Archive for the ‘DPRK organizations’ Category

North Korean coal market routines changing

Sunday, June 14th, 2020

By: Benjamin Katzeff Silberstein

That’s essentially the story told by Daily NK here, and it appears like some mines may be successfully cutting out a middleman:

“Coal mined from state-run coal mines is supposed to go to an agency in charge of distribution, but [these days] not all of the coal is being supplied to the appropriate agency,” the source said. “Coal mines have to make a profit to feed the large number of workers they have, so they decided to start doing business directly with the procurement and sales departments at companies.”

Some companies that received coal from this distribution system now have to buy the coal directly from coal mines, the source said, adding, “In these cases, coal mines sell the coal at a cheaper price than the usual market price.”

Some trading companies have reportedly begun working with railway authorities to transport large amounts of coal by train rather than by truck.

“They are making efforts to reduce distribution costs by going to coal-scarce areas and selling coal there while buying and then reselling that region’s specialty goods,” the source said.

“Of course there is still wholesale selling of coal taking place among merchants located near the mines. Since coal is a commodity that is always in demand, buyers are flocking to the markets,” the source added.

Generally, coal in North Korea used to be sold at around KPW 300,000 per ton, but by the end of 2017, after the implementation of more severe international sanctions, the price had plummeted to around KPW 200,000. Yet, due to smuggling and other factors, coal prices crept back up to KPW 290,000 per ton last year, according to the source.

(Source: Kang Mi Jin, “State-owned coal mines are finding new ways to make money,” Daily NK, June 11th, 2020.)

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Autarky, self-reliance and urban privilege in Kim Jong-un’s June politburo remarks

Monday, June 8th, 2020

By: Benjamin Katzeff Silberstein

On Monday June 8th, the Korean Worker’s Party politburo held a meeting. Kim Jong-un made several interesting remarks about the overall state of the economy, as Reuters reported here. The full Rodong Sinmun recounting of Kim’s statements is interesting and worth reading in its entirety. More and more state rhetoric seems to presume autarky as the default approach for economic development which is somewhat worrying, but perhaps just a reflection of where the country’s economic conditions stand as of now.

It’s also interesting to note Kim’s mention of the situation specifically in Pyongyang. Perhaps he means to signal to the political elites that he is looking out for their interests and quality of life, and that things will improve. What that means for the rest of the country is less clear. Pyongyang is symbolically important, but the growing disparity between the capital city and the rest of the country should concern the government.

Rodong’s rendition below, in both the original Korean and an English translation.

Political Bureau of C.C., WPK Meets under Guidance of Supreme Leader Kim Jong Un

The 13th Political Bureau meeting of the 7th Central Committee of the Workers’ Party of Korea (WPK) was held on June 6 and 7 at a time when the entire Party, the whole country and all the people have vigorously turned out in the general offensive for glorifying the 75th founding anniversary of the WPK as the great festival of victors true to the great idea and strategy of the Party for making a breakthrough head-on and its action program.

Kim Jong Un, chairman of the WPK, chairman of the State Affairs Commission of the Democratic People’s Republic of Korea and supreme commander of the armed forces of the DPRK, was present in the meeting.

Attending the meeting were members and alternate members of the Political Bureau of the C.C., WPK.

Vice-premiers of the Cabinet, some chairpersons of provincial party committees and leading officials of committees and ministries were there as observers.

Upon authorization of the Political Bureau of the C.C., WPK, Supreme Leader of the Party, state and armed forces Kim Jong Un presided over the meeting.

The meeting discussed in depth some crucial issues arising in further developing the self-sufficient economy of the country and improving the standard of people’s living.

Discussed as the first agenda items were some urgent problems arising in developing the chemical industry of the country in a well-defined framework.

He indicated orientation and way to reconstruct the chemical industry as required by Juche and modernity and put it on a track of sustainable development.

Repeatedly stressing that the chemical industry is the foundation of industry and a major thrust front of the national economy, he recollected that the Party, regarding the chemical and metallurgical industries as twin pillars of the self-supporting economy, set forth the policy of founding the C1 chemical industry to suit to the specific conditions of the country and to meet the world’s trend at its Seventh Congress and has since pushed forward with the work.

Recalling that the Fifth Plenary Meeting of the Seventh Central Committee of the Workers’ Party of Korea discussed the issues of establishing the C1 chemical industry and of building the fertilizer production capacity as core points in developing the chemical industry, the Supreme Leader clarified the plan and will of waging a bold struggle to put the overall chemical industry on a Juche and modern basis.

The premier of the Cabinet made a report on the review by the scientific group of the scientific and technical guarantee and economic efficiency of founding C1 chemical industry, and the present situation of the chemical industry.

The meeting heard suggestions on earlier completion of founding C1 chemical industry and had in-depth discussion of issues of opening a broad avenue to the development of chemical industry.

The chemical industrial field has to be activated first to propel and guarantee the economic development of the country, the Supreme Leader said, setting forth immediate tasks for propping up the chemical industry as a whole.

He stressed the need to give top priority to increasing the capacity for producing fertilizer, to begin with, in the chemical industrial field and push forward this work and put particular emphasis on promptly settling scientific and technological issues of founding potassic fertilizer industry based on our own raw materials.

Indicating orientation and immediate goal for energizing existent chemical factories, the Supreme Leader pointed out the need to conduct in a far-sighted way the work to explore chemical industrial field based on new raw materials.

He underlined the need to actively propel the work to perfect and update in a modern way the structure of sectors of the chemical industry.

He clarified that the new structure of sectors of Juche-based chemical industry should be multi-lateral production system, which is saving energy, labor and natural resources and which is technology-intensive and development-and-creation-oriented, that produces nonstop all kinds of chemical goods enough to meet demand thoroughly based on locally available raw and other materials.

He called for building reliable national level scientific research force, actively pushing forward the development of catalyst and laying a material foundation for developing catalyst technology, catalyst industry.

He stressed the importance to carry out substantial work to build talent force in chemical industrial field and to bring up a greater number of talents of practical type who are development-and-creation-oriented in the field of education.

As the second agenda item the meeting discussed immediate issues of ensuring living conditions for citizens in the capital city.

Pointing out in detail the issues that have to be urgently settled to ensure living conditions of citizens in the city, the Supreme Leader stressed to take strong state measures for ensuring the living conditions of people including the construction of dwelling houses.

Important issues for settling issues arising as regards the living conditions of Pyongyang citizens were discussed at the meeting.

A resolution on the first and second agenda items was adopted with full approval at the meeting.

As the third agenda item, the meeting examined before ratification the suggestion on modifying some rule-related matters arising in the present party work and reflecting them in a draft amendment to the party rules.

The fourth agenda item was an organizational matter.

There was a by-election of an alternate member of the Political Bureau of the WPK Central Committee. Kim Yong Hwan was by-elected as an alternate member of the Political Bureau of the WPK Central Committee.

Members and alternate members of the WPK Central Committee were recalled and elected to fill vacancies. Ko Kil Son, Kim Jong Nam, Song Yong Gon were by-elected as members from alternate members while Ri Jae Nam, Kwon Thae Yong and Kwon Yong Jin as members of the WPK Central Committee.

Rim Yong Chol, Kang Il Sop, Sin In Yong, Ri Kyong Chon, Kim Ju Sam, Kim Jong Chol, Choe Kwang Jun, Yang Myong Chol, Kim Yong Chol, Pak Man Ho were by-elected as alternate members of the WPK Central Committee.

The 13th Political Bureau meeting of the 7th Central Committee of the WPK marked an important occasion in further consolidating the foundation and potential of the self-supporting national economy, giving top priority to the people’s dignity, rights and interests under the uplifted banner of people-first principle and opening up a broad avenue to improving the standard of people’s living to meet the requirements of the prevailing situation of the revolution.

(Source: Political News Team, “Political Bureau of C.C., WPK Meets under Guidance of Supreme Leader Kim Jong Un,” Rodong Sinmun, June 8th, 2020.)

조선로동당 중앙위원회 제7기 제13차 정치국회의 진행

우리 당의 위대한 정면돌파사상과 전략, 실천강령을 높이 받들고 당창건 75돐을 승리자의 대축전으로 빛내이기 위한 전당적, 전국가적, 전인민적총진군의 불길이 세차게 타번지고있는 속에서 조선로동당 중앙위원회 제7기 제13차 정치국회의가 6월 7일에 진행되였다.

조선로동당 위원장이시며 조선민주주의인민공화국 국무위원회 위원장이시며 조선민주주의인민공화국무력 최고사령관이신 우리 당과 국가, 무력의 최고령도자 김정은동지께서 정치국회의에 참가하시였다.

정치국회의에는 조선로동당 중앙위원회 정치국 위원, 후보위원들이 참가하였다.

내각부총리들과 일부 도당위원장들, 위원회, 성 책임일군들이 방청으로 참가하였다.

당중앙위원회 정치국의 위임에 따라 김정은동지께서 회의를 사회하시였다.

정치국회의에서는 나라의 자립경제를 더욱 발전시키며 인민들의 생활을 향상시키는데서 나서는 일련의 중대한 문제들이 심도있게 토의되였다.

첫째의정으로 나라의 화학공업을 전망성있게 발전시키는데서 나서는 당면한 몇가지 문제에 대하여 토의하였다.

경애하는 최고령도자동지께서는 화학공업의 구조를 주체화, 현대화의 요구에 맞게 개조하고 지속적인 발전궤도에 올려세우기 위한 방향과 방도를 밝혀주시였다.

경애하는 최고령도자동지께서는 화학공업은 공업의 기초이고 인민경제의 주타격전선이라고 거듭 강조하시면서 우리 당이 화학공업을 금속공업과 함께 자립경제의 쌍기둥으로 내세우고 당 제7차대회에서 우리 나라의 실정과 세계적추세에 맞게 탄소하나화학공업을 창설할데 대한 방침을 제시한 후 그 사업을 본격화하여온데 대하여 말씀하시였다.

경애하는 최고령도자동지께서는 당중앙위원회 제7기 제5차전원회의에서 화학공업발전의 핵심사항으로 탄소하나화학공업창설과 비료생산능력조성문제를 취급한데 대하여 언급하시면서 화학공업전반의 주체화, 현대화를 실현하기 위한 투쟁을 통이 크게 벌려나갈 구상과 의지를 표명하시였다.

회의에서는 내각총리가 탄소하나화학공업창설의 과학기술적담보와 경제적효과성을 재검토심의한 과학그루빠의 사업정형과 화학공업부문의 현 실태에 대한 보고를 하였다.

회의에서는 탄소하나화학공업창설을 다그쳐 끝내기 위한 의견들을 청취하고 화학공업발전의 새 활로를 열어놓기 위한 문제들을 진지하게 협의하였다.

경애하는 최고령도자동지께서는 나라의 경제발전을 추동하고 담보하기 위해서는 화학공업부문이 먼저 들고일어나야 한다고 하시면서 화학공업전반을 추켜세우기 위한 당면과업들을 제시하시였다.

경애하는 최고령도자동지께서는 화학공업부문에서 무엇보다도 비료생산능력을 늘이기 위한 사업을 최우선적인 문제로 보고 대하며 이 사업을 강하게 밀고나갈데 대하여서와 우리의 원료에 의거한 카리비료공업을 창설하는데서 나서는 과학기술적문제들을 시급히 해결할데 대하여 특별히 강조하시였다.

경애하는 최고령도자동지께서는 현존화학공장들을 활성화하기 위한 방향과 당면목표를 제시하시고 새로운 원료에 의거하는 화학공업분야를 개척하기 위한 사업도 전망성있게 벌려나갈데 대하여 지적하시였다.

경애하는 최고령도자동지께서는 화학공업의 부문구조를 완비하고 현대적으로 개건하기 위한 사업을 적극 추진할데 대하여 강조하시였다.

경애하는 최고령도자동지께서는 국내원료와 자재에 철저히 의거하여 각종 화학제품들을 수요대로 중단없이 생산해내는 에네르기절약형, 로력절약형, 자원절약형, 기술집약형, 개발창조형의 다방면적인 생산체계를 갖추는것이 주체화된 화학공업의 새 부문구조로 되여야 한다고 천명하시였다.

경애하는 최고령도자동지께서는 국가적인 과학연구력량을 튼튼히 꾸리고 탄소하나화학공업에 쓰이는 촉매개발을 적극 다그치면서 촉매기술, 촉매공업을 발전시키기 위한 물질적토대를 갖출데 대하여 지적하시였다.

경애하는 최고령도자동지께서는 화학공업부문의 인재력량을 꾸리기 위한 사업을 착실히 해나가며 교육부문에서 개발창조형의 인재, 실천형의 인재들을 더 많이 키워낼데 대하여 말씀하시였다.

정치국회의에서는 둘째의정으로 수도시민들의 생활보장에서 나서는 당면한 문제들이 토의되였다.

경애하는 최고령도자동지께서는 수도시민들의 생활보장에서 시급히 해결해야 할 문제들을 구체적으로 지적하시면서 살림집건설을 비롯한 인민생활보장과 관련한 국가적인 대책을 강하게 세울데 대하여 강조하시였다.

회의에서는 평양시민들의 생활에서 제기되는 문제들을 풀기 위한 중요문제들이 토의되였다.

정치국회의에서는 첫째의정과 둘째의정에 대한 결정서가 전원일치로 채택되였다.

정치국회의에서는 셋째의정으로 현행당사업에서 제기되는 일련의 규약상문제들을 일부 수정하고 당규약개정안에 반영할데 대한 의견을 심의비준하였다.

정치국회의에서는 넷째의정으로 조직문제를 토의하였다.

당중앙위원회 정치국 후보위원을 보선하였다.

김영환동지를 당중앙위원회 정치국 후보위원으로 보선하였다.

당중앙위원회 위원, 후보위원들을 소환 및 보선하였다.

고길선동지, 김정남동지, 송영건동지를 당중앙위원회 후보위원에서 위원으로, 리재남동지, 권태영동지, 권영진동지를 당중앙위원회 위원으로 보선하였다.

림영철동지, 강일섭동지, 신인영동지, 리경천동지, 김주삼동지, 김정철동지, 최광준동지, 양명철동지, 김영철동지, 박만호동지를 당중앙위원회 후보위원으로 보선하였다.

조선로동당 중앙위원회 제7기 제13차 정치국회의는 조성된 혁명정세의 요구에 맞게 자립경제의 토대와 잠재력을 더욱 튼튼히 다지며 인민대중제일주의의 기치높이 인민의 존엄과 권익을 최우선, 절대시하고 인민생활향상의 활로를 열어나가는데서 중요한 계기로 된다.

(Source: Ponsajŏngch’ibodoban, “Chosŏllodongdang Chungangwiwŏnhoe Che7ki che13ch’a Chŏngch’igukhoeŭi Chinhaeng,” Rodong Sinmun, June 8th, 2020.)

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North Korea’s 2020 parliamentary session and the budget: the main points

Tuesday, April 14th, 2020

By: Benjamin Katzeff Silberstein

This past Sunday, the 12th of April, the North Korean Supreme People’s Assembly met at Mansudae Assembly Hall, the grand, majestic room where the assembly sits. Out of the six items on the SPA’s agenda, at least three – half – dealt in some shape or form with the economy, and arguably, some others could also fit into that category:

The agenda items of the Third Session of the 14th SPA of the DPRK were decided at the session:

1. On adoption of the law of the DPRK on recycling resources

2. On adoption of the law of the DPRK on tele-education

3. On adoption of the law of the DPRK on providing living conditions for discharged officers

4. On the work of the Cabinet of the DPRK for Juche 108 (2019) and its tasks of Juche 109 (2020)

5. On implementation of the state budget for Juche 108 (2019) and the state budget for Juche 109 (2020).

6. Organizational matter.

(Source: “Third Session of 14th SPA of DPRK Held,” Korean Central News Agency, April 13, 2020.)

I include the Cabinet report given the strong emphasis over the past years of the cabinet’s leading role in economic management. A separate KCNA-report from the same day, “Report on Work of DPRK Cabinet for Juche 108 (2019) and Its Tasks for Juche 109 (2020),” summarized this report of the cabinet’s work. I paste it here with some annotating comments. Yes, the whole first paragraph below is one sentence:

According to the report on the work of the Cabinet delivered at the Third Session of the 14th Supreme People’s Assembly(SPA) of the Democratic People’s Republic of Korea (DPRK), last year the Cabinet organized a drive of putting the overall national economy on a new higher stage with a main emphasis put on accomplishing the sustained economic development, ensuring the local production of equipment, raw and other materials and revitalizing production by boosting the capability of independent development of the country, true to the important tasks set forth by Supreme Leader Kim Jong Un in his report at the Fourth Plenary Meeting of the Seventh Central Committee of the Workers’ Party of Korea and in his historic policy speech at the First Session of the 14th SPA.

None of these phrases (“local production of equipment” etc) are new or surprising, and the most notable fact is perhaps the absence of anything unusual in such an unusual time (coronavirus, sanctions).

The report said that last year all sectors and units of the national economy carried out the gross yearly industrial production value at 108 percent, and ministries, national institutions, the city and county people’s committees and industrial establishments over-fulfilled their national economic plan.

The electrical power industrial sector carried out the hydraulic power generation plan at 103 percent and made sure that production was increased by properly carrying on the repair and readjustment of generating equipment.

Now this is interesting – repairing and readjusting could either mean a claim that the industry is doing fine even without imports of Chinese machine parts and the like, because it can simply repair and readjust what’s already there. Or, it’s a claim that in fact, despite sanctions, the country’s industries are able to replenish whatever equipment it needs to stay afloat.

The thermal power plants provided a guarantee for stabilizing the electric power production without relying on heavy oil.

The coal industrial field respectively showed 23 percent and 22 percent increases in the coal production and the supply of coal for thermal power generation over last year, and the large-scale coal mines rich in deposits and with favorable mining conditions provided a foundation to increase coal production.

In the field of the metallurgical industry the Kim Chaek Iron and Steel Complex has shown 22 percent, 2 percent and 37 percent increases in the production of pig iron, steel and rolled steel over last year. The chemical industry achieved large growth in the production of chemical fertilizer, carbide and caustic soda.

Of course, any claims of over-fulfillment of quotas and the like should be taken with a grain of salt, as such claims are classical in North Korean propaganda regardless of their foundation in reality (the genre was born in the Soviet Union). Still, trying out a charitable reading, there are theoretical ways in which claims over over-fulfillment could technically be true, particularly in these sectors. We know nothing about the revenue of these products, for example, and mines and factories could churn out production in great magnitudes but with questionable value when the products can’t be exported or sold at a profit at all. Because coal prices have dropped so much under sanctions, industry could well be powered at a lower cost, but the value of this is, again, questionable.

[…]

On the agricultural front the peak-year level was exceeded in the grain production even under unfavorable weather conditions.

A repetition of the claim of a bumper harvest last year, which remains highly unlikely, as I argued here.

A fishing campaign for supplying more fish to the people was launched in the fishery sector, and the fishing was put on a higher scientific level with the help of the updated aid system for detecting fishing ground.

Again, the sector may certainly produce and supply more, but its incomes will still be lower than they would be without sanctions.

The field of the land and environment protection turned the important projects including the Wonsan Kalma coastal tourist area and the Yangdok Hot Spring Resort into thick woodland and greenery and face-lifted all roads including Pyongyang-Hyangsan and Pyongyang-Wonsan Motorways.

A hint that investment continued in the tourism industry, and that the state expects this industry to blossom in the future, despite the currently dire situation. By extension, perhaps also a suggestion of expected solid economic ties and exchange with China.

The report contains a great deal of interesting detail, but in the interest of time, I’ll skip ahead to the most central parts (my own emphasis):

The report emphasized that all the achievements made last year clearly proved once again that as long as there is the wise guidance provided by the Party, we can live on our own and open up the road of our own development and prosperity no matter how desperately the enemies may try.

The report also said that serious mistakes were found in the work of the Cabinet last year.

They taught a serious lesson that if the officials in charge of providing economic guidance fail to fulfill their duty, it would be impossible to successfully attain the goals of economic construction set forth by the Party, the report said.

It clarified that we face heavy yet responsible tasks to unconditionally and thoroughly carry out the economic construction tasks set forth at the 5th Plenary Meeting of the 7th Central Committee of the WPK under the uplifted slogan “Let’s Break through Head-on All Barriers to Our Advance!”

It went on:

The Cabinet will put a main emphasis on organizing the economic work on the principle of subordinating everything to the health and safety of the people, conducting courageous head-on breakthrough in the spirit of achieving prosperity by dint of self-reliance, and fully meeting the needs for the national economy and for the people’s living by readjusting the economic foundation of the country and by fully tapping the production potential, in order to thoroughly carry out the tasks set forth in the joint resolution of the WPK Central Committee, State Affairs Commission and the Cabinet.

The Cabinet will rationally readjust the economic work system and order and boost its role as the organizer of the state economy.

It will put efforts into holding full control of the resources and fund sources of the state, and securing financial ability and execution power capable of managing and operating the country’s economy in a unified manner.

There are some key phrases below as well, but these two paragraphs are especially noteworthy. The message seems fairly clear that the state’s role in the economy needs to get stronger, and that while independent management methods may certainly be encouraged, the state is in charge. This message is familiar from Kim Jong-un’s December CC Plenum speech.

It will establish a strict discipline for the state development and use of the underground natural resources that are of strategic significance in the state economic development, and also take strong measures to protect and multiply aquatic resources.

It will bring about innovation in the work system, order and method on the principle of ensuring smooth transaction in the overall trade, and thoroughly guarantee the economic benefits of the country through the application of strict discipline and order in the import and export.

Perhaps both a reference to easing some rules and regulations for trade, while also combatting the rampant trade deficit?

[…]

The coal industrial sector will fully meet the demand for coal from several fields of the national economy including electricity, metal and chemical industries.

Note the absence here of any reference to coal exports.

[..]

The light industrial field will expand the variety of daily necessities and boost their quality. It, regarding the local production of raw and other materials as the lifeline, will rely on the locally available raw and other materials as much as possible for the production of consumer goods, put efforts into the development of local industry and contribute to the improvement of people’s standard of living.

Making consumer goods production and supply more local, and less reliant on imports, has been one of the chief goals through Kim Jong-un’s tenure. Judging by, for example, this recent report about consumer choice in kitchen items, it seems to be going quite well.

The Cabinet, corresponding to its position and duty as the economic command, will ensure the definite provision of unified operation and command for implementing the economic policies of the Party, and guarantee the meticulous economic organization and persevering practices and thus fulfill its responsibility and duty in glorifying this year marking the 75th founding anniversary of the Party as a year of victory to be specially recorded in the history of the country, the report stressed.

The report ends with one final emphasis on the Cabinet, and thus, the state, and not grassroots, independent actors, as the main holders of power in the economic realm. “The economic command” is about as clear of an expression as you could imagine. This doesn’t necessarily mean that the state will try to curb the market system anytime soon, but it will continue to subvert market forces into its own institutions where they can be more easily controlled and generate cash to the state.

The above is just a brief overview and quick read of the budget report. For more on the proportions and overall economic conditions that the report speaks of, check out Ruediger Frank’s recent 38 North article on the SPA session as a whole.

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Politburo meets, but SPA postponed (till following Sunday)

Sunday, April 12th, 2020

Benjamin Katzeff Silberstein

The SPA was expected to meet this past Friday. It didn’t. (Update 13/4/: it instead met on the following Sunday.) Instead, the politburo held a meeting to discuss measures the SPA would be adopting. There were scant but clear references to economic affairs (highlighted below), though the KCNA report is very vague. NK News suggests the SPA may instead convene Monday.

It adopted the joint resolution of the Central Committee of the WPK, the State Affairs Commission of the DPRK and the Cabinet of the DPRK “On more thoroughly taking national measures for protecting the life and safety of our people from the worldwide epidemic disease”.

The joint resolution detailed the goals of continuously intensifying the nationwide emergency anti-epidemic services and pushing ahead with the economic construction, increasing national defence capability and stabilizing the people’s livelihood this year, and indicated the tasks facing every field and every unit including Party and government organs and working people’s organizations and armed forces organs and ways of carrying them out.

It studied and approved “On the execution of the state budget for Juche 108 (2019) and the state budget for Juche 109 (2020)”, the second agenda which is to be presented to the Third Session of the 14th Supreme People’s Assembly.

(Source: Political Bureau of C.C., WPK Meets under Guidance of Supreme Leader Kim Jong Un, Korean Central News Agency,” 12/4/2020.)

Update 13/4/2020: the SPA was held on Sunday instead. KCNA:

The third Session of the 14th Supreme People’s Assembly (SPA) of the Democratic People’s Republic of Korea (DPRK) was held at the Mansudae Assembly Hall on Sunday.

The SPA deputies attended the session.

Seen on the platform were Choe Ryong Hae, member of the Presidium of the Political Bureau of the Central Committee of the Workers’ Party of Korea (WPK), first vice-chairman of the State Affairs Commission (SAC) of the DPRK and president of the Presidium of the SPA, and Pak Pong Ju, member of the Presidium of the Political Bureau of the WPK Central Committee, vice-chairman of the SAC of the DPRK and vice-chairman of the WPK Central Committee.

Also seen there was Kim Jae Ryong, member of the Political Bureau of the WPK Central Committee, member of the SAC of the DPRK and premier of the Cabinet.

The platform was also taken by Ri Il Hwan, Choe Hwi, Ri Pyong Chol, Kim Tok Hun, Kim Yong Chol and members of the SAC of the DPRK and the Presidium of the SPA.

The chairman and vice-chairpersons of the SPA took their seats.

The opening address was made by Chairman Pak Thae Song.

The agenda items of the Third Session of the 14th SPA of the DPRK were decided at the session:

1. On adoption of the law of the DPRK on recycling resources

2. On adoption of the law of the DPRK on tele-education

3. On adoption of the law of the DPRK on providing living conditions for discharged officers

4. On the work of the Cabinet of the DPRK for Juche 108 (2019) and its tasks of Juche 109 (2020)

5. On implementation of the state budget for Juche 108 (2019) and the state budget for Juche 109 (2020).

6. Organizational matter.

The first, second and third agenda items were discussed at the session.

Deputy Thae Hyong Chol, vice-president of the Presidium of the SPA, made a report on the three agenda items.

He referred to the importance and significance of the laws to be discussed and adopted at the session, and explained the chapters of the laws.

He laid the adoption of the three laws before the SPA.

Ordinance of the SPA of the DPRK “On adoption of the law of the DPRK on recycling resources “, “On adoption of the law of the DPRK on tele-education” and “On adoption of the law of the DPRK on providing living conditions for discharged officers” were adopted with unanimous approbation at the session.

There was a discussion on the basis of an in-depth study of the reports on the fourth and the fifth agenda items.

The speakers said that the work of the Cabinet and the execution of the state budget for last year were correctly summed up, and that the tasks of the Cabinet for this year were clearly set and the state budget was properly worked out in the direction of implementing the decisions adopted at the 5th Plenary Meeting of the 7th Central Committee of the WPK and the joint resolution adopted at the Meeting of the Political Bureau of the WPK Central Committee. They voiced full support and approval.

In their speeches they analyzed and reviewed the successes, experience, mistakes and lessons in the work of their fields and units last year and referred to the methods of opening a broad avenue to the socialist construction and propping up the self-supporting economic power.

There adopted decision of the SPA of the DPRK “Report on the work of the Cabinet of the DPRK and on approving the implementation of the state budget for Juche 108 (2019)” and ordinance of the SPA of the DPRK “On state budget of the DPRK for Juche 109 (2020)”.

The session discussed the sixth agenda item.

At the request of Deputy Choe Ryong Hae, first vice-chairman of the SAC and president of the Presidium of the SPA upon authorization of the Chairman of the State Affairs Commission of the DPRK, Deputy Choe Pu Il and Deputy No Kwang Chol were recalled from the membership of the SAC.

Also recalled were Ri Su Yong, Thae Jong Su and Ri Yong Ho.

Deputies Ri Pyong Chol, Kim Hyong Jun, Kim Jong Gwan, Ri Son Gwon and Kim Jong Ho were by-elected as members of the SAC.

Upon authorization of the Political Bureau of the WPK Central Committee, Deputy Ko Kil Son was by-elected as the secretary general of the Presidium of the SPA and Deputy Kim Yong Hwan as a member of the Presidium of the SPA.

Members of the Cabinet were newly appointed.

Upon authorization of the WPK Central Committee, Deputy Yang Sung Ho was appointed as vice-premier, Deputy Kim Chol Su as minister of Natural Resources Development, Kim Jong Nam as minister of Machine-building Industry, and Ri Song Hak as minister of Light Industry.

Chairmen of the Subcommittees of the SPA were recalled and by-elected.

Deputy Kim Jong Ho was by-elected as chairman of the Legislation Committee of the SPA, Deputy Kim Tok Hun as chairman of the Budget Committee and Deputy Kim Hyong Jun as chairman of the Foreign Affairs Committee.

Chairman Pak Thae Song made a closing address.

(Source: “Third Session of 14th SPA of DPRK Held,” Korean Central News Agency, 13/4/2020.)

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North Korea needs to counter the economic impacts of COVID19, but what can it really do?

Friday, April 10th, 2020

By: Benjamin Katzeff Silberstein

Many countries are adopting stimulus measures to counter the economic impacts of the drastic economic slowdown resulting from measures to counter the COVID19 outbreak. North Korea, too, badly needs to counter the likely devastating impacts of its border shutdown to China, but it has no funds to adopt measures even nearly comparable to ordinary stimulus measures. As Yonhap speculates here, the Supreme People’s Assembly today (Friday April 10th) are scheduled to meet and may announce policies to counter the economic impacts, but it’s unclear what they can really do:

North Korea’s rubber-stamp legislature was to hold a once-or-twice-a-year session on Friday, with economic and public health issues expected to take center stage amid its ongoing fight against the novel coronavirus.

The Supreme People’s Assembly (SPA) usually meets in April every year to address the state budget and Cabinet reshuffling, but it has been closely watched from outside for any glimpse into the reclusive state’s stance on foreign affairs, including its stance on denuclearization talks with the United States.

Friday’s meeting, however, is expected to center on discussions of major domestic issues, given that Pyongyang has been making all-out efforts to block the outbreak of COVID-19 on its soil.

North Korea is among just a few countries in the world that claim to have no coronavirus infections, generating speculation that it might be hushing up an outbreak.

Pyongyang has tightened control of its borders with China, where the coronavirus originated in late December. It has also toughened quarantine criteria and restricted the movement of people and goods.

In particular, the border closure with China could weigh on its already moribund economy long crippled by global sanctions, as it depends heavily on the neighboring ally for its trade.

It is unclear whether leader Kim Jong-un will attend the SPA meeting. Observers say that he is unlikely to be present as he was not among deputies elected in March last year to the parliament.

Kim attended last year’s meeting to give a policy speech at the session.

Earlier in the day, state media reported that Kim has supervised a mortar firing drill. It did not provide details on when and where the drill took place, but such military activity is usually reported a day after it happened.

But there have been no state media reports on a politburo and a plenary meeting of the ruling Workers’ Party, which used to be held with Kim in attendance ahead of an SPA session.

Experts say that the North could announce an increase in its budget to improve public health infrastructure and unveil measures aimed at cushioning the impact of its anti-virus campaign on its economy during the SPA meeting.

(Source: “N. Korea set to hold parliamentary meeting amid nationwide virus fight,” Yonhap News, April 10th, 2020.)

The North Korean government doesn’t entirely lack resources, but it doesn’t have the sort of budgetary flexibility that a government needs to launch serious stimulus programs. It could theoretically ease up on restrictions on economic activity, such as decrease fees for market traders (markets are themselves problematic given the risk of the virus spreading there), ease up on permit regimes for various sorts of economic activity, lower mandatory fees and taxes, and the like. This is unlikely to happen, since the state itself already faces serious economic woes, and local-level government institutions likely will not be content with having a crucial source of income curtailed. More to follow after the SPA meeting results are announced.

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North Korean public health expert claims zero coronavirus cases

Thursday, April 2nd, 2020

Benjamin Katzeff Silberstein

In an interview with Kyodo earlier this year:

Pak Myong Su, president of North Korea’s State Hygienic Control Board, made the remark in an interview with Kyodo News and other foreign media outlets.

“If such a virus spreads in our country with a small population and a small territory, a serious disaster could not be avoided, in which thousands or tens of thousands of people are deprived of their lives,” Pak said in Pyongyang.

In mid-March, Gen. Robert Abrams, the commander of U.S. forces in South Korea, said at a press conference that North Korea “is a closed-off nation, so we can’t say emphatically that they have cases, but we’re fairly certain they do.”

South Korean media have also reported that many North Koreans have died from the pneumonia-causing virus currently sweeping the world.

Late last month, Japanese Foreign Minister Toshimitsu Motegi told reporters in Tokyo, “If there is no infected person in North Korea, which is contiguous with China and South Korea, it is extremely miraculous.”

Pak stressed that North Korea has stepped up measures to prevent a coronavirus outbreak, including cutting off traffic to and from China and Russia since earlier this year.

He added that citizens have been urged by the country’s health authorities to wear masks when they go outside.

(Source: “N. Korea has no infected people with new coronavirus: expert,” Mainichi/Kyodo, April 2nd, 2020.)

I’ve written here about why this is extremely unlikely to be true, bordering on the impossible.

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Musan mine at less than half capacity due to coronavirus measures

Friday, March 13th, 2020

By: Benjamin Katzeff Silberstein

The Musan mine, already (at least periodically) hit hard by sanctions, now operates at below half capacity, according to Daily NK. Despite the UN sanctions prohibiting countries from importing North Korean mining products, the Musan mine has kept up a certain level of production (after experiencing severe difficulties under harsher Chinese sanctions implementation), exporting mining products to the Chinese Sanhe region. But now with North Korea itself enforcing a virtual border shutdown, exports, too, have stopped:

“The Musan Mine is operated at less than 50% of capacity,” a North Hamgyong Province-based source told Daily NK on Wednesday. “Only two of the five mining areas in the complex are operating at full capacity. The shutdown of the border with China has led to slowdowns in drilling and ‘ore dressing’ [mechanically separating grains of ore minerals from gangue minerals – mineral processing].”

North Korea closed its border to China at the end of January to prevent the spread of COVID-19. The move reportedly ended all smuggling operations along the border and also impacted operations at the Musan Mine, which is located in North Hamgyong Province.

North Korea has been banned from exporting minerals since the United Nations Security Council adopted Resolution 2397 in 2017. The regime, however, has continued to earn large amounts of foreign currency from the sale of iron ore produced in Musan Mine. Daily NK reported in late 2018 [in Korean] that iron ore from Musan Mine was being smuggled to China’s Sanhe region after passing through Hoeryeong.

North Korea and China reportedly ended their joint production of iron ore at the mine following the coronavirus outbreak. Musan Mine now only produces iron ore for domestic consumption, Daily NK sources said.

BLASTING TO MORE PRODUCTION

Rodong Sinmun reported recently that Musan Mine blasted through 400,000 tons of earth on Jan. 2 at Cholsan Peak. Daily NK sources reported that this at expanding production have largely failed because of the lack of equipment and logistics issues.

The Rodong Sinmun claimed that the blasting had been successful and that expansion of production would enable the complex to produce more iron ore. The newspaper also stated that all necessary equipment was acquired and prepared “without issue” and transported to the mine “on time.”

(Source: “Sources: Musan Mine operating at less than half of full capacity,” Daily NK, 3/13/2020, https://www.dailynk.com/english/musan-mine-operating-less-than-half-full-capacity/.)

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Rodong Sinmun on state control of economy

Saturday, March 7th, 2020

Benjamin Katzeff Silberstein

A short article in Rodong Sinmun from earlier this month, emphasizing the importance of state (specifically cabinet) control over economic management:

Important Issues Arising in Putting the Economic Work System and Order
on the Right Track

What is important in straightening the economic work system and order at present is, first of all, to intensify the Cabinet-responsibility system and the Cabinet-centered system.

It is also important to adjust the state machinery as a whole to spur economic development and enhance the role of officials.

Besides, it is important to vigorously push ahead with the work of improving economic management.

Author: Ri Yong Nam, date of publication: March 7th, 2020.

 

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North Korean State Party’s CC meeting: of fired officials and coronavirus efforts

Monday, March 2nd, 2020

By: Benjamin Katzeff Silberstein

On Saturday February 29th, the Political Bureau of the Central Committee of the Korean Worker’s Party held a so-called “enlarged” meeting. According to the KCNA report, the meeting dealt primarily with purges of corrupt officials, and coronavirus measures:

At the enlarged meeting acts alien to the party, abuse of power, practices of privileges, indulgence in bureaucracy, corruption and irregularities revealed among senior officials of the Party Central Committee and officials of the Party cadre training institution were harshly criticized and their gravity and consequences were sharply analyzed.

The Supreme Leader clarified the analysis of the issues by the Party Central Committee and its stand on them, and dealt strong blows at the acts alien to the party and unpopular and anti-socialist acts brought up for discussion at the meeting. He called on all the Party officials and organizations to draw a serious lesson from the recent incident, to make steady efforts to revolutionarize themselves and their units and bring about a new turn in the Party work.

The Political Bureau of the Party Central Committee dismissed Ri Man Gon and Pak Thae Dok from the posts of vice-chairmen of the Party Central Committee.

The meeting adopted a decision to disband the party committee of the Party cadre training base which was involved in the practices of corruption and irregularities, and to impose relevant penalty.

It’s not clear precisely what “strong blows at the acts alien to the party and unpopular and anti-socialist acts”, but presumably it refers to corruption. Corruption is one of the most common acts for WPK-officials to get purged (or fired) over, and the formulations indicate that this is indeed what happened here. Some have suggested it may have had to do with shoddy work in the country’s coronavirus measures, but even reading carefully between the lines, I can’t see enough evidence to back that up. “[A]cts alien to the Party” [비당적 적행위],  I would argue, is a clear statement about specific acts particularly alien to the Party’s values. Shoddy handling of specific policy implementation related to the virus does not fall naturally into that category. Moreover, the antivirus measures were praised at the very same meeting. North Korean politics is full of contrasts and mixed messages, but this would be a stretch too far.

The problem with these methods, of course, is that they do nothing to address the long-term issue of corruption. The WPK (and the North Korean state for that matter) lacks institutions for accountability and independent oversight. There is no proper justice system in any reasonable sense of the term. So scare campaigns and setting examples, like the CC meeting in question did, really is the only avenue available. These measures might have some positive impacts in the short run – we don’t know – but in the long run, they make little difference. Kim Jong-un has ostensibly made anti-corruption a priority, but so far, campaigns and sporadic crackdowns are the only visible results. Corruption is obviously bad for the economy, but if it helps people get around draconian laws (as is the case in North Korea) to do business, it might be a net positive for the economy.

The meeting also dealt with North Korea’s efforts to contain the coronavirus. There’s a lot to say about the text, I’ve highlighted (in bold) the part relating to economic affairs:

Discussed at the meeting were issues of taking nationwide top-class anti-epidemic steps in a more thorough-going way and strictly putting them into practice in order to cope with the viral epidemic spreading rapidly around the world.

In case the infectious disease spreading beyond control finds its way into our country, it will entail serious consequences, the Supreme Leader said, noting that the strong measures taken by our Party and the government from the beginning have been the surest and highly reliable, preemptive and decisive preventive measures as this viral infection spreads so rapidly, its incubation period is uncertain and its contagion route is also scientifically uncertain.

An urgent task at present is to supplement and complement the law on the state emergency anti-epidemic and to readjust state crisis control regulations in an orderly way, the Supreme Leader said, emphasizing that the Presidium of the Supreme People’s Assembly, the Cabinet and other related institutions must further strengthen the state anti-epidemic force immediately and push ahead with the work for supplementing and complementing anti-epidemic means, system and laws based on the experiences gained through the on-going enforcement of preemptive and powerful anti-epidemic measures to cope with infectious disease.

The enlarged meeting also discussed measures to deter the influx and spread of the infectious disease in a scientific, preemptive and lockdown way.

No special cases must be allowed within the state anti-epidemic system, the Supreme Leader said, stressing the need to set up a strict discipline by which all the fields and units of the country unconditionally obey to the command and control of the Central Headquarters for the emergency anti-epidemic work and thoroughly execute instructions from it, and to further tighten the system of reporting to the Party and legal surveillance.

He instructed the Cabinet and the Central Emergency Anti-epidemic Headquarters to seal off all the channels and space through which the infectious disease may find its way, and strengthen check-up, test and quarantine under the work system and order already in place.

The meeting also stressed the issue of tightening economic organization and anti-epidemic work under the prevailing situation and conditions so as to accomplish this year’s goals without fail and to thoroughly ensure the life and security of the people.

It is important for the Party organizations at all levels to have clear understanding of the intention of the Party Central Committee and put it into practice, the Supreme Leader said, urging the need for the Party to provide an impetus so that the Cabinet and the economic institutions at all levels could provide proper economic operation and command under the present situation.

The anti-epidemic measures being taken by us is a crucial state affair for the defence of the people and a heavy responsibility of the Party Central Committee, not just the prevention of the disease, the Supreme Leader said, underlining the need for all to thoroughly carry out the decisions and instructions of the Party Central Committee and direct all-out efforts to the security of the country and the life and safety of the people.

The question is, of course, what this means in practice. There is no doubt that the economy is suffering, and not just in terms of sheer growth numbers or the like. Much of North Korea’s imports from China are blocked due to the border closure, and even smuggling is facing heavy clampdowns. Internal travel and movement of goods is heavily restricted. There is, it seems to me, fairly little that the state can really do to balance this all in terms of economic measures, but of course, the state must tell the population that it is doing things and taking action.

(Source: Korean Central News Agency, “Enlarged Meeting of Political Bureau of C.C., WPK Held,” 29/2/2020.)

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North Korea’s coronavirus border shutdown: “Nobody is to come into contact with Chinese people”

Wednesday, February 5th, 2020

By Benjamin Katzeff Silberstein

North Korean authorities seem to have basically ordered the country’s border to China shut entirely in response to the coronavirus outbreak, though it’s still unclear to what extent these orders are being implemented. Reuters:

“They’re keeping the cargo out and they’re keeping the Chinese out; nobody can go in or out,” said one source with firsthand knowledge of the situation at the China-North Korea border.

Kang Mi-jin, a North Korean defector in Seoul who reports for the Daily NK website, also confirmed that the border appears to have been almost entirely shut down since at least Jan. 30.

“The Ministry of People’s Armed Forces ordered all guard posts to bar smuggling as well,” she said. “People, freight, nothing can come in or go out.”

Pyongyang has reportedly asked Beijing not to repatriate North Korean defectors detained in China, according to one South Korean pastor who works with refugees.

According to the source with knowledge of the situation at the border, North Koreans who work in restaurants and elsewhere in China, violating United Nations sanctions, are in “virtual captivity” in their homes under instructions from authorities back in North Korea.

North Korea is typically adept at implementing public health interventions and acted “swiftly and decisively” to try to stop the disease from entering the country, but sanctions restrictions could make it difficult for them to get medical supplies, said Harvard Medical School’s Kee Park, who has worked on health care projects in North Korea.

“Their actions, very costly in terms of revenue from tourists and trade as well as administratively for quarantining people, reflect their concerns regarding their health system’s capacity to handle an outbreak,” Park said.

The efforts – which appear to have been successful in preventing any cases in North Korea so far – mean North Korea has severed or drastically restricted the economic ties it relies on.

“There could be a huge impact not just on the North’s market economy, but also on the entire economy of the country,” Kang said. “North Korea promotes localization, but even for products – candies, crackers, or clothing – manufactured in the country, the raw materials come from China.”

Upcoming North Korean political holidays, which usually include gifts of sweets and crackers for children, may be more less festive than usual if the country’s supplies of sugar, flour, and other ingredients are scarce, she said.

Source and full article: “Burdened by sanctions, North Korea sees coronavirus threaten economic lifelines,” Josh Smith, Reuters, 4/2/2020.

Daily NK reports similar that the government has, quite incredibly, shut the crucial Sinuiju port for shipments to and from China:

Daily NK sources reported that with the port’s shutdown, maritime transportation of goods near the Sino-North Korean border have completely come to a halt.

“All the harbors at Sinuiju Port, which were open until at least Jan. 24, have been completely shut down as of Jan. 25,” a North Pyongan Province source told Daily NK on Friday.

“Authorities are prohibiting the movement of both personnel and goods to stop the coronavirus from entering the country,” he added.

Daily NK sources explained that ships leaving for sea must normally receive a confirmation document and undergo a series of inspections at port customs, but all the customs offices are currently closed and all the boats are docked.

Sinuiju Port, which sits opposite the Chinese city of Dandong in Liaoning Province, is a hub for smuggling as well as official trade with China.

Government ships charged with clamping down on smuggling on the Yalu River have also halted operations, Daily NK sources reported.

“Since all the boats are docked, all the anti-smuggling boats working along the Yalu River have anchored as well,” one source said. “The military unit overseeing the boats have given orders that ‘nobody is to come into contact with Chinese people.’”

Smuggling along the Yalu River also appears to have largely stopped, according to Daily NK sources.

”The current atmosphere is such that if anyone were to say they were going out to smuggle, they would be branded a traitor,” one source said.

With North Korea constantly emphasizing the danger posed by the Wuhan coronavirus through state media along with intensifying its border security, smugglers are on their toes, Daily NK sources said.

Not only is there a fear of infection, but smugglers are also worried that being caught smuggling while the government is so intensely guarding the border might lead to much harsher punishment than usual.

Article source: “N. Korea shuts down Sinuiju Port amid coronavirus fears,” Mun Dong Hui, Daily NK, 4/2/2020.

The state is taking very serious measures. According to another Daily NK report (in Korean), medical staff has been dispatched to all customs houses along the Chinese border, and are checking the vitals of everyone who enters from China. In the Nampo port, North Korea’s commercially most important one, foreign passengers are forbidden from leaving their ships and entering the country.

As NK Pro reports, tourism is essentially completely banned, and border crossings with China and Russia completely shut aside from outbound movements of people (with some exceptions, as reported here by Daily NK). Goods may still cross by land between the countries. People who have been to China are quarantined for one month.

Predictably, goods prices have soared as a result of the border closings, particularly on manufactured and imported goods from China. Prices for goods like flour have gone up by 47 percent since January. This is itself very interesting, since we’ve seen such small or non-existent market price changes following sanctions thus far. The most likely reason is that sanctions actually do not greatly impact most goods that matter to people’s everyday lives, and the North Korean government won’t exactly stop goods from crossing the border. Here, however, the government itself is enforcing a blanket ban on crossings. It’s serious, and reportedly even for smugglers.

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