Archive for the ‘Domestic publication’ Category

Kim Jong-un’s 2017 New Year Address

Monday, January 2nd, 2017

Here is the Uriminzokkiri broadcast of Kim’s speech:

Here are links to the Rodong Sinmun text (English, Korean). I have not looked at them carefully, but they appear to be the same length (implying that the English and Korean versions are the same).

Many outlets are focusing on the security implications of the speech, but I want to focus on the economic aspects. At the Seventh Party Congress held in May of 2016, North Korea announced a “Five Year Plan“. “Plan” was not the right English word however. It was actually a “Five Year Strategy.” This translation error was corrected in the English text of Kim’s 2017 New year Address, which correctly refers to the “Five Year Strategy”.

Here is the relevant text from Rodong Sinmun:

We should concentrate our efforts on implementing the five-year strategy for national economic development.

This year is of key importance in carrying out this strategy. In order to open up fine prospects for the implementation of the strategy and develop the country’s overall economy onto a higher plane, while building on the successes gained last year, we should attain the goals for this year’s struggle without fail.

“Let us accelerate the victorious advance of socialism with the great spirit of self-reliance and self-development as the dynamic force!”–this is the militant slogan we should uphold in this new year’s march. We should wage a vigorous all-people, general offensive to hit the targets of the five-year strategy on the strength of self-reliance and self-development.

The strength of self-reliance and self-development is that of science and technology, and the shortcut to implementing the five-year strategy is to give importance and precedence to science and technology.

The sector of science and technology should concentrate efforts on solving scientific and technological problems arising in modernizing factories and enterprises and putting their production on a regular footing with the main emphasis on ensuring the domestic production of raw materials, fuel and equipment. Production units and scientific research institutes should intensify cooperation between themselves, and enterprises should build up their own technological development forces and conduct a proactive mass-based technological innovation drive, propelling economic development with valuable sci-tech achievements conducive to expanded production and the improvement of business operation and management.

The electric-power, metallurgical and chemical industries should take the lead in the efforts to hit the targets of the economic strategy.

The electric-power industry should carry out its production plan without fail by ensuring good maintenance of generating equipment and structures and stepping up its technical upgrading. It should run the nationwide integrated power control system effectively and organize alternated production scrupulously to ensure balance between power production and consumption; it should also develop the various sources of power to create a new generating capacity on a large scale.

The metallurgical industry should introduce advanced technologies to lower the iron production cost and ensure normal operation of Juche-based production lines to turn out iron and steel in larger amounts. The state should take stringent measures to supply raw materials, fuel and power to the Kim Chaek and Hwanghae iron and steel complexes and other metallurgical factories.

The chemical industry is a basis for all other industries and plays an important role in consolidating the independence of the economy and improving the people’s living standards. This sector should revitalize production at the February 8 Vinalon Complex, expand the capacity of other major chemical factories and transform their technical processes in our own way, thus increasing the output of various chemical goods. It should direct efforts to establishing a C1 chemical industry to carry out the tasks at every stage promptly and satisfactorily.

The coal-mining industry and the rail transport sector should meet the demands for coal and its transport by power stations and metallurgical and chemical factories on a top priority basis.

The machine-building industry should be rapidly developed. Machine factories should step up their modernization, perfect the processes for the serial production of new-type tractors, vehicles and multi-purpose farm machines, and produce and supply different kinds of high-performance and quality machinery and equipment.

This year light industry, agriculture and fishing industry should be radically developed to make greater progress in improving the people’s living standards.

Light industry should work out proper management strategies, regarding use of domestically available raw and other materials as their core, so as to revitalize production and bring about a turn in diversifying the range and types of consumer goods and improving their quality. It should normalize production in the mines and enterprises in the Tanchon area, so that they can prove effective in improving the people’s living standards.

The agricultural front, the major thrust in building an economic giant, should raise a strong wind of scientific farming and push forward the movement for increasing crop yield. It should widely introduce seeds of superior strains and scientific farming methods, whose advantages have been proved in practice, expand the area of land under two-crop farming, and be proactive in inventing and introducing high-performance farm machines. By doing so, it can attain the production goal of grains. It should adopt measures to run the livestock farming base in the Sepho area on a normal basis and increase the production of fruits, mushrooms and vegetables, so that the people can enjoy benefits from them.

The fishing sector should conduct a dynamic drive for catching fishes and push perseveringly ahead with aquatic farming. It should build modern fishing vessels in a greater number and lay out a comprehensive fishing equipment production base in the east coast area, so as to consolidate the material and technical foundations of the fishing industry.

The construction sector should complete the construction of Ryomyong Street at the highest level and concentrate its forces on the major construction projects including the building of the Tanchon Power Station, modernization of the Kim Jong Thae Electric Locomotive Complex and the development of the Wonsan area. It should also build more educational and cultural facilities and houses in an excellent way.

Upholding the slogan of self-reliance and self-sufficiency, every field and every unit of the national economy should launch a dynamic struggle to increase production and practise economy to the maximum, and thus carry out the plan for this year on all indices.

The whole country should turn out in land administration. We should further transform the appearance of the land of our country by building modern tree nurseries in provinces, perseveringly pressing on with the forest restoration campaign and conducting river management, road repair and environmental conservation on a planned basis.

In order to bring about a turnabout in implementing the five-year strategy for national economic development, it is imperative to carry on economic guidance and business management with clear objectives and in an innovative way. The Cabinet and other economic guidance organs should work out tactics to ensure the sustainable economic development by putting the overall national economy definitely on an upward track, and implement them with an unflinching perseverance.

The speech itself contains nothing remarkable [to me]. There are thought to be economic adjustment measures in agriculture and enterprise management that are decentralizing authority and allowing greater economic incentives to be implemented (on an uneven basis) across the country. These policies have gone by various names: 5.30 Measures (for enterprises), 6.28 Measures (for agriculture) as well as the moniker “Our Style Economic Management Methods” or “Economic Management System in Our Style”, but whatever these policies actually are, they appear to still be unworthy of Kim’s public endorsement.

The most interesting part of the speech was at the end where Kim appeared to critique (criticize?) his own performance. I can’t imagine reading such words from Kim Jong-il:

Comrades,

As I am standing here to proclaim the beginning of another year, I feel a surge of anxiety about what I should do to hold our people in greater reverence, the best people in the world who have warmly supported me with a single mind out of their firm trust in me.

My desires were burning all the time, but I spent the past year feeling anxious and remorseful for the lack of my ability. I am hardening my resolve to seek more tasks for the sake of the people this year and make redoubled, devoted efforts to this end.

Previously, all the people used to sing the song We Are the Happiest in the World, feeling optimistic about the future with confidence in the great Comrades Kim Il Sung and Kim Jong Il. I will work with devotion to ensure that the past era does not remain as a moment in history but is re-presented in the present era. On this first morning of the new year I swear to become a true servant loyal to our people who faithfully supports them with a pure conscience.

And I will push the effort to set up across the Party a revolutionary climate of making selfless, devoted efforts for the good of the people.

As long as the great Kimilsungism-Kimjongilism is illuminating the road ahead of us and we have the single-hearted unity of all the service personnel and people around the Party, we are sure to emerge victorious.

Let us all march forward dynamically towards a bright future, holding up the splendid blueprint unfolded by the Seventh Congress of the Workers’ Party of Korea to develop ours into a powerful socialist country.

For what it is worth, here is how KCNA reports on Rodong Sinmun’s summation of  the year:

Pyongyang, January 3 (KCNA) — The last year was a year to be specially recorded in history as the 7th Congress of the Workers’ Party of Korea was held, Rodong Sinmun Tuesday says in an article.

It was also a year of historic significance when all the people started a grand general advance towards the final victory of the revolution in hearty response to the programme set forth by the Congress, the article says, and goes on:

Last year a new milestone was laid in the struggle to further strengthen the Party and accomplish the revolutionary cause of Juche.

In May last year the 7th WPK Congress was held significantly amid the revolutionary enthusiasm of all the party members, service personnel and other people throughout the country and the great interest of the world.

The Conference of Chairpersons of the Party Primary Committees held last year for the first time in the history of the WPK was a meeting of significance and glory as it paved a shortcut to developing the WPK into the great Kimilsungist-Kimjongilist party and accomplishing the cause of socialism.

The congresses of the youth league and the women’s union, the General Federation of Trade Unions of Korea and the Union of Agricultural Workers of Korea held in succession in wake of the 7th WPK Congress marked an epoch-making milestone in further consolidating the working people’s organizations, the transmission belts of the Party, and enhancing their militant role as required by the developing revolution in which the modeling of the whole society on Kimilsungism-Kimjongilism is pushed ahead in all spheres.

Last year saw a radical turn in bolstering up the defence capabilities of Juche Korea and a turning phase brought about on all fronts for building a powerful socialist country.

All the brilliant successes made by the DPRK in all fields of the revolution and construction are by no means attributable to any good conditions, nor are they a fortuitous result of any divine power.

It is thanks to the experienced and tested guidance of respected Supreme Leader Kim Jong Un that the year of 2016 was recorded as a year of great turn in the development of the Party and the revolution and the struggle and life of the people.

The mysterious power that brought out the epoch-making miracles and victories in the worst adversity is the result of the single-minded unity and the great self-development capability of the army and people.

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New E-Commerce Website ‘Manmulsang’ Launched

Thursday, December 8th, 2016

Institute for Far Eastern Studies (IFES)
2016-12-7

A new shopping website, ‘Manmulsang’, has been launched in North Korea. The North Korean site, announced that there is “recently in our republic a new shopping website [e-commerce] offering a wide variety of commercial services through the state computer network and mobile telecoms network.”

According to the site, Manmulsang was developed by Yonpung Commercial Information Technology Company, and allows users to find information about domestically produced and imported products, as well as to read information about the economic activities of vendors registered on the website. Additionally, it has features including an ‘e-shop’, ‘economic information’, ‘upload product’, ‘announcements’, ‘my products’, ‘restaurant information’ and ‘food order’.

There are hundreds of products available in the ‘e-shop’, with the site saying “this site has new and special service features that distinguish it from sites that have existed before: it allows users to read domestic and foreign economic information – economic information services – and to order food via food order services.”

North Korea has demonstrated an interest in e-commerce since 2005. In an article entitled ‘The features of e-commerce and issues with its development’ published in Sahoegwahakwon hakbo [Social Science Studies Review] (Issue 2, 2005), the author, North Korean professor Ri Haeng Ho, says “With the rapid development of information technology, new phenomena are evident that were not previously visible in the economy”. In the article, Ri introduces the features, advantages and tasks related to e-commerce.

Ri also says that “beyond the development of e-commerce, commercial distribution is expanding into previously unimaginable areas. . . . Trade is expanding through the internet, and e-markets are being launched, providing information relevant to the market price of traded goods and thus facilitating trade.” Thus, Ri states e-transactions are characterized by the openness of commercial activity, the centrality of small, specialized retailers, and the emergence new specialist brokerage services.

Ri also argued that “the introduction of e-commerce will, with the aid of information technology, maximize effectiveness in commercial transactions, reduce production costs and raise profit. . . . E-commerce can cut waste and maximize cost reduction.”

As advantages he listed: (1) saving manpower and time through overcoming physical distance, standards and divisions; (2) reducing prices through using virtual shops; and (3) minimize unnecessary production and waste.

Ri goes on to emphasize that while company-company and company-individual transactions are highly active, there is a need to expand electronic payment systems, deal with tax payment issues, revise relevant laws, and establish computer security systems.

An article entitled “General Understanding of e-commerce” carried in Social Science Studies Review (Issue 3, 2005) also asserts that “In order to creatively apply the results of e-commerce transactions to our country’s specific trade conditions and circumstances, there is a need to deepen research into e-commerce transactions.”

At the same time, the Swiss Agency for Development and Cooperation (SDC) opened the Pyongyang Business School in July 2005, and the school has taught e-commerce, advertising and public relations management, new product development and marketing strategy, among other subjects, to North Korean government cadres, trade company personnel, and foreign trade research institution personnel, most of whom are in their forties and fifties.

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The economy in Kim Jong-un’s New Year’s address: what’s there and what isn’t

Sunday, January 10th, 2016

By Benjamin Katzeff Silberstein

The supposed hydrogen bomb test has come to dominate the news on North Korea over the past few days, for obvious reasons. Kim Jong-un’s New Year’s Address has naturally ended up in the shadow of the nuclear test, but it is worth going back for a closer look. Overall, it is a speech that appears to contain few major announcements or indications. Perhaps more surprising than what themes are there, are the themes that are absent.

Stephan Haggard pretty much sums up how economic matters are treated in the speech, as they often are in North Korean rhetoric on economics: “As usual, the economic components of the speech rely more on exhortation than any clear policy message, confusing results with the means of achieving them.”

That is, in much of the speech, Kim simply talks about what will be achieved but leaves out how to get there. Take the following paragraph, for example (my emphasis added):

The Cabinet and other state and economic organs should decisively improve their economic planning and guidance. Leading economic officials should fully equip themselves with Party policy, work out plans of the economic work in an innovative way and give a strong push to it on the principle of developing all the sectors at an exponential speed by relying on the inexhaustible creative strength of the working people and by dint of modern science and technology. They should accurately identify the main link in the whole chain of economic development and concentrate efforts on it while revitalizing the overall economy, especially when the conditions are not favourable and many difficulties arise. They should be proactive in organizing and launching the work of establishing on a full scale our style of economic management method which embodies the Juche idea, thus giving full play to its advantages and vitality.

And:

All the sectors of the national economy should set ambitious goals and maintain regular production by tapping every possible internal reserve and potentiality.

Those who are more savvy at reading between the lines and interpreting rhetorical symbolisms can perhaps draw out meaningful signals from quotes such as these. But at face-value, they seem to give little indication of policy changes. Or of any policy at all, for that matter.

What are the areas that Kim hold up as economic priorities, then? Stephan Haggard points out heavy industry as one such theme. It is also the one mentioned first in the speech. Infrastructure and power supply also features fairly prominently (and is mentioned early on), with specific references to several power station construction projects. Kim also mentions IT and the “knowledge-driven economy” (emphasis added):

Our working class, scientists and technicians, true to the instructions of the great leaders, made a big stride in making the metallurgical industry Juche-based, built model, standard factories of the era of the knowledge-driven economy in various parts of the country and put production lines on a modern and IT footing, thus opening a new road of advance for developing the overall economy and improving the people’s standard of living.

Presumably, this is what North Korean media mean when they talk about the H-bomb test as an economic boost: that such capabilities show North Korea’s strength as a knowledge-based economy.

Domestic production capabilities are highlighted all the way through. This theme isn’t new. Kim Jong-un has often emphasized the importance of goods diversity and local production. This lies well in line with the basic economic tenets of the Juche doctrine. Here is one example of how domestic production capacity is highlighted in the speech (emphasis added):

The flames of the campaign to implement the Party’s ideas and defend its policies have unfolded a proud reality of our indigenous plane flying in the sky and our indigenous subway train running under the ground, and rich fish and fruit harvests were gathered, their socialist flavour bringing pleasure to the people.

One theme that features relatively prominently is construction. In one paragraph, Kim even states that “Construction is a yardstick and visual evidence for the strength of a country and the quality of its civilization”, and continues to urge the country to build more:

The construction sector should launch a general offensive to implement the Party’s construction policy and grand plan. By doing so, it should build important production facilities, educational and cultural institutions and dwelling houses on the highest possible level and at the fastest possible speed, so that they serve as standards and models of the times. In this way it can make sure that the great heyday of construction continues without letup.

Perhaps this is an indication that the building boom in Pyongyang of the past few years will continue. Priorities such as this one primarily benefit those political classes that live in Pyongyang. With few exceptions, as far as I’m aware, most other cities have seen little of the construction boom that the capital city has experienced.

There is also a reference to the coal mining industry. On the one hand, it may be interesting because North Korea’s main export destination for coal is China, and these trade flows have been volatile over the years, and there have been signs that North Korea isn’t getting a good deal in this trade. But on the other hand, this may be reading too much into one small reference in the speech (emphasis added):

In order to achieve breakthroughs for a turning point in building an economic giant the electric-power, coal-mining and metallurgical industries and the rail transport sector should advance dynamically in the vanguard of the general offensive.

Later, coal mining appears only in reference to the domestic power supply (emphasis added):

All sectors and all units should wage a vigorous campaign to economize on electricity and make effective use of it. The sector of coal-mining industry should raise the fierce flames of an upsurge in production to ensure enough supply of coal for the thermal power stations and several sectors of the national economy.

There are two themes that are surprisingly absent. One is agriculture. Agricultural policy is barely present, and when it is, management methods aren’t mentioned. For example:

The agricultural sector should actively adopt superior strains and scientific farming methods, speed up the comprehensive mechanization of the rural economy and take strict measures for each farming process, so as to carry out the cereals production plan without fail.

This is a little surprising, because regime sources have claimed that agricultural production has been boosted during the year, and management reforms with greater incentives for farmers have been touted as the reason. (A close look at the numbers indicates that agricultural production has declined slightly during 2015, moving it towards the average of the 2000s.) If agricultural reforms have indeed been a central tenet of Kim Jong-un’s economic policies, one could at least have expected a reference to these reforms in the speech.

The second theme that is strangely absent is forestry policy. It is only mentioned in one sentence:

The whole Party, the entire army and all the people should buckle down to the campaign to restore the forests of the country.

During the past year, Kim Jong-un has highlighted forestry policy as a key area. He has talked openly and frankly about the role of tree felling in causing floods and subsequent food shortages, and promoted reforestation, albeit not in a way that is likely to work very well. North Korean media has singled out tree nurseries for not doing their job properly. In sum, forestry has been relatively high on the agenda, but the topic still barely made it into the speech.

All in all, from an economic policy standpoint, this year’s New Year’s Address did not contain any major bombshells. The fact that economic issues appear right after the section on the upcoming party congress may be a hint that such issues will be high on the agenda, but then again, it might not mean much at all. Moreover, it is unclear how much can really read into the New Year’s Address for hints about regime policies and priorities. After all, the speech contained virtually no allusions to the H-bomb test that was to come only days later.

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Kim Jong Un’s new year message focuses on building an economic powerhouse

Sunday, January 3rd, 2016

Institute for Far Eastern Studies (IFES)

In his 2016 New Year Speech, North Korean leader Kim Jong Un announced plans to build an economic powerhouse.

Kim frequently used expressions such as, ‘priority to self-development,’ ‘concentration of efforts,’ ‘whole Party’, and the ‘whole state’ that placed great emphasis on economic development and improvement of people’s livelihood.

Kim said “The principle of giving priority to self-development should be maintained in building a thriving socialist country [. . .] We should concentrate all our efforts on building an economic giant to bring about a fresh turn in developing the country’s economy and improving the people’s standard of living.”

Kim also stated that “In order to achieve breakthroughs for a turning point in building an economic giant the electric-power, coal-mining and metallurgical industries and the rail transport sector should advance dynamically in the vanguard of the general offensive.” Compared to the 2015 New Year speech, this can be seen as a relative increase in the emphasis placed on the industrial sector.

In particular, he emphasized resolving the power shortages, stating that “The problem of electricity should be resolved as an undertaking involving the whole Party and the whole state.” North Korea suffers from chronic power shortages, especially fuel, as well as decline in the hydroelectric power plant operations. In 2015, interrupted power supply was exacerbated by severe drought. Kim also said that “All sectors and all units should wage a vigorous campaign to economize on electricity and make effective use of it.”

In regards to improving agriculture, livestock, and fisheries sectors, he said that “The crop farming, animal husbandry and fishing sectors should make innovations to effect a radical change in improving the people’s standard of living. The agricultural sector should actively adopt superior strains and scientific farming methods, speed up the comprehensive mechanization of the rural economy and take strict measures for each farming process, so as to carry out the cereals production plan without fail. The animal husbandry and fishing sectors, which are waging an all-out struggle in response to the Party’s call, should ramp up production as soon as possible and see to it that the fish farms, vegetable greenhouses and mushroom production bases built across the country pay off. Thus they can contribute to enriching the people’s diet.”

Kim has made several onsite inspections to facilities in the light industry sector including cosmetics and shoes factories to encourage improvement in quality and domestic made goods. According to Kim, “The light industry sector should put its factories and enterprises on a highly modern footing, provide them with plenty of raw and other materials to keep their production going full steam and increase the number of world-famous products and commodities with a competitive edge.”

He stressed that “All the sectors of the national economy should set ambitious goals and maintain regular production by tapping every possible internal reserve and potentiality. They should also take it as an important policy-oriented requirement to improve product quality, ensure domestic production of equipment and rely on locally available raw and other materials, and make strenuous efforts to this end.”

He also encouraged the launch of the work to establish full-scale the ‘our style of economic management method’: “The Cabinet and other state and economic organs should decisively improve their economic planning and guidance, . . . [and] they should be proactive in organizing and launching the work of establishing on a full scale our style of economic management method which embodies the Juche idea, thus giving full play to its advantages and vitality.”

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Kim Il-sung University newspaper calls for more company autonomy

Monday, November 23rd, 2015

According to Yonhap:

It is important to clarify the authority and roles given to the Cabinet and companies, as giving more autonomy to workers can boost labor efficiency, according to a North Korean college newspaper on Monday.

North Korea’s Cabinet mainly handles the implementation of the North’s economic policies within the state-controlled rationing system.

Companies and workers can take the initiative and show creativity when the authority and role of the Cabinet and companies are clarified, according to an article in the newspaper issued by Kim Il Sung University, a prestigious institution named after the country’s founder.

How well the economy performs depends on how extensively businesses and workers are able to play their roles, the newspaper added.

The article came amid the growth of marketplaces, as North Korean leader Kim Jong-un is trying to give autonomy to companies in the North’s special economic zone to some degree, in a bid to prop up the feeble economy.

Last week, North Korea unveiled detailed plans to upgrade its special economic zone in the border city of Rason in a bid to lure foreign investment amid an economic slowdown and a series of U.N. sanctions.

The North said that profits and other proceeds generated in the zone can be repatriated outside North Korea “without restriction,” in what is seen as investment incentives to foreign investors. It also hinted at assuring autonomous operations for firms in the zone.

Read the full story here:
N. Korea needs to split roles of Cabinet, firms: newspaper
Yonhap
2015-11-23

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Naenara reports on Wonsan SEZs

Wednesday, October 7th, 2015

Naenara carried an interview with Choe Yong Dok, Director of the Economic Zone Development of Kangwon Provincial People’s Committee.

In the interview, Director Choe commented on the Wonsan-Mt. Kumgang International Tourist Zone and the Hyondong Industrial Development Zone.

I tried copying the text here, but was not successful. Here is the PDF.

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North Korea to attract foreign capital through foreign media

Thursday, May 7th, 2015

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

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

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

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

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

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

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

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

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

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

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

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Kim Jong-un’s 2015 new year address

Thursday, January 1st, 2015

Martyn Williams has posted the best video of it (with English subtitles):

Here is coverage of the speech in the North Korean media (KCNA):

1. Kim Jong Un Makes New Year Address

2. Kim Jong Un Refers to Achievements Made by DPRK Last Year

3. Kim Jong Un Underlines Need to Consolidate Country’s Might as Socialist Political and Ideological Power

4. Kim Jong Un Calls for Fresh Turn in Building Revolutionary Armed Forces and Enhancing Defence Capability

5. Kim Jong Un Advances Tasks to Effect Upswing in Building Socialist Economic Giant and Civilized Nation

6. Kim Jong Un Set Forth Ways of Carrying out This Year’s Tasks

7. Kim Jong Un Deals with Issue of National Reunification

8. Kim Jong Un Deals with Issue of Foreign Relations

9. New Year Address Having Public Response

10. Workers and Farmers Meet to Vow to Implement Their New Year Tasks

Here is coverage of the speech in the international media:

1. N. Korean leader’s speech ‘meaningful’: Seoul (Yonhap)

2. N. Korean leader’s speech arouses cautious optimism (Korea Herald)

3. Kim Jong-un says North Korea is open to ‘highest-level’ talks with South (Guardian)

4. Kim Jong Un Makes Apparent Summit Offer to South Korea (Wall Street Journal)

5. New Year’s Address Reveals a Nervous Leader (Daily NK)

6. Kim’s New Year’s speech reveals economic priorities (Lankov/NK News)

7. Jumping to Conclusions…Again (Klingner/38 North)

8. What’s New in Kim Jong Un’s New Year’s Speech (38 North)

9. Kim Jong Un’s New Year Speech: The Prospects for the 2015 Economic Policy (IFES)

10. Pyongyang’s ‘Year in Review’ Package Emphasizes Kim (Wall Street Journal)

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North Korea increases production of consumer goods according to consumer demands and preferences

Monday, August 25th, 2014

Institute for Far Eastern Studies (IFES)
2014-8-25

Due to the strengthening of capitalism and competition in North Korean society, it appears that the status of consumers has risen considerably.

In the North Korean economy — which has clung to a supply-oriented, planned economic model — it is extremely rare to see production change in response to consumer demands and preferences.

The Rodong Sinmun, the official newspaper of the Central Committee of the Workers’ Party of Korea, published an editorial on August 3, 2014, calling for the “Brisk Opening of the August Third Consumer Goods Production Movement.” This editorial encourages the public by assuring that the consumer products will be made according to the needs and demands of the people.

“A socialist society cannot think about the production of consumer goods that are above the reaches of the people,” the editorial emphasizes, and that “the peoples’ demands and interests are [the Party’s] absolute top priority, and it is the noble duty of the Party to create these desired consumer goods for the people to enjoy.”

Through the use of various media, North Korea has propagandized the “consumer-focused” policy, claiming to have spurred competition and the increase in quality of products and services throughout the nation.

Joguk (Motherland), a media outlet of the pro-North Korean General Association of Korean Residents in Japan, published an article in their August 2014 issue entitled, “The Standard of Competition Is Determined by the People.” The article emphasizes production tailored to consumer demands, saying that “Product evaluation is something which can be done only by those who demand and directly use the product; it can only be done by the general public.”

The article further states that “Products popular among the general public and used by the masses are evaluated accordingly for their high quality.” It also mentions the cosmetic brands “Eunhasu” and “Pomhyanggi” as examples.

In a July 30, 2014 article, the Choson Sinbo introduced the Potong River Shoe Factory, which is responsible for the production of popular products such as the so-called “kill heel” high-heeled shoes, wedge-heeled shoes, and pointed stilettos. By working together with a department store and periodically reviewing customers’ feedback, the Potong River Shoe Factory can produce shoes to cater to shoppers’ preferences.

This method of setting the focus on consumer evaluation can also be found in North Korea’s education system.

On August 7, 2014, the Rodong Sinmun introduced the “bottom-up evaluation” system at Kim Jong Suk Middle School. This process, touted as one of the successes of educational reform, allows students to evaluate their teachers once per semester. By creating competition among educators, this system is expected to have effects all across the nation.

These types of changes are said to have close relations to the Kim Jong Un regime’s policy focusing on light industry, which also accounts for the improvement of standards of living for the people.

It appears that unlike the heavy chemical industry previously emphasized by the Kim Il Sung and Kim Jong Il regimes, light industry must consider not only production amounts, but the quality of the products as well. This inevitably leads to the emphasis being put on consumer product reviews.

Through consumer reviews, competition arises and productivity is increased, leading to the production of consumer goods with higher added value. Despite being called a “Socialist Competition,” in reality this system may not be so different from capitalism.

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Social Science Institute on the DPRK’s Economic Development Zones

Monday, January 20th, 2014

According to the Hankyoreh:

The latest issue of the quarterly publication of North Korea’s Social Science Institute – published on Nov. 15, 2013, and viewed on Jan. 19 – included an article titled, “Major Issues Pertaining to Making the North Korean Economy Stronger by Establishing and Expanding Economic Development Zones.”

According to the North Korean article, there are five important tasks that must be accomplished if the new Zones are to be successful.

1. building infrastructure such as roads and railroads

2. enacting laws for the special economic zones that take into account the profit of the government and of investors

3. providing benefits for foreign investors

4. operating and managing projects in a way that is suitable to the characteristics of the zones

5. creating the right political and military environment

Read more here:
N. Korea connects politics and military to economic development
Hankyoreh
Choi Hyun-june
2014-1-20

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