Archive for the ‘Agriculture’ Category

A particularly good year for North Korean harvests? Not thanks to the state, says one citizen

Friday, November 27th, 2015

By Benjamin Katzeff Silberstein 

The flurry of divergent messages on North Korea’s food situation continues. While multilateral agencies have warned that this year’s food deficit might be particularly bad, news from inside North Korea tell a different story. The Daily NK reports that citizens speak of a particularly good harvest this year, despite the drought:

On the 24th, a Daily NK reporter spoke with a source in Yanggang Province, who informed us that although the Rodong Sinmun has been urging citizens and the nation on a daily basis to work hard to restore the damage that resulted from the tempestuous weather earlier in the year, so far there are no reports of lower-than-average rice harvest numbers.

An additional source in North Hamgyong Province reported the same trend in his region.

Small plot farmers have been particularly attentive to ensuring that their crops received adequate water supplies, with many using hand or motorized water pumps and water turbines for irrigation. “Some people are even saying that as a result of the careful attention paid by these farmers to protect their crops from the weather, this year’s rice harvest is looking better than average,” he said.

But it isn’t economic reforms by the state that is causing the bumper harvest, the article says. It’s hardly a shocker that people don’t trust the North Korean government too much:

However, the number of people working hard to ensure the success of the rice harvests on collective farms is dropping. This is in large part due to the fact that despite reassurances from the state that farmers will receive sizable allocations of the harvest for their own use, for the past several years this has not been the case.

After “repeated failures by the authorities to fulfill stated promises,” he asserted, farmers have concluded that it makes no difference to them personally whether the collective farms do well or not.

Read the full article:
Despite Mother Nature, a bumper year for rice harvest
Lee Sang Yong


South Korean intelligence says North Korea has 380 markets

Wednesday, November 11th, 2015

By Benjamin Katzeff Silberstein 

According to Yonhap, South Korean intelligence counts the markets in North Korea to 380:

Growth in marketplaces in North Korea can serve as a catalyst for improving frayed inter-Korean ties as they will prod the North into carrying out reform and liberalization, analysts said Wednesday.

But they also said whether North Korea is willing to give up its nuclear weapons program will be a major point of consideration for South Korea in deciding ways to spur inter-Korean economic cooperation and ease Seoul’s economic sanctions on Pyongyang.

The North has operated the state-controlled rationing system for a long time. But marketplaces have gradually increased since the mid-1990s as North Koreans had to find sources of survival following a severe famine and economic hardship, widely known as the “Arduous March.”

In a recent annual audit session, South Korea’s spy agency told lawmakers that around 380 markets exist across the North that help instill market capitalism in ordinary North Koreans.

One has to wonder exactly what it means to “instill market capitalism” into people…

UPDATE: Curtis Melvin has counted 406 formal markets in North Korea (not counting street markets) using satellite imagery.

Full story here:
N.Korea’s burgeoning market economy to help warm inter-Korean ties
Yonhap News


North Korean food shortage news roundup: October and November (updated)

Tuesday, November 10th, 2015

By Benjamin Katzeff Silberstein

This summer and fall has seen a somewhat contradictory stream of information about the North Korean food situation. First there were the drought warnings, which were closely followed by regime sources claiming that harvests were actually getting better thanks to agricultural reforms. During the fall, however, the picture painted by multilateral institutions like the Food and Agriculture Organization (FAO) and the World Food Program (WFP) has been one of dire and continued problems.

In early October, the FAO said that North Korea’s staple food production could go down by 14 percent during the year compared to last year, as AFP reported:

North Korea’s staple food production could plummet by 14 percent this year because of bad weather, sparking fears of exacerbating chronic food shortages in the impoverished nation, according to the UN agricultural agency.

The gloomy forecast from the Food and Agriculture Organization comes as the reclusive communist country prepares for a lavish military parade Saturday to mark the 70th anniversary of the ruling Workers’ Party.

The North is expected to produce 3.7 million tonnes of rice and corn this year, down from 4.3 million tonnes last year, according to a report from the FAO early warning system.

Pyongyang plans to import 500,000 tonnes of rice and corn from abroad, the FAO said, but it will not be enough to feed its 25 million people.

The country, plagued by regular droughts, will face a total shortfall of 1.2 million tonnes of its staples.

State media reported in early June the country’s main rice-growing areas had been badly hit by the “worst drought in 100 years”.

North Korea saw significant rainfall later, but analysts said the prospects for this year were still grim.

Full story here:
North Korea food production could drop 14%: FAO 
Yahoo News/AFP

Later last month, the FAO reiterated its concerns over North Korea in its yearly report on the state of agriculture in the world. Voice of America:

More than 26 percent of children in North Korea’s countryside are underweight, a U.N. Food and Agriculture Organization report says.

The agency, in its recently released “State of Food and Agriculture 2015” report, also estimated that there are twice as many undernourished children in the communist country’s rural areas as in its cities.

Andre Croppenstedt, an FAO researcher who wrote the report, told VOA that “it’s normal to have a much higher percentage of children underweight in rural areas as opposed to urban areas,” but that the gap “is perhaps a little larger than usual” in North Korea.

The North Korean ratio is the 24th highest among the 123 low-income developing countries. Among East Asian countries, North Korea’s ratio ranked fifth, after East Timor, Cambodia, Papua New Guinea and Laos.

Read the full story here:
FAO: 1 in 4 Rural North Korean Children Underweight
Kim Hyunjin
Voice of America

And last month, WFP announced it was extending its aid to North Korea over next year due to expected food shortages. Voice of America again:

The United Nations’ food agency plans to extend aid to North Korea amid reports that the communist country is facing food shortages next year.

Damian Kean, a regional spokesperson for the World Food Program (WFP), told VOA this week the agency plans to extend the current food aid program for another six months.

“This current program cycle is supposed to be finished this December. What we decided to do is to extend the program until the middle of next year,” said Kean.

He added that the agency needs an additional $23.3 million to fund the extension.

The WFP is conducting an assessment of the nutritional status of North Koreans to determine if further assistance is needed after June of next year, Kean said.

The agency launched a two-year food aid program in July 2013, and it had already extended the program through the end of this year.

According to Kean, the food shortages are affecting the most vulnerable groups, including young children and pregnant women.  More than 30 percent of North Korean children under five are experiencing stunted growth because of malnutrition, and more than a third of pregnant women and breastfeeding women are suffering from anemia.

Full story here:
UN to extend aid to North Korea
Kim Hyunjin
Voice of America

This all suggests, as one might have expected, that North Korean claims of successful agricultural reforms may not have been the whole truth. At the very minimum, had such reforms had a strong and positive impact, harvests shouldn’t be declining compared with last year. Or harvests could just be stronger than what they would have been after the drought absent economic reforms. In any case, North Korean claims of a growing harvest do not seem to have held out.

UPDATE 10-10-2015:

Marcus Noland at the Peterson Institute’s Witness to Transformation Blog offers an interesting theory on these numbers: they aren’t that bad when compared with output over the last decade.

Last week Yonhap ran a story titled “N.K. may suffer severe food shortage next year: S. Korean expert” in which Kwon Tae-jin, formerly of the Korea Rural Economics Institute and now at the GS&J Institute, argued that North Korea may be facing its greatest food shortage of the Kim Jong Un era. Numerous articles, citing reports from the UN system, have highlighted high rates of malnutrition, particularly among vulnerable groups such as children.

The problem is that while the situation appears to be deteriorating relative to last year, as shown in the chart above, the FAO forecast of actual food availability per capita for 2015-16 actually represents a slight improvement over conditions for most of this decade.

Detailed data from the FAO displayed in the table below confirm that while production is forecasted to decline for coarse grains, maize, and rice, only in the case of rice is output forecasted to be below the 2011-13 average, and in this case, increased imports are expected to offset most of the shortfall.

Full story here:
Is North Korean food insecurity being hyped? 
Marcus Noland
Witness to Transformation

What I wonder still is what this says about the progress of reforms, even if the figures aren’t particularly alarming. Also, the trend has been an increase in harvest figures over the past few years. So even if these figures aren’t particularly out of range, they still go against a trend of growth.


UPDATE (11-27-2015): Daily NK interviews one person in the country who says that this year saw a bumper harvest despite weather conditions, but not thanks to state reforms. The article says it’s not thanks to increases in collective farm harvests that things are going better, but because those tending individual plots have found better farming methods:

However, the number of people working hard to ensure the success of the rice harvests on collective farms is dropping. This is in large part due to the fact that despite reassurances from the state that farmers will receive sizable allocations of the harvest for their own use, for the past several years this has not been the case.

After “repeated failures by the authorities to fulfill stated promises,” he asserted, farmers have concluded that it makes no difference to them personally whether the collective farms do well or not.

Read the full article:
Despite Mother Nature, a bumper year for rice harvest
Lee Sang Yong


The (Market) Forces of History in North Korea

Friday, October 30th, 2015

By Benjamin Katzeff Silberstein

The market is a common topic for debate in history. How did it impact the rise of the anti-slavery movement in the US and the UK? What impact did economic conditions have in the French Revolution? These questions are, and should be, asked in the current debate about North Korea’s socioeconomic development as well.

But despite the hope of many, the market might not simply be a story of growing individualism and disconnect from the power of the state. While such a trend may well be at work, it could also be the other way around.

This was recently illuminated through an interesting story by Reuters. In a visit to Pyongyang, they took a look at how markets and everyday business transaction function in North Korea at the moment. As they note, it is telling that a reporter from an international news agency can make transactions in the open, with a government minder by his side, at the black market rate. Business that previously had to be done in the shadows now happens in the open:

Shoppers openly slapped down large stacks of U.S. dollars at the cashier’s counter. They received change in dollars, Chinese yuan or North Korean won – at the black market rate. The same was true elsewhere in the capital: taxi drivers offered change for fares at black market rates, as did other shops and street stalls that Reuters visited.

The most obvious conclusion is that the state is adapting itself to the bottom-up development of the market. Indeed, this is the way the story is often told. In this narrative, the government is only reacting to developments and has long lost the economic policy initiative.

But one could also see a government that is confident enough to relax the rules. It just isn’t a certain fact that the state and the market are two opposing entities.

First, connections to the state still seem to be good for those wanting to trade on the market. For example, according to the surveys conducted by Stephan Haggard and Marcus Noland that laid the foundation for Witness to Transformation (2011)party membership is still considered one of the best ways to get ahead in North Korea (or at least it was at the time when the surveys were conducted). A somewhat similar trend can be discerned in survey results presented by Byung-Yeon Kim of Seoul National University at a conference at Johns Hopkins SAIS in late September this year. Kim’s results also indicate that there is a strong positive correlation between party membership and participation in both the formal and informal economy.

Second, the government is making money off of the market. DailyNK recently reported that the fees charged by state authorities for market stalls was raised. They also noted that regulations of the markets seemed to have gotten more detailed over the years. As noted in this report published by the U.S.-Korea Institute at SAIS, the space that the government allocates to markets has consistently increased in the past few years. Not only have official markets grown, many of them have also been renovated and given better building structures.

All in all, this paints a picture of a government that controls markets while allowing them more space to function. It is not clear that formerly black market activity happening in the open means that the market is gaining ground at the expense of the state. They may well be moving together. That is good news for those hoping for stability, but bad news for those banking on a market-induced revolution. Despite the hope of many that the market will cause the demise of the regime, the role of the market force in North Korea’s history is far from clear.


Growth and Geography of Markets in North Korea

Tuesday, October 6th, 2015

By Benjamin Katzeff Silberstein

Some shameless self-promotion: the U.S.-Korea Institute at Johns Hopkins SAIS released a report yesterday where I (with the help of Curtis and others) study how North Korea’s formalized markets have grown over time, and how they are distributed geographically using satellite imagery from Google Earth. The report is available here. These are the main findings:

  • With a few exceptions, formalized markets have grown in North Korea over the past few years. In some cities, they have more than doubled, while other cities have seen only nominal or no changes. Only Pyongsong, the capital of South Pyong’an Province, has seen a significant decline in aggregate market space.
  • There exists only a weak correlation between population size and aggregate market space. The correlation between aggregate market space per capita and proximity to Pyongyang, a large driver for demand in the North Korean economy, is also relatively weak. 

The largest aggregate market space per capita can be found in cities in the southwestern part of the country. This suggests that trade on formal markets may be driven by other factors than those commonly assumed, such as sea route trade and agriculture.


World Food Program North Korea funds down

Monday, October 5th, 2015

By Benjamin Katzeff Silberstein 

Voice of America reports:

The U.N. food aid agency said Thursday that its aid to North Korea’s vulnerable people dropped 44 percent last month because of a lack of funds.

A World Food Program spokesman said the organization in September provided 2,105 tons of food to 742,000 people who depend on external assistance, including pregnant women and children.

Last month’s amount was also significantly less than what the U.N. agency planned to provide. The agency’s goal was to provide 10,000 tons of food to 1.8 million people every month.

Recently, the agency scaled down distribution areas to 69 counties and cities across the country.

“The main reason for distributing less food in September was insufficient funding resources,” wrote Damian Kean, WFP’s regional communications officer, in an email to VOA.

To fund projects this year, the agency needs about $167.8 million, but it has secured only half of the amount so far, according to the agency’s website.

The FAO has also highlighted the problem. As mentioned in another post, while the North Korean government claims success for agricultural reforms and claims that the drought impact was very limited, international aid agencies paint a different picture. But data confusion is nothing unusual for North Korea, and perhaps the picture will change as both the North Korean government and multilateral agencies continue to reassess the situation.

Read the full article:

Cash-strapped World Food Program Cuts Aid to N. Korea

Voice of America



North Korean state media still not pleased with forest restoration

Tuesday, September 29th, 2015

A new brief from IFES recaps the content of yet another North Korean TV broadcast detailing problems arising as the new forestry policies are being implemented:

On August 26, 2015, Korean Central Television (KCTV) aired a program entitled, Let’s Go Forward in Patriotism and Strength in the Forest Restoration Battle. The broadcast criticized several Forest Management Centers, including one in North Hwanghae Province’s Songnim. “They set up sun shades carelessly and then do not even water saplings properly. As a result saplings have become withered and yellow,” the program alleged.

The broadcast went on to a scathing critique of the tree nursery’s poor management: “The spraying equipment also does not properly work […] No more than 30% of the trees are alive […] The soil is overgrown with weeds […] One of the trees still has not sprouted.”

It also condemned the management of the Kangdong County tree nursery. “Because they do not properly conduct fertilizer management and also do not follow water guarantee measures, the saplings turn yellow and wither away. In the vegetable gardens there is so much seaweed that it is difficult to tell whether they are fields of saplings or meadows.”

“The fact that saplings can not grow properly is not due to unfavorable climate conditions but the defeatist and ‘non-owner’ work attitudes of the Forest Management Center workers and tree nursery work groups, who half-heartedly do their work and quit,” the broadcast added.

Read the full article:


North Korean Broadcast Criticizes Forest Restoration Results



Why won’t North Korean trees grow like Kim Jong-un told them to?

Friday, September 4th, 2015

By Benjamin Katzeff Silberstein

The forestry campaign that Kim Jong-un launched in a speech earlier this year continues. According to a new brief by IFES, North Korean state media has criticized certain nurseries for poor management.

North Korea has once again come out on broadcast television criticizing the poor management of tree nurseries at some of its Forest Management Centers. This public criticism of the forest restoration effort comes after the emergence of Kim Jong Un’s sister, Kim Yeo Jong, as an influential figure in the Department of Propaganda and Agitation.

On August 26, 2015, Korean Central Television (KCTV) aired a program entitled, Let’s Go Forward in Patriotism and Strength in the Forest Restoration Battle. The broadcast criticized several Forest Management Centers, including one in North Hwanghae Province’s Songnim. “They set up sun shades carelessly and then do not even water saplings properly. As a result saplings have become withered and yellow,” the program alleged.

The broadcast went on to a scathing critique of the tree nursery’s poor management: “The spraying equipment also does not properly work […] No more than 30% of the trees are alive […] The soil is overgrown with weeds […] One of the trees still has not sprouted.”

It also condemned the management of the Kangdong County tree nursery. “Because they do not properly conduct fertilizer management and also do not follow water guarantee measures, the saplings turn yellow and wither away. In the vegetable gardens there is so much seaweed that it is difficult to tell whether they are fields of saplings or meadows.”

“The fact that saplings can not grow properly is not due to unfavorable climate conditions but the defeatist and ‘non-owner’ work attitudes of the Forest Management Center workers and tree nursery work groups, who half-heartedly do their work and quit,” the broadcast added.

It went on to say, “When the workers use their heads creatively and engage in the work enterprisingly, great results are achieved in the expansion of the country’s permanent assets […] If all combatants in the forest restoration work sincerely, the Party’s forest restoration plans will be moved forward.”

One could of course argue that the issues described might result from the disconnect between political orders and constraints on the ground. For example, it has been reported that tree species that would suit local conditions in certain parts of the country would take at least three years to produce, but that the central government authorities want things to proceed immediately anyway. I am no forestry expert but it seems like a difficult task for even the most stern of political orders to make trees grow properly in the wrong conditions.

The full text of the IFES brief is available here:

North Korean Broadcast Criticizes Forest Restoration Results

The Institute for Far Eastern Studies at Kyungnam University



A closer look at Kim Jong-un’s forestry speech

Tuesday, August 18th, 2015

By Benjamin Katzeff Silberstein 

Vice-premier Choe Yong-gon was reportedly executed because he criticized Kim Jong-un’s reforestation policy initiative. It is interesting to look in more depth at what these policies actually are.

The forestry issue is tightly connected and reinforced both to the lack of food and energy, and to flooding damage. (I have laid out some of these connections in an earlier post.) There can be little doubt that Kim Jong-un is justified in focusing attention to the forestry issue.

The best (and only?) official guide I have seen so far to the policies underlying the reforestation drive of the past few months – which, again, Choe was reportedly executing for criticizing – is a speech delivered by Kim Jong-un to “senior officials of the party, the army and the state economic organs on February 26, Juche 104 (2015).” To understand the reforestation policies and their pitfalls, this speech is an interesting piece of information. Here are a few interesting things to note from the speech:

First, Kim is quite frank about describing the core problem. In the beginning of the speech, he talks openly about how the “arduous march” (the famine of the 1990s) has led people to cut down trees on a large scale across the country. He also mentions the reasons: to “obtain cereals and firewood”, and talks about how this causes landslides and flooding. Perhaps this is part of an overall pattern in recent years where North Korean authorities are less prone to deny the extent of problems and sometimes even exaggerate them, as may have been the case with the drought impact warnings of the early summer.

But it is also interesting to speculate about whether this says something about the way that information is treated in the uppermost echelons of North Korea. Some have claimed that Kim Il-sung might not have been informed of the extent of the country’s economic problems in the late 1980s and early 1990s, and that this might have been the case for Kim Jong-il as well. In this context, the frank way in which Kim Jong-un describes the results of the lack of food and fuel is striking.

Earlier official narratives of the impacts of natural disasters, like those in the mid-1990s, have often blamed the impacts on nature rather than on politics. Kim Jong-un seems to see it the other way around (which of course makes all the sense in the world).

Second, Kim seems to criticize politicized forestry management. In one sentence, he says that trees shouldn’t just be planted on official days and ceremonial “tree-planting days” (my emphasis):

Forest planting should not be done in such a way as planting some trees ceremoniously on tree­-planting days or transplanting fully­ grown trees, as was done in the past. It should be done in the way of raising young trees in large numbers and enlisting all the people in transplanting and cultivating them.

Maybe I am reading too much into this, but this can be read as a criticism of the North Korean practice of honoring various occasions by economic measures, like doling out extra rations on the leader’s birthdays et cetera. At least in forestry, Kim seems to be advocating pragmatism at the expense of ideological rigour. He also gives an anti-formalism shoutout later on, saying that

The plan for forest restoration should not remain in figures or charts on a piece of paper.

Third, Kim indicates that tree-felling will become more severely punished. He calls unauthorized felling of trees an act of “treachery” (my emphasis):

Random felling of trees in mountains must be prohibited. Now some people climb mountains and cut down trees to obtain firewood or timber without permission as they do not care a bit about the country’s forests. Unauthorized felling of trees is tantamount to treachery. All the people on this land should treasure and protect even a blade of grass and a tree of their country.

Later on, he says that

Random felling should be made a serious issue of whatever the unit concerned is and whoever the person concerned is.

This might speak against the sense of pragmatism mentioned above. Of course, people aren’t cutting down trees for fun or to ruin things for the state. It’s part of the coping-behavior that has been developed since the famine, where people do what they can to get by.

The state has expanded the scope for what is allowed in other areas, such as private market trade, in order to better align with the reality on the ground. Here, in contrast, Kim seems to suggest that cutting down trees must be punished more harshly, even though the core reasons why people cut down trees to begin with – lack of fuel and food – remain. Implementing harsher punishments would probably be a difficult task for local authorities.

Kim does mention that the fuel problem needs to be solved that that trees should be planted specifically for firewood. But almost in passing: he basically says that the fuel problem should be solved and moves on (I don’t imagine that most North Korean localities have the resources necessary to replace firewood with biogas at the moment):

In order to conserve forest resources, we should solve the people’s problem of fuel. Positive measures should be taken to solve this problem, including creating forests for firewood in every place and increasing the production and supply of coal for the people’s living. There are several units which have solved the fuel problem with biogas, fly ash or ultraanthracite. By actively popularizing their experience, we should ensure that all regions solve the fuel problem on any account by their own effort.

The strategy outlined isn’t all that impressive, and the forestry issue highlights politics as a battle for scarce resources: on the one hand, the state needs to prevent the floods and landslides that keep coming back every summer. On the other hand, people on the ground need a way to access firewood and space to grow food as the state isn’t providing these things. The problem won’t be solved by just saying that everyone should have access to fuel and all will be well. Nevertheless, it’ll be interesting to follow how this all plays out, and how the policies that Kim has outlined will be implemented (or not implemented) on the ground.


DPRK insurance market updates

Monday, August 17th, 2015

UPDATE 1 (2015-8-20): The Institute for Far Eastern Studies (IFES) reports on developments in the DPRK’s insurance market:

New Insurance Products Appearing in North Korea

All sorts of insurance products, such as cell phone insurance and insurance against damage to fruit farms, are starting to appear in North Korea.

The Korea National Insurance Corporation (the state insurance company representing North Korea), revealed on its website on August 12, 2015 that the issue of cell phone insurance was discussed at the annual general meeting of provincial governors held in Pyongyang in February 2015.

“At last year’s meeting, provincial governors from all over, including Pyongyang, North Hamgyong Province, Yanggang Province, and Jagang Province, met and introduced new areas of business such as cell phone insurance. They discussed increasing the number of insurance policy holders and expanding coverage to raise insurance premium revenue,” the insurance company reported.

Recently, as the number of cell phone owners shoots up, the instances of lost or damaged phones have also risen. It appears that this new form of insurance is being offered against this backdrop to compensate cell phone owners for such incidents. As in South Korea, it is not yet mandatory for North Korean cell phone owners to purchase cell phone insurance.

Currently, North Korea’s primary mobile carrier, the Egyptian firm Orascom, owns a 75% share in North Korea’s mobile communications company Koryo Link. As of the end of June 2014, the company had 2.4 million cell phone subscribers in North Korea.

The Korea National Insurance Corporation is also preparing to offer insurance for fruit trees in order to compensate owners of fruit farms for damage caused by natural disasters or other events.

The company explained the background behind offering this insurance product on their homepage. According to the website, since Kim Jong Un came to power, a lot of effort has been put into the development of agriculture and fruit farms, but due to recent abnormal climate phenomena like El Niño, these fields have experienced a lot of difficulties.

The website reveals, “Based on experience accumulated in the testing phase, we plan on offering insurance coverage within several years for modern, large-scale fruit farms like Taedong River Integrated Fruit Farm and Kangwon Province’s Kosan Fruit Farm.”

In order to do this, the company has been performing risk appraisals since 2013 with international damage appraisers for each of the fruit farms. This suggests that it is keeping foreign reinsurance companies and contracts in mind.

The company offers fruit farms insurance coverage for a variety of calamities and natural disasters. It covers fruit trees in the event of drought, landslides, or fire; fruit in the event of hail, drought, excessive moisture, extreme heat, or fire; and the quality of fruit in the event of hail, heavy rain, or storms.

The provision of insurance for fruit farms is seen as an extension of North Korea’s ongoing efforts to earn foreign currency through insurance companies.

The fact that various insurance products are appearing in North Korea has attracted attention in the context of North Korea’s recent economic developments. Since Kim Jong Un came to power, the regime has tried to recognize and protect private property as the market economy has expanded through the growth of companies’ independent management rights and the expansion of private profits. Especially in the case of insurance companies, it is believed that the regime is trying to maximize profits by generating additional income through insurance premiums.

ORIGINAL POST (2015-8-17): Elizabeth Shim reports the following at UPI:

On Tuesday, Pyongyang’s Korea National Insurance Corp. posted on its website information on annual meetings held in each province. Issues of mobile phone insurance were discussed during the meetings, South Korean news agency Yonhap reported.

The North Korean insurance firm said in statement that new businesses were being introduced to meet the increased demand for mobile phone insurance in Pyongyang and the provinces, South Korean television network SBS reported.

The mobile phone is becoming a central component of everyday life for many North Koreans, particularly for merchants who are on the road to sell wares around the country – but damage or loss of phones are raising the demand for insurance in the country.

Egyptian firm Orascom owns a 75 percent stake in North Korea’s main network, Koryolink, and offers services to 2.4 million North Koreans.

Other insurance mentioned include new policies for agriculture and protection plans for large-scale fruit farms by the Taedong River and in Kangwon province are being assembled, according to North Korea. The plans would provide protection against weather effects like “El Nino,” that is resulting in increased drought, torrential rain, high temperatures and other factors that are hurting crops.

The Korea National Insurance Corporation web page is here. Here are the two specific reports mentioned in the article:

Annual conference of provincial KNIC branches held

The annual conference of provincial branches of Korea National Insurance Corporation was held in Pyongyang on February 25th and 26th.

It was attended by head-office officials concerned and branch managers, and accountants thereof, of different provinces.

Its agenda involved review of last year’s insurance operations conducted by the provincial branches, and determination of their goals to be reached this year.

Great appreciation was shown in the conference for the branches including the ones in Pyongyang, North Hamgyong Province, Ryanggang and Jagang Provinces, all of which, last year, introduced new insurance products, like mobile phone insurance, into sale, and brought an increase in the number of the insureds and objects to result a rise in premium income, and made prompt indemnifications on a scientific basis thus contributing to the stabilization of operation, production of the insureds concerned and people’s lives, as well.

Stress was laid on adoption and development of effective business strategies plus further improvement and intensification of insurance operation upholding the slogan reading “ Let us all turn out in the general offensive to hasten final victory in the revolutionary spirit of Paektu!”, thus enhancing the role of insurance in line with the development of national economy and improvement of the livelihood of the people as befitting the significance of the year marking the 70th founding anniversary of the Workers’ Party of Korea.

Lectures were given on business practices involving accountancy and some insurance accounts during the conference.

Fruit Crop Insurance to be introduced in future

According to a far-reaching plan of Chairman Kim Jong Il and supreme leader Kim Jong Un to supply the people with fresh fruit in and out of season, Taedonggang Combined Fruit Farm had been built as the best integrated base for fruit production, keeping production going on a high level, and furthermore, Kosan Fruit Farm has been expanded as a large-scale fruit farm with the introduction of scientific, intensive and modernized methods into fruit production.

At present, the farms have boosted production by applying the densely planting method of dwarf fruit trees following the world-wide trend of fruit farming development and growing several kinds of fruit trees including high-grade apple, pear and peach as befits the specific conditions of our country.

They grow apple trees of Korean original varieties such as Hwangju, Pukchong and Unryul together with dwarf apple trees of more than a hundred of varieties including Granny Smith, Fuji and Golden Delicious,and meet their own demand for young saplings by growing them on their own.

However, there have frequently occurred abnormal weather phenomena due to El Nino in recent years, causing negative effects on agriculture and fruit farming in our country and its surrounding countries.

As far as fruit farming is so greatly influenced by the nature and terrain and weather conditions as agriculture, Korea National Insurance Corporation (KNIC) has intention of newly underwriting insurance contracts with fruit farms in our country so as to put production on a normal basis under the adverse weather conditions recently occurred.

The subject matter insured under Fruit Crop Insurance shall be fruit and fruit trees cultivated by fruit farms in DPRK, and the covered risks are as follows;

– Yield Loss Coverage

Drought, freezing, landslide, fire,

– Fruit Tree Loss Coverage

Hail, drought, excessive moisture, extreme heat, fire,

– Quality Loss Coverage

Hail, torrential rainfall and windstorm.

In 2013, KNIC conducted a risk survey on some fruit farms in our country in cooperation with international loss adjusters, and since then KNIC has underwritten insurance contracts with those farms.

KNIC, on the basis of practical experience gained at that pilot stage, shall cover against the risks mentioned above modernized and large-scale fruit farms including Taedonggang Combined Fruit Farm and Kosan Fruit Farm within a few years to come.

Although KNIC has a dubious history, today the group still posts regular financial information which (if accurate) would make it one of the most financially transparent organizations in the DPRK (Congrats to them for at least trying). See tables here, here, and here.

Previous posts on the Korean National Insurance Corporation here.

Once they figure out crop insurance, the next step should be a commodity futures market!

Read the full UPI story here:
North Korea to provide insurance for drought, lost phones
Elizabeth Shim