Archive for the ‘DPRK organizations’ Category

PUST holds second graduation ceremony

Tuesday, November 25th, 2014

PUST-Google-Earth-2014-11-25

Pictured Above (Google Earth): PUST

On Wednesday 19th November, the Pyongyang University of Science and Technology (PUST) held its second graduation ceremony of 2014, at the campus in the south side of Pyongyang.

100 undergraduate students in science and technology received Bachelor degrees from the co-Presidents of PUST, in the presence of foreigners and diplomats including ambassadors from Europe, Asia and Latin America and UN representatives.

These new graduates are the first year-group of students, who came to PUST in October 2010, when the university began classes in electrical and electronic engineering, computer science; agriculture and life sciences; and finance and management. Some will remain at PUST as graduate students and most others will go to various DPRK state universities for further study. PUST is also active in sending graduate students for both short-term and long-term study abroad, at European and Asian universities, under various partnerships and scholarship schemes.

For more details please see the Press Release (PDF).

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New statues at Security University of the DPRK (MSS University)

Wednesday, November 19th, 2014

MSS-Uni-Statues-2014-11-19

Pictured above: Security University of the DPRK (formerly “University of KPA Unit 10215″) in Mangyongdae District (39.044446°, 125.633676°)

KCNA has announced the unveiling of new statues of Kim Il-sung and Kim Jong-il at the “Security University of the DPRK”. The bases for these new statues can be seen in the satellite imagery, but the statues themselves can be seen in the official photos below:

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According to the article:

Present there were Kim Ki Nam, Choe Thae Bok, Pak To Chun, Kim Won Hong, Jo Yon Jun, and commanding officers of the Ministry of State Security, officials of security organs at various levels and teachers, students and employees of the university and their families and officials and those of meritorious services of units which contributed to erecting the statues.

Kim Jong-il last visited this facility on May 5, 2009. Kim Jong-un has yet to make an official visit.

univ-of-KPA-unit-10125

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Rungra 88 Trading Company

Thursday, October 16th, 2014

According to the Daily NK:

Neungna 88 [Rungra 88],  Trading Company, located in Suncheon, South Pyongan Province, has been a popular workplace for women, offering jobs in clothes manufacturing. It is one of the companies tasked with earning foreign currency for the North, but recently, with the wages standing at a mere 10th of individually employed workers, more people are leaving their posts, the Daily NK has learned.

“Workers employed by breweries or bakeries receive roughly 200,000 KPW a month,” a source in South Pyongan Province reported to Daily NK on Tuesday. “But at Neungna 88, workers on the clothing line only make 20,000 KPW even though they work in unsatisfactory environments.”

The trade company falls under the Chosun Workers’ Party’s Finance and Accounting Department and exports to China everything from coal and iron ore to medicine, alcohol, clothing, and health supplements, earning back foreign currency. The profits are offered up to the Department or are used to procure holiday gifts for Party cadres under Kim Jong Eun’s name.

Neungna 88 in Suncheon is a branch of the headquarters in Pyongyang, and focuses on exporting clothes in collaboration with China, meaning the company brings in the yarn, fabric, and designs from China, and then exports the final products back. It also runs a restaurant serving pizza to procure additional funds. Increasing foreign food availability is the latest method employed by these foreign-currency organizations to encourage resident spending, encouraged by the increased demand. For foreign currency-earning enterprises to extend their activities domestically is indicative of the increasing purchasing power of the middle-class.

“If you get to Daedong River in Sunchon, you’ll see a big sign on a three-story building that reads Neungna 88 Trading Company,” the source explained. “The first floor is a pizza place, and on the second and third stories, there are some 150 women making clothes.”

Their monthly wages are 20,000 KPW [2.3 USD], which is almost seven times higher than other state-run companies, but the lowest among trading companies.There are no standards as to how much these trading companies have to pay their employees, and each company decides based on the profits and amount of work allocated.

Unlike men, it is very rare for women in their teens or 20s to work for a trading company. Despite this fact, some women work on garment manufacturing lines because of the regular food rations and extra benefits offered on national holidays, regardless of the low wages.

However, recently more people have been quitting their jobs, as those who are hired by private businesses are able to receive up to a ten-fold increase in wages and work in a more pleasant environment, the source explained. This portends a growing number of women who are seeking more than a low wage with rations and instead looking for better employment opportunities.

With this trend, the company has been trying to hire more women with experience at state-run apparel factories, but not many are willing to due to the low salary. “Because of this, unless Neungna 88 raises its wages it will create obstacles for exports, not only due to technical difficulties, but also low morale,” she concluded.

Read the full story here:
Women Leaving Low Paying Trade Co. Jobs
Daily NK
Seol Song Ah
2014-10-16

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3rd North Korea-China Economic, Trade, Culture and Tourism Expo held

Thursday, October 16th, 2014

UPDATE 4 (2014-10-23): Here is coverage in the Choson Ilbo:

North Korea signed US$1.3 billion worth of investment deals with Chinese businesses at a trade fair in the Chinese border city of Dandong last week.

China’s Xinhua news agency on Monday quoted one of the organizers of the trade fair as saying, “North Korean and Chinese businesses signed letters of intent covering 60 trade and investment pacts amounting to $1.26 billion.

“Another eight letters of intent were signed between North Korea and businesses in other countries involving $11.6 million worth of trade and $100 million worth of investments.”

Around 500 North Korean officials attended the trade fair, including those in charge of economic development.

But the amount of deals struck was smaller than last year (93 deals worth $1.6 billion), due to deteriorating relations between Beijing and Pyongyang.

Skeptics also point out there is no guarantee that the letters of intent will materialize into concrete investments.

UPDATE 3 (2014-10-20): Here is additional coverage by Yonhap:

In an apparent bid to lure Chinese investors, North Korea has publicized somewhat detailed information about its workforce during an annual trade with China, boasting of a well-educated pool of labor.

The North’s National Economic Development General Bureau released a booklet to show off its labor force at the five-day trade fair, which ended on Monday in the Chinese border city of Dandong.

According to the booklet, North Korea’s total population stood at 24.34 million as of last year. About 12.17 million people constituted a “prepared labor force that can adapt to randomly-chosen professions,” according to the booklet.

North Korea also boasted that it extended compulsory education by one year to 12 years from this year.

“In our country, the level of education is high and the potential of intellectual capability is solidly prepared,” the booklet said. “There is no unemployment, labor striking or sabotage in our country.”

North Korea sent 68 business entities to this year’s North Korea-China Economic, Trade, Culture and Tourism Expo, the third of its kind, down about 30 percent from last year.

The decline in North Korea’s participation at this year’s show underscored the continued strain in bilateral relations, particularly since the North’s third nuclear test in February last year and the execution of the North Korean leader Kim Jong-un’s once-powerful uncle, Jang Song-thaek, who had close ties with Beijing.

UPDATE 2 (2014-10-20): Here is coverage from Xinhua:

A 500-strong trade delegation from the Democratic People’s Republic of Korea (DPRK) is promoting the country’s investment opportunities at a four-day expo in China’s border city of Dandong, Liaoning Province.

The third China-DPRK Economic, Culture and Tourism Expo, closing on Tuesday, has seen 70 million yuan (about 11.6 million U.S. dollars) of trading, agreements on eight investment contracts worth 100 million U.S. dollars, and 60 trade agreements worth 1.26 billion U.S. dollars in total.

Shi Guang, mayor of Dandong, said the expo has drawn 100 DPRK exhibitors, 96 companies from Russia, India, China’s Taiwan and Hong Kong, as well 210 companies from the Chinese mainland. About 250,000 visitors from 20 countries and regions have attended.

The DPRK is developing a Special Economic Zone to help implement its opening-up policy.

Kim Jong Sik, an official with the DPRK Economic Development Association,ssaid the zone is open up to any countries interested in establishing economic and trade relations with the DPRK.

The zone will be dedicated to external trade, assimilating foreign investment and improving the country’s economy, he said.

According to the official, the DPRK has clinched bilateral trade and investment protection agreements with more than 30 countries and mapped out an economic structure including metallurgy, mining, production of construction materials, machinery, garment making, shipbuilding, agriculture and aquaculture.

Kim said the country’s human resources, environment and tourist resources are key factors to appeal to foreign investment. It has been working to optimize investment laws.

The city of Dandong faces the DPRK across the Yalu River. Construction of a bridge linking both sides has been basically completed. It is expected to help facilitate the DPRK’s exchanges with the outside world.

UPDATE 1 (2014-10-18): According to Yonhap:

North Korea is still showing off its products at an annual trade fair with China, but the number of North Korean business entities attending the event this year was about 30 percent less than last year.

The mood is subdued at the five-day trade fair in the Chinese border city of Dandong, reflecting strained political ties between North Korea and China amid Beijing’s signals of displeasure with Pyongyang’s nuclear ambition.

Organizers had said that about 100 North Korean business entities would attend the annual exhibition, but only 68 of them actually attended this year’s event. About 100 North Korean business entities attended last year’s exhibition.

The crowd was also noticeably smaller than it was last year.

“This year, we didn’t bring many products. Instead of selling products, we come here with hopes to meet with Chinese people who want to invest in our factory,” said an official at a North Korean trading firm who spoke on the condition of anonymity.

The decline in North Korea’s participation at the North Korea-China Economic, Trade, Culture and Tourism Expo, which began its five-day run Thursday, underscored the continued strain in bilateral relations, particularly after the North’s third nuclear test in February last year and the execution of the North Korean leader Kim Jong-un’s once-powerful uncle, Jang Song-thaek, who had close ties with Beijing.

In what many analysts believe was a message to North Korea, Chinese President Xi Jinping paid a two-day visit to South Korea in July this year, breaking a long-standing tradition by Chinese heads of state of visiting Pyongyang before Seoul.

North Korea’s bilateral trade with China stood at US$4.05 billion in the first eight months of this year, down 1.1 percent from the same period last year, according to Chinese customs data.

Economic development, along with the expansion of its nuclear capability, has been a new focus of North Korea’s policy under young leader Kim Jong-un, who took over in late 2011 after his father, Kim Jong-il, died.

North Korea, beset by poor infrastructure and international sanctions over its nuclear and missile programs, has announced plans to set up an economic development zone in each of its provinces.

Despite sanctions that discourage foreign investment, Kim Jong-sik, an official at the North’s National Economic Development General Bureau, told an audience at the exhibition that Pyongyang would set up a “one-stop service” that makes it easier for foreigners to invest in the country.

“With regard to economic development zones, we will simplify immigration procedures and build a one-stop service, which has been widely introduced around the world, to try to fully guarantee conveniences of foreign investors,” Kim said.

ORIGINAL POST (2014-10-16): According to Yonhap:

North Korea and China kicked off an annual trade exhibition on Thursday, with about 2,000 Chinese companies attending, organizers said.

The five-day trade fair in the Chinese border city of Dandong, where more than 70 percent of bilateral trade between the two nations is conducted, suggests economic ties between Beijing and Pyongyang remain largely unaffected despite the North’s nuclear and missile programs.

About 100 North Korean business entities will attend the North Korea-China Economic, Trade, Culture and Tourism Expo, the third of its kind.

At last year’s exhibition, North Korea and China signed 93 preliminary deals worth US$1.6 billion. It has not been confirmed whether the deals usually lead to actual shipments.

Besides North Korea and China, companies from Hong Kong, Russia, Thailand and Taiwan will join this year’s exhibition, organizers said.

North Korea’s bilateral trade with China stood at US$4.05 billion in the first eight months of this year, down 1.1 percent from the same period last year, according to Chinese customs data.

North Korea’s exports to China declined 0.8 percent on-year to $1.84 billion during the eight-month period, while imports fell 1.2 percent to $2.21 billion, the data showed.

Here is coverage of the first and second expo.

Read the full story here:
N. Korea, China kick off annual trade fair
Yonhap
2014-10-16

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North Korea’s Ministry of External Economic Affairs stresses business at economic development zones is gaining momentum

Friday, October 10th, 2014

Institute for Far Easter Studies (IFES)

In a September 29, 2014 interview by the Choson Sinbo, Director of North Korea’s Ministry of External Economic Affairs, Oh Tae Bong, reported that business in North Korea’s newly established economic development zones (EDZ) is gradually being ramped up. In the interview, Oh mentioned the Jindo Export Processing Zone in Nampo City as an example where foreign investment capital is being prepared for the construction of substructure facilities such as piers and power plants and factories for heavy industry like cement and steel.

The Jindo Export Processing Zone carries out technology transfers and exports completed industrial products to foreign countries. Specifically, Secretary Oh emphasized, “Several countries have expressed great interest in the Jindo Export Processing Zone, and investment contracts have already been signed with a few targets such as Hong Kong.” If the Jindo Export Processing Zone succeeds, it is expected that more processing zones will be developed around the country. If development goes smoothly, the structure of primary export products, including underground resources, would change drastically and promote product diversification.

Secretary Oh also talked about the results achieved through economic cooperation with neighboring countries, saying, “Our nation is consulting with Russian governmental organizations regarding the cooperation issues experienced with railroad reconstruction and modernization.” He mentions that certain agreements have already been made in August 2014, and commented that “Relations between two countries have great effect on foreign economic activity, such as investments.” In other words, despite the US and UN imposed economic sanctions against North Korea, Russia has taken an active stance toward economic cooperation with North Korea.

With regards to the Ministry of External Economic Affairs (formerly the Ministry of Foreign Trade), Director Oh explained that the ministry was newly reorganized in June 2014 to expand the state’s foreign economic activities. According to Oh, the ministry will contribute to the strengthening of economic ties between nations, and take unified command over trade, joint ventures, attraction of foreign capital, and economic development zones.

More specifically, Secretary Oh stated that “Since the Ministry of Trade, the Joint Venture and Investment Commission, and State Economic Development Committee have all been combined into one body responsible for foreign economic enterprises, business complexity has disappeared and unity has been secured.” It is said that, first, the process procedures necessary in economic trade activities have been simplified. Second, the combining of various departments among the three committees into one single organization has improved work efficiency. Finally, the agency-centered system has disappeared, allowing for a much more efficient foreign economic industry.

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Second session of 13th Supreme People’s Assembly

Thursday, September 25th, 2014

UPDATE 3 (2014-9-25): Kim Jong-un did not attend the SPA meeting.

According to the Wall Street Journal:

North Korea’s young leader wasn’t in his customary seat as the country convened its rubber-stamp parliament Thursday, adding to South Korean media speculation that Kim Jong Un may be ill.

Only part of the meeting of the Supreme People’s Assembly was shown on state TV, but Mr. Kim wasn’t present and apparently missed the meeting for the first time since he took power after the death of his father Kim Jong Il in December 2011, according to an official for the South’s Unification Ministry who spoke on condition of anonymity because of office rules.

The usually ubiquitous Mr. Kim, the third member of his family to rule the country, hasn’t been seen in state media since attending a Pyongyang concert on Sept. 3. He was shown limping on television in July and again earlier this month, and South Korean media have speculated that Kim has been ill, although there has been no discussion of the absence in the North’s state-run media.

According to Reuters:

Kim, who is considerably overweight, has not featured in state media broadcasts since appearing at a concert alongside his wife and former state entertainer Ri Sol Ju this month.

In July, he was seen walking with a limp at an event with key officials.

But analysts warned against reading too much into Kim’s absence.

“Kim Jong Il didn’t attend every time, either,” said Chris Green, a North Korea expert at Seoul-based Daily NK website. “Moreover, we know that the SPA primarily performs a demonstrative function, it is not a true decision-making body.”

UPDATE 2 (2104-9-25): KCNA reports on the second session of the 13th SPA. Most of the copy is dedicated to continuing education reforms, however at the end of the article, personnel changes at the National Defense Commission are announced:

It recalled Deputy Choe Ryong Hae from the post of vice-chairman of the National Defence Commission (NDC) of the DPRK due to his transfer to other post and Deputy Jang Jong Nam from the post of member of the NDC of the DPRK due to his transfer to other post.

It elected Deputy Hwang Pyong So to fill the vacancy as vice-chairman of the NDC of the DPRK and Deputies Hyon Yong Chol and Ri Pyong Chol to fill the vacancy as members of the NDC of the DPRK at the proposal of Marshal Kim Jong Un.

This list of NDC members (as of October 2013 )can be found here.

Reuters notes:

At the meeting, state media said, Choe Ryong Hae had been removed from the post of vice chairman of the National Defence Commission, a body chaired by Kim, and was replaced by Hwang Pyong So.

Hwang is a member of a powerful faction created in the 1970s under former leader Kim Jong Il, the father of the current leader, to boost a personality cult around his family.

Choe had been widely seen as a new right-hand man to Kim Jong Un after he purged his uncle last year, but had since fallen back into the shadows.

“Hwang’s appointment as NDC Vice Chairman shows that he has truly risen to become the regime’s de facto number two official,” said Michael Madden, a North Korean leadership expert and contributor to the 38 North website.

Hwang was appointed “according to the wishes of Marshall Kim Jong Un”, the North’s official KCNA news agency said.

Here is the full story:

2nd Session of 13th Supreme People’s Assembly of DPRK Held

Pyongyang, September 25 (KCNA) — The 2nd Session of the 13th Supreme People’s Assembly (SPA) of the DPRK was held at the Mansudae Assembly Hall Thursday.

Present there were deputies to the SPA.

Officials of the party, armed forces and power organs, public organizations, ministries, national institutions and the fields of science, education, literature and art, public health and media attended it as observers.

All the participants observed a moment’s silence in memory of President Kim Il Sung and leader Kim Jong Il.

SPA Chairman Choe Thae Bok made an opening address.

The session discussed agenda items on summing up the implementation of “On Enforcing Universal 12-Year Compulsory Education”, the Ordinance of the SPA of the DPRK, and an organizational matter.

Deputy Pak Pong Ju, premier of the Cabinet, made a report on the first agenda item.

The reporter said that the 6th Session of the 12th SPA held in September, Juche 101 (2012) promulgated Ordinance on Enforcing Universal 12-Year Compulsory Education in line with the new requirements of the developing revolution.

According to the report, a work for successfully enforcing the schooling has been dynamically pushed forward as the one involving the whole state, all people and the whole society and signal successes have been made in it.

The work for operating the six-year secondary schools by dividing them into three-year junior secondary schools and three-year senior secondary schools has been wound up in a brief span of time. The first phase programs for the universal 12-year compulsory education were worked out in a matter of one and half years and textbooks of new contents and style were compiled.

Expenditure has been increased in educational field at the state budget, the State Planning Commission, the Ministry of Finance, provincial people’s committees and relevant institutions have ensured funds needed for educational work as planned, thus strengthening the material and technological foundation of schools.

Over the past two years since the promulgation of the ordinance new classrooms have been built or constructed on an expansion basis at schools across the country and many school things produced.

The reporter referred to the tasks facing the field of education.

He underlined the need to build well the ranks of teachers and decisively raise their qualifications and roles.

The general senior secondary schools should teach students with main emphasis on general secondary knowledge and senior secondary technical schools should make preparations in a responsible manner for giving education in basic technology to suit the economic and geographical peculiarities of the relevant areas while giving general education in conformity with the operation of senior secondary technical schools, new type schooling, on a trial basis, he noted.

He also underlined the need to positively push ahead with the work for putting the nation’s universal general secondary education including genius education on a new high stage, reinforce the research forces at educational and scientific research institutions and increase their responsibilities and roles.

He called for improving the conditions and environment for education to be fit for the appearance of a highly civilized socialist country.

Speakers at the session renewed their resolution to decisively improve the quality of education to meet the realistic requirements of the developing education in the age of knowledge-based economy and suit the trend of the world and thus train the younger generation as more dependable revolutionary talents of Juche type equipped with perfect general secondary knowledge, modern basic technological knowledge and creative ability.

The session adopted “On Comprehensively Enforcing Universal 12-Year Compulsory Education and Decisively Improving Its Quality”, the Decision of the SPA of the DPRK.

It discussed the second agenda item.

It recalled Deputy Choe Ryong Hae from the post of vice-chairman of the National Defence Commission (NDC) of the DPRK due to his transfer to other post and Deputy Jang Jong Nam from the post of member of the NDC of the DPRK due to his transfer to other post.

It elected Deputy Hwang Pyong So to fill the vacancy as vice-chairman of the NDC of the DPRK and Deputies Hyon Yong Chol and Ri Pyong Chol to fill the vacancy as members of the NDC of the DPRK at the proposal of Marshal Kim Jong Un.

UPDATE 1 (2014-9-18): The Institute for Far Eastern Studies (IFES) reports on the DPRK’s education policy:

North Korea Prioritizes Budget Support for the Modernization of Education in the Age of Knowledge-Based Economy

A September 6, 2014 article in the Rodong Sinmun reported that First Chairman of the National Defence Commission Kim Jong Un has begun to usher in a “revolution in education for the new century” and emphasized the need to construct a “world power of socialist education in the 21st century” at the 13th National Meeting of Educators held on Sept. 5.

At the meeting, Kim Jong Un’s work, entitled, “Let Us Make a Revolution in Education in the New Century to Glorify Our Country as the One of Education and a Power of Talents” was presented to participants.

In his work, Kim Jong Un advocates for this “revolution in education for the new century,” saying, “Education is part of an unending patriotic plan for the wealth and prosperity of the nation and the people.” The work emphasizes, “How we educate our posterity will be the determining factor of the nation’s power and the propagation of the revolution.”

Kim Jong Un also stated, “The goal to be attained by the revolution in education in the new century is to turn the country into a power of socialist education in the 21st century by bringing up all school youth and children as reliable pillars for the building of a thriving nation and educating all the people to be well versed in science and technology.” To achieve this, Kim Jong Un emphasized that the “decisive strengthening” of secondary education is the fundamental link of the education revolution.

He states, “Just as how trees with the strongest roots grow the perfect fruit, secondary education must be strengthened in order to produce talented individuals and raise the overall level of intelligence of workers.”

He continues, “In order to realize the grand goal of the revolution in education for the new century, the strong leadership guidance provided by the Party’s Juche-based education ideology and policy must be implemented according to the demands of the generation and the development of the revolution.”

More specifically, his work mentions the importance of improving the education system: “An important task facing the revolution in education in the new century is to round off the educational system and improve the guidance and management of the educational work in order to successfully train talents of new type required by the era.”

Kim Jong Un also emphasized the need to rear wholesome, well-rounded children from the time they are young while at home, school, and out in society. Furthermore, he stated, “The education in the age of knowledge-based economy should not be the one for letting students learn existing knowledge but it should be developed in the direction of putting its contents on a practical, comprehensive and modern basis so that students may grasp faster new and useful knowledge and more successfully apply them in practice.”

In order to accomplish this, Kim Jong Un said, “All the fields should regard the educational work as part of their work, always pay deep attention to it and help solve the issues arising in the field of education in a responsible manner.”

ORIGINAL POST (2014-9-4): According to KCNA:

DPRK Supreme People’s Assembly to Be Convened

Pyongyang, September 5 (KCNA) — The Second Session of the 13th Supreme People’s Assembly of the Democratic People’s Republic of Korea will be held in Pyongyang on September 25, Juche 103 (2014).

A relevant decision of the Presidium of the Supreme People’s Assembly was promulgated on Sept. 4.

Information on the first session of the 13th SPA can be found here.

Information on the election of the 13th SPA can be found here.

Here is what the Daily NK has to say:

It is the norm for the SPA to convene each spring to carry out the core responsibilities of ratifying personnel changes and hearing budgetary reports. Two of the more noteworthy results of the meeting in April this year were then-Director of the KPA General Political Department Choe Ryong Hae being made a deputy in the National Defense Commission, and Ri Su Yong being handed the foreign affairs portfolio. Ri, a seasoned diplomat, is scheduled to speak to the UN General Assembly later this month.

Conversely, second sessions do not occur every year as a matter of course; rather, they are convened when necessary for the accomplishment of Workers’ Party objectives. One such session convened on September 25th, 2012, for instance, resulted in wide-ranging changes to the state education system, most notably the addition of a 12th year of mandatory schooling.

As a result, attention is set to focus on personnel shifts and the possibility of major policy announcements.

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KIC goods and the DPRK’s Choco Pies

Wednesday, September 24th, 2014

According to the Daily NK, the DPRK has developed its own version of the South Korean “Choco Pie”. And it is apparently winning over North Korean consumers:

[…] the once popular South Korean snack Choco Pie is seeing a decline in its asking price. In June, Pyongyang demanded that South Korean companies at the industrial complex stop distributing Choco Pies to workers there, as officials had found it problematic that North Korean workers were saving the snacks and selling them in the markets. More recently, the northern workers have been receiving Chaltteok Pie (찰떡) [a chocolate covered rice cake from the South], individually packaged coffee, yulmucha (율무차)[grainy tea made with Job’s Tears], and candy bars.

“In Pyongyang, at the ‘Geumeunsan Trade Company,’ (금운산, Kumunsan Trade Corporation) they have been baking bread for about a year,” the source said, adding, “Of all the different kinds of bread, the most popular are the ones with butter inside, and they are less than 1000 KPW– much cheaper than Choco Pie.”

The trade company is an affiliate of the Military Mobilization Department [Military Manpower Administration in South Korea], which deals with the procurement of military supplies among its many functions. They either directly import the goods or obtain them from military factories in various locations across the country, and oversee the manufacturing of military equipment and machinery.

Geumeunsan Trade Company maintains branches in multiple areas, including Rasun and Cheongjin, and the office in Pyongyang imports ingredients such as flour, sugar, and cooking oil directly from China. According to the source, the raw material prices are cheaper than in the  North’s markets, and the products taste good, allowing it to monopolize the confectionery market there.

“The company has brought in foreign equipment and technology, putting it ahead of the South’s Choco Pie in price and taste,” he said, concluding, “This is why with the introduction of these different breads in Pyongyang, the price of Choco Pie [from the South] has dropped to 500 KPW from 1,200 KPW.”

The same story also reports that goods produced in the Keasong Industrial Complex are selling really well in the DPRK:

“These days, there are all kinds of goods in the markets,” adding that “no matter what kind of foreign products come in, they cannot beat KIC goods, which sell out due to high demand.” In North Korean markets, goods from South Korea, China, Japan, Russia, and elsewhere are brought in either through official or illicit trade routes. The products are then sorted by quality into “good, average, and poor” with corresponding prices.

“With the KIC now back in full operation, products are spilling into the markets,” he explained. “The goods produced there are not found in the Kaesong markets but areas such as Sinuiju [near the northwestern border] and Pyongsong [located an hour North of Pyongyang].”

Merchandise from the joint complex, such as clothes, shoes, and other mass-produced goods, sell for much higher prices compared to those from China, because not only are they new in the market, they are also considered scarce. The hefty price tag is believed to include a premium for the risk of smuggling the goods out of the heavily guarded industrial park and the bribes required to gain entry.

The items most popular with men are hiking boots, especially those made with special materials to withstand cuts from sharp objects like knives, and pants. Women, on the other hand, prefer goods for around the home, such as high-quality and sanitary cutting boards, the source told Daily NK.

“Top-quality pants from China in the Pyongsong market sell for a rather high price of roughly $10 USD, but KIC products sell for $30 USD,” he said. “Although Chinese products use the best material they have, there’s a big difference in the quality and degree of processing,” justifying why those who have used KIC-produced goods will invariably opt for them again, even if it means they need to pay more.

Authorities in the North try to keep a tight lid on goods from KIC trickling into the black market in an effort to prevent people from longing about life in the South. According to the source, this is why sellers or buyers refrain from using the word “Kaesong” and simply say, “Do you have goods from the Complex? Complex pants, or Complex shoes?”

The article does not mention it, but I suspect that not many goods are smuggled out of the KIC. The goods are probably exported from South Korea to China where they are imported back into North Korea.

Read the full story here:
Kaesong Goods Fetch Highest Market Prices
Daily NK
Seol Song Ah
2014-9-24

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Rodong Sinmun calls for strengthening the cabinet in economic matters

Friday, September 5th, 2014

UPDATE 1 (2014-9-11): IFES reports: North Korea emphasizes innovation using “economic management in our style” approach:

North Korea has announced that the nation’s economic management problem will be solved through their “own style,” once again stressing the superiority of the Socialist self-reliant economic model and reiterating the need to construct a strong and prosperous nation.

A September 3, 2014 editorial in the Rodong Sinmun argues the importance of economic management and leadership, saying that it must be improved to meet the demands of the North Korean economy, which has reached a new turning point in its development.

“Economic Management System in Our Style” is North Korea’s new approach to economic principles originally stemming from Kim Il Sung and Kim Jong Il. The editorial emphasizes that it is a project that will bring real results and continuous development.

Furthermore, the editorial argues that economic management and leadership must be carried out according to objective economic law and scientific reason in order to ensure the greatest possible economic practicality.

The article also emphasizes the role of scientific technology, saying that “Research and development must be actively promoted in all areas and all aspects of the people’s economy. New scientific technology must be integrated into production in order to renovate the economy and meet the demands of the new generation.”

The editorial also calls for conservation of national human and material resources as much as possible, as fundamental problems in building a strong economic nation and improving the life of the people, including the lack of adequate power and food, have yet to be solved.

The roles of economic advising agencies and their workers were emphasized as being especially important. The editorial stresses that these economic advisers must become aware of the deep responsibility they hold, and must work to achieve real results in improving the country’s economic management.

Finally, the role of the Cabinet was also emphasized as the commander of the economy. Specifically, the editorial calls for the strengthening of the Cabinet-centered system, in which the Cabinet should oversee all economic institutions and sectors and create policies accordingly. In addition, the Cabinet’s role to guide companies with scientific business and corporate strategies is emphasized so that they may actively engage in creative business activities.

North Korea has been rolling out economic improvement measures since early 2012, starting with the agriculture sector. Since then, an “independent profit system” has also been introduced in various factories and businesses where managers are allowed more autonomy in managing operations, but are ultimately responsible for the business’s productivity.

Beginning this year, the “business know-how” concept was applied to various farms and factories, and increased profits reportedly have begun to see their way back into the hands of the workers. The workers, whose job performance has increased due to the rise in profits, are seen as the driving force of North Korea’s economic development.

ORIGINAL POST (2014-9-5): Thanks to Choson Exchange for spotting this one. According to Rodong Sinmun (2014-9-4):

Giving Full Play to Advantages and Might of Self-surpporting Economy

It is necessary to settle the issue of economic management by Korean style in order to fully demonstrate the advantages and might of the Juche-oriented socialist self-supporting economy and win the final victory in the drive for building a thriving nation.

The establishment of Korean-style economic management method is, in essence, the work to apply, carry forward and develop the principle and methods of economic management indicated by President Kim Il Sung and leader Kim Jong Il as required by the present times.

It is necessary to hold fast to the socialist principle in improving the economic management.

It is essential to ensure the maximum economic profitability by guiding and managing economy according to the objective laws of economy and scientific reason.

In order to improve the economic management it is important to raise the responsibility and role of the economy guidance institutions and officials.

It is possible to successfully achieve economic development only by working out a scientific economy development strategy, enlisting the natural resources and all potentials of the country to the maximum, ensuring a steady growth of production and keeping the overall balance of economy.

The Cabinet is the economy command of the country.

It is necessary to strengthen the Cabinet responsibility system, system centering on the Cabinet, concentrate all the economic fields and overall economic work on the Cabinet and take measures under the supervision of the Cabinet.

The editorial calls for improving the economic management as required by the developing reality and intended by the party and thus giving fuller play to the advantages of Korean-style socialism and bring about a fresh turn in the building of a thriving nation.

Here is a PDF of the web page should the URL go bad.

It is worth noting briefly that this is what we have seen recently in recent consolidation of the JVIC, SEDC, and Ministry of Foreign Trade into the Ministry of External Economic Affairs.

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DPRK replaces 5,000 won note

Monday, August 18th, 2014

UPDATE 3 (2014-9-2): Simon Cockerell has posted a photo of the new note to his instagram account. You Can see it here.

UPDATE 2 (2014-8-18): According to the Daily NK:

Daily NK has learned that the recent 5000 KPW note exchange has prompted an overall apathetic response from residents in North Korea. As Daily NK first reported here on July 31st the North Korean authorities informed residents that the largest denomination monetary unit would be replaced with a new bill.

US Dollars and Chinese Yuan being the currencies of choice in the markets, the recent collection and exchange of the highest denomination bill “doesn’t really affect people’s lives.”

A source in the capital reported to Daily NK on August 14, “A new [5000 KPW] note has been issued, but the exchange of old to new notes hasn’t made much headway.” This is hardly a nuisance to most residents, who are used to adapting, she went on to explain. “People are fairly indifferent about the new 5000 bill, and anyone who expresses concern about it is considered to be a fool by others.”

Production of the new 5000 KPW notes began last year; at the end of July 2014, the Chosun Central Bank announced that residents would have until 2017 to exchange the old bills. “At first, residents didn’t know what the exchange rate would be when they converted to the new bills, so a bit of chaos ensued; once they found out it was a 1:1 exchange rate, things have been pretty quiet of late,” she explained. “The number of residents holding 5000 KPW notes is pretty low so there isn’t an atmosphere of concern surrounding the matter.” The source did add that it cannot be verified at this time if those in rural or farming areas are equally as impervious to the matter.

The source cited two chief factors underpinning this resident indifference: trust in the authorities continues to decline, as does the value of North Korean currency.

The 5000 KPW bill is the largest denomination of bill in North Korean currency, but when compared with foreign currencies like Chinese Yuan or US Dollars, its value is dismal, considered by most to be “wastepaper.” By current exchange rates, 1 USD is equal to 8000 KPW; in other words, the largest note in North Korea [5000 KPW] is less than 1 USD or equal to approximately 5 RMB.

Moreover, at current market prices, 5,000 KPW [6000 KPW per kilo] is insufficient for people to purchase a kilo of rice or a dozen eggs [5000 KPW yields six eggs at present]. “Even when people buy a block of tofu [700 KPW], they use dollars,” the source explained. “Because merchants only do business in US Dollars of Chinese Yuan, people save all their money in these currencies.”

Citing the 2009 currency reforms, she explained the shift in public sentiment on the KPW, “People won’t suffer any losses even if there are 10 more currency reforms. Even those in poorer, rural areas regard North Korean currency as something for ‘use by the state’ and keep their assets in rice and other goods. ”

This shift in attitude of North Korean currency as “means of exchange” to “means of savings” occurred during and after the Arduous March in the 1990s [the North Korean famine if 1994-1998]. After ceasing distribution of regular food rations, starvation quickly became rife. In order to minimize dependency on a broken state system, people sought to build assets by saving as much KPW as possible.

Tragically, those savings were reduced to worthless scraps of paper during the currency reforms in 2009.The goal of the currency redenomination of November 30, 2009 was officially to bring inflation under control and eliminate monetary overhang, but the result of the 100:1 redenomination was catastrophic. This led to a complete transformation in resident commercial activity. The North Korean residents lost complete faith in state-issued banknotes and adopted foreign currencies, namely Chinese Yuan and US Dollars, as the preferred legal tender for business transactions.

“Because KPW is ‘not even worth counting’, there are more and more people who don’t care about the new 5,000 won bill,” she went on. “Instead of curiosity or trepidation as to the motivations behind the exchange, people just feel reassured by holding onto foreign currency.”

Once the privilege of traders and Party officials working abroad, accessibility to these foreign currencies has trickled down to market vendors and young students. Daily NK has recently learned that markets in all major cities in the North even provide small change back to customers in US Dollars and Chinese Renminbi.

Read the full story here:
Residents Indifferent to 5000 KPW Swap
Daily NK
Seol Song Ah
2014-8-18

UPDATE 1 (2014-8-12): Chris Green has more at NK News here.

ORIGINAL POST (2014-8-11): According to the Choson Ilbo:

North Korea’s new 5,000 banknotes no longer feature a picture of nation founder and demigod Kim Il-sung. But the new note shows Kim’s childhood home in Mangyongdae.

The new bills feature the house prominently on the front and on the back a museum in Pyongyang that displays gifts Kim and his son Jong-il received from foreign leaders*.

During a botched currency reform in 2009, Kim Il-sung was also dropped from the 2,000 and 1,000 won bills.

The 5,000 won note is North Korea’s largest denomination and nominally worth around US$50, though its actual market value is nearer $1. Workers in the North Korean state economy are paid some W3,000 a month on average, making it vital for most to seek other forms of income.

A North Korean source said when the new notes were officially announced on July 25, they sparked fears of yet another misguided currency reform, triggering a certain amount of chaos as food prices surged temporarily and some people began stockpiling food.

* Presumably the Choson Ilbo is referring to the International Friendship Exhibition at Myohyangsan. This is not in Pyongyang (Though it used to be!).

Read the full story here:
N.Korea Drops Kim Il-sung from New Banknotes
Choson Ilbo
2014-8-11

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On the availability of Chinese and North Korean rice

Tuesday, July 22nd, 2014

According to the Daily NK:

As volumes of rice bought and sold in North Korea continue to rise, stores operated by foreign-currency earning entities and market vendors are entering into greater competition for customers, inside sources in North Korea report.

“Goods including rice, beans and flour are flowing in steadily from China,” a source from North Pyongan Province explained. “In the olden days the arrival of July would have meant the worst conditions for rice, but this year there have been no big shifts and prices have stayed stable.”

A second source in North Hamkyung Province corroborated the state of affairs, saying,  “Every day a number of freight trucks loaded with rice come in through the customs house at Hyesan, and there’s the smuggled stuff, too.”

“It used to be the norm for rice to retail in the jangmadang [market]Stores only traded it wholesale,” the North Pyongan Province source went on. “But now stores are retailing it, too. Any time rice comes in through customs, buyers are there lining up to take it.”

“Stores” run under the auspices of foreign-currency earning entities began to spring up Pyongyang and other major cities toward the end of 2006. They were given formal permission to sell rice and corn alongside manufactured goods, thus in effect ending the state’s official dominance of domestic grain circulation.

The rice sold in markets comes from two sources: China, and domestic farms.  Stores mostly sell rice originating in China, whereas market vendors tend to purvey rice from a variety of sources, sources say. The ratio of Chinese to North Korean rice sold in public markets is roughly 6:4.

Lower socio-economic groups and restaurants catering to the general public tend toward Chinese rice, which is plentiful and cheap but considered insufficiently glutinous. On the other hand, affluent groups are the main purchasers of rice grown in North Korea. The stickiness of the product is higher, but so is the price: roughly 500 KPW more per kilo than Chinese varieties.

“First to attract customers, and then to turn them into regular visitors, both shops and markets are competing on price and service,” one source explained. “The stores sell their rice for 100 or 200 KPW less than the jangmadang, but customers there cannot negotiate, and the seller never throws anything in for free.”

However, this appears to be changing. According to the source, stores have now begun to grant greater price autonomy to shop officials, allowing for haggling over price and other forms of value-added.

“Customers can negotiate prices and get home or business delivery if they purchase more than 100kg,” one source reported. “It’s just like in the market now. Shops have started providing extra services, and delivery men, eager as they are to earn money, have started crowding outside storefronts waiting for customers where once they would have waited on the road.”

Read the full story here:
Price War as Stores Take on Nimble Vendors
Daily NK
Seol Song Ah
2014-7-22

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