Archive for November, 2013

DPRK harvest up 5% for third year, but chronic malnutrition persists

Thursday, November 28th, 2013

“Speical Report: FAO/WFP crop and food security assessment mission to the Democratic People’s Republic of Korean”
Read the full report here (PDF)Previous reports here.

According to the UN WFP/FAO Press Release (on Thanksgiving day!):

ROME/PYONGYANG – A nationwide assessment by two United Nations agencies shows an increase in staple food production in the Democratic People’s Republic of Korea (DPRK) for the third year running.

The report, however, notes that although rates of child malnutrition have steadily declined over the past 10 years, rates of stunting caused by malnutrition during the first 1,000 days of a child’s life remain high and micronutrient deficiencies are of particular concern.

The joint Crop and Food Security Assessment Mission to the DPRK by the Food and Agriculture Organization (FAO) and World Food Programme (WFP) visited all nine agricultural provinces in late September and early October around the main annual cereal harvest.

Total food production is estimated at about 5.03 million metric tons (including milled rice) in 2013, which is about a 5 percent increase over the previous year. Despite the improved harvest, the food security situation is still unsatisfactory with 84 percent of households having borderline or poor food consumption.

The mission observed immense logistical challenges for the public food distribution system and expressed concerns about the timeliness and consistency of distributions. Markets and informal mechanisms of bartering and other forms of exchange are believed to be of increasing importance for access to food by families, particularly in urban areas.

“Despite continued improvement in agricultural production, the food system in the DPRK remains highly vulnerable to shocks and serious shortages exist particularly in the production of protein-rich foods,” said Kisan Gunjal, FAO economist and co-leader of the mission. “In the interest of increased protein consumption and to reverse the downward trend of soybean production, the price paid to farmers for soybean should be increased.”

Since 1998, WFP in partnership with the government has produced blended fortified foods and nutritious biscuits for children and pregnant or nursing women. WFP has recommended a shift to a new product – Rice Soya Milk Blend – for children in nurseries to reduce stunting and wasting.

“Improving the diversity and quality of food provided through the child institution system is essential to improving children’s nutrition,” said WFP DPRK Country Director Dierk Stegen. “We want to produce Rice Soya Milk Blend but can only do so if we receive sufficient donor support.”

Despite a small reduction in the area planted, overall crop production in 2013/14 is estimated to increase due to generally favourable weather conditions that resulted in a higher rice crop.

The aggregate production from cooperative farms, plots on sloping land and household gardens estimated by the mission includes the 2013 main season harvest and the forecast for 2014 early season crops. Unusually early and heavy rains in July and early August compromised maize and soybean yields but had little effect on paddy.

The report estimated cereal import requirements at 340,000 metric tons for the 2013/14 marketing year (November/October). Assuming the official import target of 300,000 metric tons of cereals is met, there remains an uncovered food deficit of 40,000 metric tons for the current marketing year.

While this food gap is the narrowest in many years, it needs to be bridged either through additional purchases by the government and/or international support to avoid increased undernourishment during the current marketing year.

To improve food security and nutrition, the report recommends national and international support for sustainable farming practices, better price and market incentives for farmers and improvements in farm mechanization.

In nutrition, the report recommends that efforts should go toward improving dietary diversity and feeding practices for young children and women through strategies such as behavioural change, market reform and encouraging livestock and fish production; strengthening treatment of severe and moderate acute malnutrition; and better hygiene and sanitation practices.

ADDITIONAL INFORATION:

1. Here is a follow up report in 38 North by Randall Ireson.

2. Here is coverage in the Wall Street Journal and Assocaited Press.

3. High-Resolution photographs from DPRK can be downloaded here.

 

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An update and DPRK calendars

Tuesday, November 26th, 2013

UPDATE: 

I have been very busy this autumn, so non-remunerative blogging has taken a back seat. As you are aware, more content than ever is published on the DPRK each day and going through it all is a major drain on time! It’s certainly not like the old days (2006-2010) when you could read everything about North Korea that day before lunch! So I will be slowly updating this web page (all posts will be back-dated) and I hope to be caught up by the end of the year.

In the meantime, I have published several articles at NK News.

CALENDARS:

The ever-innovative NK News is selling 2014 calendars featuring great photography of the DPRK. Order yours below.

NK-news-calendar-2014

Order your calendar here.

I really enjoyed my 2013 calendar!

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Skilled North Koreans in Russia

Tuesday, November 26th, 2013

According to Yonhap:

The number of skilled North Korean workers in Russia has jumped 2.8-fold in the first nine months of this year compared to 2012, a report showed Tuesday.

The report by Radio Free Asia that used data provided by Amur Oblast showed 762 cases of work permits being issued to skilled North Koreans in the cited period. Of these, 34 involved permits for specialized workers with considerable technical expertise.

The Washington-based media outlet said the sharp on-year increase is in contrast to the incremental rise in the number of work visas issued for menial laborers, which grew by just 2.2 percent to around 1,700 cases.

Pyongyang has been sending workers to Russia to help the country earn hard currency, with most being hired by Russian logging companies.

The North and Russia held government-level talks on Nov. 12 to facilitate the movement and employment of North Korean workers.

Read the full story here:
Number of skilled N. Korean workers in Russia surge this year: report
Yonhap
2013-11-26

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38 North on the expansion of the DPRK’s mobile phone network

Tuesday, November 26th, 2013

Here is the conclusion:

One should be careful not to jump to a conclusion that North Korea is entering ‘mobile telecommunications revolution.’ North Koreans are still largely denied internet access, and international calls are blocked. Prohibitive top-up rates have made general users reserve their calls for important messages or emergencies. New digital social networking remains an unreachable luxury for the general population and traditional self-censorship prevents politically sensitive conversations on the phone. The government conducts tight surveillance of phone calls and text messages and frequently censors ‘politically inappropriate’ content on them such as South Korean songs and dramas.

However, there are still loopholes that the government cannot perfectly close. For example, a primitive but creative way to make ‘international’ calls supported by illegal Chinese cell phones is in the making, mainly employed now for remittances from defectors in South Korea to their families left in North Korea. However, if brokers can find more profit opportunities, they could surely figure out safer and more creative ways to circumvent technical barriers and the monitoring system. A defector in Seoul has already overcome that technical barrier by connecting to foreign phones with SIM cards bought in Pyongyang. The fact that millions of handheld cameras and digital voice recorders are being circulated should be source of anxiety for the regime. Despite tightly controlled and monitored, the Koryolink network could still potentially widen the loopholes of information flow to and from the outside world.

Read the full article here.

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Inter-Korean trade begins to recover in Q4 2013

Sunday, November 24th, 2013

According to Yonhap:

Inter-Korean trade has gradually been returning to normal levels following the reopening of a joint industrial park in North Korea’s border city of Kaesong in September, government data showed Sunday.

According to data from the Ministry of Unification and the Korea Customs Service, two-way trade between South and North Korea amounted to US$152.15 million last month. The amount is equivalent to 80.9 percent of total bilateral trade in the same month last year.

“Exports have grown with the entry of large amounts of raw materials, production facilities and food supplies as (the Kaesong complex) prepares to resume operations in earnest,” a ministry official said, speaking on condition of anonymity.

The complex, which ground to a halt in April amid high security tensions on the Korean Peninsula, reopened in September. Inter-Korean trade is limited to the joint factory park because all other economic exchanges have been banned since May 2010 due to North Korea’s sinking of a South Korean warship in March of that year.

“The Kaesong Industrial Complex is gradually recovering to previous levels,” the official said.

The complex, a key outcome of the first-ever inter-Korean summit in 2000, combines South Korean capital and technology with cheap North Korean labor to produce clothes, utensils, watches and other labor-intensive goods.

The project serves as a key source of cash for the impoverished country.

My compendium of stories related to the closure and reopening of the Kaesong Zone can be found here.

Read the full story here:
Inter-Korean trade recovers following reopening of Kaesong complex
Yonhap
2013-11-24

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Special Economic Zones (SEZs) and Economic Development Zones

Thursday, November 21st, 2013

UPDATE 1 (2013-11-29): New economic zones are under development at provincial level – development of Sinuiju special zone officially announced (IFES):

North Korea has enacted the Economic Zone Development Act on May 29 this year and explained, “The economic development zones are special economic zones where preferential treatments are guaranteed in accordance with appropriate laws as provided by the state.” It also elucidated that the provincial level SEZs were to be managed differently from the central-level SEZs.

On October 16, the institution in charge of the central-level economic development zones, the General State Economic Development Department, was upgraded to become the State Economic Development Commission, with Kim Ki Sok appointed as the commission’s chairman. Kim served as the vice-chairman of the Joint Investment Committee of Korea. In addition, the Korean Economic Development Association was established as a private organization, with Yun Yong Sok being named as president.

Provincial-level economic development zones will be open to joint venture company or independent investment by a foreign company and 50 years are guaranteed as the cooperation period. Each of the 13 SEZs in each province will be developed incorporating the special characteristics of each region. The total amount of investment permitted in this area will range from 70 million USD to 240 million USD. The provincial-level SEZs will be managed by the Economic Zone Development Bureau.

With the announcement of the names of the 13 SEZs, it is likely the development plans is likely to proceed rather rapidly.

On the other hand, Sinuiju SEZ is reported to be developed as a central-level zone. In 2002, Sinuiju already had received the title as a special administrative region but after the arrest of the Administrative Minister Yang Bin, the development of this area came to a halt.

The plan for Sinuiju SEZ is likely to be developed as state-of-the-art, comprehensive special zone modeled after China’s Shenzhen SEZ.  A Joint Venture Investment Committee and an international group from Hong Kong will hold 50:50 shares and establish a new joint venture company.

Sinuiju is especially located in a geographically advantageous area, adjacent from Dandong City divided by the Amnok (Yalu) River and it is well connected through railway and bridge that connects the two cities. The currently under construction New Yalu River Bridge is also in progress and expected for completion early next year.

ORIGINAL POST (2013-11-21): Until this year, there were four Special Economic Zones (SEZs) in the DPRK: Hwanggumphyong and Wihwado Economic Zones, Kaesong Industrial Zone, Mt. Kumgang Tourist Special Zone, Rason Economic and Trade Zone.

There is also a new “Kaesong Latest Science, Technology Development Zone” under construction.

On November 21, 2013, KCNA reported additional information on the continuing evolution of the DPRK’s Special Economic Zones (특수경제지대) and Economic Development Zones (경제개발구).

KCNA reported again that Sinuiju will be the site of a Special Economic Zone:

DPRK to Set Up Special Economic Zone in Sinuiju

Pyongyang, November 21 (KCNA) — The DPRK decided to set up a special economic zone in some part of Sinuiju, North Phyongan Province.

The sovereignty of the DPRK will be exercised in the zone.

A relevant decree of the Presidium of the Supreme People’s Assembly of the DPRK was released on Thursday.

Here is the same article in Korean:

신의주시의 일부 지역에 특수경제지대 내오기로 결정

(평양 11월 21일발 조선중앙통신)조선에서 평안북도 신의주시의 일부 지역에 특수경제지대를 내오기로 하였다.

특수경제지대에는 조선민주주의인민공화국 주권이 행사된다.

이와 관련한 조선민주주의인민공화국 최고인민회의 상임위원회 정령이 21일에 발표되였다.(끝)

Sinuiju has been proposed as a Special Administrative Region (SAR) before. You can read all Sinuiju SAR posts hereHere is the announcement in KCNA from 2002-9-20 announcing the SAR. Ultimately the endeavor was not successful, thought it ultimately led to the creation of the nearby Hwanggumphyong and Wihwado Economic Zones

On the same day that KCNA made this announcement, they also offered more information on the new provincial level “Economic Development Zones (경제개발구). I am unsure of the relationship between “Special Economic Zone” and “Economic Development Zone”.

According to the KCNA article:

The DPRK is to set up economic development zones in provinces.

A decree of the Presidium of the Supreme People’s Assembly of the DPRK was released Thursday.

According to the decree, some part of Ojok-ri, Uiju County, North Phyongan Province will come under the jurisdiction of Ryongun-ri. Ryongun-ri will belong to Sinuiju and be called North Phyongan Provincial Amnokgang economic development zone [압록강경제개발구].

Jagang Provincial Manpho economic development zone [자강도 만포경제개발구] will be established in some areas of Mitha-ri (including Poldung Islet) and Phosang-ri, Manpho City, Jagang Province and Jagang Provincial Wiwon industrial development zone [자강도 위원공업개발구] will be set up in areas covering part of Tokam-ri and part of Kosong-ri, Wiwon County.

North Hwanghae Provincial Sinphyong tourist development zone [황해북도 신평관광개발구] will appear in some areas of Phyonghwa-ri, Sinphyong County, North Hwanghae Province and North Hwanghae Provincial Songrim export processing zone [황해북도 송림수출가공구] will be set up in some areas of Sosong-ri, Songrim City.

Kangwon Provincial Hyondong industrial development zone [강원도 현동공업개발구] will be set up in some areas of Hyondong-ri, Wonsan City, Kangwon Province.

South Hamgyong Provincial Hungnam industrial development zone [함경남도 흥남공업개발구] will take its shape in some areas in Haean District, Hamhung City, South Hamgyong Province and South Hamgyong Provincial Pukchong agricultural development zone [함경남도 북청농업개발구] will be created in areas covering part of Mundong-ri, Pudong-ri and Jongsan-ri of Pukchong County.

North Hamgyong Provincial Chongjin economic development zone [함경북도 청진경제개발구] will be set up in areas covering part of Wolpho-ri, Susong-dong and Namsok-ri, Songphyong District, Chongjin City, North Hamgyong Province. North Hamgyong Provincial Orang agricultural development zone [함경북도 어랑농업개발구] will appear in some areas of Ryongjon-ri, Orang County. North Hamgyong Provincial Onsong island tourist development zone [함경북도 온성섬관광개발구] will be formed in some areas of Onsong township, Onsong County.

Ryanggang Provincial Hyesan economic development zone [량강도 혜산경제개발구] will appear in some areas of Sinjang-ri, Hyesan City, Ryanggang Province.

Some areas of Ryongnam-ri, Waudo District, Nampho City will turn into Nampho City Waudo export processing zone [남포시 와우도수출가공구].

The sovereignty of the DPRK will be exercised in the provincial economic development zones.

The Korean version of this article can be found here. The DPRK announced there would be 14 SEZ/Economic Development Zones. With the inclusion of the Sinuiju Special Economic Zone with the KCNA list of 13 economic development zones, you will get 14. However, there are other economic development zones that have been announced that are not included on this list. By my count there are  at least 18. If one is to be in each province, then zones in South Phyongan and South Hwanghae have yet to be announced.

As mentioned before, these economic development zones are supposed to be governed by the Law on Economic Development Zones and the Economic Development Commission/Association.

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North Korea emphasizing the development of science and technology for the construction of a powerful nation

Thursday, November 21st, 2013

Institute for Far Eastern Studies (IFES)
2013-11-21

Under the new leadership of Kim Jong Un, the importance of advancing the country’s science and technology is being increasingly highlighted. Recently, a conference for scientists and technicians was held on November 13, 2013. Although Kim Jong Un did not attend, his article on “Let’s Promote Transition for the Development of Science and Technology to Build a Powerful Nation” was delivered and letters of appeal to the participants were also announced at the conference.

The first three pages of the November 14, 2013 edition of Rodong Sinmun featured news on the conference. The letters of appeal to the scientists and technicians were included in the article, which read, “The future of building a powerful nation depends on science and technology.” The letters encouraged scientists from each field to put in more effort. It was also stated that “Our party considers science and technology as the most important state affair and the basis for our nation’s development and is bringing scientification in all sectors.” Resolving the food situation and energy shortage problem was stated as the most urgent task for the scientists and technicians. The article also boasted the achievements made in the development of computer numerical control (CNC) and high-tech industries such as nanotechnology and defense-related science and technology.

Premier Pak Pong Ju also commented that North Korea will “push strongly and boldly for the creation of high-tech development zones” and stressed that investment in this sector will be prioritized, seemingly referring to the plan of building more areas that incorporate science and technology with the economy, as the ground-breaking ceremony for the “Kaesong High-Tech Industrial Park” is reported to have took place on Monday, November 11.

From early on the Kim Jong Un regime expressed interest in science and technology. After North Korea’s successful launch of a long-range rocket in December 2012, engineers and scientists were invited to Pyongyang and were officially proclaimed “heroes of the Republic.” Recently, in an effort to raise the living standard of elite scientists, construction of special residential complexes — Unha Scientists Street and residential complex for Kim Il Sung University faculty — were completed.

Since last August, new slogans such as “Science and Technology for Everyone” are being promoted for the purpose of cultivating young talent in the field of science and technology. This is reminiscent of the slogans associated with the former Kim Il Sung regime’s refined military doctrine of the 1960s, i.e., the ‘four-point military line’, which stressed the need for arming the entire nation to safeguard the homeland. The recent conference magnifies the prevalent atmosphere — that is, preferential treatment for scientists and increased emphasis on science and technology.

This recent trend reflects North Korea’s recognition that economic development must be backed by strong advancement in science and technology. Science and technology has been put forth as the instrument in which to achieve the nation’s goal of becoming an economic powerhouse of knowledge. Scientists are expected to play a critical, central role in North Korea’s economic development.

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Kim Jong Il Military Postgraduate Institute

Wednesday, November 20th, 2013

KJU-grad-school

KJU-grad-school-2

Pictured above: 2013-11-4 satellite image of the Kim Jong Il Military Postgraduate Institute

UPDATE 1 (2014-4-26):  The Kim Jong Il Military Postgraduate Institute has officially opened. According to KCNA:

Kim Jong Il Military Postgraduate Institute Completed

Pyongyang, April 26 (KCNA) — Kim Jong Il Military Postgraduate Institute where the statue of leader Kim Jong Il is standing was completed at Kim Il Sung Military University on the occasion of the 82nd anniversary of the Korean People’s Army.

The institute has all educational facilities and environment at the highest level as befitting the university which was established and has developed under the energetic guidance and loving care of the great Generalissimos Kim Il Sung and Kim Jong Il.

The successful completion of the institute as required by the Songun era made it possible to glorify for all ages Kim Jong Il’s feats performed for army-building, develop the university into the one of the Generalissimos for training all-round military officers fully equipped with Kim Il Sung’s and Kim Jong Il’s strategy and tactics and increase the combat capabilities of the invincible revolutionary Paektusan army in every way.

A ceremony of its completion was held with splendor Friday.

Present there were Jang Jong Nam, Kim Ki Nam, officials of armed forces organ, instructors and cadets and employees of the university, officials of military schools at all levels, service personnel of the Korean People’s Army (KPA), servicemen’s families and officials of the units which made contributions to erecting the statue.

The statue of Kim Jong Il was unveiled by leading officials of army and the institute.

A floral basket was laid before the statue in the august name of Kim Jong Un, supreme leader of the Workers’ Party of Korea (WPK), state and revolutionary armed forces.

Also laid there were a floral basket in the joint name of the Central Committee and Central Military Commission of the WPK and the National Defence Commission of the DPRK and a floral basket in the name of the institute.

Placed there were floral baskets in the name of the KPA General Staff, the KPA General Political Bureau, the Ministry of the People’s Armed Forces, KPA units at all levels, military schools, and units associated with leadership exploits of the peerlessly great persons.

The participants paid tribute to the statue.

Jang Jong Nam, minister of the People’s Armed Forces, spoke at the ceremony.

He said:

Kim Jong Il made sure that an institute, the highest course in military education of the DPRK, was built at the university and specified those to be trained, scope, educational method and contents, thereby building it into a prestigious and comprehensive center for training military cadres.

The appearance of the institute as the highest seat for training military commanding officers which goes by the august name of Kim Jong Il is a precious fruition of the energetic guidance given by Marshal Kim Jong Un.

The speaker called on the institute to train more persons possessed of sense of obligation who share intention and sincerity with the supreme commander despite rain or snow, true fighters equipped with Kim Il Sung’s and Kim Jong Il’s strategy and tactics, heroic fighting spirit and perfect capability to fight an actual war and tiger-like fighters of Mt. Paektu.

The participants looked round the statue, after being briefed on it.

Here is footage from KCTV:

Original Post (2013-11-20): Kim Jong-un has visited the “Kim Jong Il Military Postgraduate Institute” (김일성군사종합대학 김정일군사연구원) under construction in Mangyongdae. As we can see from the satellite imagery this is a significant expansion of the school’s capacities. It is still unclear what specific role the new graduate school is intended to play, but Rodong Sinmun tells us the following:

He said that it is of weighty importance to build the institute, a center for training dependable military personnel of the party, at the university which was founded and developed under the energetic leadership and loving care of Generalissimos Kim Il Sung and Kim Jong.

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Recent developments in Rason

Wednesday, November 20th, 2013

A new article in Forbes updates us on some of the changes in Rason:

Tomas Novotny has been in North Korea two days, and he looks frazzled. It was a long journey from Prague, and standing on the street in downtown Rajin, his government minder by his side, he can already see that doing business in the DPRK’s remote northeast will present an unusual set of challenges.

Novotny is here because of that railway line. A brewing technologist with the Czech firm Zvu Potez, he has come to set up a brewery. All the equipment and materials were transported by train–from Prague to Moscow, through Siberia and onto the branch line of the Trans-Korean main line.

“We’re still building the brewery. Come and see it,” says Novotny. The two containers that brought the Zvu Potez equipment from Prague lie 50 meters from the brewery. It’s a great location by the sea in Rajin’s main park. The business is a joint venture between the Czech firm and the Rason regional government, says Novotny, and will target tourists and foreigners. There are about 300 Western tourists–including Russians–a year and about 20,000 Chinese visitors to the country’s northeast.

“When they’ve finished building,” he says, shouting over the drilling, “I’m going to teach three or four locals how to brew. I hope they can speak English. If they can’t it will be interesting.”

He expects to be in Rason for six months establishing the business, but already he misses home and his young son. “I won’t get to speak to them until I go home at Christmas,” he says.

North Korea’s telecommunications challenges are a headache for business, too. Foreigners are able to get 3G on their phones, but it is expensive. International calls are possible but equally pricey.

“When telecommunications become a little more open that will indicate the seriousness of purpose,” says Andray Abrahamian, who directs Choson Exchange, a Singaporean nonprofit that focuses on business and legal training for young North Koreans in the DPRK.

Abrahamian has been watching North Korea for a decade and visited Rason several times. He says things are finally moving, a result of legal changes made in 2010 that helped make Rason more autonomous. Further legal changes two years ago were intended to harmonize Rason’s economic laws with those of China, he says.

“The degree to which [Pyongyang] will allow autonomy to the regional decision makers or local planners has yet to be seen. That’s a key issue for Rason–how autonomous are these places really?” asks Abrahamian, 36.

“Chinese small and medium-size enterprises, from Jilin Province but also Heilongjiang Province, are continuing to come in–Rason is experiencing growth,” says Abrahamian.

Not all the factories are new. The Rajin Garment Factory was built in 1958, long before talk of special economic zones. In the early days it produced school uniforms for North Korean students. After 1991 it took orders from China and today employs 180 staff.

The factory manager stands on the front steps. It’s early evening, and he’s watching a staff volleyball game in the car park. Has business improved since Rason was made a special economic zone?

He shrugs and says: “It’s hard to say. It’s different. For every school uniform we used to get paid 800 won and a 1,200-won government subsidy. Now there is no government subsidy.”

The workers, nearly all women, are given housing and paid 600? to 700 won a month, plus overtime, he says. Inside the factory, on the first floor, close to 100 women are clocking overtime. Wearing blue uniforms and matching head scarves, they are sewing puffer jackets, hurrying to complete a big order. The final step of the process is to sew in the label: “Made in China.”

The tag is written in English, and the woman packing the jackets doesn’t understand the visitors’ raised eyebrows. Apparently this is a common practice.

It’s noisy on the factory floor. The popular all-girl band Moranbong blasts out of speakers, drowning out the whir of sewing machines. It’s impossible to hear the drone of the generator, switched on after yet another power failure, a regular feature of life in the DPRK.

There is a deal in place to bring power from Jilin Province, but the Chinese have been holding it up using the pretext of an environmental impact study.

More Chinese power can’t hurt, says researcher Melvin, “but there are many more substantive problems the North Korean must overcome before serious large-scale investment can move into the country. The DPRK cannot currently credibly commit to any policy–no policy stability, rule of law–and has a poor record of honoring its agreements and impartially enforcing contracts. No independent company will risk serious capital in this environment.”

Another matter is fuel. Joseph Naemi is director of HBOil, an oil trading and refining company based in Ulaanbaatar, Mongolia. HBOil grabbed a few headlines in June when it was reported the firm had acquired a 20% stake in Sungri oil refinery in Rason. That was premature, says Naemi: HBOil has 20% of a state-dominated joint venture called Korean Oil Exploration Corp. International, and a formal commitment with Sungri has yet to be made. Another option is to invest in a refinery on the west coast of the DPRK.

“The easy option is Sungri oil refinery because it’s based on Russian technology and because of its location in terms of the dynamic state of affairs in Rason Special Economic Zone. We are conducting engineering assessment of the refinery to determine the various phases of upgrading and expanding–it’s a work in progress,” says Naemi.

Describing Rason officials as well educated and smart, he says they understand issues of foreign investment protection, taxation and the need to not only be fiscally transparent but also to offer attractive terms to investors.

“I know a number of Mongolian companies, all privately owned, that are at various stages of either investing in North Korea or finalizing their joint ventures so that they can invest. There is a robust relationship between Mongolia and North Korea,” says Naemi.

For anyone doing business, there will be surprises. Standing on the terrace of the new brewery, Novotny looks out at the recently planted lawn. The seeds have been planted in rows, five centimeters apart, all the way down to the sea. Come summer and the warmer weather, the grass should have taken. It stands to be a great spot for a bar.

“Yeah, if we’re still open,” says Novotny and laughs. He drops his voice and out of earshot of his minder adds: “Look at the grass, see how it grows in such straight lines. Things are different here.”

Read the full story here:
Things are Brewing in North Korea’s Rason Zone
Forbes
Kate Whitehead
2013-11-20

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Merrill Newman saga (UPDATED)

Wednesday, November 20th, 2013

UPDATE 9 (2013-12-9): Newman has issued a statement (Nelson Report):

Statement from Merrill Newman dated December 9, 2013

Over the past two days, I’ve been able to reunite with my wonderful family, rest, and try to recover from the difficult ordeal that began when I was prevented from leaving North Korea on October 26th. I can’t begin to tell you how good it is to be home, to be free, and to begin to resume my normal home life.

Let me repeat my thanks to the U.S. State Department for the amazing job they did in getting me out of North Korea and bringing me home safely. I want to thank Vice President Biden, who called me in Beijing to wish me well and even offered to give me a lift back to the United States on his plane. Thanks also to the Swedish Embassy in Pyongyang for their great work, especially their visit to me and their help in ensuring that I had the medicine I needed.

Let me also express deep appreciation to friends, family, members of the First Congregational Church, wonderful people of faith and from all walks of life, residents and staff of our home at Channing House, and Members of Congress for their prayers, vigils, hard work, and moral support on my behalf. I want to single out Evans Revere for his extraordinary help.

It wasn’t until I got home on Saturday that I realized what a story I had become in the press here. During my detention I had no access to any outside news, and wondered whether anyone was even aware of my situation. I am sorry I caused so many people so many heartaches back home.

Looking at the television and newspaper reports, I’ve seen a lot of speculation about why I was detained. I’ve given considerable thought to this and have come to the conclusion that I just didn’t understand that, for the North Korean regime, the Korean War isn’t over and that even innocent remarks about the war can cause big problems if you are a foreigner.

I’m a Korean War veteran and I’m very proud of my military service, when I helped train Korean partisans. The North Koreans still harbor resentment about those partisans from the Mt Kuwol area and what other anti-Communist guerrillas did in North Korea before and during the war.

The shooting stopped sixty years ago, and the North Koreans have allowed other American veterans of the war to visit. Moreover, I did not hide my own military service from the tour company that organized my trip. Therefore, I did not think this history would be a problem. Indeed, in my application for a tourist visa, I specifically requested permission to visit the Mt. Kuwol area. That request was approved and was on the official itinerary when I arrived, although after I got to Pyongyang, I was told that the bridge had been washed out by a flood and it would not be possible to do so.

Before they told me this, I innocently asked my North Korean guides whether some of those who fought in the war in the Mt. Kuwol area might still be alive, and expressed an interest in possibly meeting them if they were. The North Koreans seem to have misinterpreted my curiosity as something more sinister. It is now clear to me the North Koreans still feel much more anger about the war than I realized. With the benefit of hindsight I should have been more sensitive to that.

I’ve also seen a lot of reports about the “confession” I made in North Korea. Anyone who has read the text of it or who has seen the video of me reading it knows that the words were not mine and were not delivered voluntarily. Anyone who knows me knows that I could not have done the things they had me “confess” to. To demonstrate that I was reading the document under some duress, I did my best to read the “confession” in a way that emphasized the bad grammar and strange language that the North Koreans had crafted for me to say. I hope that came across to all who saw the video.

Getting the “confession” and my “apology” were important to the North Koreans. Although the North Koreans treated me well during my detention (they looked after my health and fed me well), I was constantly under guard in my hotel and my interrogator made it clear that if I did not cooperate I could be sentenced to jail for espionage for 15 years. In fact, the North Korean interrogator repeatedly made the following statement to me: “If you do not tell the full truth, in detail, and apologize fully, you will not be able to return to your home country. If you do tell the full truth, in detail, and apologize fully, you will be able to return to your home country — someday.” Under these circumstances, I read the document with the language they insisted on because it seemed to be the only way I might get home.

In the coming days, as I recover my strength I plan to share more details about my experience in North Korea. I know there is a lot of interest in this and I’ll do my best to answer as many questions as I can. We also ask that you not forget that another American, Kenneth Bae is being held in the DPRK and we hope that he, too, will be allowed to rejoin his family. For now, let me finish by saying again how great it is to be back home, safe, and with my loved ones.

UPDATE 8 (2013-12-7): Newman back home. According to the Washington Post:

An elderly U.S. veteran of the Korean War arrived home Saturday after being released by North Korea, where he had traveled as a tourist and was held for six weeks as a prisoner.

“I’m delighted to be home,” Merrill Newman said at the San Francisco airport, where he was reunited with his wife and son, the Associated Press reported. “It’s been a great homecoming. I’m tired, but ready to be with my family.”

Vice President Biden, laying a wreath at a war memorial in Seoul, said he had spoken briefly with Newman by phone.

“There is a piece of good news. The DPRK today released someone they should never have had in the first place: Mr. Newman,” Biden said.

“I’m told we tried to get in contact with him [but] he’s on his way or in China right now. I offered him a ride home on Air Force Two, but as he pointed out, there’s a direct flight to San Francisco, his home. I don’t blame him. I’d be on that flight too. It’s a positive thing they’ve done.”

Biden said the United States would continue to demand the release of another American, Kenneth Bae, who has been held for more than a year. Including Newman, North Korea has detained at least seven Americans since 2009, six of whom have been released.

“At least there’s one ray of sunshine today. Mr. Newman will be reunited with his family,” he said.

UPDATE 7 (2013-12-7): KCNA reports that Mr. Newman has been deported.

U.S. Citizen Deported from DPRK

Pyongyang, December 7 (KCNA) — As already reported, a relevant institution of the Democratic People’s Republic of Korea (DPRK) detained and investigated U.S. citizen Merrill Edward Newman who entered the DPRK under the guise of a tourist to confirm the whereabouts of the spies and terrorists who had been trained and dispatched by him, an intelligence officer, during the last Korean War.

According to the investigation, Newman entered the DPRK with a wrong understanding of it and perpetrated a hostile act against it.

Taking into consideration his admittance of the act committed by him on the basis of his wrong understanding, apology made by him for it, his sincere repentance of it and his advanced age and health condition, the above-said institution deported him from the country from a humanitarian viewpoint.

UPDATE 6 (2013-12-1): Yonhap reports that Swedish diplomats have been allowed to meet with Mr. Newman.

News wire services such as AFP and CNN said a consul met Merrill Newman at a hotel in Pyongyang and delivered medication sent by his family.

The Scandinavian country’s mission in Pyongyang acts as the “protecting power” for Americans in North Korea, and its diplomats provide consular services.

The media outlets said Newman was in good health and reported he was being treated well by the North Koreans.

UPDATE 5 (2013-11-30): KCNA has published Mr. Newman’s “apology”:

Apology of U.S. Citizen for His Hostile Acts in DPRK

Pyongyang, November 30 (KCNA) — The following is an apology U.S. citizen Merrill Newman presented to a relevant institution after his detention in the DPRK:

I am Merrill Newman living in California, USA.

During the Korean War, I have been guilty of a long list of indelible crimes against DPRK government and Korean people as advisor of the Kuwol Unit of the UN Korea 6th Partisan Regiment part of the Intelligence Bureau of the Far East Command.

As I gave 300 people with barbarity gone to the South who had ill feelings toward the DPRK from Chodo military education and guerilla training they later did attack against the DPRK although the armistice was signed.

I also gave 200 soldiers under my command in Mt. Kuwol the task to harass the rear base such as collecting information on the movement and the arm equipment in KPA, attacking and destruction on the communication system, the rice storage, railroad and munitions train by dispatching the several elements to Hwanghae Province Area.

According to my order they collected information of the KPA and attacked the communication system and killed 3 innocent operators, delayed the munitions supply using explosives obtained from attacking the mine and they attacked the KPA and harassing operations of the rear base 10 times in the Hwanghae Province Area.

They killed about 50 soldiers in the process of the operation. In the process of following tasks given by me I believe they would kill more innocent people.

As I killed so many civilians and KPA soldiers and destroyed strategic objects in the DPRK during the Korean War, I committed indelible offensive acts against the DPRK government and Korean people.

Although 60 years have gone by, I came to DPRK on the excuse of the tour as a member of 33 Tour Group from U.S. on October 17, 2013.

Shamelessly I had a plan to meet any surviving soldiers and pray for the souls of the dead soldiers in Kuwol Mt. during the Korean war. Following the itinerary I asked my guide to help me look for the surviving soldiers and their families and descendents because it was too hard for me to do myself.

If I had the opportunity to visit Kuwol Mt. I was going to pray for the souls of dead soldiers. If I saw surviving soldiers in Mt. Kuwol, I was going to connect them with the members of the Kuwol Partisan Comrades-in-Arms Association which I had already connected with, anti-Communist strategic plot organization.

All the members of the Kuwol Partisan Comrades-in-Arms Association escaped from the DPRK to South Korea. So I asked the guide to help me to look for their families and relatives living in DPRK and I gave the document written with their address and e-mail address to the guide in the Yanggakdo Hotel.

I also brought the e-book criticizing the Socialist DPRK on this trip and criticizing DPRK.

Although I committed the indelible offensive acts against the Korean people in the period of the Korean War, I have been guilty of big crimes against the DPRK government and Korean People again.

I realize that I cannot be forgiven for my offensives but I beg for pardon on my knees by apologizing for my offensives sincerely toward the DPRK government and the Korean people and I want not punish me.

Please forgive me.

I will never commit the offensive act against the DPRK Government and the Korean People again.

On this trip I can understand that in US and western countries there is misleading information and propaganda about DPRK.

If I go back to USA, I will tell the true features of the DPRK and the life the Korean people are leading.

Merrill Newman

Nov 9, 2013

Here is the video.

According to the New York Times:

In the apology, Mr. Newman said he was an adviser for the Kuwol Unit of the United Nations Korea Sixth Partisan Regiment, which served with the Intelligence Bureau of the Far East Command.

A person familiar with Mr. Newman’s military record and his current situation in captivity in North Korea said that Mr. Newman served as an adviser in that unit in 1953 before the armistice. The unit operated behind the lines in North Korea, but Mr. Newman conducted his duties as an adviser on Chodo, an island off the west coast of what is now North Korea, the person said. In the beginning of the video, Mr. Newman mentioned Chodo as the place where he was stationed. The person speaking about Mr. Newman’s situation declined to be identified because of the delicacy of the case.

According to American military documents declassified in 1990, the United Nations partisan warfare mission organized in 1951 eventually mobilized about 23,000 guerrillas to fight against North Korea, overseen by about 200 American advisers.

Read more in Time.

UPDATE 4 (2013-11-30): KCNA publishes article acknowledging detention of Mr. Newman.

KCNA Report on Arrest of U.S. Citizen for Hostile Acts in DPRK

Pyongyang, November 30 (KCNA) — The Korean Central News Agency released the following report on Saturday:

A relevant institution of the Democratic People’s Republic of Korea recently put in custody U.S. citizen Merrill Edward Newman who committed hostile acts against the DPRK after entering the country under the guise of a tourist.

After entering the DPRK as a member of tourists’ group in October he perpetrated acts of infringing upon the dignity and sovereignty of the DPRK and slandering its socialist system, quite contrary to the purpose of tour.

He also committed such crime as trying to look for spies and terrorists who conducted espionage and subversive activities against the DPRK in the area of Mt. Kuwol during the last Fatherland Liberation War as well as their families and descendants and connect them with the “Kuwol Partisan Comrades-in-Arms Association,” an anti-DPRK plot-breeding organization of south Korea.

According to the results of the investigation, he was active as adviser of “Kuwol Unit” of the UN Korea 6th Partisan Regiment part of the Intelligence Bureau of the Command of the U.S. Forces in the Far East since early in 1953. He is a criminal as he masterminded espionage and subversive activities against the DPRK and in this course he was involved in killings of service personnel of the Korean People’s Army and innocent civilians.

The investigation clearly proved Newman’s hostile acts against the DPRK and they were backed by evidence. He admitted all his crimes and made an apology for them.

UPDATE 3 (2013-11-23): According to NK News,  Merill traveled with Juche Travel Services. According to the article:

The agency, which only learned that it was involved in Newman’s case on Thursday, said that it currently had no information as to why the 85 year old Korean War veteran had been removed from a flight leaving Pyongyang on October 26.

“Mr. Newman had in place all necessary and valid travel documents to take his tour. We have no information concerning what has occurred to result in the current situation,” Thompson said in a statement emailed to NK News.

“Mr. Newman travelled with one other gentleman to the DPRK on a private tour booked via Juche Travel Services between 17th and 26th October 2013.”

UPDATE 2 (2013-11-21): Everything we know about Merrill Newman (Washington Post):

Merrill Newman, an 85-year-old American who lives in California, has been detained in North Korea since Oct. 26, multiple news reports now confirm. Several hundred Americans are thought to visit North Korea every year as tourists, typically safely. Newman’s arrest is highly unusual and remains shrouded in mystery. Here is the publicly available information on Newman so far, taken from accounts in NKNews.org, the San Jose Mercury News, New York Times and Associated Press [link broken].

The nine facts listed here only deepen the mystery; there is a total absence of any hint of a reason why he would have been arrested.

1. Newman was visiting North Korea on a nine-day tourist visa, traveling with a friend from his retirement community named Bob Hamrdla and two tour guides. Such guides also function as government minders.

2. He was arrested while sitting on an airplane at Pyongyang’s international airport, waiting to depart the country. A single uniformed officer boarded the plane and walked Newman off.

3. Authorities have held him for more than three weeks, but North Korean state media have not mentioned the case.

4. A Korean War veteran, Newman with his wife lives in a Palo Alto retirement community called Channing House. He is Caucasian, which is significant given that North Korea has tended in the past to arrest only Westerners of Korean or other Asian descent. Korean War veterans sometimes travel to North Korea, usually without incident. A group went in July to repatriate the remains of an American who’d died there during the war. They say the trip went fine.

5. Newman does not appear to be overtly political or to have a known record of human rights activism or religious evangelizing, the two practices that have gotten Americans detained by North Korean authorities. He is a retired technology executive with a master’s degree in education from Stanford. He’d reportedly taken Korean-language lessons to prepare for the trip.

6. It’s not clear which travel agency he was traveling with. A growing number of Beijing-based agencies have been cropping up that take Americans into North Korea.

7. Newman’s son said his father had a “difficult” discussion with his government minders about the Korean War. While political statements are obviously frowned upon by North Korea, the country has been hosting thousands of Western tourists for years. Newman would be far from the first Western visitor to raise sensitive political issues with his minders.

8. His son says he has a heart condition and a bad back. North Korea expert David Straub told NKNews.org, “The basic fact of the matter is that this gentleman is 84-85 yrs old, an elderly man, presumably not a threat in any way to North Korea, so this is, even by North Korean standards, an extraordinary thing.”

9. The State Department issued a blanket warning Monday against all travel to North Korea, the first of this level of severity since Americans began traveling there in 1995. A State Department spokesperson emphasized that the official warning cites a “chronic” threat to Americans of arbitrary detention. Two other Americans have been arrested in recent years, both of Korean descent and accused of conducting illegal Christian missionary work.

UPDATE 1 (2013-11-20): The New York Times provides a name and some additional information:

The veteran, Merrill Newman of Palo Alto, Calif., was taken from an Air Koryo flight on which he was to leave the country on Oct. 26, his son, Jeff Newman, the chief financial officer of a real estate company, said in a telephone interview from California.

“He was on a nine-day tour with a friend and two tour guides. He went through the normal visa process,” the younger Mr. Newman said. “Everything was going very well. They day before they were due to leave he had a meeting with his tour guide and without his companion.”

At that meeting, where at least one other North Korean aside from the tour guide was present, the Korean War was discussed, his son said. “That was the only hiccup,” he said. Mr. Newman’s traveling companion, Bob Hamrdla, who is not a Korean War veteran and lives in the same retirement village as Mr. Newman, assumed there must have been some misunderstanding from that meeting, Jeff Newman said.

 There has been no word of the whereabouts of Mr. Newman, who has a heart condition and a bad back, since he was escorted from the plane, his son said.

“All we would like is for whatever misunderstanding to be put aside and, on a humanitarian basis, he be able to leave the country and come home and be with his two grandchildren,” Mr. Newman said in the interview.

Mr. Newman’s detention has not been reported in the North Korean state-run news media.

In reaction to Mr. Newman’s detention, the State Department further tightened the United States travel warning to North Korea, making it clear that travel to North Korea was highly dangerous for American citizens who were likely left vulnerable to arbitrary arrest.

The updated warning, released on Tuesday, noted that “U.S. citizens crossing into North Korea, even accidentally, have been subject to arbitrary arrest and long-term detention.”

Mr. Newman, a retired technology executive, served as an infantry officer during the Korean War, and later earned a master’s degree in education from Stanford. He lives at Channing House, a retirement community, with his wife, his son added.

ORIGINAL POST (2013-11-20): Reuters reports that the DPRK may have detained another American tourist. According to the article:

North Korea may have detained an elderly U.S. man last month who entered the country on a tourist visa, Kyodo News Service said on Wednesday, citing an unnamed diplomatic source.

Kyodo, in a report from Beijing, said the possible detention could become another diplomatic bargaining chip for North Korea, which has held Kenneth Bae, a Korean-American Christian missionary, since November 2012. Bae has been sentenced by the Pyongyang regime to 15 years of hard labour.

The U.S. State Department echoed U.S. embassy officials in Beijing and Seoul who said they were aware of the reports but could not confirm them.

North Korea claims the man, who apparently is not of Korean descent, has broken the law, according to Kyodo. The man entered North Korea for sightseeing last month with a valid visa, Kyodo quoted the diplomatic source as saying.

Nolan Barkhouse, a spokesman for the U.S. embassy in Beijing, said: “We are aware of reports that a U.S. citizen was detained in North Korea, but we have no additional information to share at this time.”

I have been archiving information on Kenneth Bae here.

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