kim Jong-un attends a military parade marking the ruling party congress at Kim Il-sung Square in Pyongyang in January 2021. KCNA / AP
    Kim Jong-un attends a military parade marking the ruling party congress at Kim Il-sung Square in Pyongyang in January 2021. KCNA / AP
  • Kim Jong-un is applauded by a military unit after what North Korea claimed was a test firing of its 'super-large' multiple rocket launcher in November 2019. KCNA / AP
    Kim Jong-un is applauded by a military unit after what North Korea claimed was a test firing of its 'super-large' multiple rocket launcher in November 2019. KCNA / AP
  • Kim Jong-un rides a horse to climb Mount Paektu in North Korea in October 2019. KCNA / AP
    Kim Jong-un rides a horse to climb Mount Paektu in North Korea in October 2019. KCNA / AP
  • Kim Jong-un and former US president Donald Trump shake hands over the military demarcation line at the border village of Panmunjom in the demilitarised zone in June 2019. KCNA / AP
    Kim Jong-un and former US president Donald Trump shake hands over the military demarcation line at the border village of Panmunjom in the demilitarised zone in June 2019. KCNA / AP
  • Kim Jong-un and South Korean President Moon Jae-in raise their hands after signing a joint statement in Panmunjom in April 2018. Korea Summit Press Pool / AP
    Kim Jong-un and South Korean President Moon Jae-in raise their hands after signing a joint statement in Panmunjom in April 2018. Korea Summit Press Pool / AP
  • Kim Jong-un inspects a launch drill of the medium and long-range strategic ballistic rocket Hwasong-12 at an undisclosed location in September 2017. KCNA / AFP
    Kim Jong-un inspects a launch drill of the medium and long-range strategic ballistic rocket Hwasong-12 at an undisclosed location in September 2017. KCNA / AFP
  • Kim Jong-un smiles with soldiers after inspecting the multiple-rocket launching drill of the women's sub-units under the Korean People's Army Unit 851 at an undisclosed location in North Korea, April 2014. KCNA / AFP
    Kim Jong-un smiles with soldiers after inspecting the multiple-rocket launching drill of the women's sub-units under the Korean People's Army Unit 851 at an undisclosed location in North Korea, April 2014. KCNA / AFP
  • Kim Jong-un talks to former NBA star Dennis Rodman as they watch an exhibition basketball game at an indoor stadium in Pyongyang in January 2014. KCNA / AP
    Kim Jong-un talks to former NBA star Dennis Rodman as they watch an exhibition basketball game at an indoor stadium in Pyongyang in January 2014. KCNA / AP
  • Kim Jong-un inspects a mass parade of the Worker-Peasant Red Guards at Kim Il-sung Square in Pyongyang to mark the 65th anniversary of national foundation day, September 2013. KCNA / AFP
    Kim Jong-un inspects a mass parade of the Worker-Peasant Red Guards at Kim Il-sung Square in Pyongyang to mark the 65th anniversary of national foundation day, September 2013. KCNA / AFP
  • Kim Jong-un visits watch posts of KPA Unit 507 in the Kangwon province of North Korea, June 2013. KCNA / AFP
    Kim Jong-un visits watch posts of KPA Unit 507 in the Kangwon province of North Korea, June 2013. KCNA / AFP
  • Kim Jong-un enjoys the ride as he attends the completion ceremony of the Rungna People's Pleasure Ground in Pyongyang in July 2012. KCNA / AP
    Kim Jong-un enjoys the ride as he attends the completion ceremony of the Rungna People's Pleasure Ground in Pyongyang in July 2012. KCNA / AP
  • Kim Jong-un is surrounded by members of the Korean Children's Union in Pyongyang in June 2012. KCNA / AFP
    Kim Jong-un is surrounded by members of the Korean Children's Union in Pyongyang in June 2012. KCNA / AFP
  • Kim Jong-un attends a meeting of the Supreme People's Assembly in Pyongyang in April 2012. KCNA / AFP
    Kim Jong-un attends a meeting of the Supreme People's Assembly in Pyongyang in April 2012. KCNA / AFP
  • Kim Jong-un aims a gun on an inspection tour of the Sporting Bullet Factory in Pyongyang in February 2012. KCNA / AFP
    Kim Jong-un aims a gun on an inspection tour of the Sporting Bullet Factory in Pyongyang in February 2012. KCNA / AFP
  • Kim Jong-un salutes besides the convoy carrying the body of his father and late leader Kim Jong-il at Kumsusan Memorial Palace in Pyongyang in December 2011. KCNA / AFP
    Kim Jong-un salutes besides the convoy carrying the body of his father and late leader Kim Jong-il at Kumsusan Memorial Palace in Pyongyang in December 2011. KCNA / AFP
  • Late North Korean leader Kim Jong-il with his son Kim Jong-un on the balcony as they attend a military parade marking the 65th anniversary of the communist nation's ruling Workers' Party in Pyongyang, October 2010. Kyodo News / AP
    Late North Korean leader Kim Jong-il with his son Kim Jong-un on the balcony as they attend a military parade marking the 65th anniversary of the communist nation's ruling Workers' Party in Pyongyang, October 2010. Kyodo News / AP
  • Kim Il-sung with his son and chosen successor, Kim Jong-il in November 1986. KCNA / AFP
    Kim Il-sung with his son and chosen successor, Kim Jong-il in November 1986. KCNA / AFP

UN Security Council resolutions ban all ballistic missile and nuclear tests by North Korea, and the body has imposed sanctions over the programmes.

Ms Thomas-Greenfield repeated calls for countries around the world to enforce sanctions, and for North Korea to return to talks and abandon its missiles and nuclear weapons.

"Our goal remains the complete, verifiable and irreversible de-nuclearisation of the Korean Peninsula," she said.

The US State Department did not immediately respond to a request for comment about Tuesday's launch.

North Korea has said it is open to talks, but only if the US and others drop "hostile policies" such as sanctions and military drills.

Few observers expect Mr Kim to ever fully surrender his nuclear arsenal.

North Korea says its missile tests and other military activities are for self-defence and are similar to those regularly undertaken by other nations.

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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Updated: January 11, 2022, 12:53 AM