Archive for the ‘DPRK organizations’ Category

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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Kim Jong-un’s speech at the SPA in April 2019

Sunday, April 14th, 2019

Benjamin Katzeff Silberstein

Posting the speech here in full, from KCNA:

Pyongyang, April 14 (KCNA) — Supreme Leader Kim Jong Unmade the policy speech “On Socialist Construction and the Internal and External Policies of the Government of the Republic at the Present Stage” at the First Session of the 14th Supreme People’s Assembly of the Democratic People’s Republic of Korea on April 12.

Its full text is as follows:

Dear Deputies,

The First Session of the 14th Supreme People’s Assembly of the Democratic People’s Republic of Korea is convened at a time when the prestige and strength of our Republic advancing along the road of independence are being demonstrated to the full and its socialist construction has entered a very important period.

As the election to the 14th Supreme People’s Assembly was held successfully amid the high political enthusiasm of all the people and with their active participation and the government of the Republic was reorganized, our State power has been further consolidated and the revolutionary advance of our people, who, united with one mind and will around the Workers’ Party of Korea and the government of the Republic, are marching confidently towards a higher goal of socialism, will be further accelerated.

I extend my heartfelt thanks to all the Deputies for having placed, on behalf of all the people, great trust in me so that I would continue to lead the overall work of the State as Chairman of the State Affairs Commission of our glorious country, the Democratic People’s Republic of Korea; and I pledge myself to work with devotion for the development and prosperity of the Republic and the happiness of our people.

Comrades,

Accomplishing the socialist cause under the unfurled banner of modelling the whole society on Kimilsungism-Kimjongilism is a great and historic task facing the government of the Republic.

Modelling the whole society on Kimilsungism-Kimjongilism is the highest programme of our Party and the government of our Republic and the general direction and general goal of the construction of a socialist State.

It is only when we thoroughly apply Kimilsungism-Kimjongilism to State building and activities that we can develop our Republic into the State of the great Comrades Kim Il Sung and Kim Jong Ilfor ever and creditably satisfy our people’s demands for and ideals of independence true to the will and wishes of the great leaders.

The government of our Republic will achieve decisive victory in implementing the socialist cause by conducting more vigorously the struggle for modelling the whole society on Kimilsungism-Kimjongilism.

1

Comrades,

The major fighting task facing us in our efforts for modelling the whole society on Kimilsungism-Kimjongilism is to accomplish the cause of building a powerful socialist country.

Building a powerful socialist country is a historic stage in the struggle for achieving the final victory of socialism, and this can be accomplished with credit only by applying the Kimilsungist-Kimjongilist ideas of State building in a thoroughgoing way.

The Kimilsungist-Kimjongilist ideas of State building contain in a concentrated way the ideas of, and exploits in, State building of the great Comrades Kim Il Sung and Kim Jong Il, who developed our Republic into the most prestigious and strong socialist State in its history; these ideas also indicate clearly the ways and means for accomplishing the socialist cause with the State government as a political weapon.

With the great Kimilsungist-Kimjongilist ideas of State building as the immutable guiding principle, the government of the Republic should raise the country’s strategic position and national strength onto a new high and bring about a fundamental turn in accomplishing the Juche-oriented socialist cause.

The revolutionary line of independence should be carried out in State building and activities.

Independence is the political philosophy of our Republic, and it constitutes the core of the Kimilsungist-Kimjongilist ideas of State building. A socialist State can defend the country’s prestige and people’s destiny and build and perfect socialism as suited to its situation and by its own efforts, only when it maintains the principle of independence and the Juche-oriented stand definitely in all its activities. The great Comrades Kim Il Sung and Kim Jong Il raised independence as the life of the Korean revolution and the fundamental cornerstone for State building and advanced the revolution and construction in our own way while categorically rejecting worship of big countries, dogmatism and the high-handedness and pressure by outside forces. Under their wise leadership our Republic has been built and developed to be a socialist State, independent in politics, self-supporting in the economy and self-reliant in national defence, and it is still demonstrating to the world its prestige and might as a powerful independent country. Its strategic position and influence is being raised day by day as it recently achieved the historic cause of developing the two fronts simultaneously amid a do-or-die confrontation with the imperialists and is leading the trend of situation towards peace. Today the imperialists’ wilful violation of the sovereignty of other countries is growing more undisguised than ever before, and not a few countries are being forced into a miserable plight as they have no strength with which to defend themselves; in this world it is hard to find a country like our Republic that is steadfast in the principle of independence and assures the security of the State and the happiness of the people by its own efforts.

Holding fast to the revolutionary line of independence in State building and activities is a consistent and immutable stand of our Republic.

Geographically, Korea is sandwiched between big countries and its territory remains divided. Our Republic is conducting socialist construction as the hostile forces are resorting to more vicious schemes in trying to contain, undermine and stifle it. On the other hand, the contradictions and confrontations among great powers in their pursuit of hegemony are worsening on a regional and worldwide scale.

Given the special circumstances of our revolution and the complexity of the present world situation, our Republic should build up its own strength from the firm standpoint of independence and seek independent development to defend its sovereignty and dignity and achieve true prosperity. In the past, too, when the world socialist camp existed and the countries concerned maintained cooperative relations to varying degrees, our Republic adhered to self-determination and independence in carrying on the revolution and construction, and promoted socialist construction on the principle of self-reliance. Building socialism by its own efforts according to the revolutionary line of independence is the basic principle our Republic must invariably maintain in State building.

Whatever wind may blow and whatever challenges and difficulties may lie ahead, our Republic will, in the future, too, make no concession or compromise over the issues concerning the fundamental interests of our State and people. It will resolve everything on the strength of self-reliance and self-development, stepping up the building of a powerful socialist country in our own way and by our own efforts.

A crucial factor in applying the revolutionary line of independence to the building and activities of our State is to strengthen the motive force of our revolution and develop all fields of social life in our own way. We should consolidate the country’s politico-ideological position rock-solid by fully equipping the people with the great Juche idea and the spirit of national independence and rallying them firmly behind the Party and the government of our Republic. The government will develop all realms of the economy, defence and culture from the steadfast Juche-oriented stand and in our own way, and it will never tolerate others’ way, others’ fashion, in the slightest.

Our Republic has a bright, promising future ahead, as it is steadily developing on the strong basis of independence, self-sufficiency and self-reliant defence, with the Party and the people achieving solid unity to form the powerful motive force of the revolution.

It is important to apply the people-first principle to the letter in all aspects of State activities and social life.

This principle is a political ideal of regarding the masses of the people as masters of the revolution and construction, relying on them and making selfless, devoted efforts for their interests. It embodies the Juche-oriented revolutionary philosophy that the people are the most precious and powerful beings in the world; it reflects the unwavering commitment of our Party and the government of our Republic to love the people dearly and satisfy their demands and interests.

The people are the roots of our socialist State and its foundation; they are responsible for developing it. All the activities of Party and government organs should be thoroughly oriented and subordinated to safeguarding and realizing the people’s demands and interests and faithfully serving them-this is just the way to promote the revolution and construction with success and bring the viability and advantages of socialism into full play.

Maintaining the viewpoint and attitude of prioritizing the people in the activities of the State presents itself as an important matter, in view of the fact that abuses of power, bureaucratism and other violations of their interests may appear among officials in the course of socialist construction. The impertinent practices of lording it over the people and abusing the authority vested by them will impair the prestige of socialism and its people-oriented character, and weaken the people’s support for and trust in the Party and the State. They may end up threatening the very existence of our socialist system.

With a view to carrying forward and holding up the ennobling ideas and intentions of the great leaders, who believed in the people as in heaven and devoted their lives to their interests, our Party defined the essence of Kimilsungism-Kimjongilism, the guiding ideology of our revolution, as the people-first principle and set it as the greatest priority to apply the Juche-oriented view on the people, a people-oriented philosophy, in the activities of the Party and the State.

The slogan “Everything for the people and everything by relying on them!” encapsulates the people-first principle maintained by our Party and the government of our Republic. In all spheres of State and social life we have given top and absolute priority to what are oriented to the people and popular among them, unsparingly investing everything for their wellbeing. Over recent years our State has implemented gigantic construction projects in a bold manner. This is not because there is a surplus of funds in the country’s coffers; those projects are aimed at providing our people, who are the best in the world, with better conditions for a happy, cultured life.

Our Party and the government of our Republic have resolutely declared a war against abuses of power, bureaucratism and corruption, which are infringing upon the people’s interests, and waged an intensive struggle against such practices, taking it as a matter with a vital bearing on the existence of our State.

In the course of the endeavour to apply the people-first principle in all the activities of the Party and the State and in all fields of social life, the Party, the State and the people have formed a community in which they share the same destiny with one another; our Republic has advanced dynamically along the orbit of its development, never flinching in the face of unprecedented trials and difficulties.

As socialist construction is progressing, we should direct closer attention to applying the people-first principle. Then we can double the dynamic for the advancement of our revolution and continue to demonstrate the advantages peculiar to our style of socialism, those which other countries cannot imitate.

The Party and the State make selfless, devoted efforts for the good of the people, and the people support their Party and State whole-heartedly, entrusting their destiny and future entirely to the latter-these are the genuine features of our State embodying the people-first principle.

The government of the Republic will invariably hold fast to the people-first principle as the core of its mainstay, and strive to hasten the bright future of socialism aspired after by the people by relying on their strength.

Party leadership over the overall affairs of the State should be provided in every way possible.

Party leadership is the intrinsic requirement of the building of a socialist State and lifeline of its activities. Only under the leadership of a party, the incarnation of the demands and interests of the masses, can the socialist State perform its mission as their servant with credit and properly organize and undertake unified guidance over all realms of social life and all regions and the overall socialist construction. A socialist government, not led by a revolutionary party, will lose its intrinsic nature and fall prey to the reactionaries and plotters, with the result that its people cannot escape the pitiful plight of a political orphan.

Our Party is the veteran and seasoned General Staff of the revolution, which has gained rich experience and outstanding leadership skills and abilities in the course of leading the several stages of social revolution and socialist construction. What instils boundless dignity and confidence in sure victory in our people is the leadership of our Party, which is bringing about world-startling, miraculous achievements one after another while leading the gigantic campaign of creation for building a powerful socialist country amid acute confrontation with the hostile forces.

Party leadership over State activities should be consistently based on political guidance, policy-oriented guidance. The Party is the guiding force that provides guidelines to be followed by the socialist government and guides all State activities so that they are properly conducted; the State is the executor and performer of the Party’s lines and policies. Proceeding from these interrelations between the Party and the government, our Party has shown close concern over encouraging its organizations to exercise unified control over the affairs of their sectors and units and give political and policy-oriented guidance over them in the efforts to materialize its leadership over State activities. If the Party, a political leadership body, is involved in the administrative work and resorts to technical methods, it will not only deviate from its main principle but paralyse the functions of administrative organs and impair its authority, ending up making a mess of the revolution and construction.

At present, the government of our Republic is satisfactorily effecting unified leadership over the State and society by relying on the revolutionary guiding ideology and scientific strategy and tactics advanced by the Workers’ Party of Korea. In the future, too, it should remain faithful to the Party’s ideas and leadership, so as to perform its missions of representing the rights of the masses of the people to independence, organizing their creative abilities and activities, taking care of their lives and protecting their interests.

When it strictly adheres to the ideas and principles of building a socialist State elucidated by Kimilsungism-Kimjongilism, our Republic will be built more splendidly as an independent powerful State that no one can dare provoke, a people’s State in which the people’s ideals are fully realized and a great State that leads the world by giving full scope to its unlimited potential for development, and the victory of the socialist cause will be brought closer.

2

Comrades,

The central task facing our Republic at the present stage of the struggle to build a powerful socialist country is to solidify the material foundations of socialism by concentrating all national resources on economic construction.

Economic self-sufficiency is a material guarantee and prerequisite for building an independent State. Only by relying on independent and strong economic capability, it is possible to defend the dignity of a State and increase its political and military might on a steady basis.

The present political situation demands that our State hold higher the banner of self-sufficiency and self-reliance.

Recently, the United States has grown fearful of the threats posed by our rapidly-developing nuclear armed force to the security of its mainland. At the negotiating table, it has made much ado about improved relations and peace; on the other hand, it is resorting to all conceivable schemes in trying to prolong the economic sanctions, with the aim of preventing us from following the path of our own choice and disarming us first to create conditions for realizing its ambition of overthrowing our social system. Now that it is raising demands that run counter to the fundamental interests of our State, as a prerequisite for lifting the above sanctions, the confrontation between our country and the United States is bound to be drawn out and the hostile forces’ sanctions will persist. We have built socialism in the face of their constant sanctions, but we must neither become accustomed to this nor slacken the speed of advance of our revolution. To the forces who cannot thwart us by force, sanctions are a last resort. However, these are an intolerable challenge to us; we must never connive at or remain indifferent to them, but act resolutely to frustrate them. As we put an end to the prolonged nuclear threat by dint of nukes, we must frustrate the hostile forces’ sanctions on the strength of self-sufficiency and self-reliance.

We have the capabilities and foundations for independent development to revitalize the national economy and raise it to the advanced international level in the shortest possible period. The foundations of our self-supporting economy that have been laid for several decades, able scientific and technical personnel, and the creative strength of the heroic people who have made self-reliance part of their mental qualities and are brimming with patriotic enthusiasm-these constitute our valuable strategic resources. By making the most of these enormous and unlimited potentialities, we must create another legendary tale of world-startling, miraculous successes and go ahead of others by making a greater leap forward.

When we adhere to the line of building an independent national economy and give full play to the revolutionary spirit of self-reliance, we can achieve remarkable development with a strength that others can neither fathom nor imagine.

The strategic policy pursued by our Party and the government of our Republic in promoting socialist economic construction is to make the national economy Juche-oriented, modern, IT-based and scientific.

The independence and Juche character of the national economy should be consolidated in every way possible.

We must strive hard to achieve self-sufficiency in power, fuel and raw materials, which constitute the basic guarantee for independent economic development.

The electric-power industry should maintain and strengthen the existing bases to maximize the production of electricity, put power supply on a scientific and rational basis, and actively develop the hydraulic, tidal, atomic and other promising sources of energy so as to create greater generating capacity.

Coal and other mines, which are in charge of the primary front for economic development, should give precedence to prospecting and tunnelling, and concentrate their efforts on realizing mechanization of extracting and transport, thus extensively increasing the production of coal, the food of industry, and minerals.

The metallurgical industry should establish a new modern yet large-scale iron production system that suits our actual situation by solving the scientific and technological problems arising at the Juche-oriented iron production bases and operating them properly. The chemical industry should turn itself into a Juche-oriented, energy- and labour-saving industry that totally relies on locally available raw and other materials. By doing so, it should meet the domestic demands for fertilizer, chemical fibre, synthetic plastics and various other chemical goods.

The problems of food and consumer goods, which are of decisive importance in the improvement of the people’s living, should be solved in the earliest period.

The agricultural sector should pay special attention to solving the problems of seed, fertilizer and water and securing the land under cultivation, introduce scientific farming methods and raise the rate of mechanization of farm work, and thus attain without fail the grain production target set by the Party. The stockbreeding bases such as chicken and pig farms should be modernly built or renovated, domestic animals be raised in a scientific way, and a mass movement be launched to raise grass-eating animals perseveringly. Also, a turn should be made in the production and processing of seafood by consolidating the material and technical foundations of the fishing industry.

The light industry establishments should hold fast to recycling as one of their strategies, along with the strategy of relying on locally-available raw and other materials, step up modernization of their production lines and invest great efforts in developing new products. In this way, it should ensure that larger amounts and various kinds of quality consumer goods are supplied to the people.

We should carry on grand construction projects more vigorously to provide the people with more affluent and cultured living conditions. The construction sector should make innovations in architectural designing and construction method and improve the level of technical equipment of construction units to build world-class architectural structures in a larger number. The building-materials industry should build up the capacity of cement production and decisively raise the proportion of domestically-produced finishing materials.

The transport sector should adopt revolutionary measures for improving rail and water transport in conformity with the actual conditions in our country and resolve the problem of passenger transport in the capital city and provincial seats in our own way.

We should improve the structure of the national economy still further, develop all its branches in a harmonious way and secure the international competitive edge in the magnesia and graphite industries and other promising economic sectors.

We should make proactive efforts to put the national economy on a modern and IT footing so as to transform the country’s economy definitely into one that is knowledge-based.

We should work out strategies and targets for developing hi-tech industries including the machine-building, electronics, information, nanotechnology and biological industries, and concentrate investment on them. Every sector should build a parent, standard factory in which science and technology are integrated with production and all production lines are made remote-controlled, intelligent and fully automated and generalize its experiences, so as to raise the overall economy to the advanced level of the world.

We should develop the local economy and reenergize the external economic work.

Provinces, cities and counties should build and develop the economy with their own distinctiveness by giving full scope to their natural and geographical advantages and properly sustaining their economic, technical and traditional characteristics. The State should empower the local authorities to stand on their own feet and develop by themselves, and adopt relevant practical measures.

The external economic sector should conduct external economic cooperation, technical exchanges and trading activities in a multifarious, proactive and tactical way on the principle of strictly abiding by the line of building an independent national economy and in the direction of reinforcing the fields and links essential in strengthening the country’s economic foundations.

In order to give full play to the potentials of the self-supporting socialist economy, comprehensive measures should be taken to enlist all the human and material resources and potentialities of the country in a coordinated way and utilize the new elements and driving force for economic development.

The economic work of the country should be conducted under the State’s unified control and supervision, and in accordance with its strategic plan and command.

We should adopt a scientific and practical strategy and phased plans for the economic development of the State and execute them without fail. The structural and work system should be adjusted so that enterprises can arrange and conduct production and management activities smoothly while fully satisfying the needs of the State’s unified guidance over and strategic management of the economic work.

The State’s institutional and legal conditions and environment concerning economic affairs should be improved and an iron discipline be established so that the economic organs and enterprises give priority to the national interests and the promotion of the people’s wellbeing and observe the law and order strictly.

We should further improve planning in compliance with the essential requirements of the socialist economy and deal with pricing, monetary and financial matters-the important links in the whole chain of economic management-in accordance with the economic principles and laws and in such a way as to reap profit in reality. By so doing we can encourage the enterprises and producers to work with great interest and high enthusiasm. Measures should be taken to conduct the economic management on the basis of scientific calculation so that optimum results can be obtained. Raw and other materials, funds and manpower should be economized as much as possible and the expenditure be made cost-effective so that all the resources of the country may contribute to the development of the State to the maximum.

The main force that propels a self-supporting economy is the talented personnel and science and technology.

We should make it part of the national social practices to attach importance to the talented personnel and science and technology, identify and appoint the talented personnel to the appropriate posts so that they may lead production and the development of technology; and we should steadily increase State investment in the field of science and technology.

We should make proper decisions on major scientific and technological tasks and projects, strategic, pivotal, profitable and economically important, and concentrate our forces and funds on them to ensure that science and technology may render decisive services to reenergizing the overall economy and developing the hi-tech industry.

We should build up the political and military might of our Republic.

Our political and ideological might is based on the advantages and stability of the political system of our socialist State. We should substantially provide all the people with genuine political rights and dignity and give full play to the political and ideological advantages of our system, in which the whole country, united in ideology, purpose and moral obligation, makes uninterrupted progress.

The government of the Republic should regard the people’s interests as the absolute standard and give the first consideration to their will and desire in formulating and carrying out its policies; in this way, we can encourage the broad sections of the working masses including workers, farmers and intellectuals to take active part in the management of the State and society as befits the genuine masters of State administration.

The government should give definite precedence to the political and ideological work as required by the intrinsic nature of the socialist society, so as to train all members of society as true advocates of Kimilsungism-Kimjongilism and further consolidate the political and ideological unity and cohesion of our State.

The government of the Republic should perfect the legal system of the State and intensify the role of law in State and social life.

The laws of the Republic are powerful weapons for defending the gains of the revolution, consolidating and developing the socialist system and championing and guaranteeing the people’s rights and interests. In keeping with the intensification of the revolution and construction, the laws and regulations should be subdivided and specified on the basis of the requirements of the Party’s policies and in reflection of the prevailing realities so as to legislate and perfect them in a scientific way; they should be modified and supplemented in good time, so that they can reliably guarantee the administration of the people-oriented politics of the socialist State. It is necessary to thoroughly establish a habit of observing the socialist laws throughout society so that all the people respect the State laws with a noble sense of law observance and abide by them on a voluntary and obligatory basis; law-enforcement organs should enhance their role, never allow double standards of discipline in enforcing laws and strictly adhere to scientific accuracy, objectivity, impartiality and prudence in applying laws; in this way, we should turn ours into the most advantageous socialist law-governed State in which laws safeguard the people and the latter observe the former.

The self-reliant defence capability is a powerful and valuable weapon for defending the sovereignty of our Republic.

The peace-oriented atmosphere that has begun to be created on the Korean peninsula is not stable, and the hostile forces have not given up their attempt to invade our Republic. Always keeping in mind the iron truth that peace can be guaranteed only by powerful military strength, we should hold fast to the principle of self-reliant defence and keep building up the country’s defence capability.

The government of the Republic will provide, on a preferential basis and in full, the human and material resources necessary for strengthening the People’s Army, arming all the people and fortifying the whole country, and steadily raise the national defence capability by putting the defence industry on a highly Juche-oriented and modern footing.

Socialist culture should be developed in our own way.

It is important to create a climate of giving top priority to education throughout the country and bring about a radical improvement in education in our own way so as to overtake the developed countries in the educational level. The educational sector should strengthen the ranks of teachers, improve the quality of education as demanded by the trend of developing modern education, and thus train larger numbers of talented personnel who will shoulder the scientific and technological development of the country and socialist construction.

Upholding the slogan of making all the people well versed in science and technology, we should enrol all the working people in the study-while-you-work system and prepare them as intelligent workers.

The government of the Republic should give special attention to the socialist health service. It should further improve medical service, raise medical science and technology to the cutting-edge standard and consolidate the material and technical foundations of the health service sector, thereby bringing greater benefits of our country’s socialist healthcare system to the people.

The sector of culture and arts should create larger numbers of masterpieces that represent the demands of the times and aspirations of the people, and the sector of cinematic art, in particular, should kindle the flames of effecting an upsurge in film-making in the new century, thus playing the role of pacesetter in opening up a new heyday of the development of socialist culture.

Sports play a very important role in consolidating a nation’s strength and exalting its resourcefulness and prestige. A nationwide effort should be directed to developing sports science and specialized sporting techniques and organizing the mass-based sports activities on a wide scale. At the same time, sports facilities should be increased in number and the existing ones renovated with an eye to satisfactorily hosting even international games.

Establishing a socialist way of life and moral discipline is a severe political struggle and an acute class struggle to safeguard and add lustre to our ideology and system.

We should encourage all the members of society, with a high sense of pride and self-confidence that our culture, our way of life and our morality are the best, to give full play to the collectivist way of life and moral traits and actively create and fully enjoy the revolutionary and optimistic cultured way of life of our style as suited to the aesthetic sensibilities of today that aspire after cultural development. We should firmly defend the ideological and cultural position of our State by strictly guarding against any slightest expression of immoral and alien phenomena that poison the people spiritually and degenerate and debase society, improving ideological education and struggle and intensifying legal sanctions against them.

In order to successfully carry out the enormous revolutionary tasks facing the government of the Republic, people’s government organs should enhance their functions and roles.

They should further intensify their unified guidance over the whole society as required by the developing revolution.

They should consolidate and develop the socialist political system and carry on the work of accelerating economic and cultural construction. In particular, they should give precedence to economic work and concentrate their efforts on improving the people’s living standards. They should put every realm of social life and every region under their supervision and provide unified guidance over them while giving free rein to the creativity of individual sectors and units.

People’s government organs should establish the trait of making selfless, devoted efforts for the good of the people as appropriate to their basic duty.

They should always pay heed to the people’s opinions, plan and organize their work in reflection of their demands, find what can be done for them and carry it through to completion, and enlist them in carrying out the Party’s lines and policies. They should give top priority to the people’s interests and comfort and take responsible care of their living.

They should properly enforce the advantageous people-oriented policies including free compulsory education and free medical care, which General

Kim Jong Il pursued invariably even in the most trying days, so that the people can feel keenly the gratefulness of the socialist country in their daily life and turn out in the efforts for achieving its prosperity.

People’s government organs should maintain it as the iron rule to work only under the Party’s leadership.

They should organize and carry on all work with the Party’s ideas and policies as the yardstick, proactively defend the Party’s policies and implement with credit the revolutionary tasks advanced by the Party, thereby giving full play to the validity of our Party’s policies. Party organizations at all levels should intensify collective guidance over the activities of government organs in conformity with the demands of the developing revolution and actively encourage all their officials to perform their responsibilities and basic duties for the revolution.

Officials of people’s government organs at all levels should enhance their sense of responsibility and roles.

The present stirring realities urgently demand that our officials take the lead in the general offensive and wage a vigorous struggle in order to discharge their duties as befits the leading personnel of the revolution.

Officials of people’s government organs should possess a high degree of Party spirit and revolutionary principle and conduct their work in a daring and active manner with the attitude that they are fully responsible for it. Courage and activeness arise out of trust in the Party, whereas timidity and acts of basing their actions on how people look at them result from lack of trust in the Party. Officials of people’s government organs should definitely root out passive approaches of expediting their work only when the Party throws its full weight behind them, and cherish an unyielding revolutionary work style of carrying through the task set by the Party even though their bodies are torn to pieces. They should constantly cultivate abilities for conceiving, organizing, supervising, guiding and developing their work to become versatile workers who are capable of implementing any tasks with credit. They should acquire our Party’s methods of mass work, set personal examples in all undertakings and make tireless efforts for the good of the people. Cherishing deep in their hearts the true meaning of our Party’s affection for the people, they should be infinitely courteous to them and become their faithful servants, always sharing weal and woe with them and working with devotion for them.

3

Comrades,

At present, our historic struggle for national reunification, a long-cherished desire of the nation, has entered a new phase.

We have taken momentous measures in succession to improve inter-Korean relations and ensure peace on the Korean peninsula with a firm resolve to achieve without fail the cause of national reunification, into which the great Comrades Kim Il Sung and Kim Jong Il put their heart and soul all their life.

Last year we held three rounds of historic north-south summit meetings and talks and adopted inter-Korean declarations to bring about a dramatic turn in the relationship. They were events of great significance which turned around the grave situation that was teetering on the brink of war every moment and which heralded the start of a new journey to national reunification.

Now the entire nation ardently hopes that the historic Panmunjom Declaration and the September Pyongyang Joint Declaration will thoroughly be implemented so that the peaceful atmosphere on the Korean peninsula will continue and inter-Korean relations will improve uninterruptedly.

The south Korean conservative forces, however, are responding to the aspirations of the nation and the unanimous expectations of the international community with too perfidious words and behaviours, and are struggling to bring inter-Korean relations back to those in the period before the publication of the Panmunjom Declaration.

The United States openly forces “speed adjustment” on the south Korean authorities and tries in every way to subordinate the implementation of inter-Korean agreements to its anti-DPRK policy marked by sanctions and pressure.

As a result, a grave situation has been created for us to decide whether to ease the tension on the Korean peninsula and continuously carry on the atmosphere of inter-Korean rapprochement or to return to the past when the tension spiralled up towards a catastrophe with the danger of war looming larger.

We cannot look on with folded arms the current situation which causes serious concern over the destiny and future of the nation and peace and security in the region, but we have to take proactive measures without delay to straighten it out in line with the unanimous aspirations of all the fellow countrymen.

To this end, it is needed above all to take a proper stand and attitude with which to invariably adhere to and implement the inter-Korean declarations encapsulating the unanimous will of the nation, whatever difficulties and obstacles in the way.

I would like to make it clear once again that as I already declared, it is my firm determination to turn, together with the south Korean authorities, inter-Korean relations into a lasting and durable relationship of reconciliation and cooperation and write a new history of the nation that achieves peace and co-prosperity as desired by all the countrymen.

In order to untangle the prevailing unsavoury situation, heighten the good atmosphere for improved relations north and south created with much effort and make it bear meaningful fruit of peace and reunification, it is important to put an end to big-power worship marring the spirit of independence and to the policy of dependence on foreign forces encroaching upon the common interests of the nation, and subordinate everything to the improvement of the relations.

I think that if the south Korean authorities truly want improved relations, peace and reunification, they should come back to the original intention they had at the time of the Panmunjom summit and the September Pyongyang summit and fulfil the responsibility they have assumed before the nation through the sincere implementation of the north-south declarations.

They should not waver in their attitude as they see the tide nor pose as a meddlesome “mediator” and “facilitator” as they busy themselves with foreign trips, but be a responsible party that defends the interests of the nation speaking what they have to say squarely with the mind of their own as members of the nation.

It is our consistent assertion that it is imperative to smash the underhand schemes of the hostile anti-reunification and anti-peace forces within and without in order to sustain the atmosphere of improved inter-Korean relations.

It is needed to realize before it is too late that neither progress in inter-Korean relations nor any fruit of peace and prosperity can be expected if the hawkish forces in the south Korean military, who persist in veiled hostility as they resume the military exercises, which were agreed before to be discontinued, jointly with the United States by changing their names, continue to be allowed to make reckless moves, and unless the anachronistic arrogance and hostile policy of the United States, which is creating artificial obstacles in the way of improved relationship as it presents its arbitrary outrageous demand, are eradicated.

All the fellow countrymen in north and south and abroad should, staking the destiny and future of the nation, resolutely check and foil the moves of the United States and south Korean conservative forces that go against the historic current towards improved inter-Korean relations and peaceful reunification.

If they are truly willing to opt for the improvement of north-south relations, peace and reunification, the south Korean authorities should sympathize with our stand and will, keep pace with us and make a courageous decision to show their sincerity by practical action, not by words.

Our Party and the government of our Republic will continue to make sincere and persevering efforts to achieve the sustained development of north-south relations and peaceful reunification of the country, solemnly cherishing the aspirations and desires of the nation in the future, too.

Comrades,

The first-ever DPRK-US summit meeting and talks, which were held in Singapore in June last year under the world’s spotlight, were a momentous occasion that brought the hope of settlement of peace to the Korean peninsula where fire had been exchanged; and the June 12 DPRK-US Joint Statement was a historic declaration announcing to the world that the two countries which had been hostile to each other from one century into the next would write a new history of relationship, and therefore it won full support and approval of the international community aspiring to peace.

The DPRK voluntarily took crucial and significant measures including the discontinuation of nuclear test and test-fire of intercontinental ballistic missile, thereby taking the first step towards confidence-building which is the main key to the removal of bilateral hostile relations, and it also took the broadminded measure of realizing the repatriation of the remains of US soldiers, which had been requested by the US President, as a show of its will to sincerely implement the June 12 DPRK-US Joint Statement which serves as a milestone in the establishment of a new bilateral relationship.

However, the second DPRK-US summit talks held in Hanoi last February raised strong questions about whether the steps we took under our strategic, courageous decision were right, and they were an occasion that gave us a sense of caution about whether the United States is genuinely interested in improving the bilateral relations.

At the talks we expressed our resolve to set the essential stages and course to be followed without fail for the implementation of the June 12 DPRK-US Joint Statement in the interests of both sides and to take more prudent and trustworthy steps, and looked forward to a positive response of the United States.

But the United States came to the negotiating table after thinking only about completely unrealizable methods.

In other words, they were unprepared to solve problems with us at the table and they had no definite orientation or methodology.

By that sort of thinking, the United States will not be able to move us one iota nor get what it wants at all, even if it sits with us a hundred times, a thousand times.

It has recently conducted a test for simulated interception of our intercontinental ballistic missile and resumed military exercises the US President committed himself to suspending, while making other hostile moves contrary to the spirit of the June 12 Joint Statement in a more undisguised way. These seriously get on our nerves.

I am very displeased with such a trend.

As waves rise when wind blows, the more pronounced the US policy hostile towards the DPRK becomes, the tougher our counteraction will become.

Although it strongly hints at the settlement of issues through dialogue as it thinks about the third round of DPRK-US summit talks, the United States still looks away from the withdrawal of its hostile policy, the basic way for establishing a new bilateral relationship; rather it mistakenly believes that if it pressures us to the maximum, it can subdue us.

We, of course, attach importance to the settlement of issues through dialogue and negotiations, but the US-style dialogue of unilaterally pushing its demands does not fit us, nor are we interested in it.

Though the United States calls for a negotiated settlement of issues, it is stirring up hostility to us day after day, which is an act that is as foolish and risky as an attempt to put out fire with oil.

Given the deep-rooted animosity between the DPRK and the United States, in order to implement the June 12 Joint Statement both sides should give up their unilateral terms and seek a constructive solution that meets each other’s interests.

To this end, it is needed above all for the United States to approach us with a new way of calculation after putting aside the current one.

The United States is talking much about holding the third round of bilateral summit talks, but we are neither pleased nor willing to see summit talks like the Hanoi summit talks re-enacted.

However, as President Trump continuously observes, personal relations between he and I are not hostile like the relationship between the two countries, and we still maintain good relations, and if we want, we can send and receive letters asking for each other’s regards any time.

If the United States proposed holding the third round of summit talks after finding out with a proper attitude a methodology that can be shared with us, we would be willing to try one more time.

But in my opinion at this moment, it comes to my mind that there is no need for me to obsess over the summit talks with the United States out of thirst for the lifting of sanctions.

Anyway, we will be patient and wait till the end of this year to see whether the United States makes a courageous decision or not, but it will obviously be hard to get a good opportunity like the last time again.

In future, I will put my signature on an agreement without hesitation only when it contains fair clauses which conform to the interests of both sides and which are acceptable to them, and this depends entirely on the stand the United States takes and the way of calculation it comes up with.

What is obvious is that if it sticks to its current political way of calculation, the prospects for problem solving will be bleak and very dangerous.

At this crucial time, I hope that the United States will make a well-advised judgment and the second hand of the clock of the DPRK-US showdown which they stopped with so much difficulty will not move again for all ages.

The government of the Republic will strengthen and develop the bonds of friendship and cooperation with all the countries of the world that respect the sovereignty of our country and are friendly to it, and will advance hand in hand with all the peace-loving forces of the world to establish a lasting and durable peace mechanism on the Korean peninsula.

Comrades,

As I have just said, I will no longer set my heart on such a trivial issue as lifting sanctions by the hostile forces, but open up the way to prosperity by our own efforts.

Although the goal of our struggle is demanding and challenges and difficulties stand in the way of our socialist construction as ever, our Party and the government of our Republic are steadfast in their will to open a new phase of prosperity and achieve the ideal and goal of building a powerful country by their own efforts under the unfurled banner of Kimilsungism-Kimjongilism.

The road of independence leads to prosperity and victory. Nothing can reverse or stop the dynamic advance of our State and people that have unshakable faith and will to pave their own way by themselves with confidence in their own strength.

Let us all make a general advance to successfully accomplish the cause of building a powerful socialist country, holding higher the banner of the great Kimilsungism-Kimjongilism and firmly rallied behind the Party and the government of the Republic. -0-

Their website is being a little difficult at the moment — will add the Korean version as well when possible.

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South Korean banks preparing for inter-Korean improvements

Wednesday, February 20th, 2019

By Benjamin Katzeff Silberstein

Korea Herald had an interesting article about South Korean banks and Kaesong the other day, not least about the blurred lines between the public and private spheres in South Korea’s financial sector:

Fired up by the thawing peninsular mood built on the latest inter-Korean summit, banks here have buckled down on establishing business in the North in the near future, their initial focus fixed on the resumption of the Kaesong industrial park and Kumgangsan tours.

Steering the move are the state-run banks that strive to win an upper hand in infrastructure financing, as well as Woori Bank and NH NongHyup Bank, which had operated businesses in the joint operations zones in the past.

On Wednesday and the second day of the three-day summit, President Moon Jae-in and North Korean leader Kim Jong-un announced that they will resume inter-Korean projects at Kaesong and Kumgangsan as soon as conditions are met.

Rejoicing at the news was Woori Bank, currently poised to kick off banking operations at any given time in the Kaesong industrial park, according to officials Thursday. The bank had operated in the zone for eight years from 2004, providing deposits, withdrawals, remittances and all other basic banking services to resident companies and workers.

It once withdrew in April 2013, upon Pyongyang’s third nuclear test, but soon resumed business in September that year, until the final termination in February 2016.

Even after Seoul’s government shut down the industrial facilities amid heightening inter-Korean conflicts in 2016, the bank maintained a temporary bank window of the Kaesong office on the basement floor of its headquarters, in the hopes of resuming business in the North Korean region.

This special corner is in charge of the follow-up financial management of the companies that evacuated from the now-deserted industrial zone.

“Woori Bank’s qualification as the bank in charge (at Kaesong) remains valid to this day. It is just the geopolitical situations that have been keeping us off over recent years,” said an official of the bank.

“The resumption of the banking business in Kaesong is for the Unification Ministry to decide, but once the government approves, we are fully ready to take the related computing system and database and start operations.”

Another hopeful is NH NongHyup Bank, which had provided currency exchange, deposit and loan services at Kumgangsan from 2006-2009, when the tourist business was active.

Full article:
Banks ready for inter-Korean economic cooperation
Bae Hyun-jung
Korea Herald
2019-02-20

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