North Korean Economy Watch

UPDATE 24 (4/1/2011): The University of Georgia is  awarding Ling/Lee with McGill Medal. According to the AP:

The University of Georgia is honoring two reporters held captive in North Korea for 140 days in 2009.

Laura Ling and Euna Lee will receive the McGill Medal for Journalistic Courage on April 20 in Athens. The medal is named for Ralph McGill, the editor and publisher of the Atlanta Constitution who challenged racial segregation in the 1950s and ’60s.

…

Ling and Lee were selected from a pool of candidates nominated by reporters, editors and academicians from across the country.

UPDATE 23: Laura Ling named her first child after President Clinton.

UPDATE 22: According to the Associated Press:

An American journalist who was imprisoned in North Korea for months after briefly crossing into the reclusive country while reporting about the sex trade said Tuesday she told interrogators in a ploy for mercy that she was trying to overthrow the government.

In her first televised interview since her August release, Laura Ling said on “The Oprah Winfrey Show” that she was told the worst could happen if she didn’t confess.

Ling said she drew suspicion because she worked for San Francisco-based Current TV, a media venture founded by former Vice President Al Gore.

“I knew that that was the confession they wanted to hear and I was told if you confess there may be forgiveness and if you’re not frank, if you don’t confess then the worst could happen,” Ling said.

“It was the most difficult decision to have to do that. I didn’t know if I was sealing my fate,” she said. “But I just had to trust that this was the right thing to do.”

Ling and journalist Euna Lee were captured at the North Korea-China border in March 2009 while reporting about North Korean women who were forced into the sex trade or arranged marriages when they defected to China.

They spent the first few days of their captivity in a five-by-six foot jail cell.

“There were no bars so you couldn’t see out. And if they closed those slats, it just went completely dark,” Ling said.

The women were moved to a Pyongyang guesthouse soon after, where Ling said conditions improved, but there were no showers and the power and water went out several times a day.

“I developed a system to wash where they would allow me to heat a kettle of water,” she said. “I would mix it with some cold water and then I would scrub down and just splash it on me.”

The women were convicted of illegal entry and “hostile acts” and sentenced to 12 years of hard labor. Ling said she was petrified and tried to prepare herself for a long sentence, “but once I heard those words ’12 years’ come from the judge I could barely stand up right.”

She said she spiraled into a deep depression, refused her meals and huddled in a dark corner of her room. She said she sought strength by thinking about other innocent people imprisoned.

“If these people are undergoing this then I can try to muster up the strength to get through it,” she said.

Ling also said she was angry with herself and would slap and hit herself as punishment for putting her family through the ordeal. She thought she might be pregnant when she was captured then was crushed to learn she wasn’t.

“I thought, I will never be able to have a family with my husband again,” said Ling, who is now pregnant and due in June.

UPDATE 21: According to Yonhap:

Two North Korean soldiers who arrested female U.S. journalists on the border with China in March have been treated like heroes, according to North Korean media reports monitored here on Thursday.

The North Korean soldiers, Son Yong-ho and Kim Chol, appeared on a special program of the Pyongyang-based Korean Central TV Broadcasting Station and reflected on the moment they detained the two American journalists — Laura Ling and Euna Lee of the San Francisco-based Internet outlet Current TV.

During the TV program produced to celebrate the inaugural anniversary of North Korean leader Kim Jong-il, the master of ceremonies disclosed that North Korean leader Kim gave the “Kim Il-sung Youth Honor Award” and a special leave to the North Korean border guard soldiers for their “feat” in the arrest of the U.S. journalists.

Kim Il-sung, the founder of North Korea, is the father of leader Kim Jong-il.

In the TV program, soldier Son said that he received a hero’s welcome when he visited his hometown on a special leave. “I arrived in my hometown like a triumphant general. All residents came out to give me wreaths of flowers. A top local official even gave me a ride on his shoulder,” said Son.

He also recalled the American reporters’ arrest, saying, “On the early morning of March 17, we arrested the people as they appeared to have hostile purposes. One of the Americans offered us money begging for mercy, but we flatly turned down the offer.”

Laura Ling and Euna Lee were arrested in March on the China-North Korea border while reporting on refugees fleeing the isolated state. They were sentenced in June to 12 years in a labor camp for an unspecified “grave crime” and illegal border-crossing.

UPDATE 20: Ms. Ling and Ms. Lee wrote an article for the Los Angeles Times giving some more details of their capture:

We arrived at the frozen river separating China and North Korea at 5 o’clock on the morning of March 17. The air was crisp and still, and there was no one else in sight. As the sun appeared over the horizon, our guide stepped onto the ice. We followed him.

We had traveled to the area to document a grim story of human trafficking for Current TV. During the previous week, we had met and interviewed several North Korean defectors — women who had fled poverty and repression in their homeland, only to find themselves living in a bleak limbo in China. Some had, out of desperation, found work in the online sex industry; others had been forced into arranged marriages.

Now our guide, a Korean Chinese man who often worked for foreign journalists, had brought us to the Tumen River to document a well-used trafficking route and chronicle how the smuggling operations worked.

There were no signs marking the international border, no fences, no barbed wire. But we knew our guide was taking us closer to the North Korean side of the river. As he walked, he began making deep, low hooting sounds, which we assumed was his way of making contact with North Korean border guards he knew. The previous night, he had called his associates in North Korea on a black cellphone he kept for that purpose, trying to arrange an interview for us. He was unsuccessful, but he could, he assured us, show us the no-man’s land along the river, where smugglers pay off guards to move human traffic from one country to another.

When we set out, we had no intention of leaving China, but when our guide beckoned for us to follow him beyond the middle of the river, we did, eventually arriving at the riverbank on the North Korean side. He pointed out a small village in the distance where he told us that North Koreans waited in safe houses to be smuggled into China via a well-established network that has escorted tens of thousands across the porous border.

Feeling nervous about where we were, we quickly turned back toward China. Midway across the ice, we heard yelling. We looked back and saw two North Korean soldiers with rifles running toward us. Instinctively, we ran.

We were firmly back inside China when the soldiers apprehended us. Producer Mitch Koss and our guide were both able to outrun the border guards. We were not. We tried with all our might to cling to bushes, ground, anything that would keep us on Chinese soil, but we were no match for the determined soldiers. They violently dragged us back across the ice to North Korea and marched us to a nearby army base, where we were detained.

Over the next 140 days, we were moved to Pyongyang, isolated from one another, repeatedly interrogated and eventually put on trial and sentenced to 12 years of hard labor.

…

In researching the story, we sought help from several activists and missionaries who operate in the region. Our main contact was the Seoul-based Rev. Chun Ki-won, a well-known figure in the world of North Korean defectors. Chun and his network have helped smuggle hundreds of North Koreans out of China and into countries — including the U.S. — where they can start new lives. He introduced us to our guide and gave us a cellphone to use in China, telephone numbers to reach his associates and specific instructions on how to contact them. We carefully followed his directions so as to not endanger anyone in this underground world.

Because these defectors live in fear of being repatriated to North Korea, we took extreme caution to ensure that the people we interviewed and their locations were not identifiable. We met with defectors away from their actual places of work or residence. We avoided filming the faces of defectors so as not to reveal their identities. The exception was one woman who allowed us to film her profile.

Most of the North Koreans we spoke with said they were fleeing poverty and food shortages. One girl in her early 20s said she had been told she could find work in the computer industry in China. After being smuggled across the Tumen River, she found herself working with computers, but not in the way she had expected. She became one of a growing number of North Korean women who are being used as Internet sex workers, undressing for online clients on streaming video. Some defectors appeared more nervous about being interviewed than others. But they all agreed that their lives in China, while stark, were better than what they had left behind in North Korea.

We also visited a foster home run by a pastor who worked for Chun. The home housed six children born to North Korean women who were forced into marriage in China. The mothers had either been repatriated to North Korea or had abandoned their families. Because the children have Chinese fathers, it is unlikely they will be deported to North Korea. The foster home provides them with decent conditions, an education and hope for a better life.

In the days before our capture, our guide had seemed cautious and responsible; he was as concerned as we were about protecting our interview subjects and not taking unnecessary risks. That is in part why we made the decision to follow him across the river.

We didn’t spend more than a minute on North Korean soil before turning back, but it is a minute we deeply regret. To this day, we still don’t know if we were lured into a trap. In retrospect, the guide behaved oddly, changing our starting point on the river at the last moment and donning a Chinese police overcoat for the crossing, measures we assumed were security precautions. But it was ultimately our decision to follow him, and we continue to pay for that decision today with dark memories of our captivity.

After we were detained, the two of us made every effort to limit the repercussions of our arrest. In the early days of our confinement, before we were taken to Pyongyang, we were left for a very brief time with our belongings. With guards right outside the room, we furtively destroyed evidence in our possession by swallowing notes and damaging videotapes. During rigorous, daily interrogation sessions, we took care to protect our sources and interview subjects. We were also extremely careful not to reveal the names of our Chinese and Korean contacts, including Chun. People had put their lives at risk by sharing their stories, and we were determined to do everything in our power to safeguard them.

Our families and colleagues back home maintained total silence about our work for two full months, both to minimize the potential impact on sensitive underground work in China and to protect us. We were surprised to learn that Chun spoke with reporters publicly in the immediate aftermath of our arrest. Among other things, Chun claimed that he had warned us not to go to the river. In fact, he was well aware of our plans because he had been communicating with us throughout our time in China, and he never suggested we shouldn’t go. Chun’s public statements prompted members of our families to speak directly with him in Korean, pleading with him to refrain from any further comment that might jeopardize our situation and those of relief organizations working along the border.

…

We know that people would like to hear more about our experience in captivity. But what we have shared here is all we are prepared to talk about — the psychological wounds of imprisonment are slow to heal. Instead, we would rather redirect this interest to the story we went to report on, a story about despairing North Korean defectors who flee to China only to find themselves living a different kind of horror. We hope that now, more than ever, the plight of these people and of the aid groups helping them are not forgotten.

Read the full story here:
Hostages of the Hermit Kingdom
Los Angeles Times
Laura Ling and Euna Lee
9/1/2009

UPDATE 19: To read more about the DPRK’s legal processes and statutes that were in play throughout the DPRK’s detention of the two reporters, click here.

UPDATE 18: Current TV filed for an IPO (Initial Public Offering) in January. More here. In April, shortly after Euna and Laura were captured, the IPO was cancelled:

Al Gore’s Current Media has canceled plans for a $100 million IPO. In a filing with the Securities and Exchange Commission, Current Media says it has withdrawn its registration “in light of current market conditions.” When the company initially filed for the IPO last January, it said it would use proceeds to pay down debt and fund general operations. Since then, the market has tanked, and Current Media has run into a bit of a rough spot, eliminating 60 positions in November. The company last reported results a year ago, posting a net loss of $7.5 million for the first three months of 2008, compared to a loss of $2.9 million during the same period the year before.

I am not asserting that the IPO and the Laura/Euna saga are directly related.  I am merely posting this information because it adds some context to the story.

UPDATE 17: According to the Chison Ilbo, China used the reporters’ captured video to round up North Koreans hiding in China and those helping them:

Video footage shot by two TV journalists who were detained in North Korea after filming on the Chinese border was used by China to round up on North Korean refugees. China also deported one South Korean human rights activist who is seen in the footage and closed five orphanages that had protected North Korean children.

Chinese police also confiscated related materials including list of activists working for North Korean refugees in China, data on North Korean orphans, and video footage showing North Korean women who were sold into the Chinese countryside or appeared in porn videos.

The claims were made Thursday by Lee Chan-woo (71), a pastor with the Durihana Mission, a South Korean organization that aids North Korean defectors. Lee was caught and deported by Chinese police for helping the two reporters, who worked for former U.S. vice president Al Gore’s Internet news channel Current TV.

Lee said Laura Ling, Euna Lee and a man named Mitch Koss met him at a hotel in Yanji, in China’s Jilin Province, on March 14. They said they wanted to gather information about North Korean women who were working in adult videos at the North Korean-Chinese border area and on other North Korean women who were sold into the Chinese countryside.

They also wanted to know about children born to North Korean women and Chinese men. At the time, Lee was protecting some 21 children who had been abandoned by their Chinese families after their mothers were taken back to the North at five orphanages.

“I allowed them to collect information about the children on condition that they would not film their faces,” he said.

The three visited an orphanage the following day. Euna Lee, who speaks fluent Korean, asked children to send video messages to their mothers who had been deported to the North, and to bow to their mothers in front of the camera. But Lee said he stopped them from filming the scene.

The next day, the journalists filmed North Korean women at the border. They crossed the border and were arrested by North Korean soldiers on March 17. Ling and Lee were taken to North Korea, but Koss made it back and was arrested by Chinese border guards and handed over the video footage he was carrying.

On the early morning of Mar. 19, Chinese police raided Lee’s house and confiscated his computer, camera and various documents. “The documents contained the personal information of 25 North Korean orphans in addition to the children staying at the orphanages, and the phone numbers and addresses of human rights activists and their future plans,” he said. “I was interrogated intensively by three Korean-Chinese police officers until March 26. It was during interrogation that I found out that Chinese police had confiscated the video.”

Lee was deported to South Korea on April 8 after paying a fine of 20,000 yuan (approximately W4 million). “The five orphanages were forced to close down one by one,” he said. “I found Chinese relatives for 17 of the 21 orphans and a safe shelter for the remaining four, who have no relatives there.”

UPDATE 16: According to the New York Times clinton’s visit, and the journalists’ release were arranged by Joseph R. DeTrani:

The visit was arranged under a veil of secrecy with the help of an unlikely broker: a high-level American intelligence officer who spent much of his career trying to unlock the mysteries of North Korea.

When former President Bill Clinton landed in Pyongyang on Aug. 4 to win the release of two imprisoned American journalists, senior officials said he met an unexpectedly spry North Korean leader, Kim Jong-il, who welcomed him with a long dinner that night, even proposing to stay up afterward.

Mr. Kim was flanked by two longtime aides, and he gave no hint that North Korea was in the throes of a succession struggle, despite the widespread questions over how long he might live.

Mr. Clinton and the Obama administration were determined not to extend a public-relations coup to Mr. Kim, who expressed a desire for better relations with the United States. But the visit is already setting off ripples that could change the tenor of the relationship between the United States and North Korea.

Mr. Clinton steered clear of broader issues during his humanitarian mission, officials said. Indeed, he did not even ask to see Mr. Kim, requesting instead a meeting with “an appropriate official.” To help the former president in case something went awry, the White House recommended John Podesta, an adviser to both Mr. Clinton and President Obama, join his delegation.

And to ensure he would not leave empty-handed, Mr. Clinton asked that a member of his entourage meet with the journalists, Laura Ling and Euna Lee, shortly after he landed to make sure they were safe, said a senior administration official, who had been briefed on the visit.

The role of the intelligence officer, Joseph R. DeTrani, in arranging the visit, has not previously been reported. Mr. DeTrani is the government’s senior officer responsible for collecting and analyzing intelligence on North Korea. His efforts to pave the way for Mr. Clinton’s visit offer a glimpse into how the administration has been forced to use unorthodox methods to overcome the lack of formal communications.

During the Bush administration, when the United States was in still in talks with North Korea, the White House did not use intelligence officers for these purposes, an official familiar with the talks said. Indeed, before taking the job of North Korea mission manager in the Office of the Director of National Intelligence in 2006, Mr. DeTrani served as the special envoy to the six-party talks with North Korea.

UPDATE 15: According to the Los Angeles Times, Lisa Ling states that Laura and Euna crossed into North Korea for “maybe 30 seconds” before they were captured and detained.   Lisa says Laura plans to write an editorial explaining what happened and how she was captured.

Additionally, the media is reporting the following quote a fair amount:

She had two guards in her room at all times, morning and night. And even though they couldn’t speak to her, somehow they developed a strange sort of kinship, Lisa Ling said. “She had some really lovely things to say about the people who were watching over her.”

My suspicion is that this “kinship” is largely imagined and was possibly even nurtured by the North Koreans.  The guards were almost certainly not doing anything they were not specifically authorized to do.  Nobody seems to realize that there were two guards stationed in her room precisely to prevent one of them from becoming acquainted with and developing sympathies for the two American women.  These guards had to report on each other as well as the prisoner.  This bastardized version of the buddy system is essentially the same reason the DPRK stations at least two guards together at each post along the DMZ.

Finally, the North Korean news videos of Clinton’s visit are finally up on Elufa.net.  You can watch and download them here. Here is KCNA coverage of President Clinton’s visit on Youtube.

Read all the posts related to this chain of events below:
(more…)

Nearly two weeks ago, the UN Security Council sanctioned five North Korean organizations. One of them was the Hyoksin Trading Corporation.  I believe they even have a web page here.

Today, the US imposed financial sanctions on this company.  According to the The Associated Press  (Via the Washington Post):

The Obama administration on Thursday imposed financial sanctions on a North Korean firm accused of involvement in the country’s missile programs.

The Treasury Department’s action covers Korea Hyoksin Trading Corp. It means any bank accounts or other financial assets found in the United States that belong to the company must be frozen. Americans also are prohibited from doing business with the firm.

It is the latest move by the United States to keep pressure on Pyongyang, whose nuclear ambitions have ratcheted up global tensions.

The department alleges that Korea Hyoksin Trading is owned or controlled by another North Korean firm, Korea Ryonbong General Corp., which the United States says is involved in the development of weapons of mass destruction. Korea Ryonbong supports Pyongyang’s sales of military-related items, the department said.

Read the full story here:
US tightens financial noose on North Korea
The Associated Press
Jeannine Aversa
7/30/2009

According to Reuters:

Countries appear even less willing to give following North Korea’s second nuclear test in May, Torben Due, the U.N. World Food Programme representative in North Korea, told a news conference in Beijing.

“It’s a very sensitive area. I understand to a certain extent why donors are questioning,” he said. “But my angle is as a humanitarian. Being a humanitarian organisation you should look at the needs of the people. WFP does not engage in the political part of it.”

Due said no new donations had been received following that second test.

An appeal for more than $500 million in food aid has been just 15 percent met, meaning a planned relief operation to reach 6.2 million people has been scaled back to target 2 million.

Due, who lives in Pyongyang and was passing through the Chinese capital, told of the human toll of the state’s struggling economy and international seclusion, with mothers and children stunted by starvation.

“We are now in the middle of the lean season in North Korea, where food supplies are low and it’s a very difficult situation for many people in the country,” he said.

“But more importantly it should be noted that we have a situation where a very large part of the population has been undernourished for 15 or 20 years.”

In some parts of North Korea, some women weigh just 45 kg (99 lb) when they give birth, he added, citing a medical survey.

“The children that survive these conditions will be born with compromised immune systems … and that will contribute to their stunting,” Due said. “It’s a problem which goes from one generation to the next.”

Given the DPRK’s prerogatives, however, the US is not inclined to send food aid.  According to the Associated Press:

The United States said Wednesday it is “very concerned” about the North Korean people but cannot send needed food aid without assurances from their Stalinist government that it will reach them.

“We currently have no plans to provide additional food aid to North Korea and any additional food would have to have assurances that it would be appropriately used,” Kelly told reporters.

“We remain very concerned about the well-being of the North Korean people,” the spokesman said.

“But we are very concerned because we need to have an adequate program management in place, monitoring and access provisions and we don’t have that right now,” he added.

He recalled that in March North Korea expelled non-governmental organization (NGO) monitors in line with its decision to reject US food aid.

“At that time we had about 22,000 metric tonnes in storage there. We’ve learned that the DPRK (North Korean) has distributed this food,” Kelly said. 

I have not seen any food prices from North Korean markets in a while.  If anyone has come across any, please send them to me. 

Recent defectors offer a more nuanced account:

The food supply in the North may have improved slightly in the past two years due to better weather, but Jo said food still is hard to come by. “Even last year, we had a campaign in Kangwon province of getting by with two meals a day. Soldiers sometimes would just get three potatoes a day.”

There is a thriving market economy in North Korea at the local level where the average person buys food staples and consumer goods often made in China. Private plots of land are increasingly used for providing food for one’s family, said Cho Myungchul, a researcher who was an economist in the North before defecting to the South 15 years ago. (Reuters)

Read more here:
U.N. says North Korea food aid has dried up
Reuters
Ben Blanchard
7/1/2009

US cannot send food aid to NKorea despites its concerns
AFP
6/1/2009

Life in North Korea: lies, potatoes and cable TV
Reuters
Jack Kim
7/1/2009

On January 21, the day after the Obama administration took office, the White House approved certain trade sanctions–initiated by the Bush administration–to be printed in the Federal Register.  These sanctions targeted specific Chinese, Iranian, and North Korean companies that the US believes were/are violating arms export regulations governing missile technology and other proliferation activities.  [Read more, including Federal Register text, here]

After North Korea conducted a long-range missile test in April, the US pushed the UN Security Council to adopt a presidential statement which blacklists several additional North Korean firms. [Read more here].

After North Korea conducted a second nuclear test, in violation of UNSC resolution, the UNSC adopted a resolution which tightened sanctions on the DPRK. [Read more here]

In June, the South Korean government imposed sanctions on these DPRK companies for the first time [Read more here]

The US followed up the UNSC resolution by announcing an inter-agency team that will focus exclusively on enforcing DPRK sanctions [Read more here] 

Today, the US Treasury Department announced it was targeting Hong Kong Electronics (Kish Island, Iran) [from where a former FBI agent is still missing] for supporting the balcklisted North Korean organizations.  According to Market Watch:

The Treasury Department said Tuesday that it has targeted another player in North Korea’s missile proliferation network. The agency designated Hong Kong Electronics, located in Kish Island, Iran, for providing support to North Korea’s Tanchon Commercial Bank and Korea Mining Development Trading Corp. Those two firms have been targeted by the U.S. and the United Nations as part of North Korea’s nuclear proliferation network. “Today’s action is a part of our overall effort to prevent North Korea from misusing the international financial system to advance its nuclear and missile programs and to sell dangerous technology around the world,” said Stuart Levy, Treasury under-secretary for terrorism.

What does this mean? It means that any bank accounts or other financial assets found in the United States belonging to the company must be frozen. Americans also are forbidden from doing business with the firm. This probably does not amount to much economically, but is probably intended to discourage banks outside of the US from doing business with these firms.

UPDATE 1: It looks like the State Departmet is also going after a North Korean company believe to be involved in weapons proliferation today.  According to a statement by the Treasury Department:

The U.S. Department of the Treasury today targeted North Korea’s missile proliferation network by designating Hong Kong Electronics under Executive Order 13382.  E.O. 13382 freezes the assets of designated proliferators of weapons of mass destruction and their supporters and prohibits U.S. persons from engaging in any transactions with them, thereby isolating them from the U.S. financial and commercial systems.  Hong Kong Electronics, located in Kish Island, Iran, has been designated for providing support to North Korea’s Tanchon Commercial Bank (Tanchon) and Korea Mining Development Trading Corporation (KOMID).

Tanchon and KOMID have also been designated by the United States under E.O. 13382 and the UN Security Council under Resolution 1718. The Department of State also today targeted North Korea’s nuclear proliferation network by designating Namchongang Trading Corporation (NCG), a North Korean nuclear-related company in Pyongyang, under E.O. 13382. 

“North Korea uses front companies like Hong Kong Electronics and a range of other deceptive practices to obscure the true nature of its financial dealings, making it nearly impossible for responsible banks and governments to distinguish legitimate from illegitimate North Korean transactions,” said Stuart Levey, Under Secretary for Terrorism and Financial Intelligence. “Today’s action is a part of our overall effort to prevent North Korea from misusing the international financial system to advance its nuclear and missile programs and to sell dangerous technology around the world.”

Since 2007, Hong Kong Electronics has transferred millions of dollars of proliferation- related funds on behalf of Tanchon and KOMID. Hong Kong Electronics has also facilitated the movement of money from Iran to North Korea on behalf of KOMID. Tanchon, a commercial bank based in Pyongyang, North Korea, is the financial arm for KOMID – North Korea’s premier arms dealer and main exporter of goods and equipment related to ballistic missiles and conventional weapons.

Tanchon plays a key role in financing the sales of ballistic missiles for KOMID. Tanchon has also been involved in financing ballistic missile sales from KOMID to Iran’s Shahid Hemmat Industrial Group (SHIG), which is the Iranian organization responsible for developing liquid-fueled missiles. SHIG has been designated under E.O. 13382 and sanctioned by the United Nations under UN Security Council Resolution (UNSCR) 1737. Since 2005, Tanchon has maintained an active relationship with various branches of Iran’s Bank Sepah, an entity designated under E.O. 13382 and sanctioned by the United Nations under UNSCR 1747, for providing financial services to Iran’s missile program. The U.S. has reason to believe that the Tanchon-Bank Sepah relationship has been used for North Korea-Iran proliferation-related transactions.

Here is the press release by the State Department:

The U.S. Department of State today targeted North Korea’s nuclear proliferation network by designating Namchongang Trading Corporation (NCG) under Executive Order 13382. E.O. 13382 is an authority aimed at freezing the assets of proliferators of weapons of mass destruction and their supporters, and at isolating them from the U.S. financial and commercial systems. Entities designated under E.O. 13382 are prohibited from engaging in all transactions with any U.S. person and are subject to a U.S. asset freeze.

NCG is a North Korean nuclear-related company in Pyongyang. It has been involved in the purchase of aluminum tubes and other equipment specifically suitable for a uranium enrichment program since the late 1990s.

The Department of the Treasury also today designated Hong Kong Electronics, located in Kish Island, Iran, for providing support to North Korea’s Tanchon Commercial Bank (Tanchon) and Korea Mining Development Trading Corporation (KOMID). Tanchon and KOMID were designated by the United States under E.O. 13382 on June 28, 2005 and the UN Security Council under Resolution 1718 on April 24, 2009.

North Korea’s April 5, 2009 launch of a Taepo Dong-2 (TD-2) missile and May 25, 2009 nuclear test demonstrate a need for continued vigilance with respect to North Korea’s activities of proliferation concern. The designations add to continuing U.S. efforts to prevent North Korean entities of proliferation concern from accessing financial and commercial markets that could aid the regime’s efforts to develop nuclear weapons and the missiles capable of delivering them.

McClatchy has more here.

According to the Washington Post:

The White House is ramping up its efforts to enforce sanctions against North Korea by forming a new interagency team to coordinate U.S. actions with other nations, senior administration officials said today.

The new team will be led by former ambassador to Bolivia Philip S. Goldberg, who is slated to leave for China in the near future as the U.S seeks concerted action to stop the North Korean regime from developing nuclear weapons.

“There is a broad consensus about the need to have a focused and engaged effort to see that these sanctions are implemented … and that we’re sharing information with each other,” one official said, speaking on background.

U.S. officials described the new group as a way to focus the administration more squarely on implementation of the latest sanctions, which were approved by the United Nations in the wake of North Korea’s nuclear test last month.

The officials said they are hoping the group — with representatives from the State Department, the White House, the National Security Agency, Treasury and others — will help “shine a spotlight” on the actions of the regime.

“We wanted somebody who woke up every morning and thought about nothing but sanctions implementation,” one official said. “It’s a huge difference when you have somebody who isn’t worried about any of the other aspects of this.”

The White House also announced a renewed effort to use the authority of the U.N. resolution to take financial actions against the North Korean regime in an effort to choke off the money flowing from small arms trade and other activity.

Treasury officials have issued a public memorandum to private financial institutions reminding them of the global condemnation and other risks of doing business with the North Korean regime.

The letter warns that North Korean banks and institutions often use deceptive techniques to engage in financial transactions that could place legitimate financial firms at risk.

“Financial institutions should apply enhanced scrutiny to any such correspondent accounts they maintain, including with respect to transaction monitoring,” the letter states.

One senior official said the U.S. is confident that the financial sanctions will over time help to further isolate North Korea and pressure its leaders to abandon its nuclear program.

“It’s going to take time to have a bite,” he conceded. “But we’re trying to get out of the box quickly.”

The Bush administration also had a sustained effort to implement United Nations sanctions after North Korea first tested a nuclear weapon in 2006.

The Counterproliferation Directorate of the White House National Security Council coordinated the effort, while the State Department and Treasury also co-chaired an interagency effort to examine specific cases that eventually worked their way up the chain for approval.

A team of senior officials, led by the undersecretary of State for arms control, traveled to Asia to work closely with allies. But the effort was dropped after Bush shifted course and decided to pursue diplomacy with North Korea.

Their first stops: China then Malaysia.

Citations:
New North Korea Sanctions Team Formed
Washington Post
Michael D. Shear and Glenn Kessler
6/26/2009

U.S. North Korea sanctions team to visit Malaysia
Reuters UK
7/2/2009

DPRK citizens forbidden from entering Google offices?
According to this article in Britain’s Daily Mail:

When you visit the shiny headquarters of Google UK, just a stone’s throw from Victoria Station in London, the receptionist asks you to log-in on a computer with a touch screen.

How else would you sign in? This is one of the centres of the cyber universe.

And then something strange happens. Before you can be issued a pass, the computer asks you to enter into a ‘ nondisclosure agreement’ with Google Inc., a 499-word document.

You must agree not to disclose any confidential information that you might stumble upon while in the building.

In particular, the Participant (that’s you) ‘hereby certifies that he/she shall not  –  directly or indirectly  –  sell, export, re- export, transfer, divert, or otherwise dispose of any hardware, software, source code or technology . . . without obtaining prior authorisation from Google and the appropriate government authorities’.

In addition, you must even certify that you are not a citizen of Cuba, Iran, North Korea, Sudan or Syria.

Some readers will recall a similar incident with LinkedIn a few weeks back (which has since been resolved).

Jackie Chan
Following Jackie Chan’s comments that he believed Chinese people “need to be controlled,”  some Hong Kong residents created a Facebook group dedicated to sending him to the DPRK.  If you are a member of Facebook, check out the group page here.

Great Photos
(Hat tip to David) The Boston Globe posted a great set of photos from North Korea’s boder with China.  I am not easily impressed with photos of the DPRK, but these are good.

(Addition Al Jazeera)
Last night Scott Snyder and Alejandro Cao de Benos were on Al Jazeera’s Riz Khan.  Part 1 here.  Part 2 here.

Anna Louise Strong (November 24, 1885 – March 29, 1970) was a twentieth-century American journalist and activist best known for her reporting on and support for communist movements in the Soviet Union and the People’s Republic of China.

In 1949 she wrote a pamphlet for Soviet Russia Today titled, “In North Korea: First Eye-Witness Report” (Many will be familiar with the DPRK equivalent, Korea Today, which has survived long enough to be published on the internet)

The text is relatively short, but since this is exam season, I will not get around to it for a couple of weeks.  Enjoy.

(hat tip Alina)

US Senator Sam Brownback (R-KS) has introduced legislation which would require the the US governmet to add the DPRK back to its list of state sponsors of terror.  If passed by the legislature and signed by the president, this would reverse the decision by Republican President George W. Bush, who had the DPRK removed from the list in October of last year. 

The bill is S. 837.  It has been referred to the Senate Committee on Foreign Relations.  I am not a political insider, so I do not have any insight into how long it will remain there or if it has any chance of passing a committee vote.  Joshua will probably be following the bill closely will be actively seeking the bill’s passage, so we can expect updates at One Free Korea.

I cannot offer any analysis of the proposed legislation since the Government Printing Office has not yet published the bill’s text (so it is not on line at the moment). You can track the bill’s progress here.  Thomas has a list of cosponsors, etc.

UPDATE: Joshua has a link to a copy of the Senate bill as well as information on the corresponding House bill.

UPDATE:  According to the band (via Christian Post):

“Made many friends. We performed twice and were awarded for the performance of Lifesong,” he added Monday. “We also recorded the Korean song, White Dove, in their studio in Pyongyang.”

ORIGINAL POST: According to the Christian Post:

Contemporary Christian band Casting Crowns will again participate in North Korea’s annual Spring Friendship Arts Festival but this time won’t be the only U.S. Christian group there performing.

The Grammy Award-winning band will be joined by the Annie Moses Band (AMB), a five-sibling ensemble whose ages range from ten to 24.

“In early December we received an official invitation from the North Korean government to perform in the Spring Friendship Arts Festival,” AMB lead vocalist and violinist Annie Wolaver told The Christian Post on Friday.

“We have been praying for many years that the Lord would open doors for us to tour overseas. We had some grand visions of playing Celtic jigs in the Scottish highlands, but instead He opened a door that was entirely unexpected,” she reported.

Two years ago, Casting Crowns was invited to perform at the 25th Annual April Spring Arts Festival with help from Global Resource Services (GRS), which has worked in the Democratic People’s Republic of Korea – the official name of North Korea – for more than a decade.

The annual Spring Arts Festival reportedly emphasizes artistic exchange and promotes peace and good will.

According to GRS, the band was well received and even drew praise from the vice chairman of the festival, Jang Chol-sun, who expressed his hope that groups like GRS, Casting Crowns and the people of North Korea can work together to bring unity and peace.

Here is a web page by Jason Carter who performed in this show some years ago.

Read the full article here:
Casting Crowns to Return to North Korea for ‘Friendship’ Festival
By Josh Kimball
Christian Post
4/10/2009

Over the last few years, the European Union has pursued an engagement policy with North Korea.   MEP Glyn Ford makes regular trips to Pyongyang to facilitate diplomatic progress; the German Freidrich Naumann Foundation runs economic education courses; European donors founded the Pyongyang Business School; and a small group of European ex-pat businessmen formed a de facto chamber of commerce, the European Business Association in Pyongyang.  Although European companies have experienced mixed success in the DPRK they continue to look for new opportunities. 

This morning, however, Felix Abt, a Swiss director of the PyongSu Pharmaceutical Joint Venture Co. in Pyongyang informs me that his life insurance policy (purchased from a European company) has been cancelled. 

“A European life insurance company cancelled my life insurance because I am a dangerous person living in a dangerous country. Credit card organisations cancel credit cards for such persons in such countries, health insurance companies come up with other reservations and limitations and the latest organisation that has just expelled me is LinkedIn with a very curious explanation.”

I am unsure how the cancellation of life insurance policies could impact other Europen investments in the DPRK, but the marginal effect cannot be positive.  Mr. Abt has been a resident of Pyongyang for years where he manufactures Western-quality pharmaceuticals.  Needless to say, the DPRK is very much in need of his services, so it is a shame that after all this time he is now considered a liability by his insurer.

Mr. Abt also forwarded his rejection from the business networking site LinkedIn, which is posted below:
 

Apparently LinkedIn‘s legal department considers logging into the server as “receiving goods of US origin” (the software I presume), and so it prohibits account holders, or even logging in, from Cuba, Iran, North Korea, Sudan and Syria—even if they are Swiss.