North Korean Economy Watch

Korea Times
Andrei Lankov
2/20/2007

In July 1997, the five most important government agencies of North Korea published a joint declaration which informed the North Korea populace and the entire world that the country was introducing a new calendar. The year 1912 became the First Year of Chuche. The reason? This was the year Kim Il-sung was born.

The decision allowed the occasional use of the Christian-era years, but these four-digit numbers would accompany the new official chronological designation only when deemed necessary. Thus 2006 AD is the Year 95 of the Chuche Era. In other words, Kim Il-sung’s birthday replaced that of Christ in the official North Korean calendar.

The world has seen other attempts to break with old calendar traditions. In France of the 1790s, the revolutionaries began to count years from the proclamation of the French Republic. In South Korea of the 1950s, the government tried to implement the so-called ‘Tangun Era.’ None of these attempts succeeded for more than a few decades.

However, the decision to introduce the Chuche Era was just one of the many manifestations of Kim Il-sung’s posthumous “personality cult.”

Indeed, the memory of the North Korea’s founding father is treated in Pyongyang with the utmost respect. Obviously, this was the intention of the dead founder when he chose to transform his country into the first communist monarchy in world history.

He saw what had happened to Stalin and Mao’s posthumous reputations, and arranged the transition of power within his family, so the new leaders have a vested interest in keeping the old man’s memory intact.

First of all, Kim Il-sung is to remain the country’s only president.

After his death, the President’s office was left vacant _ and is meant to remain vacant forever. Kim Il-sung is North Korea’s “eternal president” while Kim Jong-il runs the country not as president, but merely as “chairman of the national defense committee.”

Kim Il-sung’s body has been embalmed and left on public display in a special glass-covered coffin. Actually, in this regard they follow an established _ if bizarre _ communist tradition. Lenin’s body was treated in such a way in 1924 (against his own clearly expressed will), and since then many other communist leaders have had their bodies left on public display _ also often against their will.

However, the sheer size of the North Korean mausoleum is impressive. In other Communist countries, bodies of the dead leaders were held in specially constructed and relatively small _ if impressive _ buildings.

The North decided to transform the entire Presidential Palace into the mausoleum and major center of Kim Ilsung’s posthumous cult.

The construction of Kmsusan Palace began in 1974, and in 1977 it was presented to Kim Il-sung as a present for his 65th birthday. In Kim’s lifetime, the imposing building, with floor area of 35,000 square meters, was strictly off-limits to the public, but in recent years it has become the center of a government- sponsored pilgrimage.

Of course, portraits of Kim Il sung are everywhere, albeit often accompanied by images of Kim Jong-il and his mother Kim Jong-suk. From the late 1960s, the North Korean bureaucracy has developed intricate rules to determine where and how Kim Il-sung’s likeness would be displayed. I’ll probably say more about these rules later, but now it suffices to say that every living room, office, and entrance to every official building, as well as every railway carriage, has been adorned with the portrait of the leader from the 1970s.

After 1980, the portrait of his son has complemented that of the father.

The currently approved portrait of Kim Il-sung is officially known as the ‘sun image’ (taeyangsang in Korean). Here the Great Leader is depicted as smiling kindly at his subjects, and he is dressed in the Western suit and necktie that he actually preferred in the last years of his life (prior to 1984 Kim had worn a Mao suit).

These portraits are mass-produced by the ‘Mansudae Creative Group,’ a special workshop whose sole purpose is to design and manufacture portraits and statues of the Great Leaders.

An important part of Kim Ilsung’s posthumous glorification is the numerous “Yongsaengtap,” or “Towers of Eternal Life.” Their name reflects the official slogan: “Kim Il-sung will live with us forever!” These towers have a shape, slightly reminiscent of ancient Egypt’s obelisks, and they are decorated with slogans on Kim’s alleged “eternal presence” in his realm.

As of 1997, there were 3,150 “Towers of Eternal Life” nationwide. They are normally erected at crossroads, and every major town is required to have one. Most of these structures are relatively cheap and easy to build, but some of them are quite elaborate and expensive.

The tallest of all towers is, of course, located in Pyongyang. It has a height of 92.5 meters _ just a bit lower than the Chuche Tower, one of the city’s major architectural monuments.

However, Kim Il-sung’s cult is now giving way to the cult of his son, who has successfully become the new supreme ruler of the country.

Korea Times
Park Song-wu
2/20/2007

The National Intelligence Service (NIS) on Tuesday confirmed that North Korea recently enacted a law that prohibits money laundering.

The standing committee of the North’s Supreme People’s Assembly adopted the legislation last October to ban financial transactions involving illegal earnings, the agency said in a press release.

The enactment apparently aimed at settling the U.S. financial sanctions on a bank in Macau that was blacklisted by Washington in September 2005 for its suspicious role in helping the North conduct illicit financial activities, it said.

Under the latest six-party agreement, reached on Feb. 13, the United States is to resolve financial sanctions within 30 days on North Korean assets worth $24 million that have been frozen in the Macau bank.

The NIS also confirmed that the North has a highly enriched uranium (HEU) program.

NIS officials made the confirmation during a closed-door National Assembly session as the Beijing deal on initial actions to implement the denuclearization of North Korea came under criticism for not mentioning the HEU program.

After ending the session, a lawmaker said on condition of anonymity that the NIS officials confirmed the existence of the HEU program in the North.

When North Korea’s uranium enrichment program came to the fore in 2002, Washington and Pyongyang accused each other of violating the 1994 agreed framework that eventually collapsed.

Seoul and Washington are reportedly sharing the view that Pyongyang has an HEU program, for which the North began purchasing large quantities of centrifuge-related equipment in 2001.

But what is not yet clear is whether the North has begun to produce weapons-grade uranium.

In a separate Assembly session, Minister of Foreign Affairs and Trade Song Min-soon also faced the same question from lawmakers on why the Beijing agreement did not mention the HEU program.

He avoided speaking specifically on the sensitive issue that triggered the second nuclear crisis in October 2002. But he said it will be addressed as the latest agreement invoked section one of the joint statement adopted in September 2005.

“The Beijing deal is about initial steps, and it’s not a complete roadmap toward the denuclearization,” Song said. “But the recent agreement requires the North to declare all of its nuclear programs.”

In section one of the September statement, the North committed to abandoning “all nuclear weapons and existing nuclear programs” and returning at an early date to the treaty on the nonproliferation of nuclear weapons treaty (NPT) and to International Atomic Energy Agency (IAEA) safeguards.

The main opposition Grand National Party (GNP) also expressed doubts over Pyongyang’s willingness to abide by its pledges to implement initial measures for the denuclearization of North Korea.

Rep. Kim Yong-kap of the conservative party found problems with the deal reached in Beijing on Feb. 13 since key components of it, especially on the disablement of the North’s nuclear facilities, are overly “abstract.”

“Despite the North’s agreement to disable its 5 megawatt reactor in Yongbyon, it later changed the wording into a temporary stoppage of operations,” Kim said.

The North’s media promptly reported the result of latest six-party talks, but did not use the term “disablement.” Seoul officials interpreted it as an attempt to mislead North Koreans so they do not lose their pride.

“In addition, there is no deadline on the disablement. I am simply doubtful of the deal’s practicality,” he said.

According to a Chosun Ilbo-Gallup Korea poll, conducted on Feb. 19, 77.9 percent of respondents predicted that the North would not keep its pledges, while 15.8 percent of the 1,006 respondents trusted the North.

But Song said the Beijing deal was a good chance to reaffirm Pyongyang’s willingness for an early denuclearization.

He also dismissed the GNP’s claim that Seoul is determined to share the largest financial burden of aiding the North to achieve a second inter-Korean summit in the run-up to the December presidential election.

“We will not bear all the burden because all five parties have agreed to provide economic aid on the principle of equality and equity,” he said. “And the provision of assistance will be made in line with the principle of action for action.”

As a first step toward denuclearization, North Korea is to shut down its nuclear-related facilities at Yongbyon while allowing United Nations nuclear inspectors back to the nuclear complex to seal them off.

Seoul’s top nuclear negotiator, Chun Yung-woo, said in Beijing on Feb. 13 that the deal is working under an “incentive system.”

For shutting down the Yongbyon complex, the North would receive the equivalent of 50,000 tons of heavy fuel oil in emergency relief aid. An additional 950,000 tons of heavy oil or equivalent aid will be provided to the country upon its completion of disabling other nuclear-related facilities.

KCNA
2/8/2007 

Redoubled efforts are being made to build a socialist economic power in the DPRK. The people are turning out in the grand march for perfecting the looks of a great, prosperous and powerful nation, full of confidence in sure victory and optimism.

The DPRK has consolidated the foundation for building an economic power over the last years.

The Workers’ Party of Korea has developed in depth President Kim Il Sung’s idea on economy as required by the developing revolution and thus provided unswerving guidelines for building an economic power.

While implementing the revolutionary economic policies of the WPK such as the line on economic construction in the Songun era with main emphasis on the development of the munitions industry and the policy of putting the national economy on a modern footing and IT, the Korean people have been firmly convinced that they will certainly build an economic power in this land when they work as indicated by the Party.

The army-people unity has developed as the oneness of army and people in terms of ideology and fighting spirit in the Songun era. It constitutes a powerful impetus to the construction of the economic power.

The Kanggye spirit, torchlight of Songgang and the Thaechon stamina have been created while the whole society following the revolutionary soldier spirit. The efforts have brought about a great change in the overall socialist construction.

Through the heroic endeavors, the people replete with faith in the future of prosperity have put industrial establishments, once stopped, on normalization of production and erected many monumental edifices including the Thaechon Youth Power Station No. 4.

An importance has been attached to science. A large army of intellectuals are paving the shortcut to the construction of an economic power with an extraordinary revolutionary enthusiasm.

A solid material and technical foundation for the construction of an economic power has been laid in the country.

All the sectors of the national economy have pushed ahead with the work of perfecting production structures, renovating technique and putting them on a modern footing, with the result that the number of such model factories in technical renovation and modernization as the Pyongyang 326 Electric Wire Factory is increasing as the days go by.

Production bases such as foodstuff factory, chicken farm, catfish farm, beer factory and cosmetic factory, which are directly contributing to the improvement of the people’s living standard, have mushroomed in different parts of the country.

The DPRK, with all the conditions for leaping higher and faster, will demonstrate the might of an economic power in the near future.

KCNA
2/6/2007

The Paektusan Cup sports contest was opened. This contest, which is held on the occasion of the February holiday every year [KJI birthday], greatly helps develop the nation’s techniques of physical culture. The participants in the current contest will compete in eight events such as basketball, volleyball, table-tennis, ice-hockey and speed skating in Pyongyang, Samjiyon and other areas. Its opening ceremony took place at the Basketball Gymnasium in Chongchun Street here on Tuesday. Present there were Kim Jung Rin, secretary of the Central Committee of the Workers’ Party of Korea, officials concerned and sportspersons. Mun Jae Dok, chairman of the Physical Culture and Sports Guidance Commission, made an opening address at the ceremony, which was followed by speeches. The speakers stressed that all the players should give a good account of themselves by fully displaying the sports techniques they have usually practised and thus more significantly celebrate the February holiday. At the end of the ceremony a male basketball game was held between Sobaeksu and Amnokgang sports teams.

KCNA
2/6/2007

Great efforts are being directed to the geological prospecting in the Democratic People’s Republic of Korea. The State Bureau for Direction of Natural Resources Development has recently dispatched geological experts, IT technicians and prospectors to the areas of Komdok and Kapsan to find out more nonferrous metal ore resources. 

While concentrating forces on the survey of the foundations of major construction objects, the bureau is pushing ahead with the work of finding out more reserve coal and ore mines with abundant deposits and securing the sites for detailed prospecting.  

The South Hwanghae Provincial Geological Prospecting Administration Bureau has surveyed the ingredients of sand in western coast areas in detail and secured quality sand resources available for hundreds of years. 

The South Phyongan and North Hamgyong Provincial Geological Prospecting Administration Bureaus also found out more anthracite and bituminous coal fields in western and northern areas.

Geological corps under the North and South Hwanghae, Jagang and Kangwon Provincial Geological Prospecting Administration Bureaus have intensified geological prospecting work in their provinces, thus opening up a bright vista for excavating larger amount of non-ferrous metal ore.

The South Hamgyong Provincial Geological Prospecting Administration Bureau has completed in a short span of time the foundation survey and designing for major projects of national significance, and the Sumun and Paekam Geological Prospecting Corps under the Ryanggang Provincial Geological Prospecting Administration Bureau have also registered successes in the survey work for the construction of the Paektusan Songun Youth Power Station and other projects.

AFP (Hat tip DPRK Studies)
Park Chan-Kyong
2/5/2007

Nuclear-armed North Korea is notorious for selling its missiles overseas but the hardline communist state also has a more improbable export — cute cartoon figures.

South Korean experts say the North’s animated movie industry brings the isolated country both precious hard currency and access to global IT expertise.

“Animation is one of the rare sectors where North Korea is following the global trend,” said Lee Kyo-Jung, an executive at the Korea Animation Producers’ Association (KAPA).

“It has been subcontracted to produce animation for North America, Europe and Asia,” Lee told AFP. Among the major clients are studios in France, Italy and China, he added.

Lee has visited the North to discuss the feasibility of the two Koreas jointly producing animated features, with North Koreans providing manpower and the South supplying equipment and finance.

The North for decades has used cartoons to imbue its own children with socialist ethics. Other cartoons screened there also bring some fun into drab everyday life.

“Tom and Jerry” is a prime-time hit in the communist state, Lee said. “They just love it. They see the US in the headstrong cat and North Korea in the wise mouse.”

The centre of North Korea’s animation industry is the April 26 Children’s Film Production House, known to the outside as SEK Studio. Its 1,600 animators have been downsized to 500 with the introduction of computerised equipment.

“SEK is one of the largest hard currency earners in North Korea,” said Nelson Shin, a North Korea-born US producer who worked on “The Simpsons”.

“SEK is a rare North Korean company that can directly engage in foreign trade and deploys representatives overseas,” said Shin, a frequent visitor to the North.

The state-run company worked for Shin’s US-South Korean studio KOAA Films on his 6.5-million-dollar animated feature “Empress Chung,” a Korean equivalent of the Cinderella story.

The movie was screened simultaneously in Seoul and Pyongyang in August 2005, becoming the first feature film jointly produced by the two nations.

“I was taken by surprise at their manual skill. I dare say the North Koreans are better than their peers in the South in terms of their hand skills,” Shin said.

Shin said Disney had subcontracted the TV series made for European viewers of the “Lion King” and “Pocahontas” to SEK.

North Korea’s animation industry began years before South Korea’s own in the mid-1960s. It dates back to the mid-1950s when it sent young artists to what was then Czechoslovakia to learn the craft, according to Lee of KAPA.

But South Korea has come from behind on the strength of its plentiful animators and computer technology. It earned some 120 million dollars through subcontracted work when the subcontract trade was at its peak in 1997.

Latecomers China, Vietnam and India are taking a growing share of the subcontracting market while South Korea is graduating from the labour-intensive work into creative products.

The growth in North Korean animation reflects the patronage of all-powerful leader Kim Jong-Il, a movie buff whose personal archive is said to comprise tens of thousand of films.

The country, becoming priced out of the lower-end work by latecomers, is now seeking to go upmarket to focus more on computer-assisted animation.

“For North Koreans, animation is not only a source of hard currency but also technology from the outside world. They are really keen on obtaining things like graphics technology,” said Kim Jong-Se, marketing director of Iconix Entertainment.

Iconix trained North Koreans in 3D animation when it subcontracted work to a company called Samcholli. The firm produced part of a cartoon series entitled “Pororo the Little Penguin” in 2003 and 2005.

The series turned out to be a big hit, selling in more than 40 countries.

Kim in late 2001 also helped produce “Lazy Cat Dinga,” the first animated series short of a full-length movie co-produced by the two Koreas.

“North Koreans are very good at doing what they are told but they have problems in using creativity,” Kim said.

Iconix Entertainment CEO Choi Jong-Il said both sides could benefit from splitting their roles.

“Joint projects will certainly bring benefits to both sides, with the South doing the overall planning and the North carrying out the main production,” said Choi.

Daily NK
Kim Chan Ku
2/2/2007

The doll producing factory, ‘Pyongyang Sunpyong Stuffed Toy Factory’ was named by myself. Since such toy factory was first case in North Korea, the party officials had great interest in it and supported my business.

I had a chance to look at products in my North Korean factory for the first in six years in Pyongyang.

Female workers in the factory had contributed the most. The material they had to handle was rare in North Korea. For most of them, it must have been their first time looking at such material. Still, factory employees labored and started to produce dolls.

Dolls of white bear, brown bear, puppies and kitten were manufactured. Even I felt like being a child when I was looking at those dolls. Some of them were planned for export to South Korea while the rest would remain for North Korean kids. I was dreaming of North Korean children holding the dolls produced in my factory.

If production phase kept up, there would be more order from international buyers and I could be able to teach more skills and know-how to North Korean technicians.

My next objective was to gradually increase the production rate to a hundred thousand dolls per month. What I had achieved by then took about six months. One hundred thousands dolls per month seemed an easy task.

But a ‘North Korean’ trouble occurred again. Since salary was set immobile, production cost was higher if output was low. When output was increased, the number of inferior goods also rose.

So I pushed the employees to work hard and cautiously at the same time with low rate of inferior goods. The reply was “we don’t work in a capitalists’ way!” Workers did not get paid more for extra production.

“The Great Leader comrade Kim Il-Sung and the Dear Leader comrade Kim Jong-Il already told us how to work. We only follow that.”

I could not find a word to respond.

Also, at the same time, I divided the 240 workforce into four divisions to stimulate competition. I planned to give them motivation by awarding the best division with flour. But such way was, for my employees, an ‘American imperialists’ way, not a Korean one.’

Despite such hardship, I tried my best. I focused not only on production rate but also general working environment to be comfortable and friendly. In order to do so, I turned on bright music inside the factory. Also, I emphasized the workers to make toys lively. Kids communicate with dolls that are lifelike and vivid.

the Economist
2/1/2007

Online dating in Pyongyang? Surely not

KIM JONG IL, North Korea’s dictator, has interests in modern technology beyond his dabbling in nuclear weaponry. In 2000 he famously asked Madeleine Albright, then America’s secretary of state, for her e-mail address. Mr Kim believes there are three kinds of fool in the 21st century: smokers, the tone-deaf and the computer-illiterate.

One of his young compatriots is certainly no fool. “Officially, our computers are mainly for educational and scientific purposes,” he says, before claiming: “Chatting on our web, I also met my girlfriend.”

Internet dating is only one of the surprises about the internet in North Korea, a country almost as cut off from the virtual world as it is from the real one. At one of the rare free markets open to foreigners, brand-new computers from China are sold to the local nouveaux riches complete with Windows software. Elsewhere, second-hand ones are available far more cheaply. In most schools, computer courses are now compulsory.

In the heart of the capital, Pyongyang, visitors are supposed to be able to surf freely through the 30m official texts stored at the Grand People’s Study House, the local version of the Library of Congress. The country’s first cyber café opened in 2002 and was soon followed by others, even in the countryside. Some are packed with children playing computer games.

But the world wide web is still largely absent. Web pages of the official news agency, KCNA, said to be produced by the agency’s bureau in Japan, divulge little more than the daily “on the spot guidance” bestowed by Kim Jong Il. No one in Pyongyang has forgotten that glasnost and perestroika—openness and transparency—killed the Soviet Union.

The local ideology being juche, or self-reliance, the country installed a fibre-optic cable network for domestic use, and launched a nationwide intranet in 2000. Known as Kwangmyong (“bright”), it has a browser, an e-mail programme, news groups and a search engine. Only a few thousand people are allowed direct access to the internet. The rest are “protected” (ie, sealed off) by a local version of China’s “great firewall”, controlled by the Korean Computer Centre. As a CIA report puts it, this system limits “the risks of foreign defection or ideological infection”. On the other hand, North Koreans with access to the outer world are supposed to plunder the web to feed Kwangmyong—a clever way to disseminate technical information to research institutes, factories and schools without losing control.

Yet even today, more and more business cards in Pyongyang carry e-mail addresses, albeit usually collective ones. A west European businessman says he is astonished by the speed with which his North Korean counterparts respond to his e-mails, leading him to wonder if teams of people are using the same name. This is, however, North Korea, and sometimes weeks go by in virtual silence.

In some places, North Korea’s internet economy seems to be overheating. Near the northern border, Chinese cell phones—and the prepaid phone cards needed to use them—are a hot black-market item, despite government efforts to ban them. The new web-enabled phones might soon give free access to the Chinese web which, for all its no-go areas, is a paradise of liberty compared with Kwangmyong. In this region, known for its casinos, online gambling sites are said to be increasingly active.

Last summer the police were reported to have cracked down on several illegal internet cafés which offered something more daring than the average chatting and dating. Despite the signs that North Korea’s web culture is ready to take off, internet-juche remains a reassuring form of control in the hermit regime.

Korea Herald
Lee Joo-Hee
1/30/2007

Officials from Washington and Pyongyang are in Beijing today for their second round of talks on U.S. financial sanctions against North Korea.

The discussions are likely to set the tone for the upcoming round of six-party talks scheduled to resume early next month.

The agenda is thought to include North Korea’s acknowledgement of illicit financial activity, a pledge to prevent any reoccurrence, and the lifting of a U.S. embargo on North Korean accounts at a Macau bank.

Washington imposed financial restrictions against Banco Delta Asia after charging the bank with helping North Korea launder counterfeit dollars and funds raised from smuggling restricted goods. The move prompted Pyongyang to boycott the six-party talks process in 2005.

Upon returning to the six-party process in December last year, North Korea demanded it must first solve the financial issue before discussing the nuclear question.

The United States remains adamant that the financial measures were separate from the nuclear issue but has offered to discuss it on the sidelines of the nuclear talks.

The U.S. side is led by Daniel Glaser, the Treasury Department’s deputy assistant secretary for terrorist financing and financial crimes.

The North Korean team is led by Oh Gwang-chul, president of the Foreign Trade Bank of Korea, the reclusive regime’s window for foreign banking.

The two delegations are likely to discuss the technical aspects of the issue, which North Korea claims was a political gesture by the United States as part of its hostile policy.

On Sept. 15, 2005 the U.S. Treasury Department banned all American banks from dealing with Banco Delta Asia for allegedly helping North Korean companies launder money from smuggled cigarettes and counterfeit $100 bills.

Washington and Pyongyang have been exchanging questions and information regarding the measures since their first discussion in Beijing on the sidelines of the six-party talks last month.

N. Korean financial officials arrive in Beijing for talks on U.S. sanctions
Yonhap
1/30/2007

A group of North Korean financial experts arrived in Beijing Tuesday for talks with their U.S. counterparts on removing U.S. financial sanctions on the North, a major hurdle to six-way negotiations on the communist nation’s nuclear weapons program.

The U.S.-North Korea financial talks come ahead of a new round of six-nation negotiations next week aimed at persuading North Korea to give up its nuclear weapons program.

The Chinese Foreign Ministry said Tuesday the new round of the nuclear disarmament talks will start Feb. 8.

The North Koreans, headed by O Kwang-chol, president of the North’s Foreign Trade Bank, arrived in the Chinese capital at 9:30 a.m. The North Koreans were expected to hold talks with a U.S. financial team led by Daniel Glaser, a deputy assistant secretary at the U.S. Treasury Department.

Upon arriving from Pyongyang, the head North Korean delegate said the sides would hold talks at their countries’ embassies here.

The two last met here on the sidelines of a December round of the nuclear talks, also held in Beijing. The working-group financial meeting seeks to remove U.S. sanctions imposed in September 2005 on a Macau bank suspected of laundering money for the North, which Pyongyang used as an excuse to stay away from the nuclear talks for 13 months.

Expectations of progress from the financial discussions, as well as the nuclear talks, have been significantly raised following a three-day meeting of top U.S. and North Korean nuclear negotiators in Berlin earlier in the month, at which the two agreed “on a number of issues,” according to Christopher Hill, the top U.S. nuclear envoy.

Hill said Monday (Washington time) that the next round of the nuclear talks could produce an agreement similar to a 1994 pact in which North Korea agreed to freeze its nuclear activities in return for economic and energy assistance. The 1994 Agreed Framework became defunct when the ongoing dispute over the North’s nuclear ambitions erupted in late 2002.

However, Hill made it clear that the goal of the six-party negotiations is to carry out a 2005 agreement in which Pyongyang agreed in principle to completely and verifiably dismantle its nuclear program in return for economic and diplomatic benefits.

“Whatever emerges in the next round, our job will not be finished until the full joint statement is finally realized and implemented,” Hill told Reuters in Washington.

“I am not too worried whether something might look like the Agreed Framework because we’re only looking at part of what we’re aiming at,” Hill added.

The top U.S. envoy to the financial talks Tuesday also expressed hope for progress.

“We are prepared to go through these talks as long as it takes for us to get through our agenda,” Glaser was quoted as telling reporters in Beijing. “I am hopeful we’ll make progress.”

Treasury officials have so far refused to confirm it, but recent reports said the United States may unfreeze part of North Korea’s assets at the Macau bank to help move the nuclear negotiations forward.

Pyongyang has about US$24 million in 50 accounts at the Macau bank, Banco Delta Asia, and as much as $13 million is believed to belong to legitimate accounts.

Donga
1/27/2007

Recently, rumors have been spreading in North Korea that Jeong Ha Cheol (74-year-old), the propaganda secretary of the Workers’ Party, has defected from North Korea, stirring public sentiment.

Party officials have been going door-to-door to remove traces of Jeong from publications without giving any reason. Officials are painting over Jeong’s face with black ink on any pictures that show Jeong accompanying North Korean leader Kim Jong Il or its former leader Kim Il Sung. They are also censuring his name with black ink if there are any passages that include his name and sealing the book. Moreover, writings by Jeong have been torn to pieces. All households which have a few dozens of those books now are required to get rid of them since most North Korea publications are propaganda books.

Jeong Ha Cheol, who studied philosophy at the Kim Il Sung University, was one of the most successful propaganda officials. He served as the editorial chief of the state-run newspaper Rodong Sinmun and the chairman of the Central Broadcasting Station before becoming the propaganda secretary of the Workers’ Party. It is a key post that oversees all the propaganda activities in North Korea, and Kim Jong Il also served in this post before being named as Kim Il Sung’s successor in the mid 1970s.

Jeong, who was considered as one of the closest aides of Kim Il Sung, accompanied Kim every time he paid a state visit to China and even received the Kim Il Sung Decoration, the most highly recognized medal in North Korea at that time.

In fact, rumors about Jeong erupted in December 2005. Some media outlets reported that Jeong has stopped appearing in public since October 2005. There were no news reports on his exile.

Some sources said that he was imprisoned at a concentration camp in North Pyongan Province because his faults were revealed during an intensive investigation into the staff of Central Broadcasting who was caught drinking during the daytime.

According to the sources, Jeong was sentenced as “a traitor against the party and revolution,” and was ordered to be erased from all the records, including publications. In short, he is unlikely to regain his power since he has been completely shunned by North Korean society.

All these people were involved in the so-called, “August Clan Incident.” The names of the children of Kim Sung Ae, Kim Il Sung’s third wife, who fell from political power and Seo Gwan-hee, former agricultural secretary of the Workers’ Party, who was shot to death on charges of espionage, were also removed from publications. You can see black marks quite often on North Korean political books. In North Korea, it is a principle that if one is accused of a serious crime, his or her family members and relatives (father’s side: up to second cousins, mother’s side: up to first cousins) are also sent to concentration camps or deep in the mountains, as it happened in the feudal age.

The most common cause that North Korean committee officials consider as a serious crime is a drinking bout. Criticizing Kim Jong Il or the communist regime after having some drinks can not be tolerated in the North, and that is likely the case with Jeong. It is a felony to shake the regime. Recently, Joo Dong Il, a high ranking official in charge of electricity, was dismissed for suggesting to Kim Jong Il on a private occasion, “How about we use the electricity used for unattended guest houses all across the country for the economic sector?”

However, some analysts speculate possibilities of Jeong’s involvement in serious corruption considering that North Korea lavishly spend money to purchase equipment from overseas for propaganda purposes every year.

Choi Yong Hae, the chairman of the League of Socialist Working Youth and who prepared the 13th World Festival of Youth and Students, was also found guilty of grave corruption. Although Choi was dismissed, his name was not censured with black ink. Chang Sung Taek, a senior official of the Workers’ Party, was also blamed of serious corruption, but he was recently pardoned. Corruption charges are far more lenient compared to criticizing the regime or Kim Jong Il.

Jeong’s case is a good example that illustrates how insecure the power that top North Korean officials have once they lose the trust of Kim Jong Il. If North Korean officials are not cautious all the time, like walking on thin ice each day, they can be out of Kim Jong Il’s favor.

NK Secretary Jung Ha Chol Politically Banished
Daily NK
Han Young Jin
1/29/2007

A rumor has spread alleging that a former secretary for the Propaganda Department of the Chosun Worker’s Party Jung Ha Chol (74) has escaped North Korea, reported the Donga Ilbo on the 27th.

A source told Donga Ilbo “Though the reason has not yet been revealed, North Korean elite officials have recently been erasing remnants of Secretary Jung in published materials” and informed “Secretary Jung’s face has been deleted from all photos taken with Kim Il Sung or Kim Jong Il.” In addition, Secretary Jung’s name is being erased from all written materials and sealed with tape, and materials directly written by Secretary Jung are being deleted altogether.

With Kim Il Sung’s May 25th teaching in 1967, “North Korea’s revolutionary culture” arose and excluding statements and instructions of Kim Il Sung, any foreign editions and all publications displaying anti-authority or conflict with Kim Il Sung were either burned or erased.

Hence, we can surmise that secretary Jung has already been purged from North Korea’s political arena based on the evidence that his photo and name is being obliterated from published materials.

Secretary Jung graduated from the Kim IL Sung University majoring in Philosophy and worked as an editor for the Rodong Newspaper and Head of the Central Broadcast Agency. In 2001, he became the director and secretary for the propaganda department which following the secretary for the Chosun Workers Party is the next best position. Secretary Jung was even selected as Kim Jong Il’s entourage on his visit to China and was even awarded the Kim Il Sung honorary medal.

However, in December 2005 inspectors discovered one of Secretary Jung’s private parties held at a rural village during an agricultural supporting activity. In addition, there had been rumors that the First Minister for the Chosun Workers Party Lee Jae Kang and Secretary Jung had been in conflict. Whatever the unknown reason, whether it was Secretary Jung conducting parties, occurrences or comments made at the party or personal feuds, Secretary Jung was ultimately imprisoned at a concentration camp in South Pyongan, Buk Chang province.

The Donga Ilbo informed “Secretary Jung has been condemned as an anti-revolutionist and is being banished from North Korean society. His existence being deleted from all records indicates that his power will not be reinstated to him.”

“One the main reasons elite officials are ostracized in North Korea is for reproaching Kim Jong Il or the system at parties” and “It is likely Secretary Jung fell into this category” prospected the newspaper.

Another speculation suggested that Secretary Jung had been corrupted. As North Korea carelessly spends vast amounts of foreign currency on propaganda every year, it is possible Secretary Jung made a foolish decision.

However, even Choi Young Hae, former director for Socialist Youth League who swindled vast amounts of foreign currency while preparing for the 13th International Youth and Students Festival in 1989 did not get “deleted” from all publication but just simply demoted. This was the same for Jang Sung Taek who was once overthrown but his position eventually reinstituted. To criticize or compare Kim Jong Il or the regime is an enormous criminal offense. Hence, for Secretary Jung’s existence to be deleted from all published materials denotes that he could never return to the political areana.

Though there is no real evidence to prove that Secretary Jung Ha Chol has defected overseas, he has undeniably been obliterated from politics.

At present, Jung Ha Chol’s position as secretary of the Chosun Worker’s Party has been reassigned to Kim Ki Nam.