North Korean Economy Watch

Institute for Far Esatern Studies (IFES)
NK Brief No. 09-22-1
9/22/2009

In order to meet the goal of building a ‘Strong and Prosperous Nation’ by the year 2012, North Korean authorities are reshuffling some positions within the Cabinet, which is its ‘Economic Headquarters’. During the first session of the 12th Supreme People’s Assembly (SPA) last April, Kim Jong Il launched his third regime, and now less than 6 months later, is restructuring the Cabinet. For example, the National Science and Technology Council, which was merged into the Cabinet Academy of Science (now the National Academy of Science) in 1998, has been re-established.

North Korean media briefly reported on the 19th that the SPA Standing Committee brought out the “Democratic People’s Republic of Korea National Science and Technology Council” through the announcement of Government Ordinance # 301. The press did not follow up with specifics concerning the announcement, but the recent position of North Korean authorities that “without scientific and technological development, there is no independence, no national defense, and no economy,” it appears that the recent cabinet order is related to attempts by the North to strengthen its economy.

The first National Science and Technology Council established in the North was created in 1962, and was intended to support the national defense industries. The Academy of Science, which had been established 10 years prior, was put under the control of the council, and the council was responsible for the creation and implementation of a national science and technology plan, as well as for providing guidance over research activities. However, as the North’s level of science and technology improved, the council, which was not made up of experts on science and technology, was unable to appropriately guide the research carried out by the academy. In 1982, the academy was separated from the council, and its status was boosted to that of an independent entity.

North Korea is currently in its 3rd 5-year plan to “develop new national science and technologies” by 2012. Currently, North Korea is prioritizing the modernization of factories, enterprises and other industries, and Kim Jong Il has stressed modernization and the introduction of vanguard technologies during his on-site inspections of the nation’s economic facilities. Therefore, it appears that the newly established National Science and Technology Council will be responsible for overseeing cooperation between mechanical and chemical industries and the modernization of the industrial sector, while the National Academy of Science will focus purely on research.

PSA Cracks Down on Loan Sharks
Daily NK
Jung Kwon Ho
9/20/2009

North Korea’s police, the People’s Safety Agency (PSA), have launched a special investigation into the behavior of loan sharks, or “usurers,” in light of the high numbers of people taking out high interest loans but being unable to keep up repayments and ending up as “kotjebi.”

A source from Shinuiju told Daily NK on Friday, “A decree declaring all-out war against predatory usurers has been handed down to the provincial People’s Safety Agency. They are investigating Korean-Chinese traders and North Koreans repatriated from Japan.”

Loan sharks in North Korea are generally Korean-Chinese with relatives in China or those who have returned from Japan but whose relatives remain there.

The story was confirmed by a source from Hoiryeong in North Hamkyung Province. The source explained to Daily NK on Thursday, “The People’s Safety Agency issued a decree exposing the usury, and conveyed it to every office of the provincial and municipal National Security Agency (NSA) and the PSA. Thereafter, NSA officials attended People’s Unit meetings and gave lectures about harshly sanctioning the practice of earning money through high interest loans.”

According to the Hoiryeong source, the decree, “Map out measures to uproot usury,” was delivered to all NSA officials on September 2.

The decree apparently says, “Although national measures have been adopted to root out usury, this social phenomenon has not been eradicated.”

The Shinuiju source said that the authorities’ new hard-line has come about because the numbers of people who are being turned into “kotjebi” by these predatory loans is increasing.

He noted, “Since 2000, new kotjebi have been people who have gone to ruin and lost their homes to loan sharks. These days their numbers are drastically increasing, so the authorities cannot stand by indifferently.”

According to one source, a Korean-Chinese loan shark called Cho Jung Cheol was recently caught by the PSA on suspicion of taking a total of seven houses from defaulters.

North Korean people usually offer their house as security on a loan. Cho lent money at 30% interest for two weeks to a month, and used gangsters to take houses from those who couldn’t pay.

Those who lose their houses in this way roam the streets with their family members, the family splits up, or sometimes they escape from North Korea. After 2005, this became a common social phenomenon.

The loan sharks have other unethical ways to turn a profit, “Some of these loan sharks hoard up food during the harvest season and earn undue profits from selling it in the difficult spring season,” the source explained.

Sources all agreed that the people unanimously welcome the authorities’ measures.

UPDATE 4:  More on the Leadership of PUST from Houston Business Journal:

A Rice University professor has paved the way for a private university in North Korea.

Malcolm Gillis, the Ervin Kenneth Zingler professor of economics and professor of management, is part of a four-person committee that founded the Pyongyang University of Science and Technology, which will open next spring.

Members of the committee include founding President James Chin-Kyung Kim; Chan-Mo Park, former president of Pohang University of Science and Technology in South Korea; and Jung Bae Kim, former president of Korea University.

Gillis, who was president of Rice from 1993 to 2004, said the project goes back to 1997 when he met with the late Kim Dae Jung, then president-elect of South Korea, to engage in peace talks between North and South Korea.

PUST will offer programs for information technology, industry and management, and agriculture studies, with plans to open new schools for architecture, engineering and public health in the near future.

Reference:
Rice University professor co-founds North Korean university
Houston Business Journal
10/9/2009
UPDATE 3: According to Yonhap:

“North Korea is stumping for opening this university,” Kim Jin-kyung, co-president of the Pyongyang University of Science and Technology, said, returning from a three-day trip to the North Korean capital.

“There are many difficulties, but we are aiming to open the school within this year,” Kim said. He is also president of the Yanbian University of Science and Technology, run with South Korean non-governmental funding, in the Korean autonomous prefecture of Yanbian, northeastern China.

The school seeks to first accept 150 students in the fields of information and communications engineering; agricultural biotechnology and food engineering; and industrial management, he said.

All lectures will be in English, and students will be required to meet the paper-based TOEFL score of 550, Kim said. North Korea has already recruited prospective students among “carefully chosen elites” who studied at top North Korean schools like Kim Il Sung University and Kim Chaek University of Technology, he added.

“North Korea asked us to get the school to have competent faculty members,” he said. “We expect the South Korean government to lend support in the larger context of inter-Korean reconciliation.”

Park Chan-mo, a science and technology advisor to President Lee Myung-bak who attended the completion ceremony with Kim, said Seoul is supportive.

“The fact that (the government) gave permission to the North Korea trip shows it has a will to lend support,” Park said.

The school will be reportedly co-headed by North Korea’s vice education minister, Jon Kuk-man. North Korean media reported the South Korean delegation’s departure earlier Thursday.

UPDATE 2: According to KCNA:

First-Phase Construction of University of Science and Technology Completed

Pyongyang, September 16 (KCNA) — A ceremony for the completion of the first-phase construction of Pyongyang University of Science and Technology was held Wednesday.

Present there were Jon Kuk Man, vice-minister of Education, officials concerned and members of a delegation led by Chin Kyung Kim, founding-president of the university.

Speeches were made there.

After a certificate on nominating the co-managerial president of the university was conveyed to the founding-president, the participants looked round the building of the university completed as the first-phase construction.

UPDATE 1:  CNN published an extensive article on PUST this afternoon.  Read the whole story here (Thanks to AFC).  According to the story:

James Kim, an American businessman turned educator, once sat in the very last place that anyone in the world would wish to be: a cold, dank prison cell in Pyongyang, the godforsaken capital of North Korea.

Kim, who had emigrated from South Korea to the United States in the 1970s, had been a frequent visitor to Pyongyang over the years in pursuit of what, to many, seemed at best a quixotic cause. He wanted to start an international university in Pyongyang, with courses in English, an international faculty, computers, and Internet connections for all the students.

Not only that — in the heart of the world’s most rigidly Communist country, Kim wanted his school to include that training ground for future capitalists: an MBA program.

During one of his trips to the capital in 1998, with North Korea in the midst of a famine that would eventually kill thousands, the state’s secret police arrested Kim.

North Korean dictator Kim Jong Il didn’t lock up the educator for being crazy. He got it in his head that the oddly persistent American — who at the time, among other things, was helping to feed starving North Koreans with deliveries of food aid from China — was a spy.

So for more than 40 days, Kim languished in a North Korean prison. An evangelical Christian, Kim wrote his last will and testament during those days, not knowing if he’d ever get out.

Which makes where he plans to be in mid-September all the more astonishing. Kim will lead a delegation of 200 dignitaries from around the world to North Korea for the dedication of the first privately funded university ever allowed in the Democratic People’s Republic of Korea: the Pyongyang University of Science and Technology (PUST).

The school will have an international faculty educating, eventually, around 600 graduate students. Kim dreams ultimately of hosting an industrial park around the PUST campus, drawing firms from around the world — a North Korean version, as bizarre as it sounds, of Palo Alto or Boston’s Route 128.

There will be Internet access for all, connecting the students to an outside world that they’ve heretofore been instructed is a hostile and dangerous place. And among the six departments will be a school of industrial management.

“We ended up not calling it an ‘MBA program,'” jokes David Kim (no relation to James), a former Bechtel and Pacific Gas & Electric executive who has relocated to Pyongyang to help set up PUST, “because they [the North Koreans] think it sounds vaguely imperialistic.”

That the North Koreans are permitting this to happen — that they have given James Kim the nod to create his university, just as he intended — is remarkable.

It’s hard for outsiders to understand just how backward, isolated, and impoverished North Korea is. Since the collapse of the Eastern bloc 20 years ago, fewer and fewer North Korean university students study abroad. Allowing PUST to proceed lets a gust of fresh air into a stilted, frightfully isolated environment.

The rest of the story is worth reading here.

ORIGINAL POST: Although the Pyongyang University of Science and Technology (PUST) has yet to set an opening date, a South Korean delegation will be visiting the DPRK to commemorate the completion of the facility.  According to Yonhap:

South Korea permitted a delegation from a private foundation to visit North Korea this week to celebrate the completion of a science and technology university jointly built with the North, Seoul’s Unification Ministry said Monday.

The ceremony for the Pyongyang University of Science and Technology is scheduled for Wednesday, according to ministry spokesperson Chun Hae-sung. He said the 20-member delegation will make a three-day trip to the North beginning Tuesday.

The delegation includes Kwak Seon-hee, head of the Seoul-based Northeast Asia Foundation for Education and Culture. The foundation was mostly responsible for organizing donations and fundings for the university, the first to be jointly-operated with an organization not based in the North.

The move marks the first time that the Seoul government has approved a non-humanitarian visit to the North since the communist state carried out its second nuclear test in May.

The date of the school’s opening and other administrative affairs, however, have yet to be decided and must be worked out between the North Korean authorities and the foundation.

Kim Jin-kyung, head of the Yanbian University of Science and Technology in China, will serve as president of the university until its official opening, according to ministry officials.

Further information:

1. Here are previous PUST posts.

2. Here is the location of PUST.

3. Here is the PUST Wikipedia page.

4.  There are two PUST web pages.  Here is the first.  Here is the second. (Thanks to AFC)

Read the full story here:
Seoul approves N.K. trip to mark completion of tech university
Yonhap
9/14/2009

According to Reuters (via the New York Times):

The United States moved on Tuesday to freeze the assets of two North Korean entities believed to be involved in atomic and missile programs, raising pressure on Pyongyang to resume disarmament talks.

Despite a recent charm offensive by North Korea, the State Department moved against its General Bureau of Atomic Energy, which oversees the nuclear program, and Korea Tangun Trading Corp, believed to support its missile programs.

Both were targeted under a presidential executive order that allows the White House to freeze the U.S. assets of people and entities suspected of developing weapons of mass destruction or the means to deliver them, including missiles.

“These designations continue U.S. efforts to prevent North Korean entities of proliferation concern from accessing financial and commercial markets that could aid the regime’s efforts to develop nuclear weapons and the missiles capable of delivering them,” the State Department said in a statement.

The action requires U.S. individuals, banks and other institutions to block the assets of the North Korean entities.

It was unclear whether either actually had any assets under U.S. jurisdiction but American officials said Washington hoped the move would discourage other countries from doing business with North Korea.

“Are we hoping for a spillover effect? Of course,” said one U.S. official.

These two organizations were targeted by the UNSC earlier this year.

Here is information and (links to information) taken by the US and UN in 2009.

Read the full story here:
U.S. Acts to Freeze Assets Of Two N.Korean Entities
Reuters (via New York Times)
9/8/2009

According to Yonhap:

North Korea has taken steps to attract more overseas investors by scrapping extra land use fees and introducing selective import rules that can help foreign-owned companies maintain a market share, a Chinese newspaper said Friday.

According to the Jilin Newspaper, the official daily of China’s Jilin Province, a North Korean official promoted the new foreign-investor friendly measures during a recent trade exposition held in the city of Changchun.

“We revised pertinent laws and regulations so as to relegate land use fees, which have been paid annually by foreign-invested companies to their (North) Korean partners that loan the land,” Yun Yong-sok, a senior official at the international investment department of the North’s Ministry of Foreign Trade, was quoted by the paper as saying at the expo. North Korea’s Radio Pyongyang reported a delegation’s trip to the Chinese expo on Aug. 26.

Foreign investors have so far paid annual land use fees to the North Korean government in addition to a one-off lease payment, which will be still levied after the revisions.

The measures come as North Korea faces tightening international sanctions over its May nuclear test. The U.N. sanctions ban North Korea’s arms trade, a major source of income for the impoverished country, and closely scrutinize cash flows to the North.

North Korea also introduced “state support measures,” such as banning imports of goods that are already produced in adequate quantities within the North by foreign companies to ensure investors’ profits, Yun was quoted as saying.

Foreign companies that invest in science and technology in the North will get additional tax incentives, but those who take North Korean minerals, timber or fish abroad will be levied a new “resource tax” to protect the country’s natural resources, Yun added.

Read the full story here:
N. Korea boosts incentives for foreign investors
Yonhap
9/4/2009

German Asia-Pacific Business Association
Ausgabe 3/2009
Download the full publication here (PDF)
Download Mr. Abt’s article here (PDF)

North Korea – doing business in a demanding environment
Despite political obstacles within the system and internationally, it is possible to set up successful business in North Korea, says Felix Abt. Identifying partners and exploring market potentials are difficult tasks. Having completed them, one can count on a dedicated workforce.

The Right Local Partner: The Most Important Requirement to Succeed First, you need a Korean partner for your business as you cannot do any business without one and, second, you do have to find the right one if you want to succeed. When you start with your fact finding mission you come across people who want to introduce you to a specific business partner or they want you to do business with themselves. Of course, they have a vested interest and, most likely, they will not introduce you to alternative and potentially more suitable business partners. But you need to know that in every industry there are companies of different sizes, competence, ranges of products, competitiveness etc.

(more…)

The BBC ran an interesting video story on North Korean loggers felling trees in Russia.  Of course this has been going on for a long time. However, this is the first video footage of the logging facilities that has appeared in the Western media.

According to the video, North Korea’s logging concessions are managed by a company called “Association No. 2,” which is housed in a compound in northern Tynda, Russia.  According to the story, Association No. 2 receives 35% of proceeds of logging (appx $7m) some fraction of which is repatriated to the DPRK’s Ministry of Forestry.  Using the video, I located the Association No. 2 compound on Google Earth. Here is an image:

(Click on image for larger version.  You can see it in Google Maps here.)

Additional Notes:

1. I have not been able to locate the other North Korean logging camps in Russia.  If any readers can find them, please let me know.

2.  The DPRK appointed a new Minister of Forests last October.

3. Bertil Lintner on North Koreans working in Russia.

4. Andrei Lankov on the loggers.

5. Claudia Rosette on the loggers.

6. YouTube video on NKs in Russia.

Institute for Far Eastern Studies (IFES)
IFES Forum No. 09-8-18-1
Choi Eun-suk, Research Professor, IFES, Kyungnam University
8/18/2009

Detention of U.S. Journalists

Korean-American Euna Lee (Lee Seung-eun) and Chinese-American Laura Ling, reporters for the U.S.-based Current TV, were detained by North Korean soldiers on March 17, 2009 while near the Tuman River border between North Korea and China. On June 8, the Central Court, the highest court in North Korea, sentenced each of the two to an unprecedented 12 years of ‘Reform through Labour.’ However, after less than two months, a visit by former U.S. President Bill Clinton on August 4 led to the ‘special pardon’ of the two women, bringing a relatively swift conclusion to their plight.

What laws were enforced against the two American reporters? North Korean criminal code article 69 (Jo-seon-min-jok-Jeok-dae-joi, or literally, Korean Nation Antagonism Crime) states, “If a foreign person resides abroad with the intention of antagonizing Korea or injuring the body or assets of a sojourning Korean, or if national discord arises, they shall be faced with a sentence of more than 5 and less than 10 years of Reform through Labour (Ro-dong-Ky-ohwa-hyeong). In serious circumstances, [the person] faces a sentence of more than 10 years Reform through Labour.” Criminal Law article 233 (Illegal Border Crossing) dictates that “A person illegally crossing the national border faces less than 2 years of labor discipline (Ro-dong-dan-ryeon-hyeong). In serious circumstances, [the person] faces less than 3 years of reform through labour (Rodong Kyohwa-hyeong).

North Korea’s Criminal Procedures and the Accused’s Right to Council

The North Korean legal system maintains a 3-tier, 2-trial system. That is, the courts are divided into three levels, but actually, trials may only be heard twice. However, in the case of the two reporters, the trial was directly handled by the Central Court, meaning that only one trial would be held, and there was, of course, no chance to appeal.

Examining the North’s judicial system and criminal law, one can see that the DPRK constitution divides power among the Central Court, Provincial Courts, People’s Courts, and Special Courts (Constitutional Law, article 153). In addition, according to North Korea’s Criminal Procedure Law, the Central Court was established in order to handle appeals when verdicts handed out by lower courts were challenged (Criminal Procedure Law, article 129, clause 1), and it was designated the supreme court in the North Korea (Constitutional Law, article 161). The law also allows for the direct intervention of the Central Court, or for a case to be sent to a court on the same level or of the same kind as the court giving the initial verdict (Criminal Procedure Law, article 129, clause 2). Furthermore, according to the system established by these codes, after a case is opened in one of these courts, it must be completed within 25 days (Criminal Procedure Law, article 287). In the case of the two American reporters, the prosecution received notice of their charges on May 14, meaning that if they were to be prosecuted, the trial would have to have been completed by June 7.

When the Central Court holds the initial hearing in a prosecution, there are two possibilities for retrial. Only “in the event that it becomes known that the evidence upon which a decision is based was false,” or, “facts become known that could influence a decision and that were not known at the time of the trial,” can a Central Court case be reheard (Criminal Procedure Law, article 409). The decision to retry is in the hands of the North’s judicial authorities, meaning that it would have been difficult to find a route to appeal or retrial for the two reporters.

The verdict in an initial trial is decided by a judge and two civilian jurors, although in special cases a panel of three judges is allowed (court organization law, article 9). Any North Korean citizen with the right to vote can be a judge or civilian juror (Court Organization Law, article 6), and judges and jurors are chosen through democratic elections (Court Organization Law, article 4). A criminal case in North Korea follows a process of investigation, pretrial hearing, indictment, and trial (in that order). A detention order must be signed by a public prosecutor within 48 hours of a suspect’s arrest, and charges must be filed within 10 days (Criminal Procedure Law, article 144, clause 1).

The two reporters were apprehended March 17, and were not transferred to the court until May 14, almost two months later. According to North Korean law, a preliminary hearing must be held within two months of opening a pre-trial investigation (Criminal Procedure Law, article 151, clause 1). If investigators want to extend the investigation period, they must receive permission from a public prosecutor, and then can only extend the investigation for an additional two months (Criminal Procedure Law, article 152). Charges of crimes against the state or against the nation are investigated by the State Security Department (Criminal Procedure Law, article 124). In the case of Lee and Ling, investigators did not apply for an extension, and handed the case over to the courts within the allowed two-month period.

The North Korean constitution guarantees a public trial and the guaranteed the right of defense, although in some cases courtrooms are allowed to be closed (Constitutional Law, article 158). The constitution also guarantees that a foreigner will be able to speak in their native tongue during a hearing (Constitutional Law, article 159). A defendant has the right to choose their legal counsel, and that choice can include family members or a representative from work (Criminal Procedure Law, article 108), as well as the freedom to waive their right to council (Criminal Procedure Law, article 109). The right to choose one’s lawyer is directly related to one’s basic freedoms. In the case of the two American reporters, Laura Ling retained council, while Euna Lee chose not to be represented or give any statement.

The North Korean Central Court sentenced Lee and Ling to ten years of reform through labour for ‘Korean Nation Antagonism Crime’ (Criminal Law, article 69) and an additional four years for illegally crossing into the country (Criminal Law, article 233). However, in the North, in the case of multiple charges, the sentence for the more minor charge is halved, then added to the sentence of the more serious offence, meaning a 12-year sentence for the two reporters. This sentence was to begin within 10 days of the verdict. North Korean law dictates that reform through labour be carried out in reform institution (Judicial Conduct Law, article 25). When a defendant is sentenced, they are to be sent to a reform institution within 10 days, along with a copy of the court’s decision, detention orders, and all other relevant paperwork (judicial conduct law, article 33). This, in a nutshell, is the North Korean legal system, from arrest to starting to serve a sentence.

Kim Jong Il’s Power of Pardon and the Release of U.S. Journalists

When North Korea released the two U.S. reporters, the government claimed to do so based on its “humanitarian and peace-loving policy,” and stated that former President Clinton’s visit deepened understanding and helped to build trust between Washington and Pyongyang. This was an interesting use of Kim Jong Il’s power of pardon. It appears that last April, at the first session of the 12th Supreme People’s Assembly, there was a constitutional revision that transferred the ability to grant pardons from the SPA Presidium to the Chairman of the National Defense Commission (NDC). According to a ‘report’ of Clinton’s visit released by North Korean authorities on August 5, “In accordance with the Socialist Constitution Article 103, pardon is granted to two U.S. reporters sentenced to reform through labour; the Chairman of the National Defense Commission of the Democratic People’s Republic of Korea passed down the order for [their] release.”

After the previous constitutional revision, coinciding with the launch of the Kim Jong Il regime in September 1998, article 103 clause 5 specified the duties and powers of the chairman of the NDC, but there was no mention of the ability to pardon. However, article 110, clause 17, which defines the duties and powers of the SPA Presidium, states that it “exercises the right to grant general amnesties or special pardon.” In the past, when pardons were granted on national holidays or in conjunction with other important events, they were done so in the name of the SPA Presidium. North Korea has yet to publicize what constitutional changes were made in April, but with the release of the two Americans in the name of Kim Jong Il, it can be seen that the ability to grant general amnesty has been transferred to the NDC chairman. Earlier, on May 22, the Japanese newspaper Nikkei (日本經濟新聞) quoted members of a delegation from the Economic Research Institute for North East Asia (ERINA) as saying that their North Korean counterparts had explained that the power to ratify and nullify treaties, to grant amnesty, and to issue announcements in times of emergency had been transferred to the chairman of the NDC.

After 142 days, Euna Lee and Laura Ling have finally returned to their families.

UPDATE: With a big hat tip to Korea Beat, I have located the new Majon Hotel in North Korea.  See a satellite picture of it here.  Here are some pictures  of the inside c/o the Choson Ilbo.

ORIGINAL POST:

According to the Choson Ilbo:

North Korea on Monday celebrated the completion of what it has hailed as a “world-class” hotel in the Majon resort area in Hamhung, South Hamgyong Province, North Korean Central Broadcasting reported Tuesday.

The broadcast said the Majon Hotel “is equipped with top-class accommodation and recreation facilities such as an indoor swimming pool, a steam sauna, a public bath, and even a beach resort.”

Although it did not specify the size, the broadcast called the hotel a “creation that illuminates the era of the Korean Workers’ Party,” suggesting it is relatively luxurious.

The completion ceremony was attended by key leaders of the party, the government and the military, including People’s Armed Forces Minister Kim Yong-chun, party Secretaries Kim Ki-nam and Choe Thae-bok, and Prime Minister Kim Yong-il.

In a congratulatory speech, Kim Ki-nam said the hotel was “another proud creation built thanks to leader Kim Jong-il’s love of the people in the military-first era.”

The Majon resort area where the hotel is located is famous throughout North Korea. It has a sandy beach park 6 km long and 50-100 m wide along the east coast and 16 recreational buildings, 13 public buildings, and a boy scout camp — all on an area measuring some 3 million sq. m.

Here is the official KCNA press coverage:

Majon Hotel Completed

Pyongyang, July 28 (KCNA) — Modern Majon Hotel sprang up at the Majon recreation ground in Hamhung City, a good destination of holiday makers.

The hotel has all modern cultural and welfare facilities such as bedrooms of various sizes and styles, restaurants, indoor swimming pool, saunas and bath facilities. It has also a bathing resort. This is another edifice to be proud of in the era of Songun, a product of General Secretary Kim Jong Il’s love for the people as he has always worked hard to provide people with better conditions for their recreation.

A ceremony for the completion of the hotel was held on the spot on Monday.

Present there were Premier Kim Yong Il, Minister of the People’s Armed Forces Kim Yong Chun, Secretaries of the Central Committee of the Workers’ Party of Korea Choe Thae Bok and Kim Ki Nam, department directors of the C.C., WPK, officials concerned and employees of the hotel.

Kim Ki Nam in his speech at the ceremony underscored the need for the staff of the hotel to steadily improve the service so that Kim Jong Il’s boundless love may reach people as quickly as possible.

At the end of the ceremony the participants looked round the interior and exterior of the hotel.

Here is the location of the beach.  Some travelers have been there, but photos of the area remain scarce.  If anyone comes across a photo of the hotel, or can identify the exact location, please let me know.  Parts of the beach and surroundings are still not in high resolution on Google Earth, so this also complicates the discovery of the hotel’s location.

Read the full stories here:
N.Korea Completes ‘Luxury’ Resort Hotel
Choson Ilbo
7/29/2009

KCNA

Kim Jong il sets sights on increasing processed food rationing in order to improve the daily lives of the people
Institute for Far Eastern Studies (IFES)
NK Brief No. 09-8-10-1
8/10/2009

North Korean authorities, recognizing that rationing of processed foods is directly linked to the daily lives of the residents of North Korea, are concentrating on a policy of increasing distribution as part of the campaign to build a ‘Strong and Prosperous Nation’ by 2012. The policy calls for the construction of regional food processing facilities throughout the country and using domestic ingredients for all processed foods. In addition, the government plans to undertake diversification of small-scale factories in order to produce soybean paste, soy sauce, cooking oil and other staples, as well as noodles, rice-cake and other foods, all kinds of side dishes, and alcoholic beverages.

This movement was announced in concurrence with Kim Jong Il’s visit to the Samilpo Special Products Factory and Store, both run by the military, on April 7, just two days after the North’s launch of a long-range rocket. This factory, on the bank of the Daedong River, produces over 350 kinds of edibles, including noodles, rice-cakes, oil, sweets, alcoholic drinks, processed meats and fish products. During his visit, Kim Jong Il is said to have stated, “Today, I am happier than during the launch of the Kwangmyeongseong 2,” emphasizing his interest in boosting food production.

On July 15, (North) Korean Central Broadcasting announced the formation of construction offices in Jagang, North Pyongan and other provinces to oversee the building of food production complexes, and the dispatch of “shock troops” to bolster construction efforts.

Recently, the construction of large-scale factories to produce foodstuffs out of each region’s local stock has been pursued in every province in the country. Even at the Cabinet level, a ’Production Workers’ Conference’ was held, bringing together responsible authorities and local production experts to discuss a course for quickly improving services provided to the general population.

In order to effectively implement the North’s policy of increasing rations of foodstuffs, the Standing Committee of the Supreme People’s Assembly issued an order to establish a Ministry of Foodstuff and Daily Necessities Industry.

As North Korea tries to implement this type of measure to boost production and rationing, failure to improve food shortage conditions and economic hardships while at the same time mobilizing the population in a drive to establish a Strong and Prosperous Nation has led to growing outcries among residents. North Korean authorities appear to be introducing these measures in order to placate these complaints.