North Korean Economy Watch

Pictured Above: The Hoeryong Food Avenue (Google Earth)

According to Radio Free Asia:

A shuttered special food court established by former North Korean leader Kim Jong Il as a showcase for “high quality dishes at reasonable prices” has reopened and is being allowed to operate independent of the government in a rare move seen by some as reflecting economic reforms.

The center in Hoeryong city in North Hamgyong province bordering China was closed several months after its opening in November 2010 because the management faced financial problems as it could not meet production costs based on food sold to the public at prices dictated by the authorities, sources said.

North Hamgyong authorities recently allowed the Hoeryong Special Food Court to reopen and operate on an “autonomous” basis under new economic management methods introduced last year by Kim Jong Il’s son, Kim Jong Un, who took over after his father’s death in December 2011, the sources told RFA’s Korean Service.

“In order to meet the demands of the New Economic Management System, [the ruling] Workers Party provincial offices allowed the restaurant owners at Hoeryong Special Food Court to operate on an autonomous management basis,” one source in North Hamgyeong province said.

But some observers said the authorities had no choice but to allow the food center to set prices on its own to keep the operations alive, adding that any reform excuse was just an eyewash.

North Korea raced to build the food court after Kim Jong Il proposed it during a visit to his mother’s home town in 2009. He directed government funding of U.S. $800,000 for the project, which was completed in November 2010.

When he inspected the food court a month later, he ordered that it serve people with “high quality dishes at reasonable prices,” asking it to follow in the footsteps of another food outlet, Okryu Restaurant, in Pyongyang.

Operating cost

The source in North Hamgyong province said that the Hoeryong Special Food Court tried to adjust its prices to keep in tandem with those of Okryu Restaurant but could not cope with operating costs.

“During the initial months of operations, the North Korean authorities [subsidized prices] but soon after, the restaurants lost support from the government, thus it went out of business,” another source in the province said.

Even though the authorities did not provide support, they continued to regulate the food prices to make them 75 percent cheaper than those of regular restaurants,” the source said. “Therefore, the owners were suffering from financial difficulties.”

Some sources complain that under the new management of the Hoeryong Special Food Court, food prices have shot up rapidly. In addition, food that is not on the menu is served.

For instance, a seafood specialty restaurant serves steak while a steak house offers noodles, one source complained.

“Before at Hoeryong restaurant, cold noodles were 1,000 North Korean won (about 17 cents), and one bottle of Korean distilled spirits was 800 won (about 10 cents), but after the owners got authority to manage independently, the price of cold noodles went up to 4,000 won (about 68 cents) and one bottle of Korean distilled spirits up to 2,000 won (about 34 cents).

Read the full story here:
Special North Korean Food Court Allowed to Operate Independently
Radio Free Asia
Sung Hui Moon
2013-8-16

Here is a recent article in KCNA on economic advancements. I post as a reference to what the North Koreans are most proud of when it comes to economic management.

DPRK Directs Efforts to Developing Economy

Pyongyang, August 16 (KCNA) — Marshal Kim Jong Un, in the 2013 New Year Address, set the building of a strong economy as a key issue in accomplishing the cause of building a thriving socialist nation.

In response to his New Year Address, the people in the Democratic People’s Republic of Korea have made fresh upsurge in all economic sectors in the spirit of the “Masikryong Speed”.

Readjustment of the West Sea Barrage-Sinchon-Kangryong and Ongjin waterways was finished in ten days, while more than 1,000 hectares of fruit field has come into being in Pukchong County, South Hamgyong Province.

The Pyongyang Essential Foodstuff Factory and the Phyongsong Synthetic Leather Factory have become streamlined and the Vitamin C Factory and the Turf Research Center of the State Academy of Science were newly built on a modern basis.

Lots of industrial establishments across the country finished the first half-yearly assignments ahead of schedule.

The country’s science witnessed big achievements during the first half of the year.

The 10th national sci-tech presentation and show in the field of nano-technology and national sci-tech presentation in the field of mining industry took place, and an IT presentation was held on the occasion of the 50th anniversary of the Central Agency for Information of Science and Technology.

More than 140,000 hectares of land were afforested, 590 kilometers of roads repaired and 2,100 kilometers of riversides improved.

The Victorious Fatherland Liberation War Museum was newly built in a wonderful way on the occasion of the 60th anniversary of the Korean people’s victory in the Fatherland Liberation War (June 1950-July 1953).

The Rungna People’s Sports Park and Pyongyang International Football School were also built in Pyongyang.

A wave of innovations have been registered in building the Masik Pass Ski Resort, the reclamation project of the Sepho Tableland, the expansion project of the Kosan Fruit Farm and the construction of the second-stage Huichon Power Station.

The same is true with the construction sites of apartment houses for scientists, children’s hospital, dental hospital, Munsu Wading Pool and Mirim Riding Club.

All these projects are carried on as part of the efforts for implementing the plan of Kim Jong Un on turning the country into an economic giant.

UPDATE 6 (2013-8-1): The South Korean Supreme Court  has recognized for the first time North Koreans as blood relatives of a South Korean family. The court’s decision will allow them to claim their share of their father’s inheritance. According to the New York Times:

A doctor by training, Mr. Yoon left 10 billion won, or $8.9 million, worth of property when he died in 1987.

As his South Korean children moved to inherit the properties, his North Korea-born daughter, now 78, filed a lawsuit in 2009, claiming that they should share the fortune with Mr. Yoon’s children in the North.

She went to extraordinary lengths to win her case. She found a Korean-American who was willing to travel to the isolated North to find, with the help of the North Korean government, her siblings in the North and collect DNA evidence, including hair and fingernail samples, and she also received videotaped statements from them allowing her to represent them in a South Korean court of law.

In a 2011 lower-court ruling, which was formally upheld by the Supreme Court on Wednesday, the North Koreans were recognized as biological children of Mr. Yoon.

The court also recognized the North Koreans’ right to hire a South Korean lawyer and file a lawsuit in the South, as well as their rights to a portion of the inheritance from their father.

Despite the ruling, the North Korean children are unlikely to get their money anytime soon.

In anticipation of the cases like Mr. Yoon’s, South Korea enacted a law last year stipulating that any inheritance money won by North Koreans be kept in the care of a court-appointed custodian and sent to the North only with government permission. With tensions high with the North after its Feb. 12 nuclear test, South Korea keeps tight restrictions on cash transmissions to the North.

But legal experts say that if the North Koreans file another lawsuit claiming that this law violates their rights under the Constitution of South Korea, it can open a whole new legal battle over the ban on cash transmissions.

The South Korean Constitution includes North Korea in the South Korean territory, essentially giving all North Koreans citizenship in South Korea.

There are two other similar cases of which I am aware. See here and here.

UPDATE 5 (2012-12-1): The Hankyoreh fills us in on how the case is proceeding:

Mrs. Yoon, 77, is a native of South Pyongan province in what is today North Korea. During the Korean War, her father took her, his eldest daughter, with him to South Korea, leaving her two brothers and three sisters behind. He went on to remarry and have four more children, two boys and two girls. By the time he passed away in 1997, he had amassed a sizable fortune in real estate and other holdings. But during the registration of the inheritance in 2008, a battle ended up breaking out between Mrs. Yoon and her half-siblings.

She learned from an American missionary that four of her full siblings are still alive in North Korea. She also received a 2010 court ruling confirming that they were the offspring of her father. After filing suit for a portion of the inheritance on their behalf, she finally received a settlement in which they would receive 3.25 billion won (US$3 million) in real estate and cash from their half-siblings.

Mrs. Yoon spent 690 million won (US$637,400) of the money on her litigation, eventually coming away with 2.3 billion won (US$2.12 million) after signing a sales contract in which she sold her real estate to her North Korean siblings for 2.5 billion won (US$2.3 million). She also signed a contract stating that she would lease and hold their real estate until when they could manage it themselves, with the maintenance costs counting as rent.

Last May, the Act on Special Cases Concerning Family Relations and Inheritances Between North and South Koreans went into effect. The act stipulates that North Koreans who acquire South Korean property through inheritance request the court appointment of a property custodian. Mrs. Yoon tried to get appointed as property manager for her siblings in North Korea.

But the court gave the status instead to a non-relative, an attorney identified by the surname Kim.

Park Hee-geun, judge for the 21st family affairs division at Seoul Family Court, ruled on Nov. 30 that it was “proper for the efficient management of the considerable assets acquired by the siblings in North Korea that a neutral attorney be appointed as property manager instead of Mrs. Yoon, who has a conflict of interest.”

A court official said the decision to appoint a neutral party was made because Mrs. Yoon was suspected of spending or concealing part of the inheritance ahead of the law going into effect and before she requested to be appointed property manager.

“This is the first appointment of a property custodian since the law went into effect, and it clearly shows the legitimacy and necessity of the law,” the official added.

UPDATE 4 (2011-7-14): The Choson Ilbo is worried about the legal implications of the finding:

The court order marks the first instance where the inheritance rights of children left behind in North Korea were recognized in South Korea. An estimated 5 million North Koreans came to the South during the Korean War. An organization estimates that some 8.3 million of such people and their children and grandchildren are living here, and their families and descendants left behind in the North are also estimated in the millions. The court order is expected to lead to similar lawsuits against parents or half-siblings living in South Korea. Even the grandchildren of North Korean escapees could sue.

According to South Korean law, the direct descendants of deceased citizens are entitled to inherit their assets. The court order would have to be applied across the board to all children of North Korean escapees still living in the North, and this could trigger chaos and an explosive increase in lawsuits. This raises the question how to deal with inheritance suits filed by North Koreans claiming to be members of a particular clan that also exists in South Korea. In such cases, it would be difficult to verify the accuracy of family registers kept in North Korea and whether to recognize their validity.

The Justice Ministry is working on a law that requires government permission when North Koreans transfer inherited assets from families in the South outside the country and allows the transfer of limited amounts only in certain specified cases, such as paying for medical bills and basic livelihood. But North Koreans could file suits claiming that this regulation infringes their constitutional rights, since the South Korean Constitution applies in principle to all Koreans. The court order raises more questions than it answers.

UPDATE 3 (2011-7-13): It appears as if the North Koreans were granted an undisclosed amount of the estate in mediation. According to the Korea Herald:

Four North Koreans from the same family have come to share assets left by their late father with their half-brothers and sisters in South Korea under mediation by a Seoul court in the first case of its kind.

The North Koreans, surnamed Yoon, had filed a lawsuit against their South Korean stepmother and four half-brothers and sisters in February 2009 demanding they split 10 billion won ($9.35 million) worth of assets left by their father who died in the South.

The Seoul Central District Court on Tuesday said the South Korean family agreed to give part of the disputed real estate from their father to the North Koreans along with some of their inherited assets in cash.

The court did not announce the exact amount of assets owed to the North Koreans, citing an agreement between the two sides not to disclose details of the deal mediated by the court.

Several groups of North Koreans have filed similar lawsuits at South Korean courts as the country’s Constitution considers the entire Korean Peninsula as its national territory. But the group involved in Tuesday’s agreement became the first to win partial ownership of assets left by a relative who defected to the South.

The father, who ran a hospital in North Korea, crossed the border to the South right after the Korean War began in 1950, taking only his eldest daughter with him. He had four other children with his South Korean wife and died in 1987.

The eldest daughter later found her North Korean family with the help of an American missionary who traveled between the two Koreas. The family sent letters of attorney, videotapes with their images and hair samples to the sister in the South via the missionary. Based on the materials, the North Koreans filed two lawsuits with South Korean courts ― one asking for a split of the father’s leftover assets and the other seeking court confirmation of their biological relationship with the father.

Last year, the Seoul Family Court acknowledged the blood relationship between the four North Koreans and the deceased, citing DNA test results. But the South Korean family appealed the decision.

The North Koreans are thought to have delegated the authority to manage the real estate and money from their father to their eldest biological sister in the South.

The North Koreans’ lawyer Bae Geum-ja confirmed that there will be no cross-border transmission of the assets.

To cope with possible property disputes between South and North Koreans, Seoul’s Justice Ministry said it plans to legislate a law restricting North Koreans from taking their share of inherited assets out of the South even if they are granted ownership.

Read previous posts on this story below:

(more…)

Instagram is no longer an option for regular tourists to the DPRK, but expats and regular visitors are still allowed access to the service. So Koryo Tours has used mobile access to photograph some recent changes in Pyongyang. I thought I would post a couple of their interesting images below and match them with satellite imagery to give a little more perspective.

Taedonggang Bar No. 3 (대동강제3술집):

Renovation on this bar began sometime after Feb 2012. The interior (pics by Koryo Tours) looks like any of the bars in Dupont Circle:

According to Koryo Tours, beer costs 1.5 Euros (per pint/half litre). There are seven taps along the bar. I assume they serve various brands of Taedonggang Beer.

Koryo Tours also posted this image of a new shopping center under construction in downtown Pyongyang:

Plastered to the wall is a map of what the site will look like when construction is completed, however, it is too small to make out with any specificity with this image.  Currently we do not know any details about this facility (or even its proper name), but hopefully it will appear in the official North Korean media before too long. Here is the location of the new facility:

The construction site sits on the former star-shaped fountain of the Mansudae Fountain Park….between the Mansudae Assembly Hall (Supreme People’s Assembly), Pyongyang Student’s and Children’s Palace, Mansudae Art Theater, and new Mansudae Street housing.

Apologies to readers outside the DC area, but I am posting a “local” event. I hope to see you there.

North Korean pianist, Kim Cheol Woong, who now lives in Seoul, will be performing at an event in Burke, VA. You can learn more about Mr. Kim in this New York Times article.

Here is the marketing flyer with the date, time, and location:

Here is the flyer in Korean (한국)

Here is a, invitation letter (PDF) from NKUS, North Korean Refugees in the USA (Homepage, Facebook).

Institute for Far Eastern studies (IFES)
2013-3-14

North Korea is emphasizing the importance of science and technology in the agricultural sector.

The Rodong Sinmun, the official newspaper of the Workers’ Party of Korea (WPK), recently featured an article written by Ri Yong Gu, director of the Ministry of Agriculture, titled “Key Issues to Pay Attention for Introducing Technology Products in Farming Operations.” The article emphasized the importance of science and technology in the WPK’s policies and claimed technology products, such as farm machineries, fertilizer, pesticides, and soil conditioners must be introduced to promote agricultural production.

In addition, the article called for accurate assessment of economic benefits to be gained by introduction of technology products and for evaluation of scientists, technicians, and farmers to mobilize the public and to integrate science and technology with production in all units of the agricultural sector.

Technology products were explained as an important factor for reducing agricultural production costs, making crucial the selection of appropriate technology based on the experience and skill level of farmers and soil conditions of each farm.

Choson Sinbo, the Japan-based pro-North Korean newspaper, featured an article on February 27 that scientific farming methods were incorporated in the Samji River Collaborative Farm that linked with the Center for Agricultural and Technology Dissemination through a computer network.

It is not new for North Korea to emphasize the use of science and technology in agriculture; however, in recent years, more emphasis is being placed on this factor.

In the 2013 New Year’s speech by North Korean leader Kim Jong Un, agricultural and light industries were named as the frontline industries for economic construction. In the speech, Kim stressed that “incorporating science and technology into agricultural production and increasing the level of integration must be accomplished in order to reach wheat production target for this year.”

In time for rice planting season in May, North Korea is hoping to increase fertilizer production and to promote agricultural technology in order to boost production countrywide.

This emphasis is in line with the successful launch of the long-range rocket launch last December, preferential atmosphere toward scientists, and promotion of science and technology in the economic sector.

Increased grain production last year may be due to improved fertilizer supply. Production is expected to improve this year as scientific farming continues to be emphasized.

UPDATE 1 (2013-3-11): Koryo Tours reports that the mass games will take place this year…and it will be “Arirang” themed.  The DPRK had earlier reported that Arirang had been consigned to history.  So it appears that management of the mass games is handled in much the same way as the management of economic policy. Here is what the Koryo Tours email had to say:

Today, Koryo Tours received confirmation of the mass games dates for this year. They are scheduled to run from JULY 22nd to SEPTEMBER 9th. These dates incorporate two of the biggest holidays in the DPRK this year – the 60th anniversary of the end of the Korean War on 27th July (Victory Day) and the 65th anniversary of the founding of the DPRK on September 9th (National Day) .

Despite claims last year that 2012 would be the last ever Arirang-themed performance, it seems that this is not the case and this year the theme will again be Arirang but we expect to see new scenes added in to make it bigger and better than ever before.

ORIGINAL POST (2012-7-11): I have relocated to the DC area and have begun clearing out the backlog of posts and emails. I should be caught up by the end of the week.

This morning, however, I wanted to point out a marketing email sent out by Koryo Tours:

Word from our sources in Pyongyang is that the Arirang Mass Games of 2012 will be the last – so we suggest you sign up now to ensure that you can see this remarkable event while it is still running。

While mass games have been performed since the 1940s in the DPRK the Arirang show is the largest and most impressive they have ever produced. Born in 2002, since 2007 it has been an annual event, but 2012 will be Arirang’s 10th anniversary, and it seems the powers that be have decided to close the curtain. As for the reason, our Korean partners suggest that the narrative needs to change with the times. Combining dance, gymnastics, propaganda, politics, music, and even unicycling, this spectacular performance chronicles the struggles of the Korean people suffering under Japanese occupation, moving into the independent era and building a modern country – basically the period linked to the first 100 years since the birth of North Korea’s Eternal President Kim Il Sung.

However, since 2013 marks the 65th anniversary of the foundation of the republic (Sept 9th) as well as the 60th anniversary of the signing of the armistice that ended the Korean War (July 27th), organisers are reportedly planning a whole new performance for next year – for more news on this, please stay on our mailing list!

So if you haven’t seen Arirang yet, or if you want to see it one last time, this is your chance.

Koryo Tours is also repeating its Ultimate Frisbee Tour and Pyongyang’s first ever DJ set! Email them at info@koryogroup.com if you are interested.

You can read the full Koryo Tours newsletter here.

UPDATE 3 (2013-1-10): Kyodo (via The Telegraph) solves the riddle of just why the Kim statues on Mansu Hill were covered up in October 2012 (See below)–a new version of the Kim Jong-il statue was put up. It replaced a statue that was erected in April 2012.

Below is a before/after comparison.

UPDATE 1 (2012-10-3): A reader sends in this image of the statues covered up.

Ruedeger Frank also publishes an image at 38 North.

ORIGINAL POST (2012-9-24):

Pictured above are satellite and ground-level images of the Kim Il-sung and Kim Jong-il statues on Mansu Hill. Although these statues were unveiled just this past April, word on the street is that they are once-again  hidden under a protective covering  that was placed on the site sometime in mid-September. Unfortunately, there are not yet any pictures of the new wraps.

Although it is unclear why the statues have been covered up, Occam’s razor tells me that they are doing some maintenance work of some kind.

On a related note, the Mansu Hill model replica at the newly constructed Pyongyang Folk Village is missing its Kim statues as well. North Korean television footage of Kim Jong-un’s visit to the newly-opened park revealed a Mansudae Grand Monument that looked rather hollow in the center owing to the absence of the Kim statues:

As we all know, official images of the leaders are produced exclusively by the Mansudae Art studio in Pyongyang’s Phyongchon District. Either the art studio has not gotten around to making miniature replicas of the statues on Mansu Hill or this exhibit will never have them.

I believe the latter is probably the case.

From an ideological perspective, miniature Kim replicas would not inspire the masses the way the real [large] statues are meant to. They would almost certainly cause confusion. Can you imagine bowing to a statue shorter than you? Actually from the television footage it is difficult to make out the scale of the site, but it is quite probable that even miniature statues would be larger than life-size.

From a fiscal perspective, installing real [miniature] Kim Il-sung and Kim Jong-il statues would be expensive for the park managers. In addition to the cost of commissioning the two statues, the park managers would have to begin treating this part of the park as an actual revolutionary site–with all the formality, expense and protocol associated therewith. I don’t think anybody wants that.

Pyongyang has a mosque:

Top: A reader allowed me to post this image (thank you) of a mosque in Pyongyang. Bottom: The Google Earth image of the mosque.

The mosque is located inside the Iranian embassy compound.  This would make it a Shia mosque.  There is not a mosque at either the Egyptian embassy or the Pakistani embassy. I am unsure of the location of the Libyan embassy (do any readers know?) or whether it has a mosque. In the meantime, the DPRK might be the only country with a Shia mosque but not a Sunni mosque.

If the embassy staff are good Muslims, they should allow you to enter the compound to visit the mosque. Just be sure to bring modest clothes, and women, please cover your heads.

UPDATE 2015: Jakaparker has posted images of the interior of the mosque to his instagram account. You can see them here, here, here, here, and here.

Dear Sophie Schmidt:

I just read your web page on travel in the DPRK. I thought I would help you out a bit. Here is the picture you posted of your guesthouse:

This is the Kobangsan (고방산) Guest House and it is located in the eastern suburbs of Pyongyang. Here is a Google Earth satellite image of the place:

Here are the Google Earth coordinates:  39.054577°, 125.879205°

Also, you should check out this digital atlas I published of the DPRK. The data is better than Google’s. 🙂

Taesongsan General Hospital

This weekend KCNA/KCTV reported on Kim Jong-un’s visit to the newly built Taesongsan General Hospital (대성산종합병원). Pictured above is the Google Earth satellite image of the place. Google Earth coordinates:  39.109678°, 125.911093°. NK Leadership Watch has more information on the Hospital.

Here is the video that appeared on KCTV:

Learn more about the visit here.

According to KCNA (2013-1-16):

Cooking Website Opened in DPRK

Pyongyang, January 16 (KCNA) — The Korean Association of Cooks opened a website “Korean Dishes”.

In this regard, KCNA met An Song Il, an official at the Sojae Cooking Information Exchange Company.

He said:

“The number of website visitors is on a steady increase, most of them being housewives.

The website offers cooking knowledge, experience and techniques. It also gives information and multimedia about Korean and foreign cuisines kitchen utensils and nearly 8 000 cooking methods.”

Kim Un Sim, a technician at the Hwanghae Iron and Steel Complex, said:

“I had needed to read cookbooks when I had to make a special dish.

But I can easily get cooking information through the website and learn a lot of cooking techniques.”

Ri Won Hui, a cook at the Ansanjong Restaurant in Pyongyang, said:

“The website is very helpful to upgrading cooking techniques and improving quality of dishes.”

The website was awarded the certificate of best software products at the 23rd National Software Contest and Exhibition.