Archive for November, 2016

Pyongyang Folk Village (UPDATED)

Wednesday, November 30th, 2016

UPDATE 4 (2016-11-30): The most recent Google Earth imagery of the Folk Park demolition is posted below (2016-10-4). Three earlier images that were posted to Google Earth have all been deleted.

UPDATE 3 (2016-11-9): Yonhap has posted yet another image of the Folk Park demolition that briefly appeared on Google Earth, but has since been deleted.

UPDATE 2 (2016-6-28): Yonhap has published imagery from Google Earth showing the demolition of the park has begun. You can read the article here (in Korean). For unknown reasons, this imagery was only briefly posted to Google Earth. It has since been deleted.

UPDATE 1 (2016-6-14): Yonhap reports that the Pyongyang Folk Park is being torn down. According to the article:

North Korea’s leader has ordered the dismantling of a folklore theme park in Pyongyang in a bid to erase the remaining legacy of his uncle Jang Song-thaek who was executed in 2013 for treason, a source familiar with the reclusive country’s affairs said Tuesday.

The North’s leader Kim Jong-un is believed to have ordered his officials to close the Pyongyang Folklore Park which opened in April 2012, the observer said. Work on the park began late 2008 under the instruction of the incumbent leader’s late father Kim Jong-il.

Located in the foot of Mount Taesong in the North’s capital, the 2 million square-meter theme park is known to have been set up and spearheaded by Jang, and features propaganda structures as well as a folk village.

“Since early last month, the sound of explosions has been heard inside the park,” the source said. “Rumor has it that the folklore park is being dismantled.”

Another Pyongyang watcher said that the North’s leader is said to have expressed negative views that the park reminds him of the relative he ordered killed.

“The closure of the park appears to reflect Kim’s uneasiness about the possibility that traitors can show up at any time even as he has consolidated power through the reign of terror,” the source added.

In 2013, Kim ordered the execution of his once-powerful uncle Jang, accusing him of treason. The move is seen as a step to reaffirm the leader’s power which he inherited in late 2011 after the sudden death of his father.

The North’s leader has strengthened his reign of terror by purging and executing scores of party and military officials.

My sources tell me that the park is definitely closed, but cannot confirm anything else in the story.

You can read the full story here:
N.K. leader orders theme park closure to erase executed uncle’s legacy: source
Yonhap
2016-6-14

ORIGINAL POST (2011-12-6): Back in April 2010 I wrote about how the DPRK had launched the construction of a “Folk Village” (평양민속공원) at the foot of Mt. Taesong in eastern Pyongyang. In May of 2010 I posted new satellite imagery of the park’s construction.

Last weekend I was discussing this facility with some friends, and today KCNA posted images of the park’s construction (all below)–so I thought it would be time for another update.

Using North Korean television and print images (plus a little common sense) I have been mapping out all of the attractions in the new folk village:

The Google Earth satellite image above is dated 2010-10-6, nearly a year after the project was announced on North Korean television in December of 2009.  Despite the image being taken nearly a year after the park’s construction began, I have identified: The Ryugyong Hotel, Pyongyang Ice-Skating Rink, Sosan Handball Gymnasium, Mangyongdae Children’s Camp, Monument to the Party Founding, Grand People’s Study House, West Sea Barrage, Arch of Triumph, Tower of the Juche Idea, Chollima Monument, Okryu Monument, Tangun’s Tomb, an ancient dolmen, and a walking path shaped like the Korean Peninsula.  There are still quite a few places to label, so contributions are welcome.

Here is what KCNA recently had to say about the project (2011-12-6):

The construction of the Pyongyang Folklore Park is progressing apace in Korea.

Frame assembling and interior projects have almost been finished in the park construction.

The park, which is being built in a large area at the foot of Mt. Taesong, will showcase the history of the nation and miniatures of historic relics, structures built in recent decades, folk village, folk amusements and Mts. Paektu and Kumgang.

Visual aids showing the 5 000-year-long Korean history will be installed in the quarter of history at the entrance of the park.

More than 130 full or reduced-sized historic relics, including the mausoleums of King Tangun and King Tongmyong and the monument to the great victory in the battle in northern area of Korea, are taking shape in the quarter of historical interest.

The present era quarter will include miniatures of the Tower of the Juche Idea, Party Founding Memorial Tower, West Sea Barrage, Arch of Triumph, Chollima Statue and other monuments and edifices.

The folk village quarter is full of models of palaces, government offices and dwelling houses dating back to Koguryo Kingdom (B.C. 277-A.D. 668), Koryo Kingdom (early 10th century-late 14th century), Palhae Kingdom (698-926) and Ri Dynasty (1392-1910).

Restaurants serving cuisines peculiar to different localities are also being built there.

The visitors will be able to enjoy views of Mts. Paektu and Kumgang and folklore amusements like archery, ssirum (Korean wrestling), seesawing, swinging and yut-game in the park.

Although the above satellite image is dated 2010-10-6, the recent photos from KCNA (2011-12-6) show some progress has been made:

 

 

 

UPDATE: According to a later article published in the Choson Ilbo (2011-12-8), two of the temples in the 5th picture above  are replicas of  Dabotp and Seokgatop in Gyeongju’s Bulguksa Temple.  These are cultural relics of the southern Silla Kingdom, not the northern Koguryo Kingdon to which the DPRK frequently claims to be the cultural inheritor.

There is only one other “Folk Village” in the DPRK of which I am immdeiately aware, and it is in Sariwon, North Hwanghae Province. See it in Google Maps here. I “helped” with its construction when I visited the DPRK in 2004. I did not really help, but the photo op for the North Korean media made it look like I did.

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Where do North Korea’s nuclear scientists go shopping?

Sunday, November 27th, 2016

yongbyon-market-2016-8-21

Pictured Above (Google Earth): A 2016-8-21 image of the general market (종합시장) at the Yongbyon Nuclear Research Center residential complex.

Needless to say, security at the Yongbyon Nuclear Research Center is tight, and not much is known (publicly anyhow) about the lives of the people who live there. However, with commercial satellite imagery (and a little know-how), we can get a glimpse of life inside the security perimeter.

No doubt the residents of the compound live in “gilded cages,” enjoying above-average standards of living but under greater control and surveillance. However, in June of 2003, the year that the DPRK legally converted decades-old “farmers’ markets” to “general markets” (a change that involved not only a change in name, but also a change in administration), the DPRK constructed a new general market for residents of the Yongbyon Nuclear Research Center which appears to have replaced the smaller outdoor farmers’ market.

yongbyon-market-2003-6-2

Pictured above (Google Earth: 2003-6-2): Construction of the new general market outlined in yellow. Structure of the former farmers market that was torn down in orange.

The market appears to be composed of four warehouses each with a floor-space of appx 550 square meters (2,200 square meters total). It is possible that each building specializes in some form of commerce (food, household goods, etc). In some of the historical imagery of the market we can see people outside meandering between the buildings.

It is interesting to think that there are vendors here who are probably not related to the nuclear program. No doubt these individuals would have to be granted security clearances to work in this market.

But perhaps most notably about the residential quarter, we can see 15 new apartment buildings being constructed over the last couple of years.

yongbyon-housing-2014-9-24

(Google Earth: 2014-9-24)

yongbyon-housing-2015-11-9

(Google Earth: 2015-11-9)

yongbyon-housing-2016-8-21

(Google Earth: 2016-8-21)

I do not know if these new apartments are for scientists or janitors, but their construction marks a not-so-subtle signal that employment in the area is on the increase.

Here is coverage of my work on this post in RFA and KBS (English, Korean).

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North Korean leader visits fishing station on the East Sea, emphasizes raise in catch

Tuesday, November 22nd, 2016

Institute for Far Eastern Studies (IFES)

Kim Jong Un visited a fishing station in the East Sea (Sea of Japan) area, and ordered that the catch be raised. Under leader Kim Jong Un, phrases like ‘the Golden Sea’ and ‘Socialist scent of the Sea’ have become prominent. The Korean Central News Agency (KCNA), North Korea’s official wire service, reported that Kim visited the May 27 and August 1 Fishing Stations and conducted on-the-spot guidance.

The report stated that “Workers in the people’s army fishing sector and fishermen fulfilled their annual target set for them by respected comrade Kim Jong Un by November 7th by waging a fishing battle. They achieved dazzling success in catching 10,000 tons of sailfin sandfish, and continue to raise the amounts caught.”

Kim, first visiting the May 27 Fishing Station, indicated his satisfaction, saying, “I put many issues aside to come and convey this extraordinary news of success in the fishing industry to all the people. . . . Seeing the fishing station and apartments unfold before me like a picture as I was coming here was worth the trip. The East Sea area has a town in a state of ecstasy.”

The KCNA also reported that the May 27 fishing station had been built on the orders of Kim Jong Un, who also visited the site while it was under construction back last year in March. “It is another pride of the Songun era, with all the necessary and cutting edge facilities needed for the production of aquatic products and for the lives of fishermen.”

Having seen the fishing station, Kim said: “The People’s Army has shown how the Party’s policy, which states that using the mental energy of people one can create something from nothing, can be achieved. . . . The docks of the East Sea overflow with the smell of fish. I feel pleased to think of the parents who sent their children to guard the fatherland feeling happy when they smell this.”

Following this, Kim visited the August 1 Fishing Station, and said: “Seeing the fish piled high like a mountain for enough supply until next September I feel very happy, and feel all my fatigue leave me. . . . The organization at this facility is most satisfactory.” The Fishing station supplies orphanages, kindergartens, schools and nursing homes across the country with fish.

Kim Jong Un also discussed achievements in resolving the following problems: scientific fishing that enables fish to be caught regardless of the season; achieving a high standard of expertise, modernization and use of information technology in production and operations, introducing modern fishing methods, and increasing the catch; guaranteeing that fishing happens on more than 300 days, not allowing the seasons to keep the seas empty; equipping facilities with high quality refrigeration; taking a deep interest in the lives of fishermen; and stimulating energetic competition between fishing stations and individual boats.

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US-China Commission releases annual report

Friday, November 18th, 2016

The 2016 report of the US-China Economic and Security Review Commission has been published.

You can read it here.

The section related to North Korea can be found here (Chapter 3, Section 4)

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Uptick in North Korea’s Renewable Energy Production

Thursday, November 17th, 2016

Institute for Far Eastern Studies (IFES)

In North Korea, there are now three solar-powered ferries that sail the Taedong River: the Okryu 1, the Okryu 2, and the Okryu 3.

The North Korean government’s wire service, the Korean Central News Agency (KCNA), reported on November 4, 2016: “The ferries sail between Kim Il Sung Square and the Tower of the Juche Idea, guaranteeing that citizens can travel during the rush hour. . . . These solar powered-ferries provide ferry services both to workers and for guests from home and abroad in the form of tourist and chartered services.”

According to KCNA, the three ferries were built at Ryongnam Shipyard, each weigh 45 tons, have a maximum speed of 6 knots, and can take up to 50–60 passengers.

According to Yun Hyok, the captain of Okryu 1, “the ferry is powered by the energy of sun light . . . the driving system was created with the energy and skill of our engineers. The ship can run for around 8 hours when fully charged.”

Since the 1990s, North Korea has expressed determination to achieve energy independence, with Kim Jong Un pointing to resolving electricity difficulties as being a priority back in 2011. Subsequently, in 2013, a law was introduced to encourage research and the production of renewable energy, and at this year’s Seventh Party Congress it was announced that two hydropower stations had been opened. The importance of energy independence was also emphasized at the congress. It has also been confirmed that North Korea has been pursuing a long-term plan to raise the amount of energy produced from renewable sources to 5 million kW. In order to achieve this target, the plan envisages by 2044 that wind power will provide 15 percent of total energy demand.

This plan was discovered through internal materials on display at the Natural Energy Research Centre, formed in November 2014 as a result of an order issued by Kim Jong Un to develop energy resources that do not pollute the environment.

An overseas visitor to the Natural Energy Research Centre said that “the Centre in Pyongyang has a diagram of the 30-year plan to develop renewable energy with the title ‘The dream and ideal of Natural Energy Science development’. . . . The materials there also indicate plans to train specialists in the science of ‘natural energy’ development, and plans related to the development and trial sites for wind power, geothermal energy, and solar thermal energy.”

Such plans mean that North Korea plans to develop renewable energy, in addition to building hydroelectric power plants and/or using Chinese/Russian power to deal with energy shortages. In other words, they intend to attempt to reduce their consumption of fossil fuels and develop renewable energy. Since Kim Jong Un’s rise to power, a variety of measures have been put in place and investments made to broaden the use of renewable energy.

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China building new DPRK border crossing in Jian

Thursday, November 17th, 2016

While the Dandong-Sinuiju “Bridge to Nowhere” gets plenty of coverage as a symbol of a growing rift between China and the DPRK, the two countries are working to improve two other vehicle crossings along their shared border. You can see map of these two border crossings below.

manpho-rason-overview

The new Rason Bridge (Quanhe-Wonjong Bridge) has finally been completed in the north-eastern most corner of the DPRK.

rason-bridge-2016-3-19

In the Google Earth image above (dated 2016-3-19) we can see the new four-lane bridge taking shape next to the older two-lane bridge it is replacing. According to more recent satellite imagery available at Planet.com, the bridge is actually completed. This new bridge was announced in June 2014.

But the border crossing that has been off most people’s radar is the new Manpho-Jian border crossing under construction right now.

jian-border-2016-9-29

Pictured above (Google Earth): Construction of the new border crossing in Jian, China. Image date 2016-9-29. The orientation has been reversed so that north is actually at the bottom of the picture.

You can read some background information of this new border crossing in an article I wrote for 38 North in May of 2015. I also just published some follow-up information in Radio Free Asia yesterday.

This border crossing is interesting because it is the reverse scenario of what is taking place in Dandong. Here the North Koreans built a new Yalu River Bridge and Customs House (completed in 2012), but the Chinese have only begun construction of reciprocal border infrastructure this year.

The Chinese also built a “Free Trade Zone” at the site of the new border crossing (similar to the Goumenwan Trade Zone in Dandong) in 2012-2013, though it has not yet opened for business. Additionally buses of Chinese tourists are crossing the border to visit Manpho in the DPRK’s Jagang Province, but it is unclear if any regular commercial traffic has already started using the route. Despite the light use of the new bridge, the new border has not officially opened (scheduled to open in the spring of 2017).

Looking at the new satellite image above we can see that a new “gate-shaped” customs house is under construction at the terminus of the new Yalu/Amnok River bridge. On either side of the customs office new buildings are under construction. Just north of the bridge we can see the completed “free trade zone” (in the center of the picture) and what appears to be a shipping warehouse nearing completion (on the right side of the picture).

UPDATE: In YTN coverage of my report in RFA, they offered recent pictures of the new Chinese border buildings in Jian:

jian-bldg-1-ytn

jian-bldg-2-ytn

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North Korea exporting sand, gravel and coal to China from Sinuiju

Tuesday, November 15th, 2016

Benjamin Katzeff Silberstein

An interesting example of how the transition from state-owned to private enterprise impacts the workings of certain firms. Daily NK:

North Korean ships from Sinuiju, North Pyongan Province are reportedly exporting in excess of 100 tons of sand and gravel into China each day.
“Shipping firms from Sinuiju are earning foreign currency through contracts with private Chinese construction businesses. The North Korean authorities are supporting the operations after receiving orders to finance the export of coal and sand to China. They are also providing wages and food for the workers,” an inside source from North Pyongan Province told Daily NK on November 11.
Additional sources in North Pyongan Province corroborated this information.
The source added that although the city’s shipping industry was originally a state enterprise, that is no longer the case. The industry is now run by private enterprises that deal with the domestic and Chinese markets. When the operations were state owned, there were chronic shortages of capital and sailors were forced to use sub-standard vessels. The regime’s new policy – to let the industry rehabilitate itself through benign neglect – has allowed the businesses to revitalize themselves. By exporting sand across the Yalu River into China, these businesses have earned enough capital to purchase better vessels. A number of enterprises and the associated infrastructure has grown as a result.
“As the volume of sand exported continues to rise, the shipping companies are inducing more service providers and factories to participate in the industry. The Anju Country 105 Sand Factory collects sand from the Chongchon River and transports it by way of the Yalu River to the shipping firms,” the source added.
When asked about the scale of the trade, she noted, “Sinuiju Harbor sees a daily influx of Chinese boats that carry away more than 100 tons of sand and gravel. Because exports are continuing to climb, the shipping firms are using the capital to enter new industries such as coal export.”
The North Korean enterprises see sand as an inexhaustible natural resource, the source explained, adding, “The more we sell, the better quality sand we can bring in. The enterprises are doing quite well for this reason. The factory cadres are accumulating vast sums of money, and continue to look for ways to increase their profits.”
The flourishing business has also improved prospects for workers. Laborers in the sand and gravel collection factories can earn enough money to put food on the table for a family of four – with food provided to them plus approximately 50,000 KPW per month (U.S. 6.14) for extras.
“The authorities are also using the opportunity to generate propaganda about the generosity of ruler Kim Jong Un,” the source asserted.
The revitalization of the sand collection industry is a positive development from the point of view of the authorities, as all Yalu River sand enterprises are first and foremost responsible for the supply of Kim Jong Un’s pet construction projects, such as the Ryomyong Street Project.
“The authorities can simply sit back and relax as they receive money, supplies, and credit for the success of the sand business. This reveals that the solution to North Korea’s problems is freedom of the market,” she added.
As exports continue to increase, the donju (North Korea’s nouveau riche) have expanded the scope of their interests and investments. “First, they purchase a large boat. Next, under the pretense of being a shipping business, they start to branch off into other industries to make more money. The factories give the donju the authority to do the trading and receive 30% of the profits in return,” the source concluded.
Full article:
NK exports 100 tons of sand, gravel, & coal daily from Sinuiju Harbor
Seol Song Ah
Daily NK
2016-11-15
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The social consequences of re-forestation efforts in North Korea

Tuesday, November 15th, 2016

Benjamin Katzeff Silberstein

This post is primarily for my own archival purposes, but hopefully others can find it useful too. It gathers four articles that deal with the social consequences of re-forestation efforts in North Korea. I’ve dated it to the latest among these four articles.

Cutting down trees is punishable by death, according to a 2016-decree. NK News:

The North Korean state has been warning citizens who hamper forest restoration and destroy natural habitats that they might face the death penalty for their crimes, photos obtained by NK News this month and taken last year have revealed.

The source could not say where in the country photos were taken, due to the sensitivity of obtaining the material.

The proclamation listed recommended and prohibited activities and was released by the DPRK’s Ministry of People’s Security under the National Defense Commission on March 17, 2015.

The punishment applies to all organizations and companies as well as residents.

“[The promulgation] clamps down, arrests and legally punishes those who violate [the rules], regardless of post position, distinguished service, and affiliation,” the Ministry of People’s Security said in a written statement.

“Someone causing forest fires or cutting down trees indiscriminately and illegally in specially protected forest areas will be punished ‘carrying a maximum penalty of death.’”

The People’s Security Ministry urged violators to confess within one month, saying those that do would be “treated leniently.”

The announcement also alluded to a feud between locals and the law enforcement tasked with protecting forests.

“Don’t ever protest against and assault officials in charge of supervising and controlling the enforcement,” the Ministry of People’s Security warned. The authorities said the criminal would be caught in the act and face “severe legal punishment.”

Full article/source:
Exclusive: N.Korean warning threatens deforesters with execution
Dagyum Ji
NK News
2016-11-15

Re-forestation efforts are often much more difficult to implement in practice than to formulate in theory:

North Korea has been
pushing forward with reforestation efforts in an attempt to produce visible
achievements ahead of the 7th Party Congress in May, but those who have been
mobilized for the labor-intensive projects are complaining profusely, realizing
that the campaign will fail to produce the expected results.

“On Arbor Day (March 2), the grounds still
hadn’t thawed from the winter cold, so no matter how hard you try, the trees
aren’t able to secure their roots,” a source from North Hamgyong Province told
Daily NK on Wednesday. “There’s not enough manpower to dig through the frozen
ground, and the tree and forest management offices are all for show. So from
the initial planting stage, we’re unable to find healthy saplings to plant.”

Sources in Ryanggang Province and South
Hamgyong Province corroborated this news.

“On top of that, those from above are
pushing the citizenry to plant tens of thousands of trees in time for the
‘70-Day Battle’, so some people find tree segments without roots and just place
them in the soil, before reporting them as progress made,” he added. “You can
even see people who don’t have the money to buy these saplings, going out at
night to uproot those planted elsewhere and transferring them to new areas that
have been designated for forestation that month.”

North Korea has for many years pushed for
reforestation in the spring with all-out campaigns, but the results have been
negligible so far, according to the source. This is because the majority of the
trees planted each year are unable to survive due to poor soil conditions and
problems with sapling health. Even those that manage to survive do not last
long in the absence of proper care.

Full article/source:
Another year, another misguided attempt at reforestation
Daily NK
2016-04-07

And plots used for food planting are often lost to re-forestation efforts, as the state claims the land:

As part of leader Kim Jong Eun’s efforts for reforestation, North Koreans cultivating small plots on roadsides
or mountain slopes have been ordered to plant trees in those areas and dispense with cultivation of the land in four years time.

“In time for national mobilization for land
management, forest protection agents announced at inminban [people’s unit]
meetings that residents using individual plots near the road or on the slopes
of mountains will have to manage trees planted there while cultivating the
land,” a source from Yangkang Province told Daily NK on Monday.

He added, “The major problem here is that they were ordered
to abandon that land after four years and stop farming there. This has seriously upset a
lot of people.”

Following Kim Jong Eun’s visit to Pyongyang’s
Central Tree Nursery late last year, orders to plant trees in individual plots
were handed down nationwide. However, many chopped down trees that were impeding farming practices, to which the state responded by slapping a ban on cultivating the land after the trees reach four years of maturity, according to the
source.

Despite the mandate, some residents still weed out the seedlings, meaning that for at least the month of April, the forest protection agents, of whom numbers continue to rise, will “basically have to live and work in the mountains,” the source said.

Still, the source speculated the number of those daring to get rid of trees will not be particularly high. This is because Kim Jong Eun’s emphasis on reforestation as an issue of top priority implies serious repercussions for anyone that goes against related orders. “Some have even said weeding out
planted trees at a time when the entire nation is busy with reforestation would
be like grabbing brushwood and throwing yourself into a fire,” he said.

Full article/source:
Plots for Food Lost to Reforestation Efforts
Kang Mi Jin
Daily NK
2015-04-08

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New Construction and Refurbishment of Factories Producing Consumer Necessities

Tuesday, November 8th, 2016

Institute for Far Eastern Studies (IFES)

Seemingly taking an interest in the welfare of the public, Kim Jong Un, Chairman of the State Affairs Commission, before his visit to a soap factory, has spent the previous month visiting a medical device factory, spring water bottling facility, a ‘sovereign’ factory, and the Ryugyong Dental Hospital. On October 29, Korean Central News Agency (KCNA) reported that Kim Jong Un also toured the newly constructed Mount Ryongak Soap Factory. Of late, newly constructed or refurbished factories producing consumer necessities have featured prominently in the North Korean media.

According to the KCNA report, Kim Jong Un said while on his inspection tour that “our people must be provided with abundant and happy lives without envy. . . . Continuing to put much energy into areas that help in the creation of the material and technical foundations of industry that contribute to improving the lives of the people, the people must fully benefit from such efforts.” The KCNA report also stated that Kim said “in a few months that felt like just a couple of days ago I was here looking at a construction site, and now a large, modern, impressive facility has been fully built.”

Last June, Kim Jong Un visited the Mount Ryongak Soap factory construction site, gave it its name, and directed that it should be completed by the anniversary of the Worker’s Party foundation (October 10th). In addition, he visited the Mount Ryongak Spring Water Bottling Facility in September and ordered for normalizing increased production standards, delivering spring water produced at the right time, and standardizing and varying the color and shape of glass bottles. It was at the direction of Kim Jong Il that the Mount Ryongak Spring Water Bottling Facility opened in 2007, to supply the people of Pyongyang with water from the mountain, while Kim Jong Un is credited with having it refurbished and modernized.

Kim Jong Un also gave on-the-spot guidance at the Mangyongdae Revolutionary History Sovereign Factory. While there he said “I like the fact that we are using our own raw materials and products to make zippers. The Party’s directive to domesticate production has achieved great results.” Completed in December 1979, the factory’s products were praised by Kim Jong Il at the August 1984 Pyongyang Light Industrial Products Exhibit. In addition, KCNA reported that Kim had instructed that the factory be refurbished and modernized.

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Rice prices in North Korea fall due to harvest, imports

Monday, November 7th, 2016

Benjamin Katzeff Silberstein

Says the indispensable Daily NK:

Rice prices in some regions of North Korea have reportedly fallen by approximately 1000 KPW over the last few days. The price of rice has generally hovered around 5000 KPW per kilo since Kim Jong Un took power, but recently dropped to 3500 KPW due to an increase in supply from the harvest season and rice imports.
A Daily NK source in North Hwanghae Province reported on November 3 that the price of one kilo of rice was about 4800 KPW in the middle of last month, but has now fallen to 3500 KPW over the last few days.
“People are happy about the price drop,” she said.
“Although rice prices in the markets around the northern regions (North Hamgyong Province, Ryanggang Province) are continuing to average 5000 KPW per kilo, it’s being sold at 3500 KPW per kilo in the rural areas of North and South Hwanghae Provinces. It’s believed that this was caused by a fairly good harvest in the agricultural zones of the provinces of North and South Pyongan and North and South Hwanghae, which was better than last year.”
In North Korea, rice prices fluctuate in accordance with grain production. During the harvest season, prices tend to drop when increasing volumes of rice enter the market, most of which occurs via embezzlement channels set up by officials.
“During the harvest season, officials in charge of the farms embezzle a proportion of the rice for themselves and sell it at the market, which seems to be the reason for the recent decline in rice prices,” the source said.
In addition, public sentiment towards the change in prices also has an impact on prices. Rumors have been spreading among the residents that large volumes of rice will be donated by UN agencies, prompting vendors to try and sell their own product more quickly.
There has also reportedly been an influx of imported rice into the market, further driving up competition.
Addressing this phenomenon, VOA (Voice of America) reported that since the Kim Jong regime came to power, North Korea imported the largest volume of rice from China on record (on monthly basis) in September. According to an analysis of recordings from the Chinese General Administration of Customs by Kwon Tae Jin (director of the Center for Studies on North Korea and Northeast Asia at the GS&J Institute), the volume of Chinese grain imported into North Korea in September reached a total of 18,877 tons.
“Upon seeing the imported rice being sold in the market, local merchants have dropped their prices to try and sell all of their product. The wholesale dealers and vendors in the rice trade all seem a bit confused by the rapid fluctuations in price,” added a source in South Hwanghae Province.
However, this phenomenon may only be a temporary occurrence, as rice prices in other regions remain relatively stable. As the rice influx circulates among the other regions, it is thought that prices will stabilize.
Cho Bong Hyun, the deputy director of IBK Economic Research Institute further commented that, “the regime seems to be distributing large amounts of imported rice to placate the population, but there are issues with the sustainability of this practice. Unless the total volume of incoming rice remains steady, the price declines seen will not be sustained for long.”
Full article:
Rice prices fall to 3500 KPW per kilo due to harvest season and import spike
Seol Song Ah
Daily NK
2016-11-07
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