Archive for May, 2015

Chongryon chief’s son arrested over suspected DPRK mushroom imports

Tuesday, May 12th, 2015

UPDATE 1 (2015-7-17): Chongryon chief’s son pleads not guilty. According to Kyodo:

One of two men linked to the pro-Pyongyang group Chongryon have pleaded not guilty to illegally importing mushrooms from North Korea.

Ho Jong Do, a son of Ho Jong Man, who heads the General Association of Korean Residents in Japan (Chongryon), said the charges were totally wrong as their trial opened Thursday in the Kyoto District Court.

The other defendant, Kim Yong Jok, president of a Tokyo-based company affiliated with Chongryon, pleaded guilty.

The men imported about 3,000 kg of matsutake mushrooms produced in North Korea, worth around ¥7.6 million, via China in September 2010, prosecutors said.

Japan has banned imports from North Korea as part of sanctions against the country over its nuclear arms and missile development programs.

Japanese investigators have alleged North Korea aimed to obtain foreign currency by exporting the highly sought-after mushrooms.

ORIGINAL POST (2015-5-12): According to the Kyodo:

Police on Tuesday arrested three men, including the son of the head of the pro-Pyongyang group Chongryon, on suspicion of illegally importing a shipment of matsutake mushrooms from North Korea.

Masamichi Kyo, 50, whose father is Chongryon chief Ho Jong Man, runs a Tokyo-based company affiliated with the organization.

The investigation — carried out by Kyoto police and three other prefectural police forces — involved raids in March on sites related to Chongryon, also known as the General Association of Korean Residents in Japan.

The group has functioned for decades as North Korea’s de facto embassy in Japan in the absence of diplomatic ties between Tokyo and Pyongyang.

Kyo’s arrest could further complicate bilateral ties, given that the initial raid prompted North Korea to lash out, with Pyongyang declaring that talks with Japan would now be “difficult” to achieve.

Foreign Minister Fumio Kishida said Tuesday that police are “conducting their investigations based on law and evidence.”

A source close to Chongryon said Kyo is widely regarded as Ho’s bookkeeper, although he kept a low profile at Chongryon and only served in a senior post at one of the group’s local chapters in Tokyo.

The two other individuals arrested were Kim Yong Jak, 70, the president of the company Kyo works for, and Kazuhide Yamanaka, 63, a senior official at a related company.

The three are suspected of conspiring with two other men on Sept. 27, 2010, to import illegally via China some 1,800 kg of matsutake mushrooms from North Korea. The shipment was worth around ¥4.5 million.

“This is a false accusation,” Kyo said as he was escorted by investigators out of his condominium following his arrest Tuesday morning.

Officers quoted him as saying, “I will not cooperate as this is an unjustified arrest.”

The police suspect the mushroom shipment was part of North Korea’s bid to acquire hard currency, as Japan has maintained an embargo on imports from North Korea since October 2006. The measure is part of a package of sanctions by Tokyo on Pyongyang for its missile and nuclear tests.

The focus of the investigation is whether Kyo acted on the orders of the North Korean government.

Chongryon sources say Kyo served as an executive of the association’s Adachi branch, but he has not worked at the headquarters in Chiyoda Ward and was not a high-profile activist for the group.

That is why investigative sources say surveillance was “lax” on him, and Kyo was able to visit North Korea as his father’s proxy. A re-entry ban on Ho meant he stayed in Japan while his son traveled.

When the economic sanctions preventing Ho’s re-entry were partially lifted and Ho was able to visit North Korea last September, his wife and Kyo were already in Pyongyang when he arrived, investigative sources say.

Because investigators believe the mushroom deal was part of North Korea’s measures to secure foreign currency, they are now examining the transfer of funds between Chongryon and Pyongyang.

At around 6:40 a.m. Tuesday, about a dozen investigators carrying cardboard boxes entered Kyo’s condo in Adachi Ward.

About 30 minutes later, Kyo emerged, wearing a mask and a cap, looking down and surrounded by investigators.
Separately, Japan and North Korea are at loggerheads over stalled bilateral talks on Pyongyang’s abductions of Japanese nationals in the 1970s and 1980s.

Read the full story here:
Chongryon chief’s son arrested over suspected N. Korea mushroom imports
Kyodo
2015-5-12

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North Korea to attract foreign capital through foreign media

Thursday, May 7th, 2015

Institute for Far Eastern Studies (IFES)
2015-5-7

As North Korea struggles to attract foreign investment due to international sanctions, an argument is growing in North Korea that it needs to launch an investment charm offensive targeting foreign media.

Already skilled in socialist propaganda, North Korea appears intent on fully employing those skills in the attraction of investment, the essence of management in capitalism.

In the January 20th issue of the monthly Kim Il Sung University newspaper (vol. 1, 2015), an editorial was published entitled, “The Importance of Proactively Using Various Means to Attract Investment.” This editorial emphasized the importance of using the media in order to attract investment.

It argued that if the government invited esteemed members of the media when publicizing developments like a new investment environment or policy and the media reported on these events to their respective news agencies, it “could promote these developments widely at home and abroad through such special reports.”

Following this, the editorial advised that authorities select widely-circulated newspapers and magazines commonly read by investors and companies and submit to these publications news regarding things such as the progress of talks, the signing of contracts and agreements, the scale of businesses and related events.

It also suggested that authorities advertise in TV commercials during peak-viewing time. In the case of newspapers, it advised that they pay attention to their selling price, political inclination and religious nature when considering the daily, morning and evening papers.

While stating that maintaining relations with media outlets is important, the editorial also entreated that the government invite members of the press to investment-related events or inform them at the proper time regarding news of the Special Economic Zones (SEZs).

Furthermore, it argued that in order to effectively publicize investment opportunities, economic development zones themselves need to create homepages and make employees proficient in how to use the Internet and search for information that investors request in a timely manner.

At the same time, because “decadent and reactionary ideas and cultures can infiltrate, and information regarding investment targets can be carried away” through the Internet, the editorial did not forget to suggest that authorities only enable selected institutions and interested parties will be permitted to use the Internet.

In addition, in order to facilitate the exchange of information with investors, the editorial encouraged the government to introduce detailed procedures and methods for maintaining email accounts and to use programs like Excel for managing data and documents.

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Russia offers electricity for copper

Wednesday, May 6th, 2015

According to RBTH:

North Korea has offered to allow Russian participation in the development of the Onsong copper deposit, in exchange for Russia providing electricity to the entire east coast of the country.

“The Korean side proposed that Russia consider supplying electricity to the areas of Rason, Chongjin and Tanchon as well as the Wonsan-Mount Kumgang international tourism zone, with the costs of electricity supply covered with copper ore from the Onsong deposit in North Hamgyong Province,” the Ministry for the Development of the Russian Far East said in a press release.

The press note, which summed up the results of the meeting of the Russia-North Korea intergovernmental commission that was held in Pyongyang in late April, did not specify which companies would be involved in the project.

Russia and North Korea are expected to create a special working group to study the feasibility of electricity supply to the Korean peninsula. North Korea is one of the most power deficient countries in Asia with cuts in supply and load shedding being a regular occurrence even in Pyongyang.

Read the full story here:
North Korea offers Russia copper ore in exchange for electricity
RBTH
2105-5-6

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Russia – DPRK looking to build road border crossing

Wednesday, May 6th, 2015

According to RBTH:

North Korea and the Russian Far East will be connected by a pontoon bridge, under a wider road transport agreement signed between the two countries last week, Minister for the Development of the Russian Far East, Alexander Galushka said.

Russia has already commenced working on the project documentation for the construction the bridge at the Khasan border crossing point Khasan in the Primorye Territory the Ministry for the Development of the Russian Far East said Monday.

At the moment, a railway bridge over the Tyumen River is the only surface transport connection between the neighbours.

Read the full story here:
North Korea and the Russian Far East to be connected by a pontoon bridge
RBTH
2015-5-6

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New Satellite Control Center

Monday, May 4th, 2015

UPDATE 1 (2015-7-10): New Google Earth satellite imagery (2015-5-20) shows the completed Satellite Control Center:

 Satellite-Control-Center-2015-5-20

ORIGINAL POST (2015-5-4): On May 4, 2015, Rodong Sinmun reported that Kim Jong-un visited the “Newly-built General Satellite Control Centre”.

Imagery release on KCTV helped me identify the facility on commercial satellite imagery:

new-satellite-control-center

Side-view

GE-Satellite-Control-Center

This is one of several large construction projects in Pyongyang that I have had my eye on for some time (I thought it was a new theater or stadium).

The new satellite control center is located in the Pothonggang District of Pyongyang. The size of the mission control room is approximately 570 square meters. Other facilities in the building, according to the DPRK media, include a revolutionary history room, auxiliary display and control room, and optical observation room, E-library, lounge, conference room, offices, dining room and bedrooms.

Based on commercial satellite imagery, construction began sometime between 2014-4-13 and 2014-7-3, meaning that if completed, construction took nearly one year.

Pothonggang-control-center-before

 Pothonggang-control-center-after

This new control center may also be the administrative home of the National Aerospace Development Administration. Construction of the new satellite control center began shortly after NADA was publicly announced last year.

If completed, this new facility raises a question about the status of the older satellite control center in Ryongsong District at the Second Academy of Natural Sciences.

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