North Korean Economy Watch

According to the Daily NK:

With the border area enveloped in ‘Storm Trooper Unit’ inspections, operations against South Korean goods have been stepped up in distant Pyongyang, according to a man from the city who talked to the Daily NK in Dandong, China on Tuesday.

“Inspections by ‘Group 109’, which has been around for a while, have gradually become more intense,” the man, Kim, explained. “Worst of all, they are showing up in the middle of the night without warning to search for CDs, DVDs and recorders, and if there are any materials such as pornography or South Korean merchandise, then the offender is taken away. There are no exceptions.”

“In the past when the National Security Agency or People’s Safety Ministry came to inspect, people would pay them to let it slide, but nowadays the authorities send an agent from both of those agencies and the Defense Security Command as a team, which makes it hard to get out of it if you get caught,” he added.

A Daily NK source from Pyongyang confirmed the story, saying that as recently as July one could escape Group 109 punishment for watching South Korean or American DVDs with a bribe of $100 in central Pyongyang, or less in the surrounding areas.

Group 109 is an organization set up by the Chosun Workers’ Party to crack down on illegal media including CDs and DVDs. The group is one of a number of ‘Gruppas’, as they are locally known, currently operating in the capital, with others including Group 622, which handles juvenile delinquency, and Group 27, actually a branch of the Defense Security Command, which deals with mobile phone usage.

The various groups have been conducting their assorted inspections to weed out myriad ‘anti-socialist’ behavior for some time, but bribery has always provided an escape route, albeit while those without money or connections were made an example of. However in recent times, allegedly since successor Kim Jong Eun ordered more intense inspections and punishments, the ‘Gruppas’ have had to take their tasks more seriously.

The volume of South Korean goods trading in the market has contracted due to the recent crackdowns, but their popularity is undiminished; evasion of inspections is apparently being achieved via house calls to trusted clients. Kim says that the preference is only getting stronger for South Korean goods amongst cadres, a group which has always been safe from inspections.

“The traders go around the city knocking on people’s doors, quietly asking whether the residents would like to buy some South Korean merchandise. For this reason the nickname ‘knock-knocker’ is sometimes used to refer to them,” Kim explained.

Read the full story here:
Pyongyang Seeing Tighter Inspections
Daily NK
Lee Seok Young
2011-8-24

North Korean market footage
Kim Song Min  (김성민), founder of Free North Korea Radio, has posted some video footage of a North Korean market.

You might be able to see it here, but I make no promises. It definitely won’t work from China.

Nothing remarkable, but interesting.  Of course the market is dominated by female vendors.  Bread and dried squid were for sale.  Also, shoe shines seemed to be popular.

I wish I knew what people were saying in the background.

North Korean Legos
The Russian  blogger that brought us the DPRK’s Linux OS, the DPRK’s PDA device, and the DPRK’s film camera, now brings us the DPRK version of Legos:

Interestingly, the toys come with instructions in both English and Korean.  Maybe the producers are hoping for an opportunity to export in the future?  Finally some actual socialist building blocks behind which the children of the world can unite!  You can read more in Russian here.  You can read more in English here (via Google Translate)

Pyongyang Metro Photos
Most visitors to the DPRK visit the Puhung and Yongwang Metro Stations.  Satellite images here and here. Google has also cataloged lots of pictures pictures of these stations: Puhung, Yongwang.

The Ponghwa Metro Station is located at  39.012100°, 125.744452°–next to the Party Founding Museum.  This station is not visited by foreigners as often, but here are some photos: One, two, three, four.

The Kaeson Metro Station is next door to the Arch of Triumh (39.043059°, 125.754027°).  A friend sent some North Korean postcards that seem to come from this station, though the pictures look like they were taken in the 1970s: one, two, three, four, five, six, seven, eight, nine, ten, eleven.

Pyongyang goes pop: sex scandal on the socialist music scene
According to a story in The Guardian:

There was mild controversy last year when a secret video featuring Wangjaesan’s female dance troupe entered the public domain. The video was being privately circulated among the elite, but reached the North Korean public before making it over the border to China – and therefore the world. Normally seen in traditional, body-cloaking hangbok dresses as they perform polite folk numbers, this little clip revealed unprecedented levels of sexiness in Pyongyang, as the girls popped up in sparkly hot pants and did the splits. Western displays of decadence like this are illegal but, given Kim Jong-il’s alleged love of pornography, perhaps he turned a blind eye to this one.

The video of the dancers can be found here (though it is a VERY slow download) or you can watch it on YouTube here.  I could not find a better version this time around.  Here is the original story in Yonhap (2009-11) when the story broke (with picture).

UPDATED: This video is allegedly of the same group.

The 4 of 31 fishermen
I have not spent much time blogging about the 4 of 31 North Korean fishermen who drifted to the South and do not wish to return to the DPRK.  I did track down the six videos the North Koreans filmed with the family members.  They were posted to YouTube by Uriminzokkiri.  See them here: One, two, three, four, five, six. If anyone can translate these, or give us a rough idea, I would apprecaite it.

KFA sets up branch in Israel!
Alejandro Cao de Benos seeks to build sympathy for the DPRK among the Israelis.

Back in 2006, Kim Jong-il’s second known son, Kim Jong-chol (김정철), was photographed at an Eric Clapton concert in Germany.  Well, according to Yonhap, he is still a fan today:

Kim Jong-chol, the second son of Pyongyang leader Kim Jong-il, was seen at a concert by world-renowned guitarist Eric Clapton in Singapore, a South Korean broadcaster reported on Tuesday.

Kim, dressed in black pants and a T-shirt, was accompanied by some 20 men and women at a concert hall in Singapore on Feb. 14, two days ahead of his father’s birthday, according to Korea Broadcasting System (KBS).

UPDATE: some pictures and apparently Kim Jong Chol’s sister: Choson Ilbo, Daily NK

Read the full story here:
N. Korean leader’s 2nd son seen in Singapore: KBS
Yonhap
2/15/2011

According to the Hankyorey:

A report on major North Korean indicators released by Statistics Korea on Wednesday revealed that South Korean products are becoming increasingly popular in North Korea, and that there are hardly any North Korean urban youth who do not watch South Korean TV dramas or movies.

In the report, Statistics Korea said it is becoming a fad for young people in major North Korean cities like Pyongyang and along the border with China to watch South Korean television dramas and films using MP3 players or laptop computers. Statistics Korea said MP3 players with 1G of memory cost 60,000 North Korean Won (estimated $419), while a used laptop costs about 2 million North Korean Won. A memory chip with two or three movies costs 10,000 North Korean Won if it is an original, and 5,000 North Korean Won if its a copy.

The report also said many South Korean products are in circulation in North Korea, including blenders, portable heaters, gas ranges, butane cans, lunch trays, gas heaters, rice cookers, dishrags and gloves. According to the report, South Korean shampoo and conditioner is popular with the wives of high-ranking North Korean officials in Pyongyang. Some 470g bottles of South Korean shampoo and rinse go for 40-50 yuan (8,000-10,000 South Korean Won) in Pyongyang. The report said the popularity of South Korean products was also reflected in other goods. South Korean necklaces are sold for about $500 and earrings for about $70-80, while South Korean products like perfume, deodorant, car air fresheners, refrigerator deodorizer and bathroom air fresheners are also selling well.

South Korea’s nominal GNI in 2009 was $837.2 billion, 37.4 times that of North Korea’s $22.4 billion. North Korea’s economic power, all told, is no more than the level of the South Korean city of Gwangju (about 22 trillion Won). South Korea’s per capita income of $18,175 was 17.9 times that of North Korea’s $960. South Korea also conducted $686.6 billion in total trade, 201.9 times that of North Korea, which conducted only $3.4 billion. The only sectors in which North Korea topped South Korea were production of iron ore and coal and length of railroads. North Korea’s iron ore production was 4.955 million tons, ten times that of South Korea (455,000 tons), and its coal production was 25.5 million tons, 10 times that of South Korea (2.519 million tons). North Korea also had 5,242km of railroads, 1.4 times that of South Korea’s 3,378km. North Korea is also believed to have 7 quadrillion Won in underground mineral wealth.

I have been unable to locate the original on the Statistics Korea page.  If any readers can find it, please let me know.

Read the full story here:
In limited N.Korean market, furor for S.Korean products
Hankyoreh
Hwangbo Yon
1/6/2011

According to the AFP:

South Korea’s top court ruled Monday that possession of instrumental music with titles praising North Korea violates a tough national security law.

The supreme court upheld a two-year jail term, suspended for four years, given to a female activist identified only as Song.

Song was charged in 2008 with storing 14 MP3 music files with titles praising North Korea on a USB storage device.

State prosecutors accused her of violating the law banning distribution of pro-North Korean material.

A district court acquitted Song, saying the titles alone could not define the songs as praising the communist North.

But an appeal court ruled that the songs written by North Korea to praise its leadership contained “enemy-benefiting” expressions and threatened the South’s security — regardless of their lack of lyrics.

The supreme court supported the appeals court, saying it took into consideration “motivation” and various other circumstances.

South Korea bans distribution of publications or other material praising North Korea and unauthorised contact with its people. Offenders can face heavy jail terms.

As citizens of a modern open democracy, I would hope many South Koreans are embarrassed by this kind of silly censorship.   I have dozens of North Korean songs on my iPod and not once have they influenced my opinion of the DPRK.  They have made me laugh, however.

If you would like to hear the DPRKs song about “CNC”, which was introduced to South Korean factories back in the 1970s, click here.

Read the full story here:
S.Korea court rules pro-North music breaches law
AFP
11/8/2010

Back in February, B.R. Myers, author of The Cleanest Race, gave a few talks in the US.  Apparently I missed all of them.

Luckily, C-Span recorded the one of the discussions for us all to see.  It is well worth watching in its entirety here.

You can order the book at Amazon here.

(hat tip to a reader)

Tania Branigan visited Pyongyang for The Guardian and wrote a long article on North Korean culture.  Most of the information is familiar to long-time DPRK watchers, though there were a few nuggets of information I had not heard before.  I have posted these below:

But who knew that The Da Vinci Code was a hit in this strictly controlled city? That Céline Dion is a karaoke favourite? Or that the mass performances are not only a tribute to the leadership and motherland, but the way that many young people find partners?

…

Few foreigners see this city at all. Around 2,000 western tourists visited last year, plus perhaps 10 times as many Chinese visitors. The expatriate population, excluding Chinese and Russian diplomats, and including children, stands at 150.

…

There are certainly signs of change here: Air Koryo has new planes and three gleaming airport buses to ferry passengers from runway to terminal. Last week a vast new theatre opened, as did an apartment complex, although it may be destined for officials. The 105-storey Ryugyong hotel – more than two decades in construction – is finally glass-sheathed and due to open in 2012. That year will mark the 100th birthday of the country’s founder, Kim Il-sung. But it is hard to see how it can achieve its pledge to become “a great, powerful and prosperous nation” by then – even given the Stakhanovite industrial efforts lauded in its newspapers.

…

Pyongyang is lucky: no one is plump, but nor is there noticeable emaciation. Dr Andrei Lankov, associate professor at Kookmin University in Seoul, says the official income in Pyongyang is around 3,000 won a month, but many have ways of making money on the side and – unlike other North Koreans – its residents receive subsistence food rations. Most top those up at markets that are legal though never formally acknowledged (officials insist that “everything is public”). At the turn of the year, the government embarked on currency reforms to eradicate an increasingly independent group of “kiosk capitalists”. But wiping out hard-won savings caused highly unusual public discontent and even, reportedly, unrest.

You can read the full article here:
The cultural life of North Korea
The Guardian
Tania Branigan
10/15/2010

UPDATE: As noted in the comments and in this post, Uriminzokkiri is run by the North Koreans, not the Chongryun.

ORIGINAL POST:

The pro-Pyongyang ethnic Korean community in Japan (Chongryun, Chosen Soren) has apparently opend a YouTube channel named “uriminzokkiri” (“On our own as a nation”) where they are uploading pro-DPRK and DPRK-made videos.

The Chongryun operate a number of web pages on behalf of themselves and the North Korean government (Chongryon.com, Naenara, elufa.net, uriminzokkiri.com, and more) all of which host video content.  So why open a YouTube account?  All these web pages are blocked in South Korea—so I am wondering if South Korean readers see these YouTube videos? 

UPDATE: Gag notes the following in the comments: “The ‘uriminzokkiri’ account is presumably run by the website of the same name, which links to it. The uriminzokkiri.com homepage lists two email addresses on silibank.com, so I doubt that it’s run by the Chongryon either. (elufa.net, which is in Japanese, has an email address on its own domain.)

I wonder also whether it is just a matter of time before the US Justice Department/Treasury Department goes knocking on YouTube’s door.  If this account is sponsored by the official Chonryon organization, the US government might have a problem with that.  I suspect, however, that the account is ”maintained” by a “private” individual so that it cannot be construed as engagement in a business trade with the DPRK.  In the past, on line chat services owned by Yahoo and Linkedin have been asked to close accounts of individuals in sanctioned countries like the DPRK.  

As of now, the account hosts nearly 40 videos.  Unfortunatley not a single one is of the North Korean evening news.  The North Korean news is usually posted on Elufa.net, but has not been updated since July 26. Rather than running 10 pages poorly, they might consider consolidating and running 2 pages well!

According to Yonhap:

North Korea has apparently registered an account with the iconic U.S. video-sharing site YouTube, uploading clips that praise the isolated regime and defend itself against accusations that it attacked a South Korean warship.

…

The name in Korean means “on our own as a nation” and was registered July 14.

The uploaded footage contain regurgitations of official cant that honor the North’s leader, Kim Jong-il, and the usual South Korea bashing. The Aug. 2 upload contained an elaborately produced three-minute clip lashing out at South Korea’s foreign minister.

Another clip, uploaded the same day and also produced in Korean, ridicules Seoul for its failure to stop the U.N. Security Council from placing Pyongyang’s denial in its statement deploring the deadly March sinking of the Cheonan warship.

According to the Daily NK:

The Daily NK has obtained video footage of the manager of the cafeteria at Pyongyang Moran Exhibition Hall, playing guitar and singing. The song is a South Korean song, Maze of Love, which was popular during the late 1980s.

The video clip was taken by a Chinese tourist earlier this year.

Aside from its entertainment value, it shows how widespread South Korean songs are in North Korea. Indeed, according to a source from Pyongyang, popular South Korean songs are sung in many big restaurants in Pyongyang. However, in order to avoid trouble with unexpected inspections, they sing the songs with different lyrics. Naturally, they add contents of loyalty or love for Kim Jong Il.

The Chinese person who provided The Daily NK with the video footage explained, “When she sang about the General (Kim Jong Il), we took no notice because we know their system well. We applauded only her performance; playing guitar and singing.”

The following are the new, North Korea-themed lyrics to the song:

I went up Mt. Baekdu to see where the morning light comes from.
I noticed when I saw the sunrise, which opens the sky and the land.
Sunshine lightening my tiny heart!
Even at the end of the earth, eternally,
The shining features of our General, raising Mt. Baekdu!

I realized up here where love comes from.
I realized when I saw the magnificent sunrise, a rising fireball.
Sunshine lightening my frozen heart!
Even at the end of the earth, eternally,
The shining features of our General, raising Mt. Baekdu!
The power decorating my hope, my future!
Even at the end of the earth, eternally,
The shining features of our General, raising Mt. Baekdu!

Read the full story here:
K-Pop with a Kim Jong Il Spin
Daily NK
8/2/2010

For those of you who have recently visited the DPRK or who spend too much time perusing Elufa.net or reading KCNA, you are undoubtedly aware of the DPRK’s recent emphasis on something called “CNC”.  I had no idea what CNC was, so I began collecting as much information as I could find on the net and I have posted it below.

Here is the Wikipedia page for CNC.  For those of you in China, here is what it says:

Numerical control (NC) refers to the automation of machine tools that are operated by abstractly programmed commands encoded on a storage medium, as opposed to manually controlled via handwheels or levers, or mechanically automated via cams alone. The first NC machines were built in the 1940s and ’50s, based on existing tools that were modified with motors that moved the controls to follow points fed into the system on paper tape. These early servomechanisms were rapidly augmented with analog and digital computers, creating the modern computed numerically controlled (CNC) machine tools that have revolutionized the design process.

In modern CNC systems, end-to-end component design is highly automated using CAD/CAM programs. The programs produce a computer file that is interpreted to extract the commands needed to operate a particular machine via a post processor, and then loaded into the CNC machines for production. Since any particular component might require the use of a number of different tools—drills, saws, etc.—modern machines often combine multiple tools into a single “cell”. In other cases, a number of different machines are used with an external controller and human or robotic operators that move the component from machine to machine. In either case, the complex series of steps needed to produce any part is highly automated and produces a part that closely matches the original CAD design.

That description is not nearly as helpful as this video on CNC: Click here (Might not work for readers in China).

The Asia Times ran a story which included a short history of CNC in the DPRK:

The name of the game is CNC – Computer Numerical Control – machine tools that have revolutionized the design process and said to be developed in the DPRK and already exported, for example, to China. Top exponents are the Korea Ryonha Machine Tool Corporation and the Taean Heavy Machine Complex. CNC billboards are all over Pyongyang. Inevitably CNC has its own dedicated patriotic song (no music video yet). Here are the lyrics, as translated by Andray Abrahamian, a doctoral candidate at the University of Ulsan in South Korea:

If you set your heart on anything
We follow the program making the Songun era machine technology’s pride
Our style CNC technology

(chorus)

CNC – Juche industry’s power!
CNC – an example of self-strength and reliance!
Following the General’s leading path
Breakthrough the cutting edge

Arirang! Arirang! The people’s pride is high
Let’s build a science-technology great power
Happiness rolls over us like a wave

So the narrative of building a “socialist paradise” is now being supplanted by the narrative of developing and producing state-of-the-art technology to, as the Pyongyang Times indelibly put it, “improve the people’s living standard on the word level”. This is how the DPRK is mobilizing its people to “open the gate to a thriving nation in 2012”. South Korea, watch out.

By way of luck, I managed to obtain a copy of the DPRK’s CNC song. You can download the MP3 by right clicking here.

UPDATE: A reader did find this DPRK karaoke version of the CNC song complete with lyrics (in Korean).  Watch it here.

UPDATE 2: A reader also sends in this acoustic version of the CNC song (YouTube).

If you are itching to know what the DPRK’s CNC machines look like, here is one display at the Three Revolutions Museum in Pyongyang:

Click images for larger versions

And here is some CNC propaganda that has appeared around Pyongyang:

Click images for larger versions

UPDATE: here is an additional photo taken by an anonymous tourist:

UPDATE: Here are some CNC postage stamps:

UPDATE: And CNC made part of the 2010 Mass Games (You Tube at the 1:25 mark). See a photo here.

KCNA has published plenty of news stories about CNC.  You can see them here courtesy of the Stalin Search Engine. CNC was first first mentioned on January 15, 2002 (KCNA) .  One phrase that is frequently mentioned is that thanks to innovations like CNC the DPRK is “Pushing back the frontiers of science”.  Indeed North Korean economic policy seems hell-bent to do just that.  Hopefully we will soon see them change their policies to ”push back the frontiers of ignorance”.

CNC machines are produced by the Ryonha Machine [Tool] Factory (KCNA) and they have been widely promoted in the official media (here, here, here, here, and here for example).  It appears also that the Ryonha Machine Tool Factory has partnered up (with someone) to form a JV company which focuses on international trade, the Ryonha Machinery Joint Venture Corporation. Here is a PDF flyer of their products taken from the KFA web page, and some of the items they are selling can be seen here and here.

They Ryonha Machine Joint Venture Company, however, seems to have a history that might scare away many potential customers.  According to the US Treasury Department:

The U.S. Department of the Treasury today designated eight North Korean entities pursuant to Executive Order 13382, an authority aimed at freezing the assets of proliferators of weapons of mass destruction (WMD) and their delivery vehicles.  Today’s action prohibits all transactions between the designated entities and any U.S. person and freezes any assets the entities may have under U.S. jurisdiction.

“Proliferators of WMD often rely on front companies to mask their illicit activities and cover their tracks,” said Stuart Levey, the Treasury’s Under Secretary for Terrorism and Financial Intelligence (TFI).  “Today’s action turns a spotlight on eight firms involved in WMD proliferation out of North Korea.  We will continue to expose and designate these dangerous actors.”

Today’s action builds on President Bush’s issuance of E.O. 13382 on June 29, 2005.  The Order carried with it an annex that designated eight entities – operating in North Korea, Iran, and Syria – for their support of WMD proliferation.  The President at that time also authorized the Secretaries of Treasury and State to designate additional entities and individuals proliferating WMD and the missiles that carry them.

Korea Mining Development Corporation (KOMID), which was designated in the annex of E.O. 13382, is the parent company of two of the Pyongyang-based entities designated today, Hesong Trading Corporation and Tosong Technology Trading Corporation.  These direct associations meet the criteria for designation because the entities are owned or controlled by, or act or purport to act for or on behalf of KOMID.

Korea Ryonbong General Corporation, also named in the annex, is the parent company of the remaining six Pyongyang-based entities designated today.  These entities include Korea Complex Equipment Import Corporation, Korea International Chemical Joint Venture Company, Korea Kwangsong Trading Corporation, Korea Pugang Trading Corporation, Korea Ryongwang Trading Corporation, and Korea Ryonha Machinery Joint Venture Corporation.

As subsidiaries of KOMID and Korea Ryonbong General Corporation, many of these entities have engaged in proliferation-related transactions.

I have been unable to locate the Ryonha Machine Tool Factory on Google Earth. If anyone has any pointers, please let me know.

Here is a list of factories the DPRK claims to be using CNC technology:

Amnokgang Daily Necessities Factory (KCNA)
Amnokgang Gauge and Instrument General Factory (KCNA)
Cholima Steel Complex (KCNA, Naenara)
Chonma Electrical Machine Plant (KCNA)
Feb 8 Vinalon Complex (KCNA)
Hamhung Wood Processing (KCNA)
Huichon Machine Tool Plant (KCNA)
Kangdong Weak Current Apparatus Factory (KCNA)
Kanggye General Tractor Plant (KCNA) (Underground)
Kanggye Knitted Goods Factory (KCNA)
Kanggye Wine Factory (KCNA)
KimChaek Iron and Steel Complex (KCNA)
Kusong Machine Tool Factory (KCNA)
Kwanmobong Machine Building Plant (KCNA)
October 10 Factory (KCNA)
Pukjung Machine Complex (KCNA)
Pyongyang Cornstarch Factory (KCNA)
Rakwon Machine Complex (KCNA)
Ryongsong Machine Complex (KCNA)
Sinuiju Spinning Machine Factory (KCNA)
Suphung Bearing Factory (KCNA)
Sungri Motor complex (KCNA)
Taean Heavy Machine Complex (KCNA)
Taedonggang Brewery (KCNA)
Tahungsan Machine Plant (KCNA)
Unsan Machine Tool Factory (KCNA)

I know the locations of many of these factories but not all.  If anyone has any information on their coordinates, please let me know.