Chinese imports of North Korean goods down over 12 percent in May

June 22nd, 2016

By Benjamin Katzeff Silberstein

Says Yonhap, citing KOTRA data:

China’s imports of North Korean goods fell 12.59 percent on-year in May, data showed Wednesday, amid tougher U.N. sanctions against Pyongyang’s nuclear weapons and missile programs.

Imports from North Korea declined to US$175.6 million last month, compared to $200.9 million for the same month last year, according to Chinese customs data compiled by the Beijing unit of South Korea’s Korea Trade and Investment Promotion Agency (KOTRA).

Imports of North Korean coal, which accounts for nearly half of the North’s annual exports to China, plunged 28.3 percent on-year to $74.7 million in May, the data showed.

China’s exports to North Korea also fell 5.9 percent on-year to $239.3 million last month, according to the data.

However, these numbers suffer from the same problems that often plague trade data on North Korea. We don’t know 1) how much of the decrease is caused by a general, global drop in world market prices for North Korea’s export goods, and how much is an actual, quantitative import decrease, and 2) how much of the drop would have counterfactually happened “anyway,” given the contraction of Chinese industries using North Korean coal.

Full article:
China’s imports of N. Korean goods fall 12.6 pct in May 
Kim Deok-hyun
Yonhap News
2016-06-22
 

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North Korea’s trade volume down 18 percent in 2015

June 14th, 2016

By Benjamin Katzeff Silberstein

According to KOTRA (reported by Yonhap):

North Korea’s trade volume sank 18 percent last year from a year earlier, ending five years of straight growth, due largely to a drop in the prices of its key trading items such as coal and overall shipments, a South Korean trade agency said Wednesday.

The North’s overall trade volume came to US$6.25 billion in 2015, compared with $7.61 billion the previous year, according to the state-run Korea Trade-Investment Promotion Agency (KOTRA).

The reclusive country’s outbound shipments fell 15 percent on-year to reach $2.7 billion, while imports also dropped 30 percent to $3.55 billion over the cited period, the data compiled by the agency showed.

Consequently, the communist state’s trade deficit reached $850 million last year, narrowing 33 percent from the previous year.

The North’s trade volume has been on a rising path since 2009 reaching an all-time high of $7.61 billion in 2014.

But a drop in prices of key trade items such as coal, coupled with a slowdown in China — its strongest ally — led to a decline in overall trade volume, KOTRA said.

Bilateral trade volume between North Korea and China came to $5.71 billion last year, down 16.8 percent from a year earlier,

The figure accounted for 91.3 percent of the North’s overall trade in 2015, slightly higher than the previous year’s 90.1 percent.

Two things are worth noting: first, it’s about trade volumes in dollar terms, not the amount of goods per se. Second, this would seem to add to what I’ve pointed out earlier on this blog – decreases in trade with China following the sanctions may simply be part of a pattern that began earlier, before the sanctions were put in place. In 2015, trade with China accounted for 90.1 percent of North Korea’s total trade.

Full article by Yonhap here:
N.Korea’s trade volume drops 18 pct in 2015
Yonhap News
2016-06-15

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China claims to ban more dual-use products from DPRK

June 14th, 2016

According to Reuters:

China’s Ministry of Commerce released a list of goods banned for export to North Korea on Tuesday, saying the items could be used to build weapons of mass destruction.

The list of dual-use goods, or products that have both civilian and military use, comes after the United Nations nuclear watchdog said North Korea appeared to have reopened a plant to produce plutonium from spent fuel of a reactor central to its banned atomic weapons drive.

The ministry said in a statement on its website that the list was meant to comply with the requirements of a round of U.N. sanctions imposed in March in response to a North Korean nuclear test in January.

The new list adds to a much longer Chinese list of banned goods released in 2013 after the North carried out its third nuclear test that year.

Analysts said at the time the 2013 list was a positive sign that China was working to implement U.N. sanctions targeting the North’s nuclear and ballistic missile programmes.

The new list names dozens of banned items including magnetic materials, high-strength metals, chemical fibres, and laser-welding equipment. It also lists about a dozen chemicals that could be used in producing “chemical warfare agents”.

The banned goods could be used in nuclear, biological or chemical weapons development, the ministry said.

But China has declined in the past to give a full list of items banned for export to North Korea, which U.N. monitors have said makes it difficult to assess how strictly China is implementing sanctions.

China remains North Korea’s largest trading partner and sole major ally. Chinese analysts have regularly expressed concern that North Korea could collapse in chaos if Beijing’s policies become too harsh.

Reclusive North Korea rattled nerves this year by carrying out a fourth nuclear test in January and a satellite launch in February.

Thanks to Werner (a reader), here is the list of newly prohibited items (in Chinese).

I am keeping up with China – DPRK trade in 2016 here.

Read the full story here:
China says to ban export of more dual-use goods to North Korea
Reuters
2016-6-14

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Kim visits National Defense University

June 12th, 2016

 

2016-6-13-1-01 2016-6-13-1-02

National Defense-uni-2016

Rodong Sinmun and KCNA report that Kim visited National Defense University. The story is not in English on their web sites yet, but the university is in Ryonsong District in Northern Pyongyang (39.169469°, 125.777240°). The Google Earth imagery of it is a little dated, but you can see where those two statues are going to be erected.

NDU-statue-site

Here is the story in Rodong Sinmun:

Kim Jong Un Visits National Defence University

Kim Jong Un, chairman of the Workers’ Party of Korea, first chairman of the National Defence Commission of the DPRK and supreme commander of the Korean People’s Army, provided field guidance to the National Defence University.

He paid tribute to the statues of President Kim Il Sung and leader Kim Jong Il at the university.

Watching the statues of smiling Kim Il Sung and Kim Jong Il, he said with deep emotion that the university is associated with the exploits they performed by tirelessly working heart and soul for developing the Juche-oriented national defence industry in the whole period of their revolutionary careers.

He said that the statues of the great leaders were erected at the university on the occasion of the 49th anniversary of Kim Il Sung’s visit to it, adding that this was a great event of weighty significance in adding eternal shine to the immortal revolutionary exploits of the great leaders recorded in the history of education in the Juche-oriented national defence science and constituted an immense pride and happiness of all teaching staff and students of the university and personnel in the field of the national defence industry.

He went round the room for the education in the revolutionary history and room dedicated to the history of the university.

Kim Il Sung proclaimed the founding of the National Defence College, the predecessor of the National Defence University, in October, 1964 and visited it several times and took meticulous care of it including the establishment of departments, students’ uniform, cap-badge and collar badge and clearly indicated the road to be followed by it.

Kim Jong Il took a measure to newly build the university in an excellent place and led it with loving care so that it could fulfill its mission and duty as a center for training national defence scientific and technical personnel.

Watching historic data, Kim Jong Un said that the university has developed into the highest seat of training Juche-oriented national defence scientific and technical personnel having hundreds of persons with academic degrees and titles, several colleges, faculties, a doctorial institute, etc.

Looking at photos on the board introducing heroes one by one, he said that there are many acquaintances at the university, a clear proof that it has covered a proud path following the party. The university has produced a lot of personnel who have protected our party, he added.

He went round various places of the university including an exhibition hall of education science, e-library, weaponry hall, etc. to learn in detail about the teaching and education and scientific research.

He set forth the tasks to be fulfilled by the university.

Noting that the National Defence University is one of the universities for which he has the deepest affection and to which he attaches importance, he said he would frequently receive reports on the problems arising in the teaching and education at the university and personally settle them. He promised to turn the university into the most prestigious one in the country, an iconic university training hardcore personnel and talents who would shoulder upon themselves the national defence science and the world first class one.

He had a photo session with the officials and teachers of the university.

He was accompanied by Ri Man Gon, vice-chairman of the C.C., the WPK, Yu Jin and Jo Yong Won, vice department directors of the C.C., the WPK.

Here is coverage of the story in Yonhap:

North Korea’s leader Kim Jong-un has reaffirmed his intent to stick to nuclear weapons when making his first military-related public activity since the party congress in May, the North’s state media showed Monday.

Kim conducted the so-called field guidance at National Defense University, which the communist country says contributes to its defense industry, according to the North’s official Korean Central News Agency (KCNA). It did not specify the date of his visit.

Kim was quoted as saying by the KCNA that the mission of the university is to nurture talented people in a bid to further consolidate the country’s status as a nuclear power state in the East.

It marked the first inspection into the defense sector since the country concluded the congress by the Workers’ Party of Korea (WPK) on May 9.

Since the party event, the North’s young leader has focused on economy-related public activities including visits to a tree nursery and saltern, as he has stressed the need to boost its fragile economy on the principle of self-reliance.

At the party congress, Kim called his country a “responsible” nuclear state, saying that he will “permanently” defend the pursuit of his signature policy of developing nuclear weapons and boosting the country’s moribund economy.

The KCNA said that the National Defense College, the predecessor of the university, was set up in October 1964 during the regime of the country’s founder Kim Il-sung.

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Domestic food price dip in North Korea

June 12th, 2016

By Benjamin Katzeff Silberstein

North Korea’s domestic market prices have been behaving somewhat counterintuitively as of late. Harvest declined last year (or at least so the FAO claimed), and given the latest round of sanctions, it wouldn’t have been unreasonable to expect some hoarding and anxiety on the markets, out of anticipation that China may come to control cross-border trade and smuggling more tightly.

Not so, Daily NK reports:

Despite the lean season, referred to domestically as the “barley hump,” during which grains typically get pricier in North Korea, prices are instead on a downward trend, Daily NK has learned.

Daily NK’s sources within the country believe relaxed restrictions on marketplace activity under the Kim Jong Un regime has helped create a balance in the supply and demand of food by way of imports, narrowing the range of price swings even when the local supply dips during the “barley hump.”

“People were quite worried about the economic sanctions from China but are now relieved to see that rice prices have not changed much,” a source in Ryanggang Province told Daily NK, She reported that in her region, rice, which had been selling at 5,000 KPW (a kilogram) until just a few days ago, had dropped to 4,500 KPW; corn, which fetched 1,200 KPW, slid to 1,000 KPW; and pork prices fell about 1,000 KPW to 11,100 KPW.

“More vendors now import rice, corn, etc. from China, so there’s more than enough to go around even after making up for the shortfall in local supply during the barely hump,” she added, explaining that the dip in rice prices is in large part due to the upcoming harvest of early potatoes and barley, as vendors look to offload their supplies.

Overall, it appears, judging from the stability of market prices, that both formal and informal market mechanisms in North Korea function well enough to make up for shortfalls in production.

Full article:
Dip in prices help residents surmount ‘barley hump’ 
Kang Mi Jin
Daily NK
2016-06-12

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Sinuiju Stadium torn down

June 7th, 2016

Sinuiju-stadium-2015-3-12 Sinuiju-Stadium-2015-9-2

Pictured above (Google Earth): (L) Sinuiju Stadium on 2015-3-12, (R) Sinuiju Stadium on 2015-9-2.

The stadium is either being renovated or this will be the location of the North Phongan Sports Village. New imagery will reveal the answer!

More at RFA here (in Korean).

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China’s enforcement of sanctions on North Korea: a bit of perspective

June 2nd, 2016

By Benjamin Katzeff Silberstein

To what extent is China enforcing the latest round of UNSC sanctions on North Korea? This question is as important and interesting as it is nebulously complicated and difficult to answer. For the fact is, like Curtis points out here, that lower coal imports by China from North Korea does not necessarily give evidence to sanctions enforcement. Some of the figures reported in the news concern the value of the imports, which fluctuates with world market prices.

Moreover, as the old saying goes, correlation does not imply causality. In other words, the mere fact that trade in coal and other goods is decreasing does not necessarily mean that it is going down because of sanctions alone. It is worth to remember that Chinese imports of North Korean coal has decreased in the past too, before the latest sanctions round, due to decreased domestic demand and other factors. A whole host of variables other than sanctions may well be at play too.

Looking back at some previous trade data gives some context to the latest reports of decreasing trade. Even though volumes may be down, to fully understand how this impacts the North Korean economy, dollar value terms may be more relevant.

To recap:

  • According to recent data, Chinese imports of North Korean coal have decreased by 20.5 year-on-year for April 2016 (in tonne numbers).
  • According to Yonhap figures, cited here, this translates into a drop from $116.6 a year ago, to $72.27 now. This represents a 37 percent drop.
  • In the pre-sanctions quarter of the year, North Korean exports to China increased by 12 percent.

To put this in perspective, consider the following changes in the past:

  • Between January and November 2014, North Korean exports to China dropped by 12.3 percent in dollar terms.
  • Between 2013 and 2015, the value of coal exports to China dropped by 24.6 percent.
  • Between January and February 2014, total trade between North Korea and China dropped by 46 percent.

The point of citing these numbers is not to show that sanctions are not being implemented by China. Rather, such flows tend to fluctuate quite heavily for other reasons as well, and it is too early to conclude that sanctions are the only reason behind the contraction. As a New York Times story from late March this year showed, Chinese border agents tend to be fairly lax in controlling goods crossing the border – NYT cited a figure of about five percent of all goods being inspected. In sum, it is too early to draw any major conclusions about Chinese sanctions enforcement, and only future data will be able to give a more conclusive picture.

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US Treasury “311s” North Korea

June 2nd, 2016

Here is the statement from the Treasury Department:

Treasury Takes Actions To Further Restrict North Korea’s Access to The U.S. Financial System

6/1/2016

Action Responds to the Threat that North Korea Poses to the Global Financial System; the United States Calls on International Partners to Similarly Takes Steps toward Severing Banking Relationships with the Dangerous Regime

WASHINGTON – Today, the U.S. Department of the Treasury announced a Notice of Finding that the Democratic People’s Republic of Korea (North Korea) is a jurisdiction of “primary money laundering concern” under Section 311 of the USA PATRIOT Act. Treasury, through its Financial Crimes Enforcement Network (FinCEN), also released a notice of proposed rulemaking (NPRM) recommending a special measure to further isolate North Korea from the international financial system by prohibiting covered U.S. financial institutions from opening or maintaining correspondent accounts with North Korean financial institutions, and prohibiting the use of U.S. correspondent accounts to process transactions for North Korean financial institutions.

Section 311 gives the Secretary of the Treasury the authority to identify a foreign jurisdiction to be a primary money laundering concern. Once identified, the Secretary can require U.S. financial institutions to take appropriate countermeasures. The special measure proposed in today’s NPRM would impose the most significant measure available to the Secretary under Section 311.

“The United States, the UN Security Council, and our partners worldwide remain clear-eyed about the significant threat that North Korea poses to the global financial system. The regime is notoriously deceitful in its financial transactions in order to continue its illicit weapons programs and other destabilizing activities,” said Adam J. Szubin, Acting Under Secretary for Terrorism and Financial Intelligence. “Today’s action is a further step toward severing banking relationships with North Korea and we expect all governments and financial authorities to do likewise pursuant to the new UN Security Council Resolution. It is essential that we all take action to prevent the regime from abusing financial institutions around the world – through their own accounts or other means.”

Reasons for This 311 Determination

Treasury is taking this action consistent with the North Korea Sanctions and Policy Enhancement Act, enacted on February 18, 2016, which requires Treasury to determine within 180 days whether reasonable grounds exist for concluding that North Korea is a jurisdiction of primary money laundering concern, and if so, to propose one or more special measures. In addition, the United Nations Security Council adopted Resolution 2270 on March 2, 2016, which in part requires UN Member States to sever correspondent banking relationships with North Korean financial institutions within 90 days of the adoption of the resolution.

North Korea is proposed for action under Section 311 because (1) North Korea uses state-controlled financial institutions and front companies to conduct international financial transactions that support the proliferation and development of WMD and ballistic missiles; (2) North Korea is subject to little or no bank supervision anti-money laundering or combating the financing of terrorism (“AML/CFT”) controls; (3) North Korea has no diplomatic relationship, and thus no mutual legal assistance treaty, with the United States and does not cooperate with U.S. law enforcement and regulatory officials in obtaining information about transactions originating in or routed through or to North Korea; and (4) North Korea relies on the illicit and corrupt activity of high-level officials to support its government.

Impact of the 311 Notice of Finding and the NPRM Special Measure

While current U.S. law already generally prohibits U.S. financial institutions from engaging in both direct and indirect transactions with North Korean financial institutions, this NPRM, if finalized, would require U.S. financial institutions to implement additional due diligence measures in order to prevent North Korean banking institutions from gaining improper indirect access to U.S. correspondent accounts. While North Korea’s financial institutions do not maintain correspondent accounts with U.S. financial institutions, North Korean financial institutions frequently conduct transactions on behalf of the North Korean government and state-controlled corporations. The NPRM, if finalized, would prohibit the use of third-country banks’ U.S. correspondent accounts to process transactions for North Korean financial institutions.

Italics added for emphasis.

The “Notice of Finding” is here, and is also worth reading.

According to the Wall Street Journal:

Treasury Department officials said they are moving to ban non-U.S. banks and entities from processing dollar transactions on behalf of North Korea, an arrangement known as a U-turn, in a move to block its international trade.

China is by far Pyongyang’s largest trading partner, and Chinese firms could be caught in the crosshairs, according to current and former U.S. officials.

Zhu Haiquan, the spokesman for China’s embassy in Washington, repeated Beijing’s warnings against what it considers “unilateral sanctions taken by any country.”

He added that “we should avoid any move that may further aggravate tensions” on the Korean peninsula, and said “the unilateral sanctions must not affect and harm the legitimate rights and interests of China.”

U.S. officials were pleased that China agreed in March to support the new U.N. sanctions, which could significantly impair North Korea’s ability to generate hard currency and ship its exports.

Still, U.S. officials have voiced skepticism that Beijing would significantly punish Pyongyang, a longtime ally. China has rebuked North Korea in the past for its nuclear and missile tests, only to increase investment and trade with the country.

The issue is likely to be among the topics discussed when Messrs. Kerry and Lew meet top Chinese officials in Beijing for the Strategic and Economic Dialogue, a series of annual bilateral meetings.

According to the New York Times:

As a practical matter, that would largely affect Chinese banks, which facilitate North Korea’s financial transactions with Beijing, its largest trading partner. It could also affect some institutions in the nominally autonomous Chinese regions of Macau and Hong Kong, as well as in Singapore, where Pyongyang has often gone to hide the true nature of its banking activities, and to pay for missiles, nuclear fuel and the huge infrastructure it has built around those programs.

It is hard to assess how much the action will hurt North Korea. Such sanctions against financial institutions doing business with Iran proved effective because Tehran had billions of dollars in monthly oil and other energy exports that could be choked off; North Korea has none. Oftentimes Pyongyang deals in cash. Until a few years ago it was one of the largest counterfeiters of $100 bills. But that once-lucrative fraud was largely cut off by the redesign of the $100 bill.

Banks in the United States are already prohibited from doing business with financial institutions in North Korea. But the recommended rules would require them to perform additional due diligence to ensure they are not inadvertently transacting with North Korean financial institutions or the Pyongyang government through shell companies or other fictitious entities.

Notice of the new rules has been published by the Federal Register. Feel free to comment if you like.

Josh also writes a walk-through of how this works.

Here is information from Choson Exchange.

Troy Stangarone writes about the sanctions for KEI.

The UK also strengthened financial sanctions against the DPRK.

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2016 Pyongyang Spring Trade Fair

June 1st, 2016

UPDATE 5 (2016-6-1): The photographer Aram Pan (DPRK360) shot an incredible video of the trade fair. You can really learn a lot about the DPRK from watching it. There were lots of little surprises for me.

Also check out his Facebook photos of the Trade Fair here.

UPDATE 4 (2016-5-26): KCTV covered the trade fair.

UPDATE 3 (2016-5-23): KCTV Covered the trade fair.

UPDATE 2 (2016-3-17): According to the Institute for Far Eastern Studies (IFES):

North Korea to Host International Trade Fairs despite UN Sanctions

Despite the newly imposed sanctions by the UN Security Council (UNSC), North Korea does not appear to be deterred from hosting large-scale international events, as Pyongyang plans to host its annual Pyongyang International Trade Fair (PITF) twice this year, in May and September.

North Korea’s official web portal ‘Naenara’ reported that the spring PITF will be held at the Three-Revolution Exhibition House in the Sosong District in Pyongyang from May 16th to the 19th and the autumn PTIF will be held at the same venue from September 5th to the 8th.

‘Naenara’ claimed that the country “has been hosting hundreds of trade shows both in the country and abroad for over 50 years since April 17, 1958 and such events will enable the DPRK to accelerate its friendship and cooperation with other states and boost its international trade.”

According to the website, these trade fairs will exhibit items such as machine tools, mining equipment and their manufacturing technology for minerals—items in a sector now heavily targeted by the new sanctions imposed by the UNSC.

According to the report, the trade fairs will also include displays of construction machinery and building materials, energy and environment protection materials, communication and information technology, agricultural equipment and technology, foodstuffs and production technology, print and packing machinery, medical equipment and pharmaceuticals, light-industry products, consumer goods, and even vehicles.

Advertising is of course permitted at the trade fairs, with installation and removal displays and promotional materials requiring pre-approval by the host Korean International Exhibition Corporation. Transportation of the items for exhibition is to be dealt with by the Pyongyang Agent Department of the Italian company OTIM (Organizzazione Transporti Internazionali Marittimi). OTIM, a freight forwarding company established in the late 1940s, has been authorized and in charge of transporting goods between North Korea and Europe.

‘Naenara’ announced that the fairs will accept emailed or faxed applications until 40 days prior to the opening and has requested companies to send along their list of participants.

Apart from domestic enterprises, companies from around 16 countries or more — including Australia, China, Cuba, Cambodia, Germany, Italy, Indonesia, Mongolia, New Zealand, Poland, Russia, Singapore, Switzerland, and Vietnam — have reportedly participated in these trade fairs in the past.

Given North Korea’s isolation from the international system and closed-nature of its economy, the international trade fairs have been important events for its economy. However, while North Korea seems determined to host its annual spring and autumn events despite the international sanctions and pressure, just how many companies from other countries will participate is an open question.

UPDATE 1 (2016-3-1): The 2016-Q1 issue of Foreign Trade is out, and it contains some additional information on the 2016 Pyongyang Spring International Trade Fair.

Foreign-Trade-2016-Q1-Pyongyang-Trade-Fair

ORIGINAL POST (2016-2-11): Everyone may be talking about nukes, rockets, sanctions, and the closure of the Kaesong Industrial Complex, but the North Koreans have begun planning the 2016 Pyongyang Spring Trade Fair. Below you can see images of the first flyers to emerge:

Ex-Easy-Trade-Fair-2016-a

Ex-Easy-Trade-Fair-2016-b

Promotion of the trade fair appears to be in the hands of a Chinese internet firm named Ex-Easy.

Thanks to a reader (Andy) for translating some of the flyer:

“Pyongyang International Business Products Exhibition” is organised by an affiliated company under DPRK’s Ministry of Trade. This international exhibition is DPRK’s largest and most trade-conducive of its kind. It is organised yearly since 1998, and is held twice yearly – in spring and autumn – from 2005. The exhibition will be held in Pyongyang’s Three Revolution Exhibition hall, with a capacity of 6500 square meters. The DPRK has been gradually liberalising its economy in recent years and increasing its trade with neighbouring countries. At the same time, it has raised its domestic living standards, and they are attracted to Chinese products and (manufacturing) techniques.

Products exhibited:
1. Daily necessities, office supplies, household appliances, manufacturing / packing equipment, sewing equipment, clothes, stitched (embroidered?) products, …
2. Food, flavourings, food additive facilities/techniques, high temperature processed products and equipment, fruits, vegetable processing equipment, techniques, nucleic acid manufacturing facilities/techniques/products, bean processing and techniques, fish/seafood processing/techniques, health product processing/techniques
3. Sealing machinery, vacuum packaging, engraving machinery, food packaging machinery
4. Injection moulding machinery, moulds.
5. Misc hardware and DIY materials: bathroom/kitchen, construction/DIY, locks, safety equipment/accessories, small scale electronics, construction decorations, interior decoration – doors/windows/ceiling/walls/paint/chemicals/ceramics/masonry materials, building tech, environmentally frendly materials, furniture, inspection and certification
6. All sorts of large machinery – mining and related equipment, farming equipment, electronics, light industries, food processing and related equipment, chemical products, medical equipment, medicine manufacturing facilities.

Last exhibitions featured exhibitors from DPRK, China, Germany, UK, Australia, Italy, Poland, Cuba…. 400 over companies from 16 countries/regions. A total of 6372 square meter of exhibition space over two floors, taking up all usable space. Cars and engineering machinery took up about 1000 square meters of space outdoors. Exhibited products included cars, tooling machine, chemical, machines, communication equipment, electrical equipment, transportation machinery, plastics machinery, engineering equipment.

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Kim Jong-un and North Korean machinery industry

May 30th, 2016

By Benjamin Katzeff Silberstein

Kim Jong-un has showed quite a bit of interest in the machinery industry as of late. Moreover, Rodong Sinmun has been touting the increased use of (domestically manufactured, I believe) machinery in agriculture in its reporting on the harvest campaign. And as IFES reports in its latest NK brief, the pattern continues (assuming it is a pattern and not just a series of coincidences…). Notice also the emphasis on domestic production. North Korea’s domestic market and manufacturing sector has made pretty significant strides in the past few years, so Kim’s words (highlighted below) may not just be the same old Juche talk of past generations:

Kim visited Machine Factory run by Ho Chol Yong on May 19th and ordered to complete the modernization of the plant by the ruling Party’s founding anniversary in October.

Since his first visit 10 years ago, he has provided field guidance to this factory in 2013 and 2014.

Kim toured an exhibition of machinery and equipment on May 13, emphasizing the need to eradicate the ‘disease of imports.’

On display at the exhibition was unit machinery equipment manufactured during the most recent “70 days speed battle.”

He sat inside the new 80 horsepower tractor developed by Kumsong Tractor plant and expressed his satisfaction over the fact that “[we have] a machine manufactured by our own efforts and with our own technology.”

In addition, he examined the agricultural equipment including seed drills and ordered to “enhance modernization of the agricultural plants and production process in order to produce more efficient farming equipment and parts by increasing the level of mechanization in agricultural industry by 60 to 70 percent.”

“For the mechanical products at the exhibit, self-reliance must come first, self-reliance is our way of life,” Kim stressed. He also emphasized the need to “eradicate the disease of imports.”

Kim Jong Un also said “we should continue to reinforce our Juche-based capacity based on our own ability, technology and resources and continue the pursuit of revolutionary self-determination-first policy,” and added, “the only thing we can believe in is our own self strength.”

During the Seventh Party Congress, Kim Jong Un said that the machinery industry is the touchstone of economic and technological development. He also directed to introduce a state-of-the-art equipment system and modernize a production line by updating existing equipment for maximum capacity in the machinery sector.

Kim Jong Un has visited 10 different machinery factories this year alone, placing considerable attention on making improvements to advance and modernize this industry.

Source:
Kim Jong Un Showing Special Attention to Improving Machinery Industry
Institute for Far Eastern Studies (IFES)
2016-05-31

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