Archive for November, 2009

Recent DPRK trade and aid stories…

Sunday, November 15th, 2009

1. Dutch import DPRK clothing and machinery (via Yonhap):

Dutch companies gave purchase orders to clothing and machinery firms in North Korea following their visit there organized by the Chamber of Commerce of the Netherlands in September, said the Japan-based Choson Sinbo in a dispatch from Pyongyang.

“Exchange and cooperation projects that were agreed to in meetings between the Dutch business delegation and the DPRK Commercial Office are entering the stage of implementation,” the report said. DPRK is short for the North’s official name, the Democratic People’s Republic of Korea.

“Production by the (North) Korean clothing and machinery trade firms is underway according to the agreements,” it added.

Dutch businesses along with firms from 14 other countries participated in the Pyongyang Autumn International Fair held Sept. 21 to 24. North Korea holds a trade fair twice a year to draw foreign investment and boost technology exchanges.

The Choson Sinbo said the Dutch firms then showed interest in the information technology area, machinery parts and clothing goods and held talks with pertinent North Korean companies, such as the Joson Computer Center and Unha Clothing Company.

After returning home, the Dutch produced a report on North Korea’s international economic relations for distribution at home and in other Western European countries, the newspaper said.

2. Seoul sets DPRK official assistance budget.  According to Yonhap:

According to its 2010 budget plan submitted to the National Assembly unification, foreign affairs and trade committee, the Unification Ministry allocated 1.18 trillion won (US$1.02 billion), about the same as the earmarked budget for this year, for inter-Korean relations and exchanges.

“The ministry has reflected the government’s policy to continue to proceed with humanitarian projects despite the strained phase in inter-Korean relations,” the ministry proposal said.

Broken down to specifics, 616 billion won has been set aside for the possible resumption of rice and fertilizer aid that was suspended after President Lee Myung-bak took office last year. The sum is slightly less than the 718 billion won for this year but remains mostly untouched. The ministry cited the fall of grain prices as the reason for adjustment.

The amount will be worth 400,000 tons of rice and 300,000 tons of fertilizer that had been annually provided to the North over the past decade. But Seoul officials have said they there is no immediate plan yet to resume the rice and fertilizer aid.

The ministry also set aside 18 billion won and 25 billion won to assist North Korea through non-governmental organizations or international agencies like the World Food Program.

For economic projects, including a joint industrial park in the North’s border town of Kaesong, the proposed budget earmarks 144.8 billion won, up 17 percent from the previous year.

“Massive economic cooperation projects were considered in preparation for the possibility of progress in the North Korean nuclear issue,” the ministry said.

It should be pointed out that Seoul has hardly touched its current inter-Korean assistance budget (here and here).  These sorts of policy moves are intended to offer Pyongyang a highly visible carrot.

3. Pyongyang’s 2009 Kaesong antics have unfortunately scared away more foreign direct investment from the Kaesong Zone, despite significant South Korean subsidies.  According to Yonhap:

Romanson Co., a South Korean watchmaker, said Thursday it has no intention to further invest in an inter-Korean industrial complex because of the political risks.

Romanson operates a plant in the industrial park in the North Korean border town of Kaesong, which turns out 40,000 watches per month. In 2005, the company invested 6.1 billion won (US$5.3 million) to build the factory.

4. And the first shipment of NOKO Jeans have arrived in Europe!  Learn more at their Facebook Page.  Here is a photo of the shipment on Flickr.

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Friday grab bag

Thursday, November 12th, 2009

North Korean defector poetry: I am personally not a big fan of poetry, but some poetry written by North Korean defectors has been translated into English and published.  Read it in Radio Free Asia.

North Korean Leadership Compounds: We have pretty much located all of the “easy to find” leadership complexes in North Korea on Google Earth.  However, not all of them are visible with high resolution imagery.  Here are a few I have recently taken care of:

1. Sinchon Compound (written about by Keji Fujimoto)

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Click image for larger version

Download Google Earth overlay here.

2. Island getaway: For the leader who has everything

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Click image for larger version

Download Google Earth overlay here.

3. Sugnam

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Click image for larger version

Download Google Earth Overlay here

Eight Scenic Views of the Songun Era:

1. Sunrise over Mt. Paektu. (See here)

2. Snow Covered Tapak Sol guard post in Mangyongdae.  (See here – Actually not sure where the guard post is, but this is Mangyongdae)

3. Royal Azaleas on the Chol Pass. (See here)

4. Illuinated night view of the Jangja River in Kanggye. (See here)

5. Ulim Waterfall. (See here)

6. Rezoned Handre (Handure) Plain on the Unhung Cooperative Farm in Thaechon County. (See here)

7.  Potato flowers in Taehongdan. (See here)

8. Poman-ri fish farm. (See here)

A Song was even written about these places.

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UN simultaneously issed two reports on the DPRK

Wednesday, November 11th, 2009

The first report is by Vitit Muntarbhorn, a Bangkok law professor who works pro bono as the U.N.’s special rapporteur on human rights in the DPRK.  Download the Muntarbhorn Report here (PDF).

The second report is from the office of secretary General Ban-ki Moon. Download the Moon report here (PDF).

__________

The Muntarbhorn report is titled “Situation of human rights in the Democratic People’s Republic of Korea”.  Here is the summary:

This report covers the period from the latter part of 2008 to mid-2009. The analysis points to an array of rights and freedoms which are violated egregiously by the authorities on a daily basis, much to the pain and suffering of the ordinary population. The violations are evidently widespread, systematic and abhorrent in their impact and implications. The freedoms from want, from fear, from discrimination, from persecution and from exploitation are regrettably transgressed with impunity by those authorities, in an astonishing setting of abuse after abuse, multiplied incessantly. They compromise and threaten not only human rights, but also international peace and security. To counter these violations, the Special Rapporteur’s urgent call for action demands comprehensive responses at all levels, national and international.

The authorities in the Democratic People’s Republic of Korea are advised to take measures to respond effectively with regard to the right to freedom from want by ensuring effective provision of and access to food and other basic necessities for those in need and to cooperate constructively with United Nations agencies and other humanitarian actors on the issue; to enable people to undertake economic activities to satisfy their basic needs and supplement their livelihood without State interference; to respect the right to freedom from persecution by ending the punishment of those who seek asylum abroad and who are sent back to the country, and by instructing officials clearly to avoid the detention and inhumane treatment of such persons; to address the fear factor in the country by terminating public executions and abuses against security of the person by means of law reform, clearer instructions to law enforcers to respect human rights, and related capacity-building and monitoring of their work to ensure accountability; to cooperate effectively to resolve the issue of foreigners abducted to the country; to respond constructively to the recommendations of the Special Rapporteur; and to institute a democratic process, shifting the military budget to the social sector.

The international community is invited to underline concretely the need for an integrated approach to overcome the exploitation of the people by the State authorities by advocating for a “people first” rather than the current “military first” policy, coupled with an equitable development process; and to enable the totality of the United Nations system to activate measures to overcome key violations and help guarantee fundamental freedoms in the Democratic People’s Republic of Korea.

The report by Mr. Moon’s office is ALSO titled, “Situation of human rights in the Democratic People’s Republic of Korea”.  Here is the summary:

The present report is submitted pursuant to paragraph 6 of General Assembly resolution 63/190.

The Government of the Democratic People’s Republic of Korea has not recognized the resolutions adopted by the Human Rights Council and the General Assembly on the situation of human rights in the Democratic People’s Republic of Korea. It continues not to accept technical assistance from the Office of the United Nations High Commissioner for Human Rights (OHCHR) and has not granted access to the Special Rapporteur on the situation of human rights in the Democratic People’s Republic of Korea, appointed by the Human Rights Council. This situation has not allowed the Secretary-General to obtain the information necessary to report in full to the General Assembly regarding the subject in question.

The Secretary-General notes with serious concern continuing reports that the situation of human rights in the Democratic People’s Republic of Korea remains grave and that the Government of the Democratic People’s Republic of Korea has not taken significant steps to address persistent reports of systematic and widespread human rights violations and to provide safeguards for human rights. He highlights the fact that the Democratic People’s Republic of Korea continues to face complex humanitarian problems which hamper the fulfilment of human rights. The Secretary- General is deeply concerned at the continued decline of food assistance made available by the international community, despite the worsening shortage of food reported by humanitarian agencies.

The status of the engagement and cooperation of the Democratic People’s Republic of Korea with international human rights mechanisms such as the treaty bodies, the special procedures and the universal periodic review of the Human Rights Council is outlined in the report. The report also contains updates submitted by other United Nations agencies concerning the right to food, the right to health, the rights of the child and the rights of refugees.

The Secretary-General urges the Government to provide safeguards for human rights and ensure domestic legal reform, in accordance with its international treaty obligations. He calls again upon the Government to engage with OHCHR in technical cooperation and to cooperate with the Special Rapporteur on the situation on human rights in the Democratic People’s Republic of Korea. He further calls upon the Government to prioritize its resources in order to address the humanitarian needs of its population and to consider allowing United Nations agencies and their humanitarian partners on the ground to increase their operations, with appropriate monitoring conditions. The Secretary-General urges the international community to uphold its commitment to protecting human rights and helping address the critical humanitarian needs of the citizens of the Democratic People’s Republic of Korea. He strongly encourages all parties concerned to commit themselves in bilateral and multilateral settings to facilitating increased dialogue and cooperation on human rights.

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Update on North Korea’s indegenous fertilizer industry

Wednesday, November 11th, 2009

According to Yonhap:

North Korean leader Kim Jong-il has visited a fertilizer factory and a synthetic fabric factory in a northern province and ordered speedy modernization of their facilities, state media said Friday.

Kim’s trip to the Hungnam Fertilizer Complex highlighted his special care for the country’s fertilizer production, as South Korea’s aid of the material, essential for rice and corn farming, remains suspended for the second year. Kim visited the same factory in February.

“The gasification process of the complex is of weighty importance in boosting the fertilizer production,” Kim was quoted by the Korean Central News Agency as saying.

North Korea has developed its own fertilizer production process called “coal gasification.” The process converts coal from a solid to a gaseous state that is similar to natural gas, and can be converted to ammonia that is used to make fertilizer. North Korea has rich deposits of coal and would otherwise have to import natural gas for fertilizer production.

He praised the complex for “entirely depending on locally available raw resources” and emphasized completion of the gasification process “in a brief span of time,” the report said

“He showed such great care as unraveling knotty problems on the spot,” it added.

North Korea’s own fertilizer output is estimated at less than 500,000 tons a year, about a third of the 1.5 million tons the country needs for its grain farming, according to Seoul’s Unification Ministry.

Since 1999, the South Korean government has provided an average 300,000 tons of fertilizer to the North every year to help ease the country’s chronic food shortages. But the aid was suspended after conservative President Lee Myung-bak took office last year, linking inter-Korean aid and exchanges to progress in North Korea’s denuclearization.

Read the full article here:
N. Korean leader visits fertilizer, textile factories
Yonhap
11/6/2009

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10,000 apartments under construction in Pyongyang

Wednesday, November 11th, 2009

Institute for Far Eastern Studies (IFES)
NK Brief No. 09-11-10-1
11/10/2009

North Korea is pouring all efforts into the construction of 10,000 family homes in Pyongyang by 2012. Whether this construction plan can be completed within the next three years will weigh on the success or failure of the regime’s goal of establishing a ‘Strong and Prosperous Nation.’

An article run on November 4 in the Chosun Sinbo, a newspaper of the Jochongryeon, the pro-Pyongyang Korean residents’ association in Japan, stated, “Currently, the construction of 10,000 family dwellings is underway in Pyongyang, and the efforts poured into this over the next 3 years will show the strength of the country.” It was also reported that “North Korean authorities are devising policies to concentrate all efforts into the construction area in order to see this through.”

The article also confirmed that the apartment construction project was part of the “effort to open the door to a ‘Strong and Prosperous Nation’,” and that completion of the project “would mean the complete solution of the people’s housing problems in Pyongyang.”

The newspaper claimed that the project is the largest project ever undertaken by the North. In the 1980s and 1990s, 5,000-unit apartments were built along Kwangbok Street and Unification Street over 4 to 5 years, but the current project is twice as large. The aim is to complete the project in 3 years. Each unit is said to be 100 square meters.

North Korean authorities are reportedly pledging that the ‘Strong and Prosperous Nation’ will not just be reflected through economic statistics or increased production, but that they are putting all efforts into increasing the standard of living for the people.

In order to meet the expected increase in demand for electricity, a hydroelectric power plant is being built in Huicheon, Chagang Province, and is expected to be complete by 2012.

It is expected that it will be difficult for the North to complete 10,000 apartments in the next 3 years, and so authorities are also conducting campaigns to repair and upgrade old production lines in factories and companies in order to meet the demand for materials. As well, Preparations are also underway to create a system of factories and businesses to produce needed materials within Pyongyang. The construction project has meant the removal of some military barracks in the area, causing some conflicts between soldiers and civilians.

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DPRK stresses economic ‘informationalization’

Wednesday, November 11th, 2009

Institute for Far Eastern Studies (IFES)
NK Brief No. 09-11-04-2
11/4/2009

The North Korean monthly publication “Chollima” stressed in a recent (September, 2009) edition the need to improve efficiency in production and administrative activities, emphasizing that if the North is to succeed at becoming an “economic power,” then economic management and administrative activities need to become “informationalized.”

In an article titled “Informationalization of Economic Management and Administrative Activity,” the magazine stated, “In order to meet the demands for science and technology development in the era of the information industry, improvement of the socialist economic management has emerged as an important issue.”

The magazine also offered a solution, suggesting that computers and IT resources be ensured first in order to “informationalize” economic management and administrative activities, and that communications equipment be modernized, stating that construction of basic facilities was an urgent task.

In addition, program industries used in the economic sector should be developed, and planning, statistical, and accounting programs, in particular, need to be connected across the country.

Along with this, the magazine noted that the development of information science is closely related to that of information technology, and that research efforts regarding information science need to be strengthened. The article called for further development of basic elementary management systems education, information theory research, and, of course, systems engineering, legal administration, and other economic science fields.

“Informationalization” of economic management and administrative activities is based on IT resources, and focuses on automating statistical and accounting practices in order to strengthen economic management controls and to boost productivity and efficiency.

On August 11, the Rodong Sinmun also emphasized “informationalization,” referring to the current times as the “information economy age” and the “informationalization age,” stating that “today’s war, absent the sound of gunfire, is a war of brains, a technology war,” and, “technological revolution is bravely marching forward at breakneck speed.”

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Kim’s train stations

Monday, November 9th, 2009

Today Kim Jong il’s trains and train stations were big news.  According to the Choson Ilbo:

When Kim travels, three separate trains operate in conjunction. The advance train handles security checks to see whether the rail tracks are safe. Behind Kim’s train is another carrying his bodyguards and other support personnel. Kim’s train travels at an average speed of 60 km/h. Around 100 security agents are sent ahead of time to stations and sweep the area for bombs. Before Kim’s train nears the station, the power on other tracks is shut off so that no other trains can move.

Kim’s train is armored and also contains conference rooms, an audience chamber and bedrooms. Satellite phone connections and flat screen TVs have been installed so that the North Korean leader can be briefed and issue orders.

Sources say when Kim gets out of his train and moves to his private retreat, he is driven in a Mercedes or other car that has been brought along. When Kim travels within North Korea aboard his private train, IL-76 air force transport planes, MI-17 helicopters and other aircraft provide security support and haul necessary personnel and equipment to nearby airports. So far, Kim has taken 129 on-the-spot guidance trips around North Korea, matching the record he set in 2005 and probably exceeding it by the end of the year.

Since I have already mapped out the North Korean railway system, I can offer links to satellite images of many of KJI’s personal train stations and other elite stations: Pyongyang (Ryongsong)Pyongyang (Ryongsong underground)Pyongyang (Ryongsong-original)Pyongyang (Hyongjesan)Wonsan, Sinuiju, Hyesan 1, Hyesan 2Kanggye, Yongphung-ri, Myohyangsan 1, Myohangsan 2, Sakju 1(old imagery)Taegwon, Kyongsong 1, Kyongsong 2, Hungnam 1, Hungnam 2, and Sinchon. These are not necessarily the 20 stations cited in the above article, but the remainder are probably underground or not visible with Google Earth imagery.

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No more beer commercials!

Monday, November 9th, 2009

Apparently Kim Jong il is growing intolerant of North Korean television advertising anything other than how great he and his father are.  According to Yonhap:

“Recently, Kim saw the commercials while watching TV. He was enraged, asking where the commercials came from and describing them as the prototype of China’s early reforms,” one source said.

Starting July 2, North Korea’s television played commercials that showed young women in traditional clothes serving frothy mugs of Taedonggang beer billed as “Pride of Pyongyang.”

Other products, including ginseng and quail, soon followed in television advertisements, which had rarely been seen in the country, generating outside speculation that North Korea may be starting to embrace the capitalist mode of life.

But according to Yonhap News Agency’s own analysis, the commercials disappeared as of the end of August. The sources said Cha Sung-su, the North’s top broadcaster, has also been discharged.

One source said Cha may have been unduly victimized in the case because the commercials were a product of Kim’s earlier instruction to create “more interesting and diverse” television programs.

Cha, 69, is one of Kim’s closest aides, having accompanied him on public inspections at least six times since the leader reportedly had a stroke last year and then recovered.

He is the North’s top television man, having served on the communist country’s broadcasting committee for about four decades. He is also known in North Korea for his numerous poems.

I previously blogged about the beer commercials (as did most other K-bloggers) and included a link to a longer 10-minute “infomercial”.

Here is the actual commercial courtesy of the BBC. Here is the commercial on YouTube (without commercial interruption).

Here is the ginseng commercial (Koryo Insam).

Here is the quail restaurant commercial.

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Kyongsong Castle

Thursday, November 5th, 2009

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(Click image to enlarge)

While cataloging North Korea’s economic, military, and political infrastructures on Google Earth, my colleagues and I have labeled over a dozen historical fortresses (castles) in the DPRK.  Normally the remnants of these fortresses consist of stone walls which skirt the surrounding mountain tops.

Today, however, I came upon Kyongsong Castle in Sungnam-ri on the DPRK’s east coast.  As far as I can tell it is the only walled city of this type remaining in the DPRK.  If not, it is certainly the most impressively preserved.  It is a shame nobody can visit this place–it looks absolutely beautiful.

The castle is not visible in Google Earth, so you can either look at the image above or download the Google Earth overlay I built.  The overlay allows you to to see the castle in its actual location on Google Earth. Download the overlay here.

If any readers can find information on this castle in Korean please let me know.  Nothing is available in English.

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In North Korea, the military now issues economic orders

Thursday, November 5th, 2009

Blane Harden wrote an excellent article for the Washington Post on the KPA takeover of state-owned trading companies and how these companies are increasing natural resource exports to China.  (As an aside, China has just recently ceased publishing North Korean trade data).  This is interesting because just a year-and-a-half ago we were discussing Jang Song-thaek’s anti-corruption campaign which was supposed to be closing down KPA companies and making them reapply for export licenses with the Ministry of Foreign Trade (meaning the WPK could start dipping into the revenue pools).

Quoting from Mr. Harden’s article:

The potential profits are eye-popping: China is one of the world’s most voracious consumers of raw materials, and North Korea’s mineral reserves are worth $5.94 trillion, according to an estimate by South Korea’s Ministry of Unification. China has been critical of North Korea’s nuclear program and missile tests, but it also has vastly increased its economic ties with Kim’s government.

Kim is increasingly creaming off a significant slice of Chinese mineral revenue to fund his nuclear program and to buy the loyalty of elites, according to “North Korea, Inc.,” a recent report by the United States Institute of Peace, a Washington-based group funded by the U.S. Congress.

The report echoes the views of North Korean analysts in South Korea, Japan and the United States, who say the military has elbowed out other ministries and the Korean Workers’ Party to take control of exports that earn hard currency. The military is also sending trucks to state farms to haul away as much as a quarter of the annual harvest for its soldiers, analysts say.

“The military is by far the largest, most capable and most efficient organization in North Korea, and Kim Jong Il is making maximum use of it,” said Lim Eul-chul of the Institute for Far Eastern Studies in Seoul.

North Korea is perhaps the world’s most secretive and repressive state, but it makes no attempt to hide the ubiquitous role the military plays in the daily lives of the country’s 23.5 million people. Soldiers dig clams and launch missiles, pick apples and build irrigation canals, market mushrooms and supervise the export of knockoff Nintendo games. They also guard the country’s 3,000 cooperative farms, and help themselves to scarce food in a hungry country.

Missile sales were for many years major earners of foreign currency, according to a report for the Strategic Studies Institute by Daniel A. Pinkston, who is now a Seoul-based analyst with the International Crisis Group. But the cost of the arms trade has gone up and sales have declined as a result of U.N. sanctions imposed after the North’s nuclear tests in 2006 and this year, South Korean analysts say.

The military has thus turned to its new Chinese cash cow. As the army has taken over management of mines in North Korea, mineral exports to China have soared, rising from $15 million in 2003 to $213 million last year. Led by those sales, the North’s total trade volume rose last year to its highest level since 1990, when a far more prosperous and less isolated North Korea was subsidized by the Soviet Union.

A unique advantage the Korean People’s Army brings to foreign trade is a well-disciplined workforce that has to be paid — nothing. Soldiers receive food, clothes and lodging, but virtually no cash. This competitive edge makes military-run trading companies especially attractive to the North’s leadership, according to the Institute of Peace report.

Based on confidential interviews with recent North Korean defectors, four of whom said they worked for trading companies run by the military, the paper concludes that a “designated percentage of all revenues generated from commercial activities . . . goes directly into Kim Jong Il’s personal accounts.” The rest of the revenue flows into the operating budget of the military.

The full article is worth reading here.

Additionally, the report by the Institute of Peace cited above, “North Korea, Inc.”, can be downloaded here. The paper is on my reading list this weekend, but here is the introduction and conclusion:

Introduction: Assessing regime stability in North Korea continues to be a major challenge for analysts. By examining how North Korea, Inc. — the web of state trading companies affiliated to the Korean Workers’ Party (KWP), the Korean People’s Army (KPA), and the Cabinet — operates, we can develop a new framework for gauging regime stability in North Korea. Insights into the Democratic People’s Republic of Korea (DPRK)1 regime can be gained by examining six core questions related to the DPRK state trading company system. First, what are DPRK state trading companies and how did they emerge? Second, how do DPRK state trading companies operate? Third, what roles do they play? Fourth, why are DPRK state trading companies important? Fifth, what major transformations are taking place in the DPRK state trading company system? Sixth, what are the implications of the manner in which this system is currently functioning?

Conclusion:  Despite lingering problems with the fragmented Public Distribution System, the challenges of chronic food shortages, and a deteriorating economic infrastructure system, the DPRK regime has proven to be remarkably resilient. By operating North Korea, Inc. — a network of state trading companies affiliated to the KWP, the KPA, and the Cabinet — the regime is able to derive funds to maintain the loyalty of the North Korean elites and to provide a mechanism through which different branches of the North Korean state can generate funds for operating budgets. During periods when the DPRK’s international isolation deepens as a result of its brinkmanship activities, North Korea, Inc. constitutes an effective coping mechanism for the Kim Jong Il regime.

While North Korea remains an opaque country, we now have greater access to unique defectors with the following characteristics — prior experience working in DPRK state trading companies and current business dealings with former colleagues in North Korea through channels in China. By closely examining DPRK commercial activities and capabilities, a new field of North Korea analysis can be structured to produce insights into the internal dynamics of the DPRK regime. This new line of inquiry would help to broaden our understanding of an evolving North Korea.

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