Archive for the ‘DPRK organizations’ Category

Economic reforms to come at North Korea’s Party Congress, Daily NK says

Monday, January 11th, 2016

By Benjamin Katzeff Silberstein

Daily NK today carries a piece reporting on economic reforms to potentially come at the Korean Worker’s Party Congress coming up this year:

In terms of the possibility of declaring new economic reforms, the source explained he would announce reform measures that stay within the overall framework of socialism. Taking an extra step forward from the new economic management system’s ‘June 28 Measures,’ which pertained to agricultural policies, the pending package of reforms will include provisions authorizing individuals to directly manage factories. In practice, this would enable the state to collect more taxes from the donju [newly affluent middle class] by providing them with more freedom to make money.

Aspects of these changes are already underway in select locales. “In some regions, municipal People’s Committee business offices have been granting donju increased license to earn money,” he said. “Provided that people can offer up the initial 6,000 RMB fee and build their own factories with basic infrastructure such as sanitation facilities they are relatively uninhibited in their business operations.”

Hints at reforms like these were largely absent from Kim Jong-un’s New Year’s Address, I argued in an earlier post.

Read the full article:
Major organizational changes to be announced at Party Congress
Choi Song Min
Daily NK
2016-01-11

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3rd National Conference of Financial and Banking Officials Held

Sunday, December 13th, 2015

According to KCNA:

There took place the third national conference of financial and banking officials at the People’s Palace of Culture on Sunday.

The conference reviewed successes and experience gained by those in the field of finance and banking in the past and discussed the tasks for reliably ensuring the financial guarantee for the building of a thriving nation and ways to do so.

Present at the conference were Pak Pong Ju, Pak Yong Sik, O Su Yong, Vice-Premiers of the Cabinet Ro Tu Chol, Ri Mu Yong and Ri Chol Man, Minister of Finance Ki Kwang Ho, President of the Central Bank Kim Chon Gyun, President of the Foreign Trade Bank of the DPRK Kim Song Ui, leading officials of commissions, ministries, national institutions, provinces, cities and counties and exemplary financial and banking officials and persons of merit.

Pak Pong Ju, member of the Political Bureau of the Central Committee of the WPK and premier of the Cabinet, read out the letter of Marshal Kim Jong Un to the participants in the conference “Let Us Dynamically Accelerate the Building of a Thriving Nation by Bringing about a Turn in Financial and Banking Work”.

In the letter Kim Jong Un said the financial and banking work in the DPRK has steadily developed, financially guaranteeing the socialist construction and the people’s material and cultural life under the deep care and leadership of President Kim Il Sung and leader Kim Jong Il.

The President set forth the unique idea of finance and banking which embodied the principle of the Juche idea and established the advantageous Korean-style financial and banking management system for solving all the problems arising in the financial and banking work in line with the independent demand and interests of the popular masses, the letter said, and went on:

Kim Jong Il developed in depth the Juche-oriented idea and theory of finance and banking of the President to provide the guidelines for improving the financial and banking work and established the party’s leadership system on the work and took revolutionary measures for the steady development of the financial and banking system.

To improve the financial and banking work is an inevitable demand for hastening the building of a thriving nation. Reliable financial resources are necessary to build the people’s paradise featured by strong national power and great prosperity.

It is necessary to financially guarantee the party’s Songun revolutionary leadership and the building of a thriving socialist nation by consolidating the financial foundations of the country and ensuring fluent circulation of currency. This is the general task for the financial and banking field.

The financial and banking officials should always bear in mind the deep trust and expectation of the party and successfully fulfill their lofty duty before the country and people and bring about a fresh turn in the financial and banking work.

Ro Tu Chol, alternate member of the Political Bureau of the WPK Central Committee and vice-premier of the Cabinet and chairman of the State Planning Commission, made a report.

He said that Kim Jong Un saw to it that the conference was held, and sent the letter to indicate the orientation and ways for improving the financial and banking work.

All the successes in the financial and banking work are a precious fruition of the undying efforts of the great leaders and the wise leadership of Kim Jong Un, the reporter noted.

He called for firmly establishing the monolithic leadership system of Kim Jong Un and orientating the financial and banking work to implementing the line and policy of the party.

Speeches were made at the conference.

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Currency arbitrage in North Korea

Tuesday, December 1st, 2015

By Benjamin Katzeff Silberstein

North Korean state personnel are making good money from currency arbitrage. Daily NK has a story on how security personnel in the country regularly buy foreign currency in border towns where it’s cheaper than in cities like Pyongyang:

Using their authority over screening passengers on the train as a guise, MPS railway personnel in on the scheme actively pursue exchange deals in main border towns such as North Hamgyong Province’s Rason and North Pyongan Province’s Sinuiju. Each day, Pyongyang-based railway cadres pick out four members who are known to be good at nabbing these deals and put two as a team on the Pyongyang-Sinuiju (trains no. 5, 6) and Pyongyang-Duman River (trains no. 7, 8) trains, so they can exchange money, according to the source.   

This one example among many of state personnel benefit from informal economic activity, through their official roles. It often makes little sense to talk about the market versus the state, as if they were two wholly separate entities.

Read the full story:
MPS personnel profiting on exchange rate disparities
Choi Song Min
Daily NK 
12-01-2015

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The (Market) Forces of History in North Korea

Friday, October 30th, 2015

By Benjamin Katzeff Silberstein

The market is a common topic for debate in history. How did it impact the rise of the anti-slavery movement in the US and the UK? What impact did economic conditions have in the French Revolution? These questions are, and should be, asked in the current debate about North Korea’s socioeconomic development as well.

But despite the hope of many, the market might not simply be a story of growing individualism and disconnect from the power of the state. While such a trend may well be at work, it could also be the other way around.

This was recently illuminated through an interesting story by Reuters. In a visit to Pyongyang, they took a look at how markets and everyday business transaction function in North Korea at the moment. As they note, it is telling that a reporter from an international news agency can make transactions in the open, with a government minder by his side, at the black market rate. Business that previously had to be done in the shadows now happens in the open:

Shoppers openly slapped down large stacks of U.S. dollars at the cashier’s counter. They received change in dollars, Chinese yuan or North Korean won – at the black market rate. The same was true elsewhere in the capital: taxi drivers offered change for fares at black market rates, as did other shops and street stalls that Reuters visited.

The most obvious conclusion is that the state is adapting itself to the bottom-up development of the market. Indeed, this is the way the story is often told. In this narrative, the government is only reacting to developments and has long lost the economic policy initiative.

But one could also see a government that is confident enough to relax the rules. It just isn’t a certain fact that the state and the market are two opposing entities.

First, connections to the state still seem to be good for those wanting to trade on the market. For example, according to the surveys conducted by Stephan Haggard and Marcus Noland that laid the foundation for Witness to Transformation (2011)party membership is still considered one of the best ways to get ahead in North Korea (or at least it was at the time when the surveys were conducted). A somewhat similar trend can be discerned in survey results presented by Byung-Yeon Kim of Seoul National University at a conference at Johns Hopkins SAIS in late September this year. Kim’s results also indicate that there is a strong positive correlation between party membership and participation in both the formal and informal economy.

Second, the government is making money off of the market. DailyNK recently reported that the fees charged by state authorities for market stalls was raised. They also noted that regulations of the markets seemed to have gotten more detailed over the years. As noted in this report published by the U.S.-Korea Institute at SAIS, the space that the government allocates to markets has consistently increased in the past few years. Not only have official markets grown, many of them have also been renovated and given better building structures.

All in all, this paints a picture of a government that controls markets while allowing them more space to function. It is not clear that formerly black market activity happening in the open means that the market is gaining ground at the expense of the state. They may well be moving together. That is good news for those hoping for stability, but bad news for those banking on a market-induced revolution. Despite the hope of many that the market will cause the demise of the regime, the role of the market force in North Korea’s history is far from clear.

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North Korea’s domestic impacts of lower coal prices

Tuesday, September 22nd, 2015

By Benjamin Katzeff Silberstein

North Korea is seeing some interesting impacts domestically from the lowered coal exports. DailyNK reports that market trade has picked up in intensity as a result of the lower exports of coal:

Amidst the growing private economy in North Korea, a number of people are growing wealthy by cashing in on the expanding distribution industry. Recently, a growing number of these newly rich are purchasing China’s Jinbei brand of small 2-3 ton load trucks to facilitate business operations, Daily NK has learned.

“Recently, Jinbei trucks coming in from Dandong Customs House through to the Sinuiju customs office in North Korea are becoming very hot items in the transportation market,” a source in North Pyongan province reported to Daily NK on September 16th. “Foreign-currency earning enterprises are importing these smaller Jinbei trucks which are quite different from the 20-30 ton load trucks that were previously the norm.”

This information was cross-checked via an additional source in the same province and a source in South Pyongan Province.

As North Korean coal exports have decreased and domestic market activity has picked up, the small trucks have become more useful for delivering goods to local markets. “Ordinary men use bicycles or motorbikes to distribute goods, but the rich are able to buy these small 2-3 ton load trucks and use those instead,” he explained.

These trucks, as with most vehicles in North Korea, are first imported by foreign-currency earning enterprises and sold unofficially to individuals with the cash to pay up front and in full–i.e. the donju. Because possession of vehicles is still officially forbidden in North Korea, the car remains registered under the name of the affiliated enterprise’s name; the entrepreneurial individual utilizing it kicks back a portion of his–or, less frequently, her– profits to the company.

Read the full article:

DailyNK 

Jinbei trucks roll in, ‘donju’ distribution operations rise

2015-09-18

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Why won’t North Korean trees grow like Kim Jong-un told them to?

Friday, September 4th, 2015

By Benjamin Katzeff Silberstein

The forestry campaign that Kim Jong-un launched in a speech earlier this year continues. According to a new brief by IFES, North Korean state media has criticized certain nurseries for poor management.

North Korea has once again come out on broadcast television criticizing the poor management of tree nurseries at some of its Forest Management Centers. This public criticism of the forest restoration effort comes after the emergence of Kim Jong Un’s sister, Kim Yeo Jong, as an influential figure in the Department of Propaganda and Agitation.

On August 26, 2015, Korean Central Television (KCTV) aired a program entitled, Let’s Go Forward in Patriotism and Strength in the Forest Restoration Battle. The broadcast criticized several Forest Management Centers, including one in North Hwanghae Province’s Songnim. “They set up sun shades carelessly and then do not even water saplings properly. As a result saplings have become withered and yellow,” the program alleged.

The broadcast went on to a scathing critique of the tree nursery’s poor management: “The spraying equipment also does not properly work […] No more than 30% of the trees are alive […] The soil is overgrown with weeds […] One of the trees still has not sprouted.”

It also condemned the management of the Kangdong County tree nursery. “Because they do not properly conduct fertilizer management and also do not follow water guarantee measures, the saplings turn yellow and wither away. In the vegetable gardens there is so much seaweed that it is difficult to tell whether they are fields of saplings or meadows.”

“The fact that saplings can not grow properly is not due to unfavorable climate conditions but the defeatist and ‘non-owner’ work attitudes of the Forest Management Center workers and tree nursery work groups, who half-heartedly do their work and quit,” the broadcast added.

It went on to say, “When the workers use their heads creatively and engage in the work enterprisingly, great results are achieved in the expansion of the country’s permanent assets […] If all combatants in the forest restoration work sincerely, the Party’s forest restoration plans will be moved forward.”

One could of course argue that the issues described might result from the disconnect between political orders and constraints on the ground. For example, it has been reported that tree species that would suit local conditions in certain parts of the country would take at least three years to produce, but that the central government authorities want things to proceed immediately anyway. I am no forestry expert but it seems like a difficult task for even the most stern of political orders to make trees grow properly in the wrong conditions.

The full text of the IFES brief is available here:

North Korean Broadcast Criticizes Forest Restoration Results

The Institute for Far Eastern Studies at Kyungnam University

2015-09-03

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How the North Korean media describes a market

Tuesday, August 25th, 2015

By Benjamin Katzeff Silberstein

A recent brief from IFES (08-07-2015) details how an article in the North Korean newspaper Tongil Ilbo describes sales at Kwangbok market in Pyongyang (emphasis added):

According to the Tongil Ilbo, there are now a number of local products sold at Pyongyang’s Kwangbok Area Supermarket, which was built in October 1991. “By achieving the informatization and computerization of all business activities, from warehousing to the sale of goods, the Kwangbok Area Supermarket guarantees accuracy and speed in its service. It is a commercial service center managed to guarantee the maximum convenience of its customers,” North Korea’s independent newspaper reported on July 11, 2015.

It explained that the Kwangbok Area Supermarket, which has a total floor area of 12,700 m2, sells household products, electronics, general textile products, and grocery products such as confectioneries on every floor. In addition, each North Korean brand is sold in the relevant department, including brands such as ‘Ryongmasan,’ ‘Kuryonggang,’ ‘Kumkop,’ ‘Hwawon,’ ‘Mirae,’ ‘Songchon,’ and ‘Bommaji.’

Located on the first floor, the grocery department displays local products produced by factories like the Pyongyang Flour Processing Factory, the Kumsong Food Factory, and the Kumkop General Foodstuff Factory for Sportspersons. “People like to purchase locally-produced products […] In the future public service networks like the Kwangbok Area Supermarket will emerge in other places as well,” the newspaper reported.

Kim Song Won, manager of the Kwangbok Area Supermarket, commented, “With the unprecedented growth of the country’s self-sustaining economic foundation, there is greater demand among the people for variety and quality in their products […] Accordingly, we are bringing in many domestic products and are working to provide services so that customers can purchase products that they like.”

Several things in this report are interesting to note. For example, while I am not sure that the market-oriented language is itself anything new in North Korean media lingo, the emphasis is striking. It is consumer preference that matters. Variety is considered important, not just the quality of the products. Again, Kim Il-sung too I believe talked about the importance of quality, but here it’s a matter of producing what people like, rather than what they need.

Read the full text:

IFES Kyungnam

Surge in Local Product Sales at Kwangbok Area Supermarket

08-07-2015

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DPRK insurance market updates

Monday, August 17th, 2015

UPDATE 1 (2015-8-20): The Institute for Far Eastern Studies (IFES) reports on developments in the DPRK’s insurance market:

New Insurance Products Appearing in North Korea

All sorts of insurance products, such as cell phone insurance and insurance against damage to fruit farms, are starting to appear in North Korea.

The Korea National Insurance Corporation (the state insurance company representing North Korea), revealed on its website on August 12, 2015 that the issue of cell phone insurance was discussed at the annual general meeting of provincial governors held in Pyongyang in February 2015.

“At last year’s meeting, provincial governors from all over, including Pyongyang, North Hamgyong Province, Yanggang Province, and Jagang Province, met and introduced new areas of business such as cell phone insurance. They discussed increasing the number of insurance policy holders and expanding coverage to raise insurance premium revenue,” the insurance company reported.

Recently, as the number of cell phone owners shoots up, the instances of lost or damaged phones have also risen. It appears that this new form of insurance is being offered against this backdrop to compensate cell phone owners for such incidents. As in South Korea, it is not yet mandatory for North Korean cell phone owners to purchase cell phone insurance.

Currently, North Korea’s primary mobile carrier, the Egyptian firm Orascom, owns a 75% share in North Korea’s mobile communications company Koryo Link. As of the end of June 2014, the company had 2.4 million cell phone subscribers in North Korea.

The Korea National Insurance Corporation is also preparing to offer insurance for fruit trees in order to compensate owners of fruit farms for damage caused by natural disasters or other events.

The company explained the background behind offering this insurance product on their homepage. According to the website, since Kim Jong Un came to power, a lot of effort has been put into the development of agriculture and fruit farms, but due to recent abnormal climate phenomena like El Niño, these fields have experienced a lot of difficulties.

The website reveals, “Based on experience accumulated in the testing phase, we plan on offering insurance coverage within several years for modern, large-scale fruit farms like Taedong River Integrated Fruit Farm and Kangwon Province’s Kosan Fruit Farm.”

In order to do this, the company has been performing risk appraisals since 2013 with international damage appraisers for each of the fruit farms. This suggests that it is keeping foreign reinsurance companies and contracts in mind.

The company offers fruit farms insurance coverage for a variety of calamities and natural disasters. It covers fruit trees in the event of drought, landslides, or fire; fruit in the event of hail, drought, excessive moisture, extreme heat, or fire; and the quality of fruit in the event of hail, heavy rain, or storms.

The provision of insurance for fruit farms is seen as an extension of North Korea’s ongoing efforts to earn foreign currency through insurance companies.

The fact that various insurance products are appearing in North Korea has attracted attention in the context of North Korea’s recent economic developments. Since Kim Jong Un came to power, the regime has tried to recognize and protect private property as the market economy has expanded through the growth of companies’ independent management rights and the expansion of private profits. Especially in the case of insurance companies, it is believed that the regime is trying to maximize profits by generating additional income through insurance premiums.

ORIGINAL POST (2015-8-17): Elizabeth Shim reports the following at UPI:

On Tuesday, Pyongyang’s Korea National Insurance Corp. posted on its website information on annual meetings held in each province. Issues of mobile phone insurance were discussed during the meetings, South Korean news agency Yonhap reported.

The North Korean insurance firm said in statement that new businesses were being introduced to meet the increased demand for mobile phone insurance in Pyongyang and the provinces, South Korean television network SBS reported.

The mobile phone is becoming a central component of everyday life for many North Koreans, particularly for merchants who are on the road to sell wares around the country – but damage or loss of phones are raising the demand for insurance in the country.

Egyptian firm Orascom owns a 75 percent stake in North Korea’s main network, Koryolink, and offers services to 2.4 million North Koreans.

Other insurance mentioned include new policies for agriculture and protection plans for large-scale fruit farms by the Taedong River and in Kangwon province are being assembled, according to North Korea. The plans would provide protection against weather effects like “El Nino,” that is resulting in increased drought, torrential rain, high temperatures and other factors that are hurting crops.

The Korea National Insurance Corporation web page is here. Here are the two specific reports mentioned in the article:

Annual conference of provincial KNIC branches held

The annual conference of provincial branches of Korea National Insurance Corporation was held in Pyongyang on February 25th and 26th.

It was attended by head-office officials concerned and branch managers, and accountants thereof, of different provinces.

Its agenda involved review of last year’s insurance operations conducted by the provincial branches, and determination of their goals to be reached this year.

Great appreciation was shown in the conference for the branches including the ones in Pyongyang, North Hamgyong Province, Ryanggang and Jagang Provinces, all of which, last year, introduced new insurance products, like mobile phone insurance, into sale, and brought an increase in the number of the insureds and objects to result a rise in premium income, and made prompt indemnifications on a scientific basis thus contributing to the stabilization of operation, production of the insureds concerned and people’s lives, as well.

Stress was laid on adoption and development of effective business strategies plus further improvement and intensification of insurance operation upholding the slogan reading “ Let us all turn out in the general offensive to hasten final victory in the revolutionary spirit of Paektu!”, thus enhancing the role of insurance in line with the development of national economy and improvement of the livelihood of the people as befitting the significance of the year marking the 70th founding anniversary of the Workers’ Party of Korea.

Lectures were given on business practices involving accountancy and some insurance accounts during the conference.

Fruit Crop Insurance to be introduced in future

According to a far-reaching plan of Chairman Kim Jong Il and supreme leader Kim Jong Un to supply the people with fresh fruit in and out of season, Taedonggang Combined Fruit Farm had been built as the best integrated base for fruit production, keeping production going on a high level, and furthermore, Kosan Fruit Farm has been expanded as a large-scale fruit farm with the introduction of scientific, intensive and modernized methods into fruit production.

At present, the farms have boosted production by applying the densely planting method of dwarf fruit trees following the world-wide trend of fruit farming development and growing several kinds of fruit trees including high-grade apple, pear and peach as befits the specific conditions of our country.

They grow apple trees of Korean original varieties such as Hwangju, Pukchong and Unryul together with dwarf apple trees of more than a hundred of varieties including Granny Smith, Fuji and Golden Delicious,and meet their own demand for young saplings by growing them on their own.

However, there have frequently occurred abnormal weather phenomena due to El Nino in recent years, causing negative effects on agriculture and fruit farming in our country and its surrounding countries.

As far as fruit farming is so greatly influenced by the nature and terrain and weather conditions as agriculture, Korea National Insurance Corporation (KNIC) has intention of newly underwriting insurance contracts with fruit farms in our country so as to put production on a normal basis under the adverse weather conditions recently occurred.

The subject matter insured under Fruit Crop Insurance shall be fruit and fruit trees cultivated by fruit farms in DPRK, and the covered risks are as follows;

– Yield Loss Coverage

Drought, freezing, landslide, fire,

– Fruit Tree Loss Coverage

Hail, drought, excessive moisture, extreme heat, fire,

– Quality Loss Coverage

Hail, torrential rainfall and windstorm.

In 2013, KNIC conducted a risk survey on some fruit farms in our country in cooperation with international loss adjusters, and since then KNIC has underwritten insurance contracts with those farms.

KNIC, on the basis of practical experience gained at that pilot stage, shall cover against the risks mentioned above modernized and large-scale fruit farms including Taedonggang Combined Fruit Farm and Kosan Fruit Farm within a few years to come.

Although KNIC has a dubious history, today the group still posts regular financial information which (if accurate) would make it one of the most financially transparent organizations in the DPRK (Congrats to them for at least trying). See tables here, here, and here.

Previous posts on the Korean National Insurance Corporation here.

Once they figure out crop insurance, the next step should be a commodity futures market!

Read the full UPI story here:
North Korea to provide insurance for drought, lost phones
UPI
Elizabeth Shim
2015-8-12

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The drought that didn’t matter, North Korea says – thanks to agricultural reform?

Monday, August 10th, 2015

By Benjamin Katzeff Silberstein

During the past few months, the World Food Program (WFP) has made reoccurring pleas for increased food assistance to North Korea to alleviate the food shortages expected from a severe summer drought. The North Korean government made similar statements and claimed that the drought was the worst one to occur in 100 years. Aid to the country was subsequently increased from the originally planned level, due to the drought. But now, one North Korean official is saying that food production ended up increasing, after all, thanks to agricultural reforms.

A recent brief by the Institute for Far Eastern Studies at Kyungnam University (IFES) cites a July issue of Tongil Sinbo, a North Korean state-run weekly newspaper. There, Chi Myong Su, director of the Agricultural Research Institute of the Academy of Agricultural Sciences in the country, says that

“the effectiveness of field management system (pojon) from cooperative farm production unit system (bunjo) is noticeable and succeeded in increasing grain production despite the adverse weather conditions.”

The article cited by IFES highlights the smaller work-team structure as key to the success of the reforms. Also, it almost outright states that greater economic incentives were the main factor (although they call it “enthusiasm” and “patriotism”):

“Despite the adverse weather conditions last year, the high grain yield was possible due to implementation of scientific farming methods and field management system to increase enthusiasm of farmers,” and “based on this experience, many cooperative farms across the country will expand subworkteam management system to field management system.”

This is interesting for several reasons.

First, the agricultural reforms seem increasingly pronounced. Though other reforms were reportedly backtracked earlier this year, the government seems eager to claim success for the road travelled in agriculture.

I have written elsewhere that the data doesn’t necessarily support a claim that reforms are working. There is still reason to be skeptical – after all, a North Korean government official claiming that his government’s policies are working is not surprising – but even the claim itself is interesting.

Second, the statement raises questions about monitoring and data gathering capacities, both of the regime and relief organizations in Pyongyang. Again, just a few months ago, alarm bells were ringing about a potential food shortage, and now, a regime official claims that food production has increased. What was the basis of the WFP and regime claims that a food shortage was imminent a few months ago, and what has changed since those claims were made?

Another recent IFES brief also deals with North Korean press reports about the agricultural reforms. It quotes a Rodong Sinmun article from earlier in the summer that brings up some adjustment problems that farmers have had, such as learning how to properly use fertilizers. The most interesting part in my opinion is the following:

The newspaper stressed that “when all farmers claim ownership of their field and subworkteam, one can create innovation in the farming operations.”

Thus, it seems like Pyongyang wants to encourage experimentation and diversity in production methods. This would be a potentially important step towards more efficient agriculture. Perhaps it is part of a pattern. Provinces have reportedly gotten significant leeway in setting up their respective special economic development zones, which could also be a way to encourage experimentation in policies and management methods.

According to the Tongil Sinbo article, reforms are set to expand further in the country given the alleged success. Perhaps it won’t be too long before we can learn more about them through assessments by multilateral organizations like WFP.

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Friday fun: New stamps and wild speculation…

Friday, August 7th, 2015

Kim Jong-un has committed significant construction resources to improving the lives of children (particularly orphans) in the DPRK. Now you can share Kim Jong-un’s love of the children (sarcasm) with the people you know by collecting and sending stamps of the Songdowon International Children’s Camp and the new Pyongyang Baby Home and Orphanage:

STAMP-2015- Sondgowon-International-Children-Camp

STAMP-Pyongyang-Baby-Home Orphanage

Although the stamps are meant for foreign collectors, they are denominated as KPW 30. If the cost of a first class letter in the DPRK is 30 won, that translates into appx $.30 at the official rate and $.00375 at the black market rate (nearly 1/3 of a US penny).

But the Pyongyang Baby Home stamp booklet shows four stamps on a post card, so maybe the official price of sending a postcard is KPW120, or $1.20 at the official rate and $.015 at the black market rate. That seems a bit more reasonable, but it is still probably likely that, as in the USA, mail delivery is a drain on the government’s budget (subsidized activity). I wonder how hard it is to raise postal rates in the DPRK?

Luckily the Ministry of Post and Telecommunication (체신성) does not have to rely on the cabinet for its complete budget. There is always the international stamp-collecting market…and a small venture known as KoryoLink.

I also doubt that any of the money generated from the sale of these stamps actually goes to supporting the budgets of the Pyongyang Baby Home and Orphanage and Songdowon International Children’s Camp, but you never know.

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