North Korean Economy Watch

Some enterprising Swedes are attempting to manufacture and export jeans from North Korea.  As far as western countries go, Sweden has been one of the leaders in commercial interaction with the DPRK.  Although, according to Erik Cornell, they were frequently burned. 

The project, Noko Jeans, would be the first jeans manufacturer in North Korea.  Here is some info from their website:

Noko Jeans – jeans from North Korea

Noko Jeans began with an e-mail sent to North Korea, fueled by the enthusiasim of being able to contact the country directly. We thought Noko Jeans would end there, before it even began. It didn’t. Instead, and despite our lack of experience in international trading, it swiftly grew to a much more serious level.

Initiated and managed by three Swedes with a background in advertising and PR, Noko Jeans is our attempt to approach and get closer to North Korea, and it is our attempt to answer the question: is it possible to do what no one has ever done before? Is it possible to design, produce and import jeans from North Korea?

Greetings from North Korea!

After months of research, loads of headache and, lastly, several meetings with North Korean government representatives, we are finally allowed into the country. As official visitors, and by invitation of the state. Take off: 27th of July.

We are just now beginning to sense that this experiment actually might come true. Please stay with us as we tell you the unique process – and story – that is Noko Jeans.

Daily NK
Lee Sung Jin
12/27/2007

DailyNk met a missionary, Jeon Myung Woo, in front of the Sanhe Custom House. He is a Korean-Chinese who visits and brings aid to North Korean orphanages and accommodations for Kotjebi (begging children) every year. He belongs to a church in Yanbian and is in charge of missionary work to the North Korean people.

- Please briefly describe your aid activities for North Korea.

We share food, dry milk, medicine and clothes gathered by members of the church with which I am affiliated with North Korean children and the elderly when we visit North Korea. Once we enter the North, we bring around 1-5 tons of aid materials.

(more…)

Daily NK
Moon Sung Hwee
11/7/2007

A source inside North Korea reported on November 5th that the North Korean Ministry of Education lately directed every school to stress the importance of the Korean language education and to encourage the use of the mother tongue.

In a phone interview with DailyNK, the source said, “At workplace, there are those who read out to the workers a handbook titled ‘Let’s maintain our superior morals and actively promote the use of our mother tongue!’”

In the March 2007 edition of “Learning Culture & Language,” Jong Soon Ki, the most well-known linguist in North Korea and a professor at the Institute of Linguistics of Social Science Center, urged the public to stop admiring English and Chinese language, saying, “The difference of our mother tongue between North and South Korea has been getting larger since the division of Korean.”

The source said that the North Korean authorities started to place high importance on the native tongue in an attempt to stop the surge in the use of the Chinese and foreign languages which have been spread to the country through the circulation of South Korean soap operas since 2000.

After the food crisis in the mid-1990s, the number of defectors, border traders, and Chinese businessmen investing in North Korea have increased, which helped the Chinese culture spread into the country. Many young North Korean began to display interest in Chinese movies, Chinese products and the Chinese language. It became popular among them to read out the brand names of Chinese products in Chinese.

In North Korea, people use the Chinese words “yaoyunji (搖運機)” or “yaoyun (搖運)” for a remote control. They do not use its Korean name “wonkyuk-jojonggi,” translated and adopted by the North Korean authorities.

As for a cell phone, people use its Chinese name “Dakeda (大可大)” or “Souji (手機)” rather than its North Korean name “Sonjeonhwa (literally meaning a handphone).” Blue jeans are called “Niuzaiku,” in the border areas, a refrigerator is called its Chinese name “Bingxiang (冰箱)” and VCD “Woicidie.” Indeed, many products or medical supplies are called their Chinese names such as “Kouhong” for a lipstick.

The use of foreign languages has become more prevalent across the country especially since 2003 when the frenzy over Chinese culture was replaced by its South Korean counterpart. It is particularly noticeable that North Korean people no longer call South Korea “South Chosun” as they used to but call it “Hankuk (meaning the Republic of Korea).” In these days, the young people in Pyongyang look down on those who still use the old name, “South Chosun.”

The source said, “South Korean culture is taking over the Chinese one, and the demand for the South Korean films and products is increasing. People learn new words from South Korean soap operas and these words are becoming popular.”
The source added, “I guess this is because South Korea is better off than China, and people have a sense of homogeneity towards South Korean people.”

“Nowadays, when people go to restaurants, they do not use the words “siksa annae” or “siksa pyo,” a Korean name for a menu. Instead, many people just call it “menu” as it is pronounced in English and widely called so in South Korea,” said the source.

The source continued, “We can see how rapidly the South Korean culture has spread into the country by the fact that many people no longer use the Chinese name for a cell phone, Shouji (手機) and instead use the name ‘Hyudaephone’ as it is called in South Korea.” The source said, “At Jangmadang (markets), people casually say the names of South Korean products as they are such as “Cuckoo (rice cooker)” or “Color TV.”

When asked about the popular words adopted from South Korean culture, he listed following words: “diet,” “wellbeing,” “music video,” “sausage,” “single,” “wife,” “dress,” “pop song,” and “fast food.” (See that all of them are English words. In South Korea, people use many English words like the one listed here in everyday life)

32-year old Kim Kyung Wuk (pseudonym), who defected from Kyungsung county of North Hamkyung Province and recently came to South, also confirmed this phenomenon.

Kim said, “In the past when people feel distressed, they expressed their feeling using the word, ‘uljukhada’. But now many young people use the words ‘jajeong’ or ‘stress’ as South Korean people do.” Kim added, “The North Korean people did not know the word ‘stress’ when they first heard it from South Korean movies they watched only three years ago. But now even the old people know the new word.”

Many defectors say that many new words adopted from South Korean TV dramas are being spread into the country especially among the young people such as “miss-Korea (a beautiful woman),” “show (fake),” “ssonda (I will treat you),” “hwakeun (passionate),” “single” and “wife.”

Kim said, “Those who watch South Korean dramas and listen to its music take a great interest in everyday language of the South, and try to adopt it as long as they could escape the state’s regulation.”

Defectors said that the current phenomenon illustrates that North Korean people admire the South Korea and greatly hope for reforms and open-door policy.

Lee Chul Min, the operating manager at the Association of the North Korean defectors said, “For those who live in a closed society, exposure to foreign cultures can be a really fresh experience. It is natural of them to admire more advanced societies and cultures.” Lee added, “The current frenzy over South Korean culture will help bring a change into North Korea and overcome the differences between two Koreas.”

Daily NK
Yang Jung A
10/14/2007

The Asahi TV of Japan broadcasted in the evening of October 9th recent video footage of the market which is thriving across the North Korea. The released footage was filmed by an underground journalist, Lee Jun who operates in North Korea.

The footage captures the scenes of local people’s making transactions at the markets in Pyongyang, Chongjin, and Hamheung

Filmed last August, the scene from the Sungyo market in Pyongyang with its bustling crowd was distinguishable from the markets in the other parts of the country. Many different kinds of goods were available at the market.

Women’s dresses being sold at the market were trimmed with lace, and had floral design in splendid color. There were also clothed mannequins with heart-shaped price tags. If customers wanted to try on clothes, they could do so on the scene.

Storekeepers at grocery stores were wearing an apron, trying to keep their store clean and tidy.

Some female peddlers were engaging themselves in business at places other than the markets permitted by the state such as bus stations where there were many people. Among the peddlers were those wearing the badge of Kim Il Sung. Around parks or high-class apartments, there appeared small-scale markets where people could buy fruit such as apples or watermelons or some snack like doughnuts.

A 35-year old defector, Han Young Ju who had lived in Pyongyang until 2003 said, “The ordinary people frequently visit the Sungyo market. Judging from the video footage, I could see that the market became more crowded as the number of people engaged in business without permission has increased.”

“Back in 2003, the market was very clean because there were managers who kept the place in order and regularly directed cleanup activity. But, now, the place seems to be out of control because too many people are gathering around the market to do business,” the defector said, adding, “As I look at the types of clothes or shoes these people are wearing, I think the living conditions are worse off than before.”

Jiro Ishimaru, the chief editor of Asia Press International, said in his interview with Asahi TV, “We can see that the market economy is developing in Pyongyang.” The chief editor proceeded, “Nowadays, the North Korean people engage themselves in economical activities in order to improve their standard of living.”

The chief editor added, “For the past ten years, the market economy has been spreading into North Korea. And its power has been reshaping the country to the point that the state authorities cannot stop it.”

A market in Chongjin of North Hamkyung province did not look as vigorous as did the Sungyu market in Pyongyang. People in the market in Chongjin are wearing shabby cloth if compared to their counterparts in Pyongyang. Some women engaged in business at the market were notable with their baseball caps with visor.

There were many Kotjebi (street children) roaming around the markets in the Hamheung areas.

The footage featured a scene where the cameraman spoke with a homeless family. They were picking up usable stuff in a dumpster adjacent to the market. Lately, the number of families who were driven out of their homes into the street because of debt has been rising in the county.

The footage also showed a Kotjebi singing and begging for money, and an old man lying down in front of the railroad station but later being pulled along by a superintendent. Jiro Ishimaru explained about the rising of homeless families, saying, “It seems that we are observing ‘bankruptcy,’ one of many phenomena under capitalism occurring in North Korea.”

Korea Times
Kim Tong-hyung
10/5/2007

It will be quite a long time before Pyongyang earns its stripes as a hip and happening city if it ever does. But, judging by the glimpses revealed during the three-day summit, it seems that not all is gray and grim in the North Korean capital.

First lady Kwon Yang-suk and other South Korean officials ran into a room full of headsets Wednesday at Pyongyang’s Grand People’s Study Hall as students managed to keep a straight face scribbling down English conversations played on tape.

“Repeating is the best,” said a North Korean student when asked what is the secret to learning English, providing no relief to his peers in the South who hear the same thing until their eardrums wear out.

Perhaps improving cooperation between the two Koreas will do little to better the foreign language skills of students from either side of the border who grab English books with the same enthusiasm as a kid force-fed vegetables.

However, it seems clear that Pyongyang’s youngsters of today are more concerned about internationalization than they appeared in the first inter-Korean summit seven years ago.

South Korean delegates went on to tour the Kim Chaek University of Technology where they found students, mostly studying English, searching for video files and text stored in computers.

The university’s library has 420 desktop computers, 2 million books and more than 10 million electronics books that can be accessed via a local area network (LAN) connection or from telephone modems at home.

North Korean officials were eager to show their elite students studying English to South Korean authorities, quiet a surprise from a country dominated by the “Juche,” or self-reliance, ideology.

And at least on the educational front, it seems that computers are becoming a part of everyday life for Pyongyang’s younger generation, although they are far behind their tech-savvy southern neighbors who have television on their cell phones.

Not every picture of change in Pyongyang was staged. South Korean correspondents have sent photos of young North Korean women gliding through the streets in clothes that seemed to be ripped from Vogue magazine. Some even had heavy mascara that would qualify them for a Johnny Depp pirate movie.

Bright colors of yellow and pink were easily seen among the women waving their hands to the limousine convoy of South Korean delegates upon their Pyongyang arrival.

Surely, North Korean fusionists have come a long way since their universally pale makeup and grayish attire seen by South Korean reporters during the 2000 summit.

Even North Korean government officials involved in the formal talks looked a little more contemporary than last remembered, with many of them suited up in tailor-cut, three-button suits.

The security officials looked better too. Gone were the bodyguards with big hats, khaki uniforms and oversized gun holsters who flocked around former South Korean President Kim Dae-jung back in the first talks.

Instead, North Korean bodyguards today were dressed in black suits and moved with a hand on their earpieces, making them hardly distinguishable them from their South Korean counterparts.

Daily NK
Han Young Jin
9/4/2007

Distribution with “Korea” Trademark…”Rice Cookers Popular”

In the North Korean jangmadang (market), South Korean products are drawing huge popularity among citizens and are publicly being sold, relayed an internal source on the 30th.

The source said, “In the Pyongyang, Shinuiju, Hamheung, Chungjin, and other large-scale jangmadangs, South Korean products with the “Made in Korea” label is fairly popular among wealthy people.”

In the past, South Korean products were secretly sold in the North Korean market. When selling South Korean products, we sold them after removing the product label, “Made in Korea.” However, recently, only products with the label are recognized as South Korean products of good quality and sold at a high price.

The source added, “‘Made in Korea’ lends credibility to the people. Without this, people do not believe that the product is a Korean-made good. The label has to be there because Chinese products are disguised as South Korean goods.”

The South Korean product which is most sold in North Korea is the electric rice-cooker (Cuckoo), instantaneous water heaters, cosmetics, aromatics, computers, toothpaste, medical goods and a variety of sweets. Also, North Korean citizens have a lot of confidence in South Korean medicine. South Korean-made medicine or sweets are not discarded even after the expiration date.

He said, “Because Chinese-made products are no good, people who have money usually used Japanese products. In the place where Japanese products became rare, Korean-made products are now occupying that place.”

In Dandong, China, Kim Chi Duk (pseudonym), who is engaging in North Korea-Chinese trade met with the reporter and retorted, “Currently in Chosun (North Korea), Japanese-made products are still counted as number 1. Then there are South Korean-made products, then Chinese-made products. Poor people, even when the quality is lower, use Chinese-made products and those with money use South Korean products or Japanese-made products. What is the issue if one is buying with his or her money?”

He said, “Those with some amount of money use at least one or two South Korean products.”

The source relayed, “Currently in the Shinuiju market, South Korean toothpaste is 5,000 won (USD1.85), 1 set of aromatics (machinery and 2 bottles of gas) is 30,000 won (USD11.1), and one pack of Time cigarettes (tax-exempt) 3,000 won.” However, “Time,” a kind of South Korean cigarettes are counterfeit goods made in China, so is offered at a cheaper price than their domestic price.

Mr. Kim said, “Those who trade in North Korea request for South Korean-made goods, but I do not know whether they plan to export them or to use them. The authorities do not allow American-made goods, but is there anyone who doesn’t like the dollar? If it is not a big issue, they use everything.”

Daily NK
Kwon Jeong Hyun
8/21/2007

Escalating Rice Costs 1,900!!

As the month of August began, North Korea saw a sudden jump in its rice costs. While 1kg of rice reached a peak of 1,960won (around US$6.03) in Shinuiju, entering the second week of August, prices seemed to have stabilized around the 1,500won marker.

Due to the damages incurred from the recent flooding in North Korea, the cost of rice was something expected. In the second week of August, the DailyNK reported on the flood situation and the consequent price fluctuations. The following report will indicate the damages from the flood and food situation as well as the course of rice costs.

We discovered from a telephone conversation with Ahn Geum Soon (pseudyonm, 37) on the 10th, a trader who sells clothes in Shinuiju, North Pyongan that the cost of rice had suddenly escalated to 1,900won per kilo dropping back to 1,500won within a 10 day period.

Ahn said, “Even people who trade secretly in private or at Jangmadang (markets) are finding it hard to obtain rice as there simply isn’t enough going around” and informed, “There are some people who are already stocking up on rice as rumors suggest that the costs will go up a little more. These people are the ones to raise the prices.”

Regarding the cause in escalating rice costs, Ahn said, “I’m not sure. According to rumors, people with money are the ones hoarding the rice, but no one is really sure of the reason.”

“Some people are going through tough times with the sudden rise in rice costs but no one is dying of starvation. People who can’t afford rice eat corn. Even if the cost of corn rises, its only 500won” said Ahn and added, “Nonetheless, there are the occasional beggars living in the country and the city who die of hunger, but this is no different to the past.”

Kim Il Yong (pseudonym, 36) who lives in Taecheon, North Pyongan informed a reporter on the 11th, “Currently, the cost of rice is about 1,500won per kilo. There was a great difference in prices within a period of 10 days.”

Kim responded, “Some say that the costs are rising as South Korea and other foreign countries are not supporting us with rice, while others say that that prices are rising as there is not enough rice going around. I’m not sure what is going on.”

He continued, “There are rumors that rice prices will reach 2,000won. Nevertheless, there won’t be any cases where people die of hunger. Like we will reach that stage when potatoes have been picked and are being sold at Jangmadang and the corn harvest has begun.”

Kim who has relatives living in the Hamheung said in response to the claim by a South Korean support organization that 300 people have died of starvation, “Hamheung is comparatively a large city. Rumors would quickly spread if people were dying of starvation. 300 people can’t be dying of starvation.” He said, “My sister in-laws younger brother went to Hamheung 3 days ago. He said he hadn’t heard of any rumors of people dying of hunger.”

Another source in North Korea said in a conversation with a reporter on the 11th, “Up to a month ago, rice cost 850won per kilo” and commented, “There are a lot of coal mines at Dukcheon. It is known as a region where you can make money. Rations are distributed by the employer to the people who work at the mines and so it’s not so hard for them.”

Then he added, “It was a little tough in June as the employers stopped distributing rations for a while.”

Again, while trapsing through the jungle of YouTube videos on North Korea, I stumbled on this clip shown on Japanese television which was secretly recorded in a North Korean market.  Since my Japanese ranges from rusty to nonexistent, I do not know where it is.

What does this clip teach us?  That some North Koreans are becomming more sophisticated shoppers/ consumers–looking to the outside world to get a sense of what’s fashionable.  Chinese entrepreneurs are hard at work building brand loyalty for western companies that are not yet aiming for the DPRK market.  Chinese knockoffs of Nike, the North Face (mislabeled “the Nice Face”), and fake designer apparel are all on display.  I imagine no North Korean citizen expects to ever see these goods in the local Public Distribution Office. 

Japanese narration highlights (thanks, Tony):

• Are the North Koreans familiar with these western brands? Some are familiar and others are not so sophisticated.
• These items sell really fast.  You can buy a Rolex Watch (knock off) for 800 Yen (appx. $8 or appx 2,400 North Korean Won).
• The narrator contrasts lifestyles.  He compares shoppers that can afford these market goods with others in the same village who cannot.

Since China’s star Olympic athletes have signed endorsement contracts with western sports apparel firms, their Chinese competitors have looked to the “Land of the Morning Calm” to help them cash in on the ‘08 Olympics (and beyond)…

Press release here (PDF): News_Release_Sponsorship_17Jan07.pdf

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Female Weightlifters, Spanish Basketball Stars, and Kim Jong-il
Slate
Jacob Leibenluft
7/25/2007

Chinese companies can’t compete with the world powers when it comes to locking up megastars. Olympic gold-medalist hurdler Liu Xiang, who will likely emerge as the biggest Chinese star of the Beijing games, has a deal with Nike. One of China’s leading sports-marketing consultants told me that every starter on the national basketball team has a deal with a foreign brand. Yi Jianlian, whom the Milwaukee Bucks selected with the sixth pick of the NBA draft, had a Nike contract by the time he was 16.

…

At the same time, Chinese shoe companies’ Billy Beane-like quest for hidden value has led to a few questionable decisions. Most sneaker companies would shy away from sponsoring the North Korean Olympic team. At the 2004 Summer Games in Athens, the DPRK won a grand total of five medals, none of them gold. Besides, the Hermit Kingdom doesn’t exactly conjure up the kind of brand associations most shoe companies are looking for. But Erke’s sponsorship of North Korea has a simple explanation. North Korea’s strongest sports include gymnastics, table tennis, and diving, all of which draw huge support and TV audiences in China.

Daily NK
Park Choel Yong
7/16/2007

In Chosun (North Korea), free dating between male and female students is prevented during middle school years and even in college. If an unmarried man and woman are walking down the street arm in arm, then they have to worry about the glare of passersby. However, marriage from dating is a gradually increasing trend, but most of the time, people marry through arranged marriages.

Before the period of the food shortage before 1990, the best husband material was males who “had joined a party, performed military service, and graduated from college.” However, since 2000, a huge shift has taken place in the mentality of people.

Lately, three levels of husbands have been common. The first level is males who are included in the following three categories: those who frequently go abroad, those attend foreign-currency earning companies, and those who have high possibility of going abroad.

The second level is those who have parents who are high-ranked leaders or come from a wealthy background. The third level is those whose parents do not have power, but as individuals, are smart enough to finish military service, join the party, are able to support themselves through college.

Males, who are not classified in these categories, select as spouses females who belong to similar categories. However, even if the classes are divided as such, males who earn a lot of money are inevitably the most popular.

The candidates for No.5 Department of the Party are special-grade women

If one looks at the basis for which brides are chosen in Pyongyang, the first level are those whose parents have power and come from an affluent family. Nowadays, there are provincial men who, thanks to the spouses’ family, who succeed by achieving the status of a Pyongyang citizen.

The second level is female college graduates, whose parents may not have authority, but the individual is smart and can make a living by herself. Of course, a woman cannot do better than graduate from Kim Il Sung University, Pyongyang Foreign Language University, or Pyongyang Medical College. Historically and now, women who graduate from the College of Education can work as a teacher is still an admirable bride material.

The third level is those whose parents do not have power, the household is not too affluent, and the woman did not graduate from college, but she has a strong will of survival so can conduct business well. In Chosun nowadays, women who cannot do business are not popular among the men.

However, above power, education level, and money, is a class which is counted as a special level of women among all the men. They are those whose appearances are superior that they are selected into the No.5 Department of the Party, or are actors, dancers, or singers. The No.5 Department’s females work as phone operators or as Gippeumjo (pleasure-givers, special entertainers just for high-ranking officials) of high-level leaders and should quit once they reach 25. Afterwards, they are acceded to the party, are married to military commanders of the Escort Bureau or party leaders, and enter married life and a house which have been prepared for them.

The No.5 Department of the Party is a division, which is charge of Kim Il Sung’s food, clothing, and shelter and every aspect of his private life.

A refined marriage of mutual exchange of vows and pouring drinks at home

Once the marriage partner is selected, the parents select the date of the engagement ceremony. There are differences by province, but as a whole, the groom’s side of the family prepare deok (rice cakes) and food on the day of the ceremony and go to the bride’s home. On engagement day, the parents choose the wedding date.

The wedding clothes do not require a large sum of money. The men wear suits and women can prepare traditional Chosun dresses.

Japanese-Koreans who have returned to Pyongyang wear Western-style wedding clothes, which are rarely seen, and marry. In the past, Chosun period receptions and wedding attires, invoking the national tradition, were popular, but recently, they have completely disappeared.

The wedding is first conducted at the bride’s house. The wedding itself is the exchange of Korean drink glasses at the feast table and after the exchange of bows, the ceremony ends by pouring the drinks to both sides of parents and giving bows. Then, on the next day, the party leaves for the groom’s house. There, the same ceremony is conducted. Three days later, food is prepared and the bribe’s house visits take place.

In big cities such as Pyongyang, large-scale weddings can take place. First of all, cars that are brought to the wedding vary. In Chosun, it is not easy to acquire cars, but people choose high-scale cars anyways. In the house of upper-level leaders, several cars are mobilized.

For wedding photos, the Mansudae Arts Theater is the Best

Post the wedding ceremony, people ride rented cars and offer flowers and take ceremonial photos at the Kim Il Sung statue. They ride the car once more and take photos at various places and of statues in Pyongyang City.

The Party Foundation Commemorative Tower, the 5.1 Stadium, the Juche Ideology Tower, etc. are the major photo sites. There are political reasons for seeking out these sites, but they are also the most-decorated facilities in Pyongyang, so the pictures come out beautifully.

When one has a wedding, they have to report the marriage, carrying citizen registration cards, within a set time at the police station of jurisdiction. The bride and the groom, at this time, have to simultaneously read aloud the wedding oath.

The wedding oath pledges devotion to Kim Jong Il and as a cell of society, diligent leadership of the family, trust and reliance on each other, and walking the single path of revolution together.

In agricultural districts, the farmers do not even properly receive crops, so since they do not have anything to eat, they do not like going to the farm to work. However, the unmarried women, once they are engaged, are freed from going to the farm to work. Once there is an engagement ceremony, the woman is classified as a housewife who can receive 300 grams of provisions per day, so they are no longer required to go out to the farms and can wholly go into selling.

Thus, the young women in rural villages do not pay too much attention to the appearance or background of the grooms and in many cases, they become engaged as soon as they meet a man. Consequently, in the rural region, 19 or 20-year old married females are common. To them, marriage, which should be built on mutual love and faith, are considered as asylums for being freed from difficult labor.