Archive for February, 2018

Kim Jong-un’s new model farms

Thursday, February 8th, 2018

In the most recent issue of Kumsugangsan, the North Koreans highlighted the renovation work of Poman-ri (one of the eight scenic vistas of the songun era).

Here is the article:

A quick check with the imagery on Planet Labs does indicate that there was a new health complex built (normal at the town level, but only specially allocated at the village level), new apartment buildings constructed, and a school appears to have been renovated (also very common in North Korea these days).

Pictured above (Top): Poman-ri as seen on Google Earth in 2015-8-26 (Bottom): Planet imagery from 2018-2-3 showing renovated area.

This is not the first farm to be “renovated” in the Kim Jong-un era. It is also not the largest village to be renovated (so far it appears to be one of the smallest). So what is going on here? North Korea appears to be in the process of constructing new “model farms” in the KJU era. Previous “model farms,” such as Chongsan-ri in Nampho, are primarily associated with revolutionary works of Kim Il-sung or Kim Jong-il. These new farms, however, are intended to spearhead Sci-Tech achievements under Kim Jong-un which can be replicated across the country.

Jangchon-ri  (AKA “DPRK-Libya Friendship Jangchon Co-op Farm”) on the outskirts of Pyongyang appears to have been the first of Kim Jong-un’s new model farms. Consequently, it has received the most attention in the official media; it has been visited at least twice by Kim Jong-un; and it receives regular foreign tourists, journalists, and even foreign NGOs.

Images via Google Earth. Top dated 2014-3-13 (before). The bottom is dated 2015-5-20 (after)

KCNA reports from Kim Jong-un’s first visit to the farm after it was renovated (2015-6-30):

Kim Jong Un, first secretary of the Workers’ Party of Korea, first chairman of the DPRK National Defence Commission and supreme commander of the Korean People’s Army, gave field guidance to the Jangchon Vegetable Co-op Farm in Sadong District, Pyongyang City, whose looks have undergone a radical change to be a model and a standard of the socialist rural cultural construction.

He set forth a task to build the farm into an exemplary farm and icon of greenhouse vegetable production when providing field guidance to the farm associated with the immortal history of leadership given by President Kim Il Sung and leader Kim Jong Il in June last year. He guided the layout for the construction of Jangchon area several times and took benevolent measures for settling the issues arising in it.

He went round the mosaic depicting smiling Kim Il Sung, a monument to the revolutionary activities of Kim Il Sung and Kim Jong Il, the room for the education in the revolutionary history and the room dedicated to the history of the farm.

He recalled that the farm developed into a dependable producer of vegetables under the warm and meticulous care of Kim Il Sung and Kim Jong Il who made indefatigable efforts to the last moments of their lives to provide the Pyongyang citizens with fresh vegetables all the year round.

He went round the hall of culture, science and technology disseminating center, Jangchon health complex, modern dwelling houses and other places to learn about the construction in detail.

He praised the farm for building the hall of culture as well as a national art theatre so that the farmers may fully enjoy a cultural and emotional life and constructing a nice park and a leisure ground having a volleyball court, a swimming pool, a roller-skate ring and a fishpond.

He was satisfied to see the library, e-reading room and technology study room in the science and technology disseminating center and modern equipment in the soil analysis room and the room for examining damage done by insects.

Appreciating the successful construction of modern dwelling houses, in particular, he was pleased that the farm carried out the party’s policy of making an effective use of natural energy and turning the village into an orchard by equipping each house with solar water heater, solar cells and a methane gas supply system and planting fruit trees around each house.

He went round mud-walled plastic sheet greenhouses and arch-style chain greenhouses to learn in detail about the vegetable production and management of the farm.

He enjoyed a bird’s-eye view of the farm from the observation deck.

He praised the Pyongyang City for working an eye-opening miracle in the socialist rural cultural construction as required by the party and being able to proudly greet the grand festival in October.

He extended thanks in the name of the Party Central Committee to farmers of the farm and officials and other working people in Pyongyang City for making a positive contribution to turning the Jangchon area into a spectacular farm reminiscent of a rural city as required by the party.

It is the resolution and will of the party to bring about a radical turn in the rural cultural construction with this farm as an example and torch, he said, giving Pyongyang City an instruction to push ahead under a plan with the work to spruce up well the farms on the outskirts of the city on the basis of the successes and experience already gained.

He expressed expectation and belief that Pyongyang City would take the lead in the drive to implement the behests of the leaders and uphold the party policies in the future as a political, economic and cultural hub of socialist Korea having the mission to hold aloft the banner of the three revolutions-ideological, technical and cultural.

He was accompanied by Hwang Pyong So, Choe Ryong Hae and Ri Jae Il.

The words in bold above indicate the types of facilities that are to be constructed at all of the new model farms. These types of facilities are already common at the city- and town-level, but still relatively rare at the village level. It would also be interesting to know if this farm (and other similar model farms) operate under different agriculture policies–such as de-facto family plots, or perhaps some flexibility to make agricultural decisions on the spot. Time will tell.

These types of projects are typically rolled out at the provincial level, so other than Jangchon-ri (Pyongyang) and Poman-ri (North Hwanghae), what other model farms can we point to that are being renovated under this policy?

1. Thaesong-ri (Nampho): This farm was featured on KCTV on 2017-9-21, and miraculously it has not been deleted by YouTube). KCTV described the village as a model village with new facilities that are pleasure to live and work in.

I have previously mentioned this village in Radio Free Asia.

2. Sokha-ri (North Phyongan): This farm was featured on KCTV on 2018-1-9, but YouTube has since deleted the material. Shame on them.

3. Sinchang-ri (South Hwanghae): This farm was featured on KCTV on 2017-9-20. This village has actually undergone at least two rounds of renovations. I believe the first round was done because the village is next to a popular road artery (North Korea has long been cleaning up villages long the main roads). The second round of renovations is due to the new model farm policy under Kim Jong-un.

Pictured above (Top): 2006-12-25 (Middle): 2014-3-20–showing completed first renovation (Bottom): 2016-10-23–showing completed second renovation in the new model farm style.

4. Jikha-ri (North Hamgyong):  This was also featured on KCTV on 2017-11-5, but has also been deleted by YouTube. I previously pointed it out to RFA on 2016-6-22.

Image above (Top): 2015-9-20 (Bottom): 2016-5-7–showing that the village is under renovation.

5. Phyongsu-dong (South Hamgyong): According to imagery on Planet.com, renovation of this farm has been completed, but I have not see it appear in the North Korean media to date. I previously mentioned it in RFA here.

6. Songchon-dong (Kangwon): This farm renovation has yet to appear in the official media (as far as I am aware). I previously reported in RFA that is sits just outside the security perimeter of Kim Jong-un’s Wonsan compound:

Image dates (Top): 2016-2-26 (Middle): 2017-2-14 (Bottom): Planet image from 2018 showing construction continues to progress.

This is not the only village to be renovated in Kangwon. However, I believe it is the only renovation project in the province related to this new series of model farms. Another village in south Kangwon Province, Thaebek-ri (38.574028°, 127.673046°), has also been renovated in the last few years, and several other farms in Kangwon were renovated as part of the Sepho Tableland Project.

Below is the information that remains TBD.

1. Manbok-dong (Rason): This area in Sonbong was formerly named Paekhak-ri, and it was the site where the North Korean government constructed new housing following floods in the summer of 2015. I could be wrong, but I believe that the post-flood housing is being pragmatically named as the new model farm in the city. However, I could be wrong. I searched for other village renovation in Rason on Planet Labs imagery and Google Earth, but did not find anything significant.

 

2. South Phyongan: I am still unsure which village in South Phyongan will be designated as the model farm to be built in this new style. I reported in RFA that lots of housing around Pyongyang Airport was being renovated back in May 2017, some of which is in South Phyongan, but none of these housing projects seem to match the new model farm design. According to a later KCTV report on 2017-11-20 (before it was deleted by Youtube), the Ministry of Coal Mining (석탄공업성), Ministry of Forestry (림업성), National Tourism Bureau (국가관광총국), and the Korea Oceanic Company (조선대양총회사) built new housing in the Pyongyang International Airport District. 1,000 homes were built earlier than scheduled and work was continuing on the remaining houses. However, it is possible that construction on the province’s new model farm has not yet begun in this province.

3. Jagang Province: I have searched the North Korean media, Google Earth imagery, and Planet imagery, but have not seen where construction on a new model farm has begun.

4. Ryanggang Province:  I have searched the North Korean media, Google Earth imagery, and Planet imagery, but have not seen where construction on a new model farm has begun.

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Advance payments in the Pyongyang housing market

Tuesday, February 6th, 2018

By Benjamin Katzeff Silberstein

Daily NK reports an interesting trend on the Pyongyang real estate market (or is it a countrywide phenomenon?) of construction companies selling apartment units before construction is finished, requiring what to me sounds like a regular deposit. First construction companies require the equivalent of $10,000 for the initial phase, and later, for interior work, at least another installment of the same amount.

I’m not sure this is an entirely new system or phenomena in the North Korean housing market, which, like virtually all spheres of the economy, has been increasingly guided by market mechanisms since the late 1990s. Nevertheless, the trend is interesting for several reasons. For example, advance payments suggest a trust in the system itself, despite a lack of transparency and formal rules. It’s unclear what would happen to customers who have made advance payments on apartments if construction doesn’t come through, but since the real estate market is still formally illegal, there is likely no judicial mechanism for people to demand their money back. It’s also unclear how widespread these practices are – obviously, most North Koreans can’t put up $10,000 for a new apartment.

Full article at Daily NK:

Real estate companies in Pyongyang are pushing ahead with construction projects in the new year after receiving permission from the North Korean authorities. These companies are reportedly securing construction funds by demanding upfront payments for spaces in the buildings.

“Owners have already been determined for half of the units in the apartment building in the Sadong area of Pyongyang, set to finish construction in the spring,” a source in the capital told Daily NK on February 1. “Typically, construction project managers announce the planned location and expected completion date, and then people who want to buy a unit are required to pay in advance in (US) dollars.”

According to the source, the advance payment system was created by individual construction project managers who lacked the private funds to begin building. They are demanding at least $10,000 USD for each advance payment, and are using these funds to begin construction.

Project managers must first gain permission to build in certain locations, and they cannot expect to raise the necessary capital through advance payments unless the location is central. This has led to intense competition between project managers to curry favor with the influential figures in charge of granting local building permits.

“Construction companies cannot earn the funds to start building unless they get a good location for the project,” the source said. “Although the new 12-floor apartment building is being built in the outskirts (of Pyongyang), they were able to secure advance payments because of the location’s convenient transport options to the city center.”

“Generally, prices for spaces in the planned buildings are set depending on the floor number and usage, such as for underground vs. upper-floor units, or for spaces intended to be used for a business,” she added. “Developers thus have to plan according to expected customer demands.”

A 1st-floor apartment may require a $10,000 advance payment, $30,000 for a mid-level unit, and $8,000 for an 11th-floor unit. Mid-level apartments are the most popular and therefore most expensive in North Korea, as they are considered a good balance between safety from burglary and ease of access by stairs during the country’s frequent power outages.

Once the building’s framework is complete, customers, who must be issued usage permits for new apartment units by the Pyongyang People’s Committee. must then pay about twice the initial payment for the interior construction of their unit to proceed.

The construction companies must also save a portion of the funds to give to the government. “For this building (in Sadong), units on the 12th-floor were deliberately withheld from sale. They are saving the entire space to give to the government upon completing construction,” said a separate source in Pyongyang, adding that this can be seen in the context of the fact that the real estate market remains illegal under North Korean law.

According to the Article 6 Section 44 of the Real Estate Administration Law (adopted by the Supreme People’s Assembly on November 11, 2009), “All revenue gained from unapproved real estate ventures are to be forfeited to the state.”

“Private businesses must give about 10% of the revenue from a construction project to the government, and they also have to give them the entire top floor,” the second source said, “but the top floor is generally not very popular anyway, the companies do not see this as a huge loss.

Article source:

Real estate companies in Pyongyang use advance payments to fund construction
Seol Song Ah
Daily NK
2018-02-06

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North Korean market update

Monday, February 5th, 2018

I recently provided this information to Radio Free Asia (in Korean), so I thought I would do a quick blog post about it in English.

I have documented over 480 official markets in North Korea. Some two-dozen are new in the Kim Jong-un regime. Hundreds more markets have been moved, renovated, or expanded since KJU took over. Below are just two recent examples (I have published quite a few in the Korean media via RFA’s Korea service).

This new market is in Kwanhun-dong, Kaesong City:

This market area is probably an expansion of the incumbent Kwanhun-dong market since it is located in the same 동. I can’t imagine that there would be two official markets in the same 동, but I can’t say for certain. Along the river, on the northern side of the market, there appear to be numerous individual stalls, so it is possible that food is sold here (this would seem to make sense since it is next to the river). This particular market area was built sometime after 2015-8-16. It was constructed in increments, but appears to have been completed 2017-4-1.

This second new market is in Phyongsan, North Hwanghae Province. Phyongsan already has an official market (most towns only have one), so it is possible that this new market is meant to replace the old one (a fairly routine occurrence in recent years). We will have to wait and see in subsequent imagery if this new market will replace the old one. The new market was built between 2016-10-5 and 2017-5-2.

And just as a reminder to readers, these are not “black markets,” “grey markets,” or “informal markets”. These are formal markets. They are legal operations carried out under explicit authorization by the state. Employees (all female) are legally employed in the markets, and have ID badges that list their employer as the local market.  Vendors pay fees and taxes to sell in these markets (they are integrated into the public finance system).

Also, the sign over the entrance to these markets uses the Korean word 시장.

 

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Kim Jong-un visits the Pyongyang Trolley Bus Factory

Thursday, February 1st, 2018

Institute for Far Eastern Studies (IFES)

Kim Jong-un, chairman of North Korea’s State Affairs Commission, provided on-the-spot “field guidance” to the newly reconstructed Pyongyang Trolley Bus Factory, as reported by the Rodong Sinmun on February 1.

In accordance with Chairman Kim’s instructions and under the direction of the Pyongyang Workers’ Party of Korea (WPK) committee, the officials and workers of the Capital Passengers Traffic Bureau, the Pyongyang Trolley Bus Factory and the city government of Pyongyang have completed the construction of twelve new buildings and renovation of four other buildings, Rodong Sinmun said. Having completed the modernization, the factory is said to have started production in earnest.

Touring various areas of the factory, including the processing, electric motor, final assembly and overhaul shops, Kim was briefed about “modernization and production” in detail. He also inspected the new type of trolley bus manufactured by the factor. He went on to praise the factory officials and workers: “It is great that you have achieved more than 92 percent of localization in producing modern equipment and repairing broken facilities. It is also a great achievement you can be proud of that you have enabled the remote controlling of the trolley assembly process, automated the heat treatment process, and reduced labor and power input more than before by adopting power-saving devices.”

Kim also declared that, as a means of transportation, the trolley bus “should be made the face of Pyongyang, the capital [of this country].” He also stated his intention to “turn the Pyongyang Trolley Bus Factory into a world-class trolley production base,” presenting it as a goal for the second-phase modernization.

The leadership praises the Pyongyang Trolley Bus Factory for having established an integrated production system to maximum benefits in the production and management activities by introducing advanced technology to meet the needs of building a knowledge-based economy.

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