North Korean economic history snippet: Kim Il-sung on the food supply system, 1962

May 24th, 2016

By Benjamin Katzeff Silberstein

Despite the rise of the markets in post-1990s North Korea, the public distribution system (PDS) retains an important function in supplying grain inside the country.

However, in the early 1960s, Kim Il-sung considered doing away with the official system for food distribution (식량공급제도). It is not clear how firmly such ideas were considered, but in a speech in Pyongyang in 1962 – or so his collected works from 2000 claim – Kim said he thought of abolishing it in favor of letting people purchase food freely.

Interestingly, in this speech, Kim cites relatively pragmatic reasons for sticking with central distribution of food. The issue, Kim says, would be that big families would fare comparatively worse if they had to depend on cash income for their food purchases. If food was bought and sold freely, a difference in living standards would arise (생활수준에서 차이가 생기게 됩니다).

Source: Kim Il-sung, Ch’ŏnjib (전집), vol. 29. Pyongyang, Korean Workers’ Party Publishing House, 2000.

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DPRK – China trade 2015

May 23rd, 2016

According to UPI:

North Korea’s trade with China shrank for the first time in six years, according to a South Korean government think tank.

According to a report from the Korea Institute for International Economic Policy, bilateral trade stood at $5.43 billion in 2015, down by 14.7 percent from 2014.

North Korea exports to China were estimated to total $2.95 billion, a decrease of 16.4 percent, and imports, excluding crude oil, were reported at $2.49 billion, a 12.6 percent decrease from 2014, local newspaper Kyunghyang Shinmun reported.

But the data from 2015 indicates North Korea was hit hard by a collapse in coal and iron ore prices in the commodities markets, according to the report.

North Korea iron ore initially remained competitive in the Chinese market, staying at a price that was 73 percent of market rates, but became less of a bargain in 2015 when it was priced at 84 percent of market rates, which also dropped precipitously last year.

The report stated China’s economic slowdown and new environmental policies targeting the coal industry played a role in the decline in North Korea coal and other exports, local newspaper Maeil Business reported.

In 2015, commodity prices dropped by more than 20 percent for coal and about 31 percent for iron ore.

Note that these trade data were recorded before new sanctions were implemented in 2016.

Read the full story here:
North Korea trade with China shrinks 15 percent
UPI
2016-5-23

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Russia sanctions DPRK

May 23rd, 2016

According to the Choson Ilbo:

Russia has halted financial transactions with North Korea, and the EU has added 18 individuals and one organization to its North Korea sanctions list.

The international sanctions aim to strangle the flow of hard currency into the North’s nuclear and missile programs.

The Russian central bank last Thursday told all Russian banks to halt financial dealings with North Korean agencies, organizations and individuals on the UN Security Council sanctions list, Radio Free Asia reported.

The order said the banks must immediately freeze bonds held by sanctions targets and close accounts related to the North’s development of nuclear weapons and missiles.

A Russian presidential decree will also take effect soon to close North Korean bank branches and joint venture firms.

But Russia will continue to allow financial transactions between Russian and North Korean banks authorized by the UN.

The measures deal a blow to North Korea because the two countries have only recently increased cooperation.

Russia has been criticized for giving the North Korean regime a lot of leeway by allowing its banks to open accounts for North Korean banks and settling business with North Korea in roubles.

“What’s important is whether the international community including Russia and Switzerland will put their decisions into action,” a diplomatic source said. “If they do, the North will suffer a lot.”

A recent gasoline price hike in the North seems due to Russia’s downsizing of supplies to the North.

The EU has announced its third round of sanctions since the North’s latest nuclear test. This has brought the number of sanctions targets to 66 individuals and 42 organizations. They will be banned from entering EU countries and their assets will be frozen.

Here is coverage in the Joong Ang Ilbo:

Russia’s central bank called for a suspension of all transactions with North Korea, media outlets reported Friday, which follows Switzerland’s toughened sanctions on the regime earlier this week.

The move is in line with the strongest-ever United Nations Security Council resolution adopted in early March to penalize North Korea for its fourth nuclear test and long-range missile launch and curb its weapons of mass destruction program.

The Russian central bank was reported to have issued an order to local banks and financial institutions to suspend transactions with Pyongyang on Thursday, according to Radio Free Asia.

The order stated that transactions with Pyongyang were possible only with the permission of the United Nations.

The central bank further declared an immediate freeze on bonds held by North Korean individuals, agencies and organizations blacklisted by the UN Security Council.

Likewise, Russian financial institutions will have to close any accounts that have possible links to the North’s nuclear and missile programs.

On Wednesday, Switzerland imposed tighter sanctions on North Korea, ordering the freezing of assets held by North Koreans in the country and closure of their bank accounts as well as blocking funds owned by the North Korean government.

The Swiss government made the move to block all funds and economic resources connected with North Korea’s nuclear and missile programs in line with UN Security Council Resolution 2270, which was adopted in March in response to Pyongyang’s nuclear test in January and a ballistic missile test in February.

This included mandatory inspections of all cargo going in and out of North Korea, a ban on exports of coal, iron and other mineral resources from the North, as well as prohibiting aviation and rocket fuel exports into the country.

Russia and China, two of the five permanent members of the 15-member Security Council, have generally defended Pyongyang’s stance in the council. They also negotiated some room for leeway in the March resolution on North Korea. How they implement the sanctions will be crucial to cutting the cash flow into Pyongyang’s WMD program.

The Swiss government extended an existing ban on exports of luxury items to include more goods and prohibited North Koreans from studying in Switzerland in higher physics or nuclear engineering.

On Thursday, the European Union expanded its sanctions against Pyongyang, adding 18 individuals and an entity it deemed related to its weapons program to its blacklist.

This brings the EU blacklist to 66 individuals and 42 entities considered to be involved with North Korea’s nuclear and missile development.

When asked about the government’s position on Russia’s sanctions, South Korean Ministry of Unification spokesman Jeong Joon-hee said in a briefing Friday, “We strongly welcome that countries around the world, including China and Russia, are actively taking part in these strong sanctions.”

Read the full story here:
Russian Central Bank Halts Dealings with N.Korea
Choson Ilbo
2016-5-23

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DPRK – China Trade (2016)

May 23rd, 2016

UPDATE 1 (2016-5-23): Reuters reports a drop in Chinese imports of North Korean coal:

China’s imports of coal from its neighbor North Korea reached 1.53 million tonnes in April, down 35 percent on the month and 20.5 percent year-on-year as Beijing sought to comply with a tougher sanctions regime against the country.

North Korean shipments over the first four months of the year remain 23.2 percent higher than the same period of 2015, data from China’s General Administration of Customs showed on Monday.

China’s Ministry of Commerce announced at the beginning of April that it would ban North Korean coal imports to comply with new United Nations sanctions on the country, though it made exceptions for deliveries intended for “the people’s wellbeing” as well as coal originating from third countries like Mongolia.

Mongolia was the chief beneficiary of the decline in shipments from North Korea, with the country supplying 1.98 million tonnes to China in April, up 34.7 percent on the year.

Australia remained China’s biggest supplier, though the April volume of 5.74 million tonnes was down 12.9 percent compared to last year.

Read the full story here:
China coal imports from North Korea dip 35 percent as sanctions bite
Reuters
2016-5-23

ORIGINAL POST (2016-4-14): Yonhap reports on Q1 2016. Overall trade is up, but this is composed of surging Chinese exports to North Korea and falling imports. Here are the relevant parts of the report:

Trade volume between North Korea and China posted double-digit growth in the first quarter of 2016 from a year earlier despite the United Nations’ punitive economic sanctions imposed on the reclusive country, official data showed Wednesday.

The size of bilateral trade stood at 7.79 billion yuan (US$1.2 billion) in the January-March period, up 12.7 percent from the same period last year, Huang Songping, spokesman of China’s General Administration of Customs, said during a press briefing on the country’s first-quarter trade outcome.

The increased trade volume is attributable to a sharp rise in China’s exports to North Korea in the three months, which posted 14.7 percent growth to 3.96 billion yuan, according to the spokesman.

On the other hand, China’s imports from North Korea contracted 10.8 percent to 3.83 billion yuan, he said.

“Major Chinese exports to North Korea are machinery, electronic goods, labor-intensive products and agricultural goods, while imports mainly are coal and iron ore,” Huang said.

The spokesman indicated that the trade increase should not be viewed as China circumventing the U.N. Security Council sanctions because the latest figure accounts for bilateral trade volume before the sanctions took effect.

China immediately implemented the sanctions after it announced a list of banned trade goods with North Korea on April 5, the spokesman pointed out.

“The China-North Korea trade data for the first quarter has nothing to do with anti-North sanctions,” the official said, also vowing to “follow through with the U.N. sanctions resolution thoroughly.”

Another official from China’s State Council stressed any trade items that concern the public welfare or have no link to North Korea’s nuclear weapons development are not subject to the sanctions.

But the official refused to release the monthly trade figure for March, only saying that the monthly data is not available.

In early March, the U.N. adopted the toughest sanctions it has ever slapped on North Korea as punishment for the communist country’s defiant nuclear test in January and a long-range rocket launch in February.

Read the full story here:
N. Korea-China trade volume up 12.7 percent on-year in Q1
Yonhap
2016-4-13

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Rice planting campaign underway in North Korea

May 23rd, 2016

By Benjamin Katzeff Silberstein

Earlier this month, the North Korean government launched a rice-planting campaign, mobilizing citizens for agricultural work. Rodong Sinmun has written about this campaign a few times during May. On the 13th, Rodong dedicated almost a full page to rice plantation, calling for a “breakthrough”. The article contains some language on agricultural organization: for example, it cites an agricultural organization [기술전습회] that urges farmers to be creative in their farming methods and adapt to their separate conditions.

While this might sound like an argument for less central state control, provincial independence has been a hallmark of the Juche system for decades. Kim Jong-il said similar things during the famine years. The issue, of course, is that as long as inputs, land use, production targets and other variables remain centrally planned, local creativity can only go so far.

The article does, however, contain some interesting claims. For example, one senior official (Ri Kyong-rok) is quoted as saying that water conditions are twice as good as last year. Moreover, the article also claims that fertilizer is more abundantly available than last year. Perhaps this is all true (a big perhaps), but if so, it would go against the past year’s trend of worsening conditions for agricultural overall.

On May 16th, Rodong again carried a long piece on the rice planting campaign, calling for every citizen’s participation and hard work, based on scientific methods.

Mass campaigns such as this one can obviously not be fully understand only through North Korean publications. Yesterday, Daily NK carried a piece about how campaigns such as this one play out on the ground, with market trade becoming more restricted as the government strives to ensure that everyone dutifully participates in rice planting:

The mobilization, which commenced on May 15, will remain in effect until June 15, a source from South Pyongan Province told Daily NK. Of most concern to residents is the fact that for the duration of the mass mobilization, official general markets will operate only three hours daily– from 5 p.m. to 8 p.m.–and business-related travel be strictly limited.

This news was corroborated by sources in North and South Hwanghae Provinces, North Pyongan Province, and North and South Hamgyong Provinces.

In addition, alcohol sales in restaurants will be banned for the ordinance’s duration; service establishments including barbers, hair salons, and public bathhouses are permitted to operate, but only after 5 p.m.

All central agencies, state-run factories, social organizations, universities, and high schools are busy gearing up for the mass mobilization. To ensure their compliance, streets are plastered with “farm assistance-battle” posters, and vehicles outfitted with loudspeakers move through neighborhoods from early morning hours, blaring propaganda songs to keep up the pressure; local officials wielding megaphones follow suit on foot, calling on everyone from “homemakers, the elderly, and middle school students to commute to farms nearby and work,” the source said.

“The streets are lined with Ministry of People’s Security personnel [MPS], carrying out orders to step up surveillance and crackdowns to maximize support [for the mobilization]. In parallel, prosecutors and other agents from the judicial system patrol state-run companies and residential areas to check up on the mobilization numbers. If firms fall short of the quotas, company managers face punitive measures, which can include, among other things, imprisonment for up to ten days.”

The heightened control and fear tactics, he added, are to hedge against possible public outrage from a populace forced to participate in successive mobilizations, which hamper market business and thereby severely undermine their livelihood.

Full article:
Rice-planting mobilization order handed down
Choi Song Min
Daily NK
2016-05-22

 

Daily NK also discussed the campaign with So Jae Pyong, secretary general for the Association of North Korean Defectors:

We saw an article emphasizing grain production on page five of the 13th issue of the Rodong Sinmun entitled, “This Year’s Uphill Battle for Grain” and then again on the front page on the 16th issue, “Band Together for the Rice-Planting Battle.” It would appear that North Korea is still dealing with their chronic grain underproduction. What seems to be the problem?

The main problem is that even the farmers themselves are suffering from hunger and are therefore turning their attention away from their official farm duties and working private secret farms on the side. This is because they till the earth tirelessly all year long on their official farms only to have their produce taken away for the military and State rations. They are only met with poverty and starvation based on this system so it’s easy to see their lack of drive to work hard for more production. Based on this, they have no other choice but to have an almost forced production system on the collective farms. The government needs to implement some kind of policy to improve the quality of the lives of these farmers but that just simply isn’t the case. Farmers have zero interest in the production of their crops because of this system. They’re really only focused on their separate, private crops. I think the only way to alleviate the hunger and poverty that citizens are suffering from is to completely do away with this type of quota system.

Full article:
Hearts and minds remain at the ‘jangmadang’ despite propaganda push
Unification Media Group
Daily NK
2015-05-22

 

(UPDATE 2016-02-24): 

Daily NK reports some discontent with rice planting campaign, with complaints about how it interferes with Kim Jong-un’s own policies of raising science and technology in education:

“The students in our province have been sent to agricultural regions such as Koksan County and Yonsan County. During the ‘70-Day Battle,’ the students were forced to plant seeds and pull up weeds. Now, as the students head off to the farms again, they are sardonically spouting off lines about how they are farmers rather than students,” a source in North Hwanghae Province reported to Daily NK on May 20.

“The students have remarked that being pressed into forced labor during the ‘70-Day Battle,’ and now for the ‘Rice-Planting Battle’ is just as laborious and difficult as risking your life on an actual battlefield. They justifiably point out, ‘If these kind of ‘battles’ continue to arise, when are we supposed to study?’“

Since rising to power, Kim Jong Un has frequently underscored the importance of education, describing universities as the “platform for launching the future of the nation, one of the main pillars of society, and the training ground for leaders.” He has also continued to point out that it is important to focus on experiential learning and on-the-job-training in order to elevate the quality of the nation’s education and produce illustrious students with technical knowledge.

However, the record shows a different tale. Students have spent a considerable amount of time being mobilized to work on idolization construction sites and farms. This has severely crippled their educational experience. Consequently, students have become upset that their instruction hours have not been protected and that they are being exploited for their labor.

Added a separate source in South Hwanghae Province, “University students have spent more time working on the farm than they have spent studying for their classes or learning about science/technology. Under such circumstances, students naturally complain that it is difficult to imagine how these universities will be able to fulfill Kim Jong Un’s order to create illustrious students with technological capabilities.”

Full article:
Complaints mounting among university students sent to farms for labor
Daily NK
Kim Chae Hwan
2015-05-23

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Nit-picking coverage of the five-year plan

May 19th, 2016

Numerous reports have claimed that the five year plan announced at the seventh party congress was the first since the 1980s. I did not think this was accurate, but was too busy to actually look the facts up. Fortunately someone else did it for me.

Here is a blurb from the recently released  report “North Korea’s Troubled Economy: The Real Challenges” by Ryo Hinata-Yamaguchi and Yeongseob Lee:

North Korea’s recent track record of economic plans have been far from effective nor consistent. Pyongyang’s Third Seven-Year Plan from 1987 failed to remedy the ailing economy, and the plan itself virtually disappeared during the so called “arduous march” of the mid-1990s. Moreover, in 2011, Pyongyang announced the “Ten-Year State Strategy Plan for Economic Development”, but there was very little follow-up from the regime on the progress.

The new Five-Year Economic Development Strategy announced at the recent Workers’ Party of Korea (WPK) Congress is therefore an attempt by the Kim Jong-un regime to politically reinvigorate the government’s uri-sik (our style) economic development strategy focusing on the energy and food crisis. While little details were disclosed, given the myriad constraints in capacity and resources, the prospects of genuine revival and development are questionable.

So the last plan was announced in 2011, not 1987.

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New market construction and renovation in North Korea

May 19th, 2016

New-nampho-Market-2016-5-19

Pictured Above (Google Earth, 2016-2-2): Construction of what I believe to be a new market in Nampho.

I have identified a few other smaller examples in this Radio Free Asia article.

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North Korean economic production and the 70-Day Campaign

May 18th, 2016

UPDATE 1 (2016-5-18): By Benjamin Katzeff Silberstein

A couple of weeks ago, KCNA carried another evaluation of production during the 70-Day Campaign. In the context of claims that the newly launched five-year plan (2016-2020) is the first one in decades, it is worth noting that economic planning as such has never fully ceased to be part and parcel of the official North Korean economy. As communist economies do, North Korea still measures economic success much in terms of mere output. The 70-Day Campaign is one example:

The Korean Central News Agency Thursday released a report on the successful conclusion of the 70-day campaign with a great victory to be specially recorded in the history of the Korean nation under the guidance of Marshal Kim Jong Un.

According to the report, the capabilities for self-defence including the capacity of nuclear attack of Juche Korea have been remarkably bolstered and the campaign plan has been over-fulfilled 44 percent in terms of industrial output value, and industrial production has grown 1.6 times as against the same period last year.

Signal successes have been achieved in the development of Korean-style smaller nuclear warhead, simulated test of atmospheric re-entry of a ballistic missile, test of high-power solid-fuel rocket engine and stage separation, test of high-power engine of inter-continental ballistic missile.

Workers in the four vanguard fields have performed labor feats in the van of day-and-night campaign.

Those in the field of power industry honored their 70-day campaign quotas at 110 percent.

I am not one to draw major conclusions from the order of mentions of areas in reports such as this one, but if the order says anything about priorities, it is worth noting that energy shows up first among other areas than missiles and nukes. Recall that energy has been emphasized by media tied to the North Korean regime.

The Ministry of Coal Industry carried out its coal production plan more than 10 days ahead of schedule and results of capital tunneling and preparatory tunneling have jumped several times as against those in the past.

Those in the steel field and miners hit the goals of production of Juche iron, rolled steel and iron ore.

The field of railway transport carried out the plan for the transport of major freight at 124 percent.

What economic value more transportation carries is unclear…

More than 70 farm machines of over 20 types have been invented and manufactured, typically potato harvester, self-propelled sprayer, combined plowing machine, combined soil governing machine, small multi-purpose farm machine and combined rice thresher.

Those in the fishery field built multi-purpose fishing boats of “Hwanggumhae” series by their own efforts and with indigenous technology in a brief span of time and put them into operation.

The plan for the production of machine tools has been over-fulfilled more than 60 percent and index-specific campaign plans have also been carried out in the machine-building industrial field.

Workers in the Namhung Youth Chemical Complex and Hungnam Fertilizer Complex produced 1.2 times as much fertilizers as before and the February 8 Vinalon Complex significantly increased the production of vinalon and various kinds of other basic chemical goods.

The nationwide cement production plan has been carried out at 141 percent and a boost has also been recorded in the production of varieties of building materials including glass.

Workers of forestry stations and mine pillars production stations honored timber production plan set by the Ministry of Forestry at 137 percent.

Agricultural workers across the country have made full preparations for farming by their devoted efforts.

But note that no numbers are given for farming output, or any agricultural output other than fishing and seaweed.

Officials and workers in the fishery field have over-fulfilled their plan for fishing and seaweed culture more than 10 percent when the results of the Ministry of Fisheries are taken as a whole.

The gross industrial output value in the field of light industry has been over-fulfilled 54 percent and the index-specific performance has shown a marked jump over the period before the campaign.

A number of consumption goods producers have hit their goals for the first half of the year or the yearly ones. Some of them even set a record by fulfilling two-year production quotas.

Those in the field of land and environment protection and workers and other people across the country including youths and students planted hundreds of millions of trees in mountains covering more than 100 000 hectares.

The Paektusan Hero Youth Power Station No. 3 and the Wonsan Army-People Power Station have been successfully completed.

In just one month after breaking the ground for the construction of Ryomyong Street, its builders finished ground excavation for dozens of blocks of apartment houses and are now pushing forward the ground concrete tamping in its final stage.

Baby homes, orphanages, orphans’ primary and secondary schools sprang up across the country and the Mindulle Notebook Factory was built.

New structures have been built one after another. They include Dyke No. 2 of Nunggumdo Tideland, Outdoor Sapling Cultivation Ground of the Central Nursery of the Ministry of Land and Environment Protection and Pyongyang Athletic Apparatus Factory.

Scientists and educators across the country registered three times as many research achievements as against the same period last year to be conducive to the economic development of the country and the betterment of the people’s living standard.

Unprecedented achievements have also been made in the fields of literature, arts, education, public health and sports.

The 70-day campaign of loyalty clearly showed the world how the great Kim Jong Un‘s Korea is advancing toward the eminence of the century.

The full article was published by KCNA on May 6th.

ORIGINAL POST (2016-4-30):

“Industrial establishments over-fulfill production targets as the 70-day campaign comes to an end” (Pyongyang Times: 2016-4-30)

The Hwanghae Iron and Steel Complex, one of the model units in the current 70-day campaign of loyalty, hit its steel and pig iron production targets 101 percent respectively as of April 20.

Smelters of the UHP electric arc furnace have so far reset the peak production record of molten iron per charge several times. They gave full play to the spirit of collectivism of helping and leading one another forward, while introducing advanced working methods to shorten the time of heating and increase the output of molten iron per charge.

The workers of the continuous ingot steel workshop carried out their daily production plan at 102 percent on average, 110 percent at maximum.

Those of the Sunchon Cement Complex drastically raised cement production on the first day of the campaign to renew the daily peak production record for the first time in 20 years. Without resting on their laurels, they worked hard and finally achieved their campaign goals.

The Ministry of Coal Industry carried out its highly-set campaign target ahead of schedule as of April 20 with the coal production plan 101 percent and major, preliminary and boring tunnelling 101.5, 105.5 and 106. 6 percent respectively.

Coal-mining machine factories across the country manufactured and repaired thousands of coal wagons and made over 1 800 wheels more than planned under the uplifted self-development-first banner. A great deal of achievements were also made in the production of coal-mining equipment and their parts.

The Chongchongang Thermal Power Station increased power generation to exceed its campaign plan by 2.2 percent as of April 25. The workers of the station repaired equipment and increased the number of boilers in operation to ensure uninterrupted power generation.

The February 8 Vinalon Complex gave priority to the supply of raw materials and fuel, staggered production and organized management of equipment and technology scrupulously to boost production, thereby surpassing the vinalon production goal by 50 percent.
Workers of the Wonsan Salt Works increased production 2.2 times over the same period of last year by fully storing seawater in reservoirs while introducing an advanced seawater freezing method which suits the conditions on the east coast throughout the winter.

Thousands of hectares of farmland have been rezoned in Kaesong and Jangphung County, with over 19 300 patches and paddies and more than 1 260-kilometre-long ridges between paddy and dry fields removed and hundreds of hectares of land brought under cultivation. This paved the way for comprehensive mechanization of farming on all fields and consequent increased cereals production.

Officials and workers of the Sinuiju Textile Mill have produced three times more cotton yarn and fabrics than before the campaign. Amidst the dynamic collective emulation drive between workteams, shifts and workshops, many workers and workteams have carried out the first half year and annual production plans as well as campaign plans and the number is growing.

More than 200 factories and enterprises in Pyongyang have hit their 70-day campaign goals and first half year plans ahead of schedule.

“Nation’s Industrial Production Rises 1.2 Times” (Pyongyang Times: 2016-3-16)

Industrial output grows rapidly thanks to the heightened revolutionary enthusiasm and creative spirit of selfreliance and self development of service personnel and people, who have risen up in the day and night march true to the call of the Central Committee of the Workers’ Party of Korea for launching a 70day campaign of loyalty for the Seventh Party Congress, according to a report of the Korean Central News Agency on March 12.

The nation’s industrial production increased 1.2 times in the first ten days of March over the same period of last year.

The Pukchang and Pyongyang thermal power complexes and other thermal and hydropower stations across the country pressed on with power generation as scheduled, far exceeding the tenday targets set by the Party.

Coal mines in the western areas including Tokchon and Sunchon cut thousands of tons of coal more every day.

The Ministry of Coal Industry overfulfilled the tenday production plan by 13 per cent and the results of major and preliminary tunnelling far surpassed the plan, securing hundreds of reserve coalcutting faces.

The workers of the Hwanghae Iron and Steel Complex doubled the Juche iron output over the same period of last year, and all metallurgical bases conducted a dynamic drive to increase iron and steel production.

Amidst the heated emulation and experiencesharing in iron ore mines in Musan, Unnyul, Thaethan and other areas, the Jaeryong Mine increased daily production over 1.5 times on average, thus taking the lead in the supply of concentrated iron ores to metallurgical factories.

The Ministry of Railways, all the railway bureaus and their branches commanded railway transport scrupulously and gave top priority to concentrated transport without accident to overfulfil the plan for main freight.

The increased production in the vanguard economic sectors injected a new lease of life into the overall major industrial sectors such as machinebuilding, chemical, building materials and mining industries and forestry.

The Taean Heavy Machine Complex completed the production of generating equipment till March 9 in a matter of two months and sent them to the construction site of Paektusan Hero Youth Power Station No. 3 on March 10.

The workers of the large machinebuilding bases in Ragwon and Ryongsong and the Sungni Motor Complex speeded up the processing of products and increased the production of spare parts including various kinds of gears and speed reducers, a great contribution to a 1.5 times rise in the production of thermal power generating equipment of the Ministry of Machine Building Industry.

The workers of the Hungnam Fertilizer Complex hit the Juche fertilizer production target for the first ten days of March.

Cement production is also growing in the Sangwon Cement Complex whose workers and technicians have turned out to break the production record again this year after last year.

Many forestry and prop production stations carried out their first quarterly and yearly timber production quotas.

Farming preparations were brisk on the agricultural front, resulting in a 1.7 and 2.8 times growth in the securing of hukposan and microbial fertilizers and an over 1.3 times increase in the acreage of field carpeted with humus soil.

Officials and fishermen carried out the plans of the Ministry of Fisheries for ten days 121 per cent.

Daily amount of catch increased rapidly and fishing results saw a leap in the fishery stations on the east and west coasts.

Hundreds of workers hit their targets for the first quarter and half of the year in the field of textile industry. Kumkhop, Pomhyanggi and Maebongsan and other popular brands saw a sharp rise in sales.

Many major construction projects progressed apace including those for Paektusan Hero Youth Power Station No. 3, reconstruction of Kim Il Sung Stadium, secondstage reconstruction of the Central Zoo, capacity builup of the Central Tree Nursery of the Ministry of Land and Environment Protection, the central class education hall and Wonsan Army People Power Station.

Many young people volunteered to work in labour consuming fields and hundreds of workers carried out their yearly plans.

“KCNA Reports about Signal Successes in Various Fields in Early March” (KCNA: 2016-3-13)

The Korean Central News Agency Saturday said in a report that the industrial production in the first ten days of March when the 70-day campaign of loyalty is under way grew 1.2 times as compared with the corresponding period of last year.

According to the report, production in the vanguard and basic industrial fields of the national economy including electric power, coal, metal and railway transport sharply rose.

Thermal power plants and hydro-power stations across the country have over-fulfilled their daily quotas.

The production plan of the Ministry of Coal Industry for ten days in March was over-fulfilled 13 percent.

The workers of the Chollima Steel Complex boosted the production of rolled steel 32 percent.

A dynamic drive for increased iron and steel production is under way in metallurgical bases across the country including the Hwanghae Iron and Steel Complex.

The Jaeryong Mine increased daily quotas over 1.5 times on an average, thus taking the lead among the iron ore mines in Musan, Unryul, Thaethan and other areas.

The Ministry of Railways, all the railway bureaus and sub-bureaus over-fulfilled main freight haulage plan.

The increased production in the vanguard sectors of the national economy injected vitality into major industrial fields such as machine-building, chemical, building material and mining industries and forestry.

The custom-built equipment for different fields of the national economy were turned out and the production of nonferrous metal ore, chemical fertilizers, cement, sheet glass, timber, etc. radically increased.

The Taean Heavy Machine Complex completed the production of generating equipment in a matter of two months and sent them to the construction site of the Paektusan Hero Youth Power Station No. 3 on Mar. 10.

The Ministry of Machine Industry increased the production of thermal power generating equipment 1.5 times.

Mines under the Phosphate Fertilizer Industry Management Bureau honored its plan at 150 percent.

The workers of the Hungnam Fertilizer Complex hit the goal for the production of Juche fertilizers.

The workers and technicians of the Sangwon Cement Complex are working hard to surpass the peak production year again this year.

The Sunchon Cement Complex, the Chonnaeri Cement Factory and the Sunghori Cement Factory boosted the production over 10 percent.

Many forestry stations and pit prop production stations also honored their first quarterly and yearly timber production quotas.

The production of homemade fertilizers and their transport, tractor overhauling and maintenance and other farming preparations are nearing completion thanks to the devoted drive of agricultural workers across the country.

The fishery officials and workers over-fulfilled their production plan of the Ministry of Fisheries for ten days 21 percent.

The field of light industry over-fulfilled the production plans for textiles, knitwear and shoes.

In the field of textile industry hundreds of workers honored the half yearly and first quarterly quotas and famous products and goods favored by the people are on the increase.

Many major construction projects are making rapid progress.

A lot of young people volunteer to work in the hard and labor-consuming fields.

Across the country hundreds of workers honored their yearly plans, at least 3,600 people carried out the first half yearly plans and more than 15,400 people hit the first quarterly goal.

A lot of members of the women’s union are giving helping hands to builders in power stations, workers of coal and ore mines. War veterans, honorary party members and pensioners have turned out in the 70-day campaign in South Phyongan Province and other parts of the country to fully demonstrate the noble traits of our society advancing with the might of single-minded unity.

“Rapid Economic Growth Witnessed in DPRK” (KCNA: 2016-4-8)

The DPRK has made a rapid progress in major construction or reconstruction projects and industrial production in recent 40 days after the start of the 70-day campaign.

In particular, Pyongyang, its capital city, showed an increase of twice in the tempo of construction or reconstruction projects and 1.6 times in industrial production.

The Aeguk Vegetable Processing Factory and the Mangyongdae Children’s Camp were rebuilt on a modern basis and the second-stage renovation of the Central Zoo is progressing apace at the final stage.

Besides, 80 percent of total work has been carried out in scores of construction and reconstruction projects, including the Ryuwon Shoes Factory, Pyongyang Cosmetics Factory and the Pyongyang Cornstarch Factory.

Electricity and coal outputs went up at thermal-power and hydro-power stations and coal mines.

The Pyongyang Steel Works and the Pyongyang Cast Iron Pipe Factory fulfilled their production plans 120 percent on an average, 150 percent to the maximum.

An increasing number of units in light industry and foodstuff industry have finished their yearly and half-yearly production quotas.

Such successes are reported from railway, agricultural and other industrial sectors.

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DPRK publishes environmental regulations for SEZs

May 18th, 2016

In the most recent issue of Foreign Trade (2016, No. 2), the DPRK publishes “REGULATIONS OF THE DEMOCRATIC PEOPLE’S REPUBLIC OF KOREA ON ENVIRONMENT PROTECTION IN ECONOMIC DEVELOPMENT PARKS“.

I have painstakingly copied the regulations to a stand alone PDF and uploaded it here.

Enjoy.

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Foreign Trade report on the Nampho SEZs (Jindo, Waudo)

May 18th, 2016

Nampho-EDZs-Google-Earth

Pictured above (Google Earth): The approximate locations of the Waudo and Jindo Export Processing Zones

The North Korean quarterly magazine, Foreign Trade, published information on the Jindo and Waudo economic development Zones (straddling the Ryongnam Ship Repair Factory).

According to Foreign Trade (2016 vol 2, p6):

Economic development parks in the DPRK are booming recently.

The city of Nampho is conducting processing trade by relying on the bases in Jindo and Wau Islet, taking advantage of its favourable economic and geographical conditions.

As a gate city on the coast of the West Sea of Korea, the industrial city has an international port.

The city, situated on the lower reaches of the Taedong River, boasts metallurgical, machine building, glass-making industries, and lead and zinc refi ning, silk fabrics and shipbuilding bases.

It has the country’s biggest salt works and a fishing station, a fishing implements manufacturing factory and a refrigerating plant.

The Port of Nampho, the biggest of its kind in the western part of the country, is at the northern shore of the Taedong’s entrance to the sea. The water is deep, the port itself is far inside the estuary of the Taedong River and the dams of the West Sea Barrage stand high, assuring safe navigation by ships.

There are around ten major berths and crane ships, loading bridges and conveyor belts.

Wau Islet off the port is one of the famous tourist spots.

The port is linked with over a hundred foreign countries and regions for commercial trade.

Jindo Processing Trade Zone
The zone aims at producing various kinds of light industry and chemical goods made from duty-free raw materials for export.

Cooperation period: 50 years

Project plan: The coverage of the zone is about 1.8 sq km. By taking advantages of the Port of Nampho nearby and tens of years of development of the machine-building, electronical and light industries in Nampho, it processes various goods and exports them. Enterprises are admitted to it on the principle of conserving the environment and saving energy. It strives to develop new products and industrial fields, realize technical transfer with other countries and thus contribute to revitalizing the domestic industry. It is also making efforts to develop into a processing trade and bonded trade area.

Waudo Processing Trade Zone
The zone aims at developing into an intensive processing trade zone by introducing advanced development and operation mode and by placing stress on export-oriented processing and assembling.

Cooperation period: 50 years
Gross Investment: About USD 100,000,000

Project plan: The zone covers an area of about 1.5 sq km. By utilizing its favourable conditions, it puts main emphasis on bonded processing, processing to order, barter trade and other types of export-oriented processing industry.

It aims to develop into a comprehensive zone with financial, tourist, real estate and foodstuff industry bases in the areas around the port and the scenic area around the West Sea Barrage.

Cooperation mode: Joint venture between corporate bodies of the DPRK and foreign investors or wholly foreign-owned enterprises.

Location: Some parts of Ryongnam-ri, Waudo District by the estuary of the Taedong River southwest of the city.

Infrastructure condition: Only 50km away from Pyongyang and a few kilometres between the port, the biggest international port in the country, and the railway station.

From the port it is 330km to Dalian, 332km to Weihai, Shandong, 930km to Shanghai and 695km to Tianjin, China, and 1 575km to Chinese Taipei. The Youth Hero Road between Pyongyang and Nampho facilitates the few scores of kilometres of travel to the Pyongyang International Airport. These all provide favourable conditions for domestic marine transport and entry and exit of foreign personnel, materials and funds.

A 600,000kW-capacity power station and 10,000kW-capacity tidal power station are intended to be built near Kwangnyang Bay beside the West Sea Barrage. The Taedong fully guarantees water supply.

The site was formerly occupied by a salt farm, so problem of removing structures does not arise. The area is 40m above sea level and flat.

National Economic Development Guidance Bureau, DPRK Ministry of External Economic Relations
Add: Taedonggang District, Pyongyang, DPR Korea
Tel: 0085-02-381-5912
Fax: 0085-02-381-5889
E-mail: sgbed@star-co.net.kp

A screen shot of the original article can be seen here.

NK News has additional analysis here.

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