Archive for the ‘Cabinet’ Category

‘High-temperature air-combustion technology’ developed

Thursday, April 23rd, 2015

Institute for Far Eastern Studies (IFES)

At the Third Session of the 13th Supreme People’s Assembly (SPA) held on April 9, Premier Pak Pong Ju of the DPRK Cabinet delivered a progress report on the Cabinet’s performance for the previous year and goals for this year. He said, “High-temperature air-combustion technology and other technologies that do not require the use of heavy oil should be introduced into various fields of the national economy.” As North Korea is a non-oil producing country, such technology would be beneficial. But whether this technology is possible requires careful consideration.

According to various state media reports, “high-temperature air-combustion technology” maintains the internal temperature of the furnace by combusting gas or liquid raw material into the air by heating it to high temperature, wherein high temperature needed at the time is acquired through the gasification of anthracite. Respectively, this technology is also called the high-temperature, air-combustion technology by the gasification of anthracite.

This technique is known as energy-saving advanced technology that manages the thermal efficiency which greatly lowers the heat loss that occurs from the used gas discharge. This technology is characterized by its wide range of application that includes heating of the metal factory that uses heavy oil as fuel, as well as glass melting furnace, furnace refractories (or kilns), pottery baking furnace, and heat treatment furnace.

For the production or heating of rolled steels, application of this technology allows for effective production without the use of heavy fuel oil.

Accordingly, the Ministry of Metal Industry has begun to implement projects with major metal industry enterprises such as Kim Chaek Iron and Steel Complex, Hwanghae Iron and Steel Complex, and Chollima Steel Complex. This technology is being introduced into various enterprises including all steel production process and refractories that use heavy oil.

In 2011, North Korea emphasized “vanguard technological breakthroughs” and constructed heating furnace equipped with high-temperature air combustion technology at the Kim Chaek Iron and Steel Complex for the commemoration of Kim Il Sung’s 100th birthday. It was widely publicized that introduction of this technology has put an end to the steel billets production system that uses heavy fuel oil.

In this regard, Rodong Sinmun reported on January 11 that Kaesong Insulator Factory in North Hamgyong Province succeeded in the complete domestic production of high-speed transfer switch and thermal mass which is the core of the high-temperature air-combustion technology. It also drew particular attention as the news touted that this was the first successful introduction of “large-scale continuous furnace.”

The newspaper boasted that, “the introduction of the high-temperature air combustion technology was introduced with a small investment into the heating furnace and kilns in each sector of the people’s economy,” and evaluated this as a result of “our capabilities and technology that proceeded in accordance with the principles of ‘our-style’ modernization.”

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North Korea to concentrate state budget towards economic construction

Monday, April 20th, 2015

Institute for Far Eastern Studies (IFES)

North Korea has drafted a budget that emphasizes improving the lives of its citizens and the establishment of an economic power this year.

The state-run Korean Central News Agency (KCNA) reported that on April 9, 2015, North Korea held the 3rd Session of the 13th Supreme People’s Assembly (SPA), where authorities balanced accounts from last year’s spending and decided the budget for this year.

“This year the state budget was designed to further strengthen the self-defense capabilities of national defense while putting technology firmly at the front and bringing about a transformation in the building of an economic powerhouse,” North Korea’s head of the Finance Ministry, Ki Kwang Ho, explained at the session.

First, North Korea decided to raise the entire budget expenditures over last year by 5.5 percent to celebrate the 70th anniversary this October of the establishment of the Worker’s Party of Korea (WPK).

This year the national defense expenditures represent 15.9 percent of the budget, the same as last year. Meanwhile, authorities decided to increase investment in the technology sector over last year by 5 percent.

The following areas were also increased over last year: forestry (9.6 percent), basic construction (8.7 percent), physical education (6.9 percent), education (6.3 percent), culture (6.2 percent), general industry and light industry (5.1 percent), fisheries (6.8 percent), agriculture (4.2 percent) and health (4.1 percent).

Every aspect of the budget is designed to improve the citizens’ lives and further economic development. Finance Ministry Director Ki Kwang Ho explained, “[the budget] enables the state to raise the entire People’s economy and drastically improve the lives of the people while fully engaging in the forest restoration battle and the construction of monumental building projects.”

North Korea, however, did not disclose the full amount of the budget. Based on the budget, it is predicted that North Korea will concentrate state management this year on improving the people’s quality of life.

In his New Year’s address, First Chairman Kim Jong Un intimated his intentions to better the lives of the people through economic reform this year.

“We need to solve the people’s food issue through the three axes of agriculture, livestock and fisheries and bring the food situation to the next level […] We need to encourage businesses to be proactive and creative to take the lead in business activities,” he proclaimed in his address.

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North Korean cabinet adopts forest restoration resolution

Thursday, March 12th, 2015

According to the Institute for Far Eastern Studies (IFES):

North Korea’s official news agency, Korean Central News Agency reported on March 7, 2015 that the North Korean Cabinet has adopted a resolution to support national forest restoration activities.

According to the news agency, the Cabinet recently “announced this decision, which they adopted to fully mobilize the entire party, military, and citizenry in the forest restoration battle.”

The resolution states that the General Bureau of Forestry of the Ministry of Land and Environment Preservation will procure the funds necessary for forest restoration and that the State Planning Committee, General Bureau of Forestry of the Ministry of Land and Environment Preservation, as well as other agencies such as the forestry and agriculture ministries, will draft a concrete plan.

The directive also set up a management system including a supervisory and regulatory task for forest conservation, and it urged for cooperation between county residents and the development of scientific technology in the forestry sector.

In accordance with First Chairman of the National Defence Commission Kim Jong Un’s guidelines, since last year North Korea has repeatedly drawn attention to the precarious state of the country’s forests and has been encouraging tree-planting and nature conservation.

Welcoming ‘Tree-Planting Day’ on March 2, Kim Jong Un also revealed North Korea’s plans to begin an intense forestation restoration campaign. The leader spoke directly regarding this effort, saying, “Forests are a precious resource of our country and a great treasure that we must bequeath to future generations […] However, since the ‘Arduous March,’ people, while saying that they are procuring firewood and provisions, have recklessly damaged our forests, and since the country could not even erect a forest fire prevention measure, our country’s precious forest resources have been greatly reduced.”

In addition, while referencing issues like the drought and damage incurred during the rainy season due to the deforestation, Kim Jong Un emphasized patriotism: “If the country’s forests are not currently beyond repair, they lie at the crossroads of recovery.”

Ordering the complete restoration of forests within 10 years, Kim added that “The entire party, military, and citizenry need to fully engage in a forest restoration battle to make the green forests in the Motherland’s mountains lush.”

Following this, ‘Tree-Planting Day’ was held as an extensive tree-planting event, and Kim Jong Un encouraged the people to plant many saplings in the central tree nursery and regional tree nurseries.

In addition he stressed the importance of the forest conservation work and ordered the supervision and regulation of forest development and conservation through means such as the prohibition of reckless logging, forest fire prevention measures, and the provision of firewood.

On March 2, 2015, Rodong Sinmun reported that Kim Jong-un had given a talk on forestry. You can download a PDF of the talk here.

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Supreme People’s Assembly adopts three EDZ-related regulations

Friday, November 21st, 2014

Institute for Far Eastern Studies (IFES)

Coinciding with the promotion of the nation’s economic development zones (EDZs), North Korea has recently decided to adopt three new regulations, including the “Democratic People’s Republic of Korea’s Operation Regulation of Economic Development Zone Management,” which opens up high-level positions in management organizations to foreigners within the various EDZs around the nation.

The three new regulations, including the “DPRK Operation Regulation of EDZ Management,” “DPRK EDZ Establishment Regulation” and the “DPRK EDZ Company Establishment Operation Regulation” were obtained and reported by the Maeil Business Newspaper on November 4, 2014 and were said to be adopted by the Standing Committee of the Supreme People’s Assembly just two days later on November 6.

In May 2013, North Korea established the legislative basis for the creation of central-level EDZs (special economic zones, SEZs) and provincial-level economic development zones, and in October, the State Economic Development Board had its status elevated to the State Economic Development Committee and was given total control over business in EDZs. Then, on November 21, the Sinuiju Special Economic Zone (SEZ) was announced alongside thirteen other provincial-level EDZs. The following year, in June 2014, the Wonsan-Mt. Kumgang International Tourist Zone was announced, followed by the July announcement about the designation of six additional economic development zones, including the Unjong Cutting-Edge Technological Development Zone.

It appears that these three new EDZ-related regulations are specific internal regulations in order to better implement the “Law on Economic Development Zones.” According to the first new regulation, the establishment of EDZs will “coincide with the state’s economic development strategy” and will have their establishment agendas written by the “Central Special Economic Zone Guidance Agency.” EDZs are said to be “advantageous to overseas economic cooperation and exchange,” and it was stipulated that EDZs are to be established in “areas of concentrated population,” as well as in “certain remote areas.”

With regards to the regulation on the operation of management agencies in EDZs, it was reported that “management operation at EDZs will be conducted by the EDZ’s Management Operation Association or Management Office (hereafter Management Agency).” Specifically, the regulation states, “Members of the Management Agency may be a person from [the DPRK] or another country who has extensive business experience and who possesses expert knowledge in their field,” showing that foreigners may now be entrusted with high-level positions such as chairman in North Korea’s economic development zones.

Furthermore, it was decided that “foreign and/or domestic experts may be invited to work full time or part time in their appropriate department according to the needs of the Management Agency,” stipulating that foreign experts outside of EDZ managerial positions may also be invited.

In terms of the regulation on the establishment and operation of corporations in EDZs, it was decided that “foreign corporations, individuals, economic organizations and overseas Koreans may invest in EDZs and establish and operate companies through joint ventures or individually.” The regulation also states, “Investment and economic activities are limited only to those who give knowledge to and promote the nation’s safety, the health of the people, a wholesome, socially moral lifestyle and environmental protection, and are prohibited to those who are lagging behind in terms of economic technology.” Instead, the regulation promotes the establishment of companies in the “infrastructure construction and cutting-edge technology sectors,” and has clearly stated that they will receive preferential treatment in the form of tax cuts, favorable land use conditions and other benefits.

Additionally, while the regulation did say that “companies must primarily employ labor from [the DPRK],” it held the door open for foreigners by saying that “a portion of management personnel, specific types of occupational experts and technicians may be employed from other countries.” The regulation also set specific standards for penalties should a company create problems. Businesses caught operating without a business registration or license will face charges between ten and fifteen thousand Euro, businesses who fail to report changes in their company registration will face fines between two thousand and five thousand Euro, and business founders who are caught pocketing investment money without lawful justification will suffer fines between ten and twenty thousand Euro.

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

Thursday, October 16th, 2014

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Here is coverage of the first and second expo.

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

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

Friday, October 10th, 2014

Institute for Far Easter Studies (IFES)

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

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

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

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

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

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Second session of 13th Supreme People’s Assembly

Thursday, September 25th, 2014

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

According to the Wall Street Journal:

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

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

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

According to Reuters:

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

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

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

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

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

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

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

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

Reuters notes:

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

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

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

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

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

Here is the full story:

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

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

Present there were deputies to the SPA.

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

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

SPA Chairman Choe Thae Bok made an opening address.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

It discussed the second agenda item.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

DPRK Supreme People’s Assembly to Be Convened

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

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

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

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

Here is what the Daily NK has to say:

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

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

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

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Rodong Sinmun calls for strengthening the cabinet in economic matters

Friday, September 5th, 2014

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The Cabinet is the economy command of the country.

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

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

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

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

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Cabinet meeting on economic policy held

Tuesday, July 22nd, 2014

According to Yonhap:

North Korea recently held a top Cabinet meeting to assess its economic policy in the first half of 2014 and discuss a strategy in the coming quarter, according to a news report.

Premier Pak Pong-ju attended the extended Cabinet plenary session, according to the July 13 edition of the Minju Josun obtained by Yonhap News Agency on Tuesday. It did not specify when it was held.

Cabinet members raised the need to minimize flood damage this summer as a top priority and also stressed the importance of enhancing electricity production, said the North Korean government newspaper.

They also called for a concerted effort to develop the metalworking industry and the chemical sector, which the communist nation views as two pillars of its economic growth drive, it added.

In the first half of 2014, the North exceeded its target in several economic sectors, said the newspaper.

Salt production increased by 39,800 tons from last year’s total and fish catches jumped by 17,000 tons, it said.

Read the full story here:
NK officials discuss economic policy in key Cabinet meeting
Yonhap
2014-7-22

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DPRK creates Ministry of External Economic Affairs

Wednesday, June 18th, 2014

According to KCNA:

Ministry of Foreign Trade Reorganized as Ministry of External Economic Affairs

Pyongyang, June 18, 2014 20:58 KST (KCNA) — The DPRK decided to reorganize the Ministry of Foreign Trade as the Ministry of External Economic Affairs of the DPRK by merging the Joint Venture and Investment Commission of the DPRK and the State Economic Development Committee of the DPRK with it.

The Presidium of the DPRK Supreme People’s Assembly promulgated a decree in this regard on Wednesday.

Here is what Choson Exchange, who predicted the merger, had to say:

We think this is a good thing. Investor agreements, ‘exclusive’ rights and attraction need to be streamlined to prevent multiple ‘exclusive’ rights being sold. While this can bureaucratize the investment process, things really can’t get more bureaucratic than it is now in North Korea.

Here is analysis by the Institute for Far Eastern Studies (IFES) (2014-6-26):

North Korea Establishes “Ministry of External Economic Affairs” to Oversee Economic Cooperation and Attraction of Foreign Capital

On June 18, 2014, North Korea established the “Ministry of External Economic Affairs,” a massive organization that will oversee the state goals of attracting foreign capital and international economic cooperation. The Korean Central News Agency (KCNA) reported that this change came through a decision made by the Presidium of the Supreme People’s Assembly (SPA), who announced, “The Joint Venture and Investment Commission and the State Economic Development Committee have been combined with the Ministry of Foreign Trade and renamed to the Ministry of External Economic Affairs.”

The KCNA did not report on the new ministry’s specific status or duties, nor reveal the name of who has been chosen to lead it. The three organizations that have been combined to create the Ministry of External Economic Affairs are all Cabinet-affiliated economic groups.

The Ministry of Foreign Trade and the Joint Venture and Investment Commission were previously responsible for the nation’s foreign trade and attracting foreign capital, respectively. The State Economic Development Committee, which had its status elevated from the State Economic Development Board in October 2013, oversees the establishment and management of the various regional economic development zones (EDZ). It appears that although the three agencies targeted for the merge were separated by name according to their respective domains, there are several aspects of their duties which overlap with one another.

Therefore, the creation of this new Cabinet-affiliated ministry can be interpreted as an attempt to reach a breakthrough in North Korea’s stagnating international economic cooperation.

In May 2014, Foreign Trade Minister Ri Ryong Nam visited Syria and discussed plans to invigorate mutual investment and economic cooperation between the two nations not only through trade, but through agriculture and various other methods. On May 12, Ri Song Hyok, the director of the Joint Venture and Investment Commission, announced a development plan for the Wonsan-Kumgang Special Tourist Zone at an investment briefing in Pyongyang aimed at attracting foreigners. The management of Special Economic Zones (SEZ) is the responsibility of the State Economic Development Committee.

In 1998, the Ministry of Foreign Trade was established and encompassed the entirety of North Korea’s international economic activities. However, in July 2010, the Joint Venture and Investment Commission was created and oversaw the attraction of foreign capital, and in October 2013 the State Economic Development Committee was established to develop North Korea’s SEZs. With the creation of these additional organizations in 2010 and 2013, it became inevitable for the work and responsibilities of each agency to overlap one another.

While the Kim Jong Un regime has been focusing its efforts on attracting foreign capital and developing SEZs by strongly supporting the two recently established committees, the Ministry of Foreign Trade was unable to operate properly due to international sanctions. This has led to the recurring observation that, in reality, the ministry has become a titular institution.

The establishment of the Ministry of External Economic Affairs can be seen as a measure taken to increase the efficiency of decision-making and implementation of foreign trade-related issues, and to put an end to the confusion and inefficient inter-competition that arose out of the creation of these additional agencies. From the start of his leadership, Kim Jong Un stressed “constructing a strong economic nation” as a top national goal; attraction of foreign capital and international economic cooperation has become the vital factor to achieve the desired rapid economic development, for the lack of internal resources.

The newly appointed Foreign Minister Ri Su Yong—at the 1st session of the 13th SPA in April 2014—is well-versed in economic affairs. His appointment appears as a strategic move to increase the importance of economic cooperation within North Korea’s diplomatic relations. Ri Su Yong was chairman of the Joint Venture and Investment Commission from 2010 to 2012. With the establishment of the Ministry of External Economic Affairs, which will oversee all of the nation’s foreign economic activities, it is expected that North Korea will steadily push to attract additional foreign capital and develop special economic zones.

Here are previous posts on the Ministry of Foreign Trade, the Joint Venture Investment Commission (JVIC), and the State Economic Development Committee (SEDC).

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