Heat oil over medium-high heat in a heavy-bottom pan until shimmering, then add the sliced ham. After the fat is rendered out of the ham and it begins to turn darker in color, add the onion, red bell pepper and half the salt. Cook until the onions are translucent.
Add red pepper flakes, caraway seeds, vinegar. Cook until the vinegar no longer smells acidic. Reduce heat to medium-low and add the cabbage, the rest of the salt and water.
Cover the pot and cook, stirring occasionally, for about 30 minutes or until the cabbage is soft and tender.