north korea depends on china for most of its trade. the koreantment agency based in seoul says china accounted for 83% of north korea's $4.2 billion worth of international commerce in the year 2010. now, while north korea isolates itself, the regime has partnered with south korea in a complex called kaesong which is on north korean territory north of the dmz. this complex combines south korean investment and technology with cheap north korean labor. 123 south korean companies work out of the complex. they mainly manufacture things like clothes, electronics and utensils. 707 south koreans work at the kason complex. they did leave work early today after the news came out. south korea says the north has assured that the facility will remain open and operating normally tomorrow. as for everyday life in north korea, i was very curious about this. i spoke with the director of "daily nk" that covers north korea. he said the monthly wage of a family in north korea is between $3.00 to $20 per month, and there's also something called the informal market wh

we have a million north korean troops north of the demilitarized zone. korean troops south of the zone and it's a very tough situation. >> and, wolf, i'm getting -- this is the time when we're reporting, we're catching people up on monday morning on what they can expect because the asian markets start to open. the asian shares outside of japan, they experienced extended losses upon the death of kim jong-il. so this has global implications. it also has implications when it comes to the economy. as you said, we don't really know what's going to happen as far as the succession plan and what this means for a country that is so restricted if it's going to open up or what it means. and again, wolf, this information is just coming in. it's just being reported by south korean television as to what is happening on north korean television as far as that announcement. >> right. it's a very early development, but it shouldn't come as a complete surprise because for the last few years, there have been numerous reports that kim jong-il was ill. we didn't exactly know

inter-korean relations were badly strained last year after north korea allegedly sank a south korean naval vessel and shelled a south korean island. but the two sides resumed contact this year, which included high-level talks on the nuclear issue in the autumn. but the news of kim's death is likely to slow down dialogues to rebuild trust between the two countries. experts in south korea say the possibility of sudden political unrest in the north is slim. but the south korean government plans to closely watch the impact of kim's death which came as the north tries to consolidate the power of his son, kim jong un. >> thanks, anna. >>> next we go to beijing, where our kango komodo has spent the day gathering reaction. >> reporter: the north korean embassy in beijing has beijing has its flag at half staff. the north koreans going in and out of the embassy said they couldn't believe kim jong il was dead. chinese police are keeping a close watch on reporters around the embassy. china's state media have reported kim's death without commentary. >> translator: north korea is a poor country. i

>> you know, every time there's a major north korean crisis such as the detonation of a nuclear weapon, back several years ago, the passing of kim il-sung, the south korean stock market will, of course, react, but of the longer term, the market basically readjusts itself because stability and security's name of the game, so as long as you have 27,000 u.s. forces stationed here in south korea, i think most koreans feel the economy will be back on track. >> stability and security is the name of the game. is that being reiterated by the blue house? what is the political reaction to the news? >> yes, as soon as the president heard of the news of kim jong-il's passing this morning, he basically convened an emergency meeting in the blue house, our presidential office, at 3:00 p.m. this afternoon, as we speak, the president's meeting with his cabinet in emergency session but also wanted to tell the people a crisis erupt but at the same time business as usual the economy will be on track, so he's sending two key messages to the korean people and to the outside world. >> japan, upon hearing the

kim jong-il was well-known as a film buff, here visiting the set of a north korean production. his personal video library was said to include 20,000 titles with "rambo" and "friday 13th" topping the dearly disfavorite flicks. in 2000 there appeared to be a thaw in north/south relations, the first ever summit meeting between kim jong-il and president kim dae-jung. the south's so-called policy of engagement seemed to be bearing fruit. but kim jong-il pressed ahead with his nuclear weapons program. the u.s. labelled it part of the axis of evil in 2002, a year later, north korea withdrew from the nuclear nonproliferation treaty. in 2006, the north conducted a nuclear test and test fired missiles. it added extra urgency to the six-party talks designed to deal with north korea's nuclear program. a breakthrough came in 2007 when kim jong-il finally agreed to disable the nuclear reactor, in return for fuel and better relations with the u.s. despite dramatically blowing up the cooling tower, north korea seemed to backtrack afterwards, the deal appeared to be in jeopardy. the capture of t

here, visiting the set of a north korean production. his personal video lie bray was said to include "rambo" and "friday the 13th" supposedly topping his favorite flicks. in 2000, there appeared to be a thaw in north-south relations and the first-ever summit between kim jong il and his counterpart in the south. it seemed to be bearing fruit. but kim jong il pressed ahead with his nuclear weapons program. the u.s. labelled it part of the axis of evil in 2002, a year later north korea withdrew from the nuclear nonproliferation treaty. in 2006, the north conducted a nuclear test and test fired missiles. it added extra urgency to the six-party talks designed to deal with north korea's nuclear program. a breakthrough came in 2007 when kim jong il finally agreed to disable the nuclear reactor. in return for fuel and better relations with the u.s. but despite dramatically blowing up the cooling tower, north korea seemed to back track afterwards. the deal appeared to be in jeopardy. the capture of two u.s. journalists, laura ling and euna lee sp

how do the north korean see the chinese? do they fear them or need them or what. >> normally the north korean'sda north cor korean. they are octobering the negligence snowing. -- notion. when you look at the resent years you see a closer and closer economic relationship with china. to the ectoanltd that north korea ca can display any froat t all it tends to be as a wrul ref a china. zplrnlgwe don't want to be witha we want to work with the u.s. as well. as money as this say that the fact show that they are willing to get close to the chinese. the fact that the north koreans went ahead and shelled a sowmenh korean island and then sunk a south korean ship. and the chinese tried to split it down the middle and to call on all sides to show restraint. this had the effect o of enflamg the public opinion in the state that is by any mesh measure. of what happens in the fumenter would be the success store state. i think maybe if not for us but maish with themselves the chiefn niece know how to do deeper thinking and how they would see

state media praised him as a great successor to the north korean leadership. ♪ video show north koreanicials bowing toward the coffin with solemn music playing in the background. north korea's founder kim il-sung died in 1994. kim jong-il took part in a memorial ceremony held just after his father's death. the ceremony to mourn his death was held at the same venue with the same music. this may indicate that the nation's leadership has been handed down to kim jong-un, the third generation, of the kim family. north koreans promoting kim jong-un as its next leader by using a poem to influence public sentiment. korean central television on wednesday aired a five-minute long poem entitled "december in korea." >> the piece describes people overcome with grief on kim jong-il's death. and calls on the public to follow the guidance of kim jong-un. it is the first time his name has been mentioned in a poem. >> december is usually a commemorative month in north korea, because kim jong-il became the country's commander 20 years ago in december. his mother was also born in december. poems and paint

here visiting the set of a north korean production. al video library was said to include 20,000 titles with rambo and "friday the 13th" supposedly topping the dearly disfavored lists. in 2000 there appeared to be a thaw in north-south relations. the first ever summit between him and his count ter part from the south. the south so called sunshine poly say of engagement seemed to be bearing fruit. but kim jong il pressed ahead with his nuclear weapons program. the u.s. label it part of the access of evil in 2002. awe year later north korea withdrew from the nuclear nonproliferation treaty. in 2006 the north conducted a nuclear test and test fired missiles. it added extra urgency to the six-party talks designed to deal with north korea's nuclear program. a break through came in 2007 when kim jong il finally agreed to disable the nuclear reactor in return for fuel and better relations with the u.s. but des spite dramatically blowing up the cooling tower, north korea seemed to backtrack afterwards. the deal appeared to be in jeopardy. the ca

walmart. >>> it's saturday morning in the north korean capital. orea's chief nuclear negotiator, the man who invited richardson here. thank you very much. thank you for letting me come here to north korea. >> first, i am very happy to be able to meet you, mr. wolf. i presume, had the same power as the american president. >> thank you very much for that compliment, but i don't think it's true. but it was very nice to hear from you. we hope that cnn will have an opportunity to come visit north korea on many occasions. >> i think you're the only one who has "the situation room" except president obama. >> thank you very much and thank you very much in the hotel where you're staying, you can watch cnn international, which is very nice to be able to see what's happening here in pyonyang watching cnn. >> this time you're here with governor richardson and next time, i'm inviting you to come to pyonyang again. >> thank you very much. i hope either this time or the next time, you and i could sit down for a cnn interview, our viewers in the united states and

confidence even that the people will be able to overcome. >> in jakarta, flowers were delivered to the north korean embassy. the sorrowful reaction reflects friendly relations between the nations and north korea dating back it years after world war ii. they were brought together under the nonalign movement is many of developing countries that said they belong to neither the eastern nor western flocks during the cold war. the relationships did have their ups and downs. myanmar once severed diplomatic ties with north korea after a bomb attack, targeting a former south korean president. myanmar blamed the incident on north korean agents. even so, all ten rcn states maintain diplomatics states with north korea. the group includes the north in its extended meetings. and passed statements of denuclearizing the korean peninsula. rcn wants it o avoid the death of kim jong-il from destabilizing regional security. the they are moving to deepen ties with japan and east asia to peace is vitally important. they will continue it working with japan, china, the u.s. and other countries with problems involving nort

kim jong-il the north korean dictator as you have been hearing on fox news is dead. what that says about north korea where it goes the succession and all of the rest of it really problematic north korea. as you know a nuclear armed country. we are fortunate my colleague gregg palkot was in north korea and was how far away from the dictator? >> i would say about 50 yards last year. kim jong-il has been running that country we know with an iron fist. the people are starving. the country is dying all at the same time they are developing nuclear programs nuclear missile programs what have you. it's a pore rye awe nation and the people are struggling. we were there we were a rare western media at the brave ground seeing up close kim jong-il and his son the heir apparent. up there on the reviewing stand and it was clear because of the illnesses because of the real problems that kim jong-il has with his health he was getting his son ready step by step he was moving up. but his son and young. it is not just a son. it is everybody that is around him is very important. we thoug

how do the north korean see the chinese? do they fear them or need them or what. >> normally the north korean'sda north cor korean. they are octobering the negligence snowing. -- notion. when you look at the resent years you see a closer and closer economic relationship with china. to the ectoanltd that north korea ca can display any froat t all it tends to be as a wrul ref a china. zplrnlgwe don't want to be witha we want to work with the u.s. as well. as money as this say that the fact show that they are willing to get close to the chinese. the fact that the north koreans went ahead and shelled a sowmenh korean island and then sunk a south korean ship. and the chinese tried to split it down the middle and to call on all sides to show restraint. this had the effect o of enflamg the public opinion in the state that is by any mesh measure. of what happens in the fumenter would be the success store state. i think maybe if not for us but maish with themselves the chiefn niece know how to do deeper thinking and how they would see

. >>> a south korean civic group says there's a growing sense of anxiety among people in north korea since the death of its leader kim jong-il. south korean pastor kim song un told reporters about a phone conversation with a north korean who lives near the border with china. the pastor heads a group of supporters for north korean defectors staying in china and south korea. the pastor said the north korean told him that the north's authorities have stepped up border patrol to prevent people from defecting to china. he said china has also deployed more troops toua the border. the pastor said many recent defectors to south korea say they doubt the abilities of the new leader kim jong-un's leadership. >> translator: north koreans are feelin anxious. i think there's a possibility of a mass defect. >> the pastor also released video taken in march showing a marketplace in the north korean border city of hyesan. he explained that the chinese yuan was being used at the market indicating that north koreans have lost confidence in its own currency since its redenomination in 2009. 20,000 people

we would assume not but we don't know from the north korean television. is what will be expected in a country like north korea. a regime that has been built up that he has built up. his persona has been built up to such an extent that it is expected of north koreans to be seen to be wailing and weeping and grieving so heavily. now we have seen some very strong language from the state media that has been calls for him to rise up again, asking the general why he has left them at this time. so clearly, this is what we would have been expecting, a military presence as well. you can see on the streets, thousands of members of the 1.1 million strong army on the streets to say good-bye to him. this is expected. remember, he was the architect of the military first policy. we >> we did see in 1994 with his father's funeral. and certainly we can see there are a tremendous amount of personnel waiting there and watching proceedings. >> indeed. reporting there in seoul in south korea. if you could stand by, paula, we will be coming back to you as we watch the first pic

he had these very big set pieces to show the people, really the north koreans themselves, how strong the government was and what it could do to mobilize people. >> absolutely. if you wanted any example, any proof that north korea was still in safe hands, that it could still mobilize these orchestrated, well disciplined lines of people, here it is. it is proof they can still do that. the levers of power are still working in north korea. even as these pictures are coming in now, the young successor you mentioned, perhaps 29 years old, is again taking a very prominent role in the service, standing up in the middle of the more established elders in the north korean political scene, leading this final act of remembrance for his father. >> do we have any idea of what the people outside the capital really know about their own country? it seems as if there is the correa projected by the leadership of the nation, and the one that other countries outside portray north korea to be. >> even within the country. but between p'yongyang and some of the rural areas in the northeast, a very different s

how do the north korean see the chinese? do they fear them or need them or what. >> normally the north korean'sda north cor korean. they are octobering the negligence snowing. -- notion. when you look at the resent years you see a closer and closer economic relationship with china. to the ectoanltd that north korea ca can display any froat t all it tends to be as a wrul ref a china. zplrnlgwe don't want to be witha we want to work with the u.s. as well. as money as this say that the fact show that they are willing to get close to the chinese. the fact that the north koreans went ahead and shelled a sowmenh korean island and then sunk a south korean ship. and the chinese tried to split it down the middle and to call on all sides to show restraint. this had the effect o of enflamg the public opinion in the state that is by any mesh measure. of what happens in the fumenter would be the success store state. i think maybe if not for us but maish with themselves the chiefn niece know how to do deeper thinking and how they would see

north. south koreans are divide over whether the government should send condolences to the north. lawmakers will also hold a full parliamentary session on wednesday to deliberate on future actions. the government is likely to take precautionary steps to avoid a split in public opinion on how to deal with kim jong-il's death. reporting for nhk world, seoul. >>> next we go beijing where our reporter has spent the day gathering reaction. >> reporter: the north korean embassy in beijing has its flag at half-staff. the north koreans going in and out of the embassy said they couldn't believe kim jong-il was dead. chinese police are keeping a close watch on reporters around the embassy. china's state media have reported kim's death without commentary. >> translator: north korea is a poor country. i hope kim's death will turn things around for the better. >> translator: i want north korea to be more open. the nation should organize itself in terms of democracy. north korea will be able to improve the situation if it puts priority on its economy over its military. >> reporter: china's fore

rights have there been any anti-north korean protests in south korea? >> we saw some of those yesterday, groups of conservative activists, many of them ex members of the south korean military celebrating the news of kim jong il's death. that is to be expected. that is a strong part of public opinion, but we ought to mention it is quite possible many south koreans are feeling a sense of sadness of the passing of an opportunity. many saw kim jong il as someone to be respected and felt he was a man who offered a chance of peace and negotiation. >> there is a debate on going in south korea whether or not they should be sending a message of condolences to north korea. >> there is indeed. it is the same debate we heard in 1994 when his father died. the calculation is it maybe there is an opportunity at the moment. there will be reformed-minded members who might see this as an opportunity for south korea. perhaps this is a moment to send a delegation if they are invited for the funeral or of the very least to send condolences and open the possibility of dialog

people are reacting worldwide to the death of north korean dictator kim jong-il. his 17-year reign of power is over. >> this came late last night on north korea television. delivered by a weak tv anchor having trouble keeping it together. take a look. [ speaking in foreign language ] >> now, this, what you're looking at, is the last known image of kim jong-il released by state media, north korea said he dysart of a heart attack. he was on a train when he suffered. only 69 years old. >> the country announced what it calls a great successor to the so-called dear leader. his son, third son, kim jong un, who is said to be either 27 or 28 years old, and his life may be even a bigger mystery than his father's. >>> in washington, instability in the region. a major worry this morning. dan lothian live at the white house. what's the reaction been from the white house? >> reporter: good morning, le alina. a cautious response, in many ways. the language used could potentially define the relationship between the united states and north korea going forward. president obama, we

the north korean leader died on saturday, according to north korean state media.ed of a massive heart attack. it took them two days to make the announcement a that he h had -- that he had died whilst on a train. an autopsy confirmed the cause of death. we do know the funeral will be held december 28. a period of mourning has been declared from december 20 to december 27. this is being felt around the region and around the world. the south korean president is asking the south koreans on to continue with their daily life, while the government in seoul has raised the military alert to the second level of three levels as well as placing all government workers on an emergency footing. south korea continues to monitor the north, but according to wire reports they say there is no evidence of increased north korean military activity in the light of kim jong il's death. calling for calm too is china. a close ally of north korea. they too will be keeping a very close eye on the situation inside north korea. fearful of any implosion of the regime which is obviously still a w

officials were meant it meet with north korean counter parts monday. with this meeting, there was supposed to be an announcement from the u.s. that it was going to give a large food donation in ex change for north korea suspending its uranium enrichment program. this was going to be a precursor to six-party talks. of course north korea was then going to allow international inspectors. any other date of week, wolf, this would be huge news. but of course kim jong il has died and this has left talks, i guess in disarray. the u.s. state department says the plan perhaps is now in jeopardy, is up to north korea as how it wants to proceed and that the ball is in their court. but for now, the u.s. will respect this mourning period and see how things proceed. wolf? >> south korea's military, they have gone on a higher state of alert right now. what are they expecting from north korea? >> well, their president held a national council security meeting right after the news of kim jong il's death. they were placed on high alert. there is the dmz, about an hour and a

those images are the images the north korean government wants to you see. the story that's missing, his level legacy of famine, poverty. jong me, two men who know north korea and knew this leader more than any other officials. first the retired general of the cia, and in denver, the assistant secretary of state of president bsh was the lead negotiator. i want to start with this threshold question for you. your biggest worry today is what? >> well, the instability in the north. because of internal pressures, because they can't settle the leadership succession, that they do something stupid. i don't think that's leakly. i think they turn inward. i think we'll see a period in which we can't get the north koreans to do anything externally positive or negative. it will take a period of months before this settles out. >> ambassador hill, you're the u.s. diplomat who knows this government. knows this regime best. are you confident that they have a succession plan that will avoid instability? >> no, i'm not. i think they've certainly tried in the last few days. prob

, particularly those who are engaged in anti-north korean activities as we saw in the video. and, actually, south koreans are expecting presidential election in december next year. so north korea might use military force in order to affect the outcome of the presidential election. >> mr. michishita, thank you for your perspective. appreciate it. >> thank you. >>> next, we go to bangkok to find out what's going on in the region. >> afghanistan's president hamid karzai has taken a step toward resuming peace talks with the taliban. he indicated his government would accept the establishment of a taliban liaison office in qatar to facilitate dialogue with the group. on tuesday for the first time he indicated the proposed office could be in qatar. he said he hoped it would be in afghanistan but another muslim country would also be acceptable. the obama administration has been conducting behind the scenes discussions with the taliban over the issue. it is not clear which elements inside the taliban the u.s. government is negotiating with. whether the taliban

this is the first time that north korean state media has griffin tribute to kim jong-un. kim jong-il's body will be visited until 27th. he was involved in negotiations north korea for many years. tanaka met. >> translator: i was surprised at the news of his death. there's no reason to believe north korea has solidified its transition of power. we have to keep a close watch on the situation for the time being. i negotiated with north korea behind the scenes for one year. during the negotiations, the country made decisions through talks among officials. north korea is under dictatorship, but it seems to allow a group of officials around the leader to make decisions. north korea is not an ordinary society. for example, people are starving because of a food crisis. in a normal country, it wouldn't be surprised if people stage strong protests but the government used the threat of military power to stop demonstrations from even breaking out. that means the success is on the mill tour to be controlled in a firm manner. this can represent a big opportunity or the beginning of a ma

is this something that the north korean the new north korean regime however is going to pan out do you think there that's something that they're thinking about because it's been pointed out and you pointed out earlier they have engaged before you know the process is this something that at least one glimmer of hope in all of this. well so certainly if they wanted to take advantage of the the death. toll in order to start moving down a slightly more open past start moving towards release reducing their isolation it would be a very smart move on their part to send a message to the i.a.e.a. and to say that. inspectors would be welcome to come back in in to the country and conversely the most stupid move they could possibly make is another nuclear test explosion here not that that would actually in itself pose a threat to anyone but it would send a very bad sign and it would get the new regime off to the worst possible start john if i can go to you one of the first things that came out of the u.s. state department is that the united states undying loyalty and protection of its ally south ko