North Korean Economy Watch

Pictured above (Google Earth): Historic Angkor Watt in Siem Reap, Cambodia.

Accoridng to AKP (Cambodia):

Cambodia has allowed the Democratic People’s Republic of Korea to build a cultural information centre (or welcome centre) in Siem Reap, the home of Angkor, as part of the government’s effort to attract more tourists, according to the Press and Quick Reaction Unit of the Council of Ministers.

In a meeting on Thursday, Deputy Prime Minister H.E. Dr. Sok An told the North Korean Ambassador H.E. Ri In Sok that Cambodia’s Apsara Authority is working with North Korean experts to build the centre, which will serve as a welcome centre for tourists who want information about Cambodia’s Angkorian history.

Officials of the Apsara Authority for the Protection and Management of Angkor and the Region of Siem Reap are working with 60 Korean experts and concerned institutions to ensure that the building design will feature the cultural values of both Cambodia and Korea.

The building, 70 metres in diameter and 124 metres in height, will be decorated with artistic works and drawings. Korean officials say that the world’s biggest artistic drawing will be displayed at the centre.

Dr. Sok An, who is also Minister in Charge of the Office of the Council of Ministers, told the ambassador that the centre will represent not only the image of the Democratic People’s Republic of Korea but also the good bilateral relations of the two Asian nations.

The outgoing North Korean Ambassador Ri In Sok, who is leaving Cambodia on Nov. 26 after a four-year term, told Dr. Sok An that North Korea wants unification with South Korea as soon as possible.

The ambassador was grateful to the deputy prime minister and the Royal Government of Cambodia as a whole for facilitating his diplomatic mission in Cambodia.

“I am pleased with the bilateral cooperation. I am pleased with the tremendous progress made by Cambodia over the past years,” said Ambassador Ri In Sok in the meeting.

The ambassador said the Democratic People’s Republic of Korea continues its good relations with the Royal Government of Cambodia thanks to the diplomatic legacy of the relations between His Majesty King Norodom Sihanouk, now retired, and the late Kim Il-Sung, leader of the Democratic People’s Republic of Korea.

Additional information:

1. Voice of America also picked up this story

2. NK Leadership Watch also covered the story.

3. The Mansudae Overseas Development Group (MODG) is also building/has already built an e-museum in Siem REap. Learn more here.

4. Here are previous posts on the DPRK and Cambodia.

Pictured above (Google Earth): Manwoldae Palace in Kaesong, DPRK. See in Google Maps here.

According to Yonhap:

South Korea’s Unification Ministry said Sunday it has allowed a group of historians to visit North Korea this week for the resumption of a long-stalled joint project to excavate an ancient royal palace site.

The approval is another sign of lessening tensions on the divided Korean Peninsula, as Seoul is easing restrictions on civilian contact with Pyongyang following a year of animosity caused by the North’s deadly military attacks on the South.

On Monday, 14 South Korean historians will travel to the North’s border city of Kaesong, the site of Manwoldae, the royal palace of the Goryeo Dynasty that ruled the Korean Peninsula from 918 to 1392.

During their 10-day stay in Kaesong, the South Korean experts will conduct a safety survey on the site with their North Korean counterparts, a ministry official said.

“Based on the results of the safety survey, the joint excavation work will begin on Nov. 24 for one month,” the official said on the condition of anonymity.

The two Koreas launched the excavation project in 2007, but South Korea halted it last year as part of its sanctions against Pyongyang for the March sinking of a South Korean warship blamed on the North.

Seoul’s new Unification Minister Yu Woo-ik, who took office in September, has said he would consider “flexibility” in dealing with North Korea. The ministry is in charge of North Korea policy.

Kaesong served as the capital for most of Goryeo’s reign. Now it is home to an industrial complex run by both Koreas.

The Choson Ilbo also covered this story.

Read the full story here:
S. Korea OKs historians’ visit to N. Korea
Yonhap
2011-11-13

Here is the relevant satellite imagery from Google Earth which shows the construction of the facility (which began in late 2005):

Image Dates: (L) 2005-8-5, (R) 2005-10-5

Image Dates: (L) 2006-11-11, (R) 2009-4-16

Image Dates: (L) 2010-3-28, (R) 2010-10-6

You can see the facility in Google Maps here.

Here is the story according to KCNA:

Pyongyang, November 9 (KCNA) — The Ryongsong Water-purifying Station has been built on a modern basis.

Latticing, detritus chamber, settling basin and others were successfully built to ensure the flow of clean water into the River Pothong and provide the people in the capital city with better living conditions and circumstances.

A ceremony for its completion took place on Wednesday.

Present there were Vice-premier Jon Ha Chol, officials concerned, scientists, builders and workers.

Hwang Hak Won, minister of Urban Management, addressing the ceremony, noted that the station was perfectly completed in a short span of time.

He stressed the need to strictly abide by the requirements of the technical regulations in managing and operating the station, further perfect the processes and make green-belt in its surrounding area.

Additional information:

1. Some Pyongyang water sanitation projects  have been funded by Kuwait Fund for Arab Economic Development.

2. Here is a previous post on waste management in the DPRK.

Institute for Far Eastern Studies (IFES)
2011-11-03

In order to celebrate Kim Il Sung’s centennial birthday next year on April 15, 2012, the plan to build 100,000 private homes in Pyongyang is quickly underway. North Korea has announced its intension to upgrade Pyongyang into a city with over 100,000 homes. Pyongyang’s district of Mansudae is to build over one thousand units of high-rise apartments (77 stories), theaters, parks and other recreational facilities.

The KCNA reported on October 11, “For the next Day of the Sun, Pyongyang will be completely transformed.” The news added, “The construction of private homes has been in progress for five months and is at 70 percent completion. Mansudae District is rapidly changing with skyscrapers and high-rise apartments appearing throughout the city. Construction of theaters and service facilities are also in development.”

Facing Mansudae is Dongpyongyang District, another area in Pyongyang under enhancement and has secured over 17,400 square meters of land for multi-purpose service facilities and 9,660 square meters for a public outdoor ice rink. The KCNA elaborated, “The multi-purpose facilities encompass bathhouses, beauty salons, and other latest facilities of convenience. In the public outdoor ice rink, circular ice rink, bleachers and cultural recreational facilities will be built to provide necessary environment for people to enjoy various ice sports.”

Rungrado Recreation Ground is also reported to be rejuvenated with a variety of amusement rides and multipurpose water park. The water park will be equipped with wave pools, waterslides, and health pools.

In addition, Pyongyang is focusing on gardening and exterior beautification projects for private homes and public buildings, including installation of colorful tiles and paints as well as bright neon signs in the streets.

“The Development Project of 100,000 Housing Units in Pyongyang” went into effect since 2009 but talks of reducing the project to 20,000 homes surfaced when it was faced with funding difficulties. However, the original plan of building 100,000 homes has not faltered and appears to be in full swing.

Early this year on January 3, a public rally was held at the Kim Il Sung Square with over 100,000 people present. At that time, the homebuilding project of Pyongyang was announced in which “Pyongyang City will be equipped to enter the era of strong and prosperous nation in all sectors.”

In July 2008, the General Bureau of Capital Construction began a large-scale redevelopment project. Completed a year later on September 2009, 600 old homes mostly built in the 1960s were demolished and in their place an apartment complex with over 800 homes went up. This project received undivided attention from Kim Jong Il, Chang Sung-Thaek, administrative director of the Worker’s Party of Korea, among many other top officials of North Korea.

For North Korea, “The Development Project of 100,000 Housing Units in Pyongyang” has become a symbol of building a strong and prosperous nation.

Additional information:
1. Previous posts on the DPRK’s “2012 Kangsong Taeguk” policies can be found here.

2. Previous posts on “Construction” can be found here.

3. The Pyongyang’s university students are (mostly) involved in construction projects.

4. See photos of the construction by Ray Cunningham here.

Pictured above (Google Earth): The towns mentioned in the article below from which the Kaesong Industrial Zone could draw more labor: Pongchon (봉천), Kumchon (금천), and Phyongsan (평산).

Institute for Far Eastern Studies (IFES)
2011-10-20

According to South Korea’s Ministry of Unification (MOU), the “May 24 Sanctions” that went into effect after the sinking of the naval boat Cheonan was relaxed and began to permit the resumption of construction of businesses in the Kaesong Industrial Complex (KIC). In addition, plans to build fire stations and emergency medical facilities in the area are also currently underway.

After South Korean Grand National Party chairman Hong Jun-pyo visited KIC on September 30, 2011, the ROK government has reached the following decisions: 1) to allow the resumption of halted factory constructions; 2) to build a fire station and emergency medical facility; 3) to resume repair work for commuting roads for KIC employees; and 4) to extend the operations of commuter buses.

This means seven companies that received permits in the past to begin construction but stopped after the sanctions went into effect would be able to resume the halted construction projects.

According to the Ministry of Unification, the seven companies include three metal and machinery, three textile, and one electronic factories, taking up a total area of 103,527 square meters. The total site of production facilities of stage 1 businesses in the KIC reaches 2,171,900 square meters, in which the currently operating 123 companies take up 783,471 square meters. With the sanctions lifted, the total area of businesses in operation will reach 885,950 square meters.

In addition, five companies awaiting construction for expansion will have to wait a little longer. The authorities announced to discuss this issue at a later date, looking positively on their construction to resume shortly as well.

Also the MOU announced to push forward with the establishment of fire stations and emergency medical facilities, “to protect the properties and health of businesses and employees of the KIC. The plans to break ground for fire station will begin in mid-November and is expected to be completed by late next year.”

The layout for the KIC fire station was completed in December 2009 and 3.3 billion USD has been budgeted to fund the construction. The station will be constructed on a steel frame on a 3,305 square-meter lot with the total floor space to be around 2,182 square meters.

The Kaesong Management Committee has been operating a “fire/police station” from April 2005. But with occurrences of accidental fires since last winter, it has reinforced the number of fire engines and manpower – currently at a total of eight fire trucks and 36 fire fighters.

Medical facilities in the KIC will also be completed by the end of 2012 once the construction begins early next year. About 3 billion USD is set for this project.

Currently at the KIC, Green Doctor’s Cooperation Hospital is in charge of providing medical and health services in the KIC, with South Korea Green Doctor’s Kaesong Hospital treating the South Korean employees and North Korean Comprehensive Clinic treating the North Korean employees exclusively. The South Korea Green Doctor’s Kaesong Hospital is currently operated by volunteers at a clinic level. The hospital was in the process of improving the facilities to more than ten beds. However, this project was halted after the May 24 sanctions went in effect.

On another note, the MOU also announced that maintenance work for the road connecting Kaesong City to the KIC would begin. The road is normally used by North Korean employees of the KIC. It was also announced that the number and operation of commuter buses would increase to help with the commute. The buses operate in the 20 km radius; the plan is to increase that to 40 km. Since September 2010, the number of buses increased to 400.

There are plans to extend the service to cover the areas of Kumchon, Bongchon, and Pyongsang. However, the roads to these areas are unpaved and extension of transportation services to these areas will require negotiations with the North Korean authorities.

Although these measures will alleviate some of the problems faced by the businesses in the KIC, the MOU still stands firm on its position that North Korea must take responsibility and make formal apology for the Cheonan incident in order for a fundamental resolution of the situation to occur.

Via Geoffrey See at Choson Exchange:

On my last trip to Pyongyang, I had the opportunity to catch up with some Egyptian expatriates from Orascom Telecom Holding over popcorn and whiskey. They were also kind enough to bring our team clubbing into the wee hours of morning.

Orascom Holdings is three companies each headed by a different brother of the Orascom family. Orascom Telecoms is headed by Naguib Sawiris, while the resorts arm Orascom Development is run by Samir Sawiris, and the construction arm Orascom Construction by another brother. All three brothers have stakes in different assets in North Korea, with the infamous Ryuggyong Hotel owned by Samih Sawiris. As of May 2010, when I had met Samih Sawiris in Switzerland, he had yet to visit Pyongyang. Recent pictures from Pyongyang indicate that this has changed.

The most exciting development to us was Orascom’s 3G Internet service which was still under the testing phase. The plan is to roll out this service in the near future, although the service will only be available to resident foreigners in the initial phase. Approval for this service to be provided on a larger-scale to North Korean citizens, in any censored form, has yet to be given although the infrastructure to do so is in place. For foreign residents in Pyongyang, the service could offer cost-savings of up to 60-80 percent over current satellite internet offerings. There is no information on what security trade-off such a service might entail.

We also discussed text advertising and the current mobile service business. While text advertising is possible, there has yet to be approval for the company to run such a service. Currently, handsets cost Euro 50 each and there is a monthly subscription fee of 900 Won (we are not sure how this cost scales with usage). For reference, the unofficial exchange rate has fluctuated around 2500 to 3500 Won to 1 Euro this year.

Click here to see previous posts about Orascom and cell phones in the DPRK.

According to the Daily NK:

The North Korean authorities in Hamheung are demanding 150,000 won from each trader in local markets to support construction projects in Pyongyang, according to a source from the city.

“Since the start of October, Hamheung Municipal People’s Committee has been taking money from market traders on the premise that ‘You have to give material support to Pyongyang construction workers,’” the source told the Daily NK today. “In the case of traders in the markets in Hoisang and Sapo, they are being asked for as much as 150,000 won each.”

Hamheung is the most famous industrial city in North Korea, and as such has larger markets than many other places. Thus, given that each of the two markets mentioned by the source has more than 500 traders, if the authorities were to reach their goal figure then they would be able to take 75,000,000 won from each one.

However, the Market Management Office for each market already receives 300-500 won per day from traders in the form of a ‘stall tax’, with sellers of home appliances and other high priced goods paying 500 won and those who sell food only paying 300 won. Thus, 150,000 won represents a huge cost, and many traders are apparently reacting to the demand with incredulity.

The source also noted that this does not appear to represent a central Party directive, with only traders in South Hamkyung and Yangkang Province having been hit by it to date.

“In Hyesan Market in Yangkang Province, it is 100,000 won per trader,” the source revealed, adding, “It seems like a case of the provincial Party preparing funds to support Pyongyang construction by taking money from traders.”

Elsewhere, although traders are now angry at the demand for funding, everything else is good, with official market controls being very lightly implemented at the moment, according to the source.

“The market is open from morning to night, and with the exception of the usual crackdowns on grasshopper traders there are no notable inspections,” he revealed.

But then, he added sarcastically, “They are taking money from the market as if it were some kind of state industry, so maybe that’s why they are leaving it alone.”

Read the full story here:
To Hamheung Traders: 150,000 Won for Pyongyang!
Daily NK
Lee Seok Young
2011-10-18

Pictured above (Google Earth): Kaesong Industrial Zone (Sept. 2009)

According to Reuters:

South Korea said on Tuesday it will allow 120 of its firms to restart building a joint industrial park with North Korea, a fresh sign of tensions between the rival countries easing.

Construction of five factories can resume, and work to build seven new ones can go ahead, South Korea’s Unification Ministry said, 17 months after stopping activity in protest at what the South said was an attack by the North on one of its ships.

The South Korean firms employ about 46,000 North Korean workers at the Kaesong industrial park to make clothes, utensils and watches, taking advantage of cheaper labour and property than is available in the South.

According to the Choson Ilbo:

[The Ministry of Unification] will also build a fire station and hospital at the complex, repair a highway linking the city of Kaesong with the industrial complex, and add 45 buses to shuttle North Korean workers to and from the facility.

Previous posts on the Kaesong Zone can be found here.

Read the full story here:
S.Korea allows work at factories in North to restart
Reuters
2011-10-11

UPDATE 1 (2012-1-13): A reader sent in a picture taken from the recently published Architekturführer Pjöngjang (Order from Amazon here, and more on the book here and here). The book was published in May 2011, but inside is a picture containing the already renovated Mansu Hill Revolutionary History Museum.  You can see the picture here:

The caption on the photo reads  ”Wall painting of Pyongyang from a birdseye view in the Paektusan Institute (photo taken 2007)”.

Thanks to a reader for sending this to me!

ORIGINAL POST (2011-10-11): A recent visitor to the DPRK took the following picture of the Korean Revolutionary History Museum on Mansu Hill:

See original photo here.  If you compare it with the photo I took in 2004, you can see that there appears to be some serious renovations going on:

I wonder what new revolutionary feats are being added to the museum’s displays?

Additionally, the Kim Il-sung statue is no longer under wraps, so it appears that it was covered for its protection from construction debris, not because it was being altered in any substantial way.

UPDATE 6 (2011-10-4): According to the Daily NK:

Progress on the project to build 100,000 homes in Pyongyang is moving forward rapidly in at least one location: central Changjeon Street. According to a source from the city who spoke with The Daily NK yesterday, “There are around 30,000 homes being constructed along Changjeon Street, and the shells have almost all gone up.”

Changjeon Street is in the heart of Pyongyang, near well-known spots such as Mansudae Assembly Hall and the giant bronze statue of Kim Il Sung. The authorities are known to be focusing the state’s limited power on construction in this area, with the intention of completing at least the most visible part of planned projects ordered for the commemoration of the 100th anniversary of Kim Il Sung’s birth in April, 2012.

North Korea is understood to have invited a number of foreign dignitaries to witness several big events it has planned for next April, including the Spring Friendship Art Festival and the April 15th ‘Day of the Sun’ birthday celebrations. In that context, completing construction along Changjeon Street is a natural priority.

Changjeon Street was apparently given a further boost following the visit of Kim Jong Il to China in May. Kim was reportedly struck by the inadequacy of Pyongyang when held up against major cities in China, and called for improvement.

The authorities thereafter ordered that the skeletons of homes on Changjeon Street be completed by the anniversary of the Party foundation, which falls on October 10th. According to the source, “The pace of construction has picked up since the authorities ordered that the building frames be completed by October 10th.”

“They started work on a 40-storey building at the end of May, and now are up to the 35th storey. They are using a waterproofing agent that causes the cement to dry quickly, which means they sometimes get through three floors a day,” he continued.

Rodong Shinmun, the Party mouthpiece publication, described the renewed pace of operations on Changjeon Street last Thursday, stating proudly, “The blinding pace of the audacious construction offensive, paying no heed to night or day, has allowed for the construction of the framework of a 40-floor high-rise residential building in no time at all.”

Similar progress is being seen on road extensions and beautification projects nearby. The source said, “Road extension projects have been completed, including that of the road in front of the Botong River and Pyongyang Gymnasium. They’ve put flower beds by the side of the road and the whole area is now in a very good state.”

However, the fixation with construction on Changjeon Street is leading to accidents there, the source added, noting, “Because they only pressure us to speed up and don’t say anything about safety, there have been frequent incidents of workers falling.”

It is also causing other projects in the city to lag far behind. According to the source, “The authorities are doing renovations on houses along the main roads, but only painting and sprucing up the areas which can be seen. The buildings along Tongil, Hyungsaesan and Yongseon Streets were all demolished in 2009, but as yet there is no sign of progress from the company which has been tasked with the construction work.”

UPDATE 5 (2011-6-8): According to the Daily NK:

Finally, yesterday’s Rodong Shinmun, citing a statement from Kim Jong Il himself, went on to remind the people, “Construction in Pyongyang is not simply an issue of operational economics regarding the formation of roads and construction of homes, it is an important political issue related to the prestige of Socialist Chosun and dignity of the Kim Il Sung Motherland.”

This kind of propaganda push is aimed at ensuring the people are cogent of fact that modern buildings are being constructed by the authorities; an attempt to bring to life ongoing propaganda about the strong and prosperous state, which inside sources suggest is viewed with considerable public cynicism.

According to the Chosun Shinbo piece dated June 23rd, the construction at Mansudae is set to include a complex of 14 new apartment buildings, including North Korea’s tallest at 45 floors, a school, nursery and other public buildings. Elsewhere, there is a plan to pull down older construction in Mansu-dong and replace it with a park, and another to put up a modern cylindrical and square apartment building in the vicinity of Pyongyang Students’ and Children’s Palace.

Meanwhile, all the talk of modernity fits well with efforts to promote the youthful vigor of successor Kim Jong Eun, especially as it surrounds the statue of Kim Il Sung on Mansudae Hill, which is itself said to be undergoing a facelift.

In yesterday’s piece, Rodong Shinmun went on, “According to the Party’s grand capital construction plan, a fire of new Pyongyang creation is blazing violently in the ongoing Mansudae area construction,” adding, “According to this warlike strategy, in a short time, less than a month after it began, the groups taking part in the construction had achieved innovative results, digging the vast foundations of the new homes and laying the concrete.”

However, rumor has it that the reality does not meet the heights of this official propaganda, with the authorities having only managed to construct some 500 new residences in the period to the end of 2010.

UPDATE 4 (2011-6-8): KCTV has braodcast new footage of the construction zone and explained what a few of the new buildings will be.  I have uploaded the particular video clip to YouTube, and you can watch it here.

Below are screen shots.  In the picture on the left, we can see that many of the older buildings in the area have already been removed and holes have been dug for the new foundations.  In the picture on the right we can see another conceptual shot of the area from the other side of the Taedong River.

UPDATE 3 (2011-6-8): According to the Pyongyang Times:

A huge construction project has been undertaken to renew the looks of the Mansudae area of Pyongyang on the occasion of the 100th birthday of President Kim Il Sung (April 2012) as part of the grand capital construction plan of the Workers’ Party of Korea.

The project includes the construction of modern dwelling houses and a monumental structure in the area in central Pyongyang where the statue of President Kim Il Sung stands and the development of parks in the surroundings to meet the requirements of the new century. It will be a big stride forward to building Pyongyang magnificently as the world-level city.

The ground-breaking ceremony took place on May 22.

It brought together Premier Choe Yong Rim, Minister of the People’s Armed Forces Kim Yong Chun, Vice-Premiers Jon Ha Chol and Ro Tu Chol, officials from ministries, national agencies and municipality and tens of thousands of builders.

Premier Choe Yong Rim made a keynote speech.

He noted that leader Kim Jong Il saw that monumental structures were built everywhere in the capital to glorify the President’s revolutionary exploits for all ages. He then referred to the facts that the leader initiated the construction of Changgwang and Kwangbok Streets and other large projects and led them in the van to bring about a radical turn in building the capital and improving the people’s livelihood.

He said that under his wise guidance modern houses including those in Mansudae Street and at the foot of Haebang Hill, cultural and public service facilities, parks and recreation grounds were built in recent years and gigantic housing development and city landscaping projects are now dynamically pushed forward in Pyongyang.

More recently the leader suggested the development of the Mansudae area and took drastic measures to push the project from design to mobilizing the builders and supply of materials, he noted, and added that all the officials and builders should be well aware of the importance and significance of this construction, strictly observe the instructions of the designs, building operations and construction methods and work hard to create a new building speed.

He stressed the need to finish the construction of houses in Ryongsong, Sopho and Ryokpho areas in time together with the construction in the Mansudae area.

He called on the whole Party, the entire nation and all the people to turn out to support the construction in the Mansudae area.

He was followed by other speakers.

UPDATE 2 (2011-6-3): KCNA has finally published a story about the new construction in the Central District:

There started the project to build on the best level the Mansudae area in Pyongyang where President Kim Il Sung’s statue stands in the run-up to the centenary of his birth.

A monumental edifice, high-rise apartment houses, skyscraping buildings, public buildings and cultural and service facilities will appear as required by the new century in the vast area covering dozens of hectares where its old appearance will be no longer to be seen.

A new street will make its appearance as required by the modern sense of beauty, completely free from the existing mode of urban construction.

It will be unique in the formative artistic representation of architecture and the whole area will turn into a huge park. This is a new idea in the lay-out of the street in the area.

A round-shape big people’s theater will spring up in the area of Mansu-dong.

Trees of good species and flowering plants will be planted in the more than ten hectare area around the theater facing the Mansudae Assembly Hall. Promenades and public service facilities will keep in good harmony.

The height of the high-rise apartment houses to be built in the area covering hundreds of thousands of square meters in Kyongsang-dong, Jongro-dong and Taedongmun-dong is expected to gradually increase and twin tower buildings will be concentrated in the area near the Changjon Intersection so that one can enjoy a bird-eye-view of rhythmic distribution of huge buildings on the street.

A catering street will rise to face Okryu Restaurant and public buildings and cultural and service facilities of unique styles will be distributed to the convenience of the residents. They will be decorated with peculiar street lamps and diverse lights.

What draws attention in the lay-out of the streets is the fashionable appearance of high-rise and skyscraping apartment houses of peculiar styles, a harmonious combination of circular, semi-circular and angle style architecture.

The houses will have de luxe flats which will meet the cultural need of Pyongyangites.

When the construction of the Mansudae area completed, it will best match the monumental edifices including the Chollima Statue, the Tower of the Juche Idea, the Monument to Party Founding, the Grand People’s Study House and the Moranbong Theater and structures in the era of the Workers’ Party including An Sang Thaek, An Sang Thaek Street, Munsu, Mansudae and Changwang streets. This will change the appearance of the capital city beyond recognition.

Conceptual images of the construction area can be seen below.

UPDATE 1 (2011-5-24): In the comments, a reader points out a photo by a recent visitor to Pyongyang.  See a LARGE version of the photo here. The photo (2011-4-24) shows that renovation of the Mansudae area began over a month ago.  As of April 24, area families and all of their belongings had already been relocated (to where?); shops had been closed and emptied; and building destruction had begun.

ORIGINAL POST (2011-5-23):

The May 22 episode of the DPRK’s evening news (via elufa.net) featured a ground-breaking ceremony for a re-development project in the Mansudae area of Pyongyang’s Central District (만수대지구, 중구 역). You can see a clip of the evening news broadcast (with English translation) here.

I used the project overview map in the evening news to map out the construction area on Google Earth:

In Jongro-dong (종로동) the Pyongyang School Children’s Palace (평양학생소년궁전) will be spared destruction, but the exclusive Kumsong Middle School No. 1 next door (굼성제1 중학교–not to be confused with the Kumsong School in Mangyongdae) looks like it will be torn down.

In Mansu-dong (만수동) we will see the destruction of the historical Changjon Primary School (평양창전소학교) and the DPRK’s central bank.  Maybe the central bank will get a home in the new facilities, but I have no idea.

In Kyongsang-dong (경상동) the Pyongyang Kyongsang Kindergarden (for musically gifted youngsters) as well as the Pyongyang Children’s Department Store will be torn down.  These too may receive  a new home in the reconstructed neighborhood facilities.

Additional information:
1. This project comes immediately after the first Mansudae Area redevelopment project near the Potong Gate (just to the west of this one).  Read about the first Mansudae Street renovation project here.

2. This residential construction project, though unlikely to be completed by April 2012, is probably part of the DPRK’s 2012 Kangsong Taeguk (강성대국) campaign.  As part of the campaign, Pyongyang is to receive 100,000 new housing units.  Read more about 2012 construction projects here, here, and here.

3. One report says that the KPA has been put in charge of the DPRK’s renovations.

4. Pyongyang just held an architecture exposé.  See some of the work here.

5. These projects appear to be priorities as well.