Archive for the ‘Cabinet’ Category

3rd National Conference of Financial and Banking Officials Held

Sunday, December 13th, 2015

banking-official-conference-2015

UPDATE 2 (2015-12-14): Yonhap reports on the meeting:

North Korea held its third conference of financial and banking officials over the weekend, resuming the rare event after a 25-year hiatus in what could be an emerging sign that the country’s economy has climbed out of the level of subsistence and is gearing up for financial reform.

The Third National Conference of Financial and Banking Officials held on Sunday at the People’s Palace of Culture in Pyongyang was reported by the (North) Korean Central News Agency (KCNA) and Korean Central TV, monitored in Seoul.

“The conference reviewed successes and experience gained by those in the field of finance and banking in the past,” the KCNA said in an English report carried on Sunday.

The meeting also discussed ways to ensure “the financial guarantee for building a thriving nation,” according to the state media.

In a letter sent to the conference, North Korean leader Kim Jong-un highlighted the important role of the financial sector for national development.

“To improve financial and banking work is an inevitable demand for hastening the building of a thriving nation,” Kim was quoted as saying in the letter. “Reliable financial resources are necessary to build the people’s paradise featured by strong national power and great prosperity.”

Kim also ordered “revolutionary measures for steady development” of the financial system, as well as “fluent circulation of currency.”

It was North Korea’s first meeting of its kind since the last second session was held in September 1990 under the leadership of late leader and North Korean founder Kim II-sung.

A host of Cabinet and party officials attended the conference, including Pak Pong-ju, premier of the Cabinet; defense chief Pak Yong-sik; Finance Minister Ki Kwang-ho; and central bank chief Kim Chon-gyun, according to the KCNA.

Under the Kim Jong-un regime, the reclusive country has gotten out of extreme poverty and seems to be gearing up for a radical reform of its financial sector, Cho Bong-hyun, researcher at the state-run Industrial Bank of Korea (IBK), said of the latest meeting.

“The plan intends to reform the banking system so as to make it a window for luring in foreign currency and boosting the circulation of money,” Cho noted.

The country is now in the process of mapping out a financial reform plan with guidance from China, and it may create a reform policy out of it and officially announce the policy possibly in the general party meeting set for May next year, he added.

UPDATE 1 (2015-12-13): According to KCNA:

There took place the third national conference of financial and banking officials at the People’s Palace of Culture on Sunday.

The conference reviewed successes and experience gained by those in the field of finance and banking in the past and discussed the tasks for reliably ensuring the financial guarantee for the building of a thriving nation and ways to do so.

Present at the conference were Pak Pong Ju, Pak Yong Sik, O Su Yong, Vice-Premiers of the Cabinet Ro Tu Chol, Ri Mu Yong and Ri Chol Man, Minister of Finance Ki Kwang Ho, President of the Central Bank Kim Chon Gyun, President of the Foreign Trade Bank of the DPRK Kim Song Ui, leading officials of commissions, ministries, national institutions, provinces, cities and counties and exemplary financial and banking officials and persons of merit.

Pak Pong Ju, member of the Political Bureau of the Central Committee of the WPK and premier of the Cabinet, read out the letter of Marshal Kim Jong Un to the participants in the conference “Let Us Dynamically Accelerate the Building of a Thriving Nation by Bringing about a Turn in Financial and Banking Work”.

In the letter Kim Jong Un said the financial and banking work in the DPRK has steadily developed, financially guaranteeing the socialist construction and the people’s material and cultural life under the deep care and leadership of President Kim Il Sung and leader Kim Jong Il.

The President set forth the unique idea of finance and banking which embodied the principle of the Juche idea and established the advantageous Korean-style financial and banking management system for solving all the problems arising in the financial and banking work in line with the independent demand and interests of the popular masses, the letter said, and went on:

Kim Jong Il developed in depth the Juche-oriented idea and theory of finance and banking of the President to provide the guidelines for improving the financial and banking work and established the party’s leadership system on the work and took revolutionary measures for the steady development of the financial and banking system.

To improve the financial and banking work is an inevitable demand for hastening the building of a thriving nation. Reliable financial resources are necessary to build the people’s paradise featured by strong national power and great prosperity.

It is necessary to financially guarantee the party’s Songun revolutionary leadership and the building of a thriving socialist nation by consolidating the financial foundations of the country and ensuring fluent circulation of currency. This is the general task for the financial and banking field.

The financial and banking officials should always bear in mind the deep trust and expectation of the party and successfully fulfill their lofty duty before the country and people and bring about a fresh turn in the financial and banking work.

Ro Tu Chol, alternate member of the Political Bureau of the WPK Central Committee and vice-premier of the Cabinet and chairman of the State Planning Commission, made a report.

He said that Kim Jong Un saw to it that the conference was held, and sent the letter to indicate the orientation and ways for improving the financial and banking work.

All the successes in the financial and banking work are a precious fruition of the undying efforts of the great leaders and the wise leadership of Kim Jong Un, the reporter noted.

He called for firmly establishing the monolithic leadership system of Kim Jong Un and orientating the financial and banking work to implementing the line and policy of the party.

Speeches were made at the conference.

ORIGINAL POST (2015-12-18): North Korea to Hold National Financial Bank Workers Assembly for the First Time in 25 years (Institute for Far Eastern Studies):

North Korea will host the “National Financial Bank Workers Assembly” for the first time in 25 years. This may be interpreted as the regime’s effort to pursue economic development through restructuring the financial system, as living conditions for the people and financial situation have improved since the start of the Kim Jong Un regime.

According to the Korean Central News Agency (KCNA) on December 10, “Participants at the third National Financial Bank Workers Assembly paid respect to comrades Kim Il Sung and Kim Jong Il at the Kumsusan Palace of the Sun.” The news did not mention the date, place, or the size of this event.

However, it is customary for participants ahead of a big event to visit and pay respect to Kim Il Sung and Kim Jong Il by visiting the palace.

The “National Financial Bank Workers Assembly” was last held in September 1990 during the Kim Il Sung era. It was never held during Kim Jong Il’s rule.

It is likely that North Korea is holding this assembly as the food security issue has improved relatively over the last 25 years, and it seems to reflect the regime’s intention to establish the official financial system.

The North Korean economy has demonstrated modest growth after Kim Jong Un’s decision to expand economic zones and acknowledge enterprise management autonomy, among other market-related measures.

In particular, with the emergence of the nouveau riche or ‘donju’ (meaning ‘masters of money’), financial transactions have been increasing, hence the need for new measures to bring about improvements in banking institutions.

For the upcoming 7th Party Congress in May 2016, tangible results in sectors of the economy must be made and this may be a contributing factor to hold the “National Financial Bank Workers Assembly,” as the regime may seek to construct large buildings and various infrastructures through the use of finances from banks.

North Korea has reportedly been promoting computerization of the financial system. The country has also sent more than 40 people from the Ministry of External Economic Affairs to Southeast Asia to receive training in microfinance.

The function of banks has weakened since the late 1990s’ “arduous march” period. But with the launch of the Kim Jong Un regime, the need for normalization of the financial system was proposed along with gradual improvement in the economy. However, it is uncertain to what degree banks will earn people’s confidence. Nevertheless, through this assembly, North Korea is likely to create a means to strengthen the role of official financial institutions.

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Types of businesses expanding among North Korean cabinet-directed enterprises

Friday, October 30th, 2015

Institute for Far Eastern Studies (IFES)

Business enterprises under the direct supervision of the DPRK Cabinet appear eager to expand business operations, from mine development to the sale of gochujang (red pepper paste), in order to procure funds necessary for state-level development projects and running the government.

The North Korean cabinet-supervised Korea Taeyang Corporation* revealed on its homepage on October 18, 2015, “We are actively pushing forward joint ventures in the selling and manufacturing of molybdenum products with major companies in China, Switzerland, and Brazil.”

“The molybdenum mine located in Changjin County in South Hamgyong Province produces hundreds of tons of molybdenum concentrate every year, so we are manufacturing molybdenum steel at the molybdenum steel refinery and exporting it,” the company explained.

Their work is not restricted to mining, but extends to transportation and distribution, as well as the restaurant business. The subsidiary Korea Taeyang Transportation Co. owns twenty container wagons, thirty freight cars over 20 tons, fifty 10-ton freight cars, and fifty freight cars under 10 tons.

The Taeyang electrics store, located in Pongnam-dong of Pyongyang’s Pyongchon District, specializes in the selling and repair of electrical appliances and electronics like computers. It was also involved in the vitamin C factory built in 2013 in accordance with Kim Jong Il’s dying injunctions.

In addition, there are ostrich ranches and tourist souvenir shops, as well as restaurants that sell ostrich meat and other North Korean and Chinese cuisines in Pyongyang’s Yonpung Restaurant.

Furthermore, it also operates fertilizer and feed factories, duck ranch, pig factory, instant noodle factory, tobacco factory among others. It also has overseas offices in Beijing, Dalian, Shenyang and Africa.

The corporation expressed, “We are hopeful to make connections with buyers interested in ostrich leather, ostrich crafts, agricultural machineries, teak wood manufactured goods, and red pepper and bean pastes.

The president of Taeyang, Pak Sun Chol, is a delegate to the Supreme People’s Assembly and deputy director of Cabinet affiliated General Bureau of State Development.

On Naenara, the official web portal of the DPRK (targeted toward an international audience), the corporation expressed its intention to “meet the continuous challenges in new areas under the direct guidance of the Republic and develop into a technology-focused company that will strengthen cooperation and exchanges with companies from around the world.”

While some of the profits earned by the company are used by the Cabinet for its operating funds, most of the profits are reportedly used for state construction projects.

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Special bonus to be granted in DPRK

Friday, September 25th, 2015

According to KCNA (2015-9-25):

The Presidium of the Supreme People’s Assembly of the DPRK decided to give special bonus to the service personnel and people who rendered devoted and loyal services to present the party with labor gifts.

A decree of the Presidium of the SPA on this was made public on Sept. 23.

The decree said special bonus amounting to 100 percent of monthly rated salaries and wages will be bestowed on all the service personnel, working people and those who receive pensions, subsidies and scholarships on the occasion of the 70th founding anniversary of the Workers’ Party of Korea.

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DPRK to hold local People’s Committees elections

Tuesday, June 9th, 2015

UPDATE 1 (2015-7-4): Voter rolls displayed at constituencies, sub-constituencies for election of deputies to people’s assemblies. According to KCNA:

Constituencies and sub-constituencies for the election of deputies to the provincial (municipal), city (district) and county people’s assemblies have displayed voter rolls on Saturday.

The voter rolls were worked out, thoroughly pursuant to the Law on the Elections of Deputies to the People’s Assemblies at All Levels.

Registered there are all citizens with suffrage residing in the relevant areas.

The voters are confirming whether they are correctly registered.

ORIGINAL POST (2015-6-9): According to Yonhap:

North Korea said Tuesday that it plans to select deputies to local assemblies in mid-July for the first time since the North’s leader Kim Jong-un took power in late 2011.

Elections for deputies to provincial, city and county people’s assemblies will take place July 19, according to the North’s official Korean Central News Agency.

The elections are held every four years, and the number of seats is determined by the population of each area.

However, they are widely considered a formality as the candidates hand-picked by the ruling Workers’ Party are rubber-stamped into office.

The latest local elections were held in July 2011 when Kim was the communist nation’s heir-apparent.

Elected deputies hold a meeting once or twice every year to set their provinces’ budgets and draw up plans for law enforcement, experts said.

Read the full story here:
N. Korea to hold local elections in July
Yonhap
2015-6-9

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‘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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Third session of 13th SPA held

Thursday, April 9th, 2015

According to KCNA (2015-4-9):

The Third Session of the 13th Supreme People’s Assembly (SPA) of the DPRK took place at the Mansudae Assembly Hall Thursday.

Present there were deputies to the SPA.

Present there as observers were officials of the party, armed forces and power organs, social organizations, ministries and national institutions and those in the fields of science, education, literature and art, public health and media.

The participants observed a moment’s silence in memory of President Kim Il Sung and leader Kim Jong Il, founder and builder and eternal leaders of the DPRK.

Discussed at the session were “1. On the work of the DPRK Cabinet for Juche 103 (2014) and its tasks for Juche 104 (2015)”, “2. On summing up the fulfillment of the state budget of the DPRK for Juche 103 (2014) and its state budget for Juche 104 (2015)” and “3. Organizational matters”.

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

He said that last year the DPRK registered great successes in grain production, provided a guarantee for completing the stock-breeding base in Sepho area as a gift to the 70th anniversary of the founding of the Workers’ Party of Korea and built many monumental structures, icons of Juche architecture, through army-people coordinated operations.

It opened up a bright prospect for implementing the behests of Kim Jong Il on turning the Chongchon River into one of treasure and patriotism, made progress in developing economy and improving the people’s living standard by dint of science and technology and made great achievements in the fields of sports, education and public health, he noted.

It is the main tasks for this year to settle the food problem of the people with the farming, stock-breeding and fishery as the three thrusts, boost electricity production and put the metal industry on a Juche basis while taking it as the lifeline and key point to carry out the behests of Kim Jong Il and pushing forward them consistently, he said, referring to the concrete tasks.

Deputy Ki Kwang Ho made a report on the second agenda item.

The plan of state budgetary revenue for last year was over-fulfilled 1.6 percent, 6 percent increase over the previous year, the plan for state budgetary expenditure was carried out at 99.9 percent, and 46.7 percent of the total state budgetary expenditure was spent for the development of the national economy, 37.2 percent for the cultural field and 15.9 percent for national defence, he said.

The state budgetary revenue for this year will grow 3.7 percent over last year.

The state budgetary expenditure for this year will grow 5.5 percent over last year, 15.9 percent of total budgetary expenditure will be spent for national defence and bigger investment will be made to shore up the national economy and to improve the people’s living standard, he said.

Speakers said that the work of the Cabinet and the fulfillment of the state budget for last year have been reviewed correctly, clear-cut tasks for this year for improving the standard of people’s living and building an economic power have been advanced and the state budget was properly shaped to fully display the advantages of the socialist system. They expressed full support and approval of them.

They evinced the pledge to consolidate the political and military might of the country in every way, bring about fresh progress in all spheres of socialist construction and thus mark the 70th anniversaries of the WPK founding and the liberation of Korea as grand festivals of victors.

The session adopted a decision of the SPA of the DPRK “On approving the report on the work of the DPRK Cabinet and the summing up of the fulfillment of the state budget for Juche 103 (2014)” and an ordinance of the SPA of the DPRK “On the state budget of the DPRK for Juche 104 (2015)”.

Deputy Pak To Chun was recalled from member of the DPRK National Defence Commission due to his transfer to other post.

Deputy Kim Chun Sop was elected member of the DPRK NDC to fill a vacancy upon the authorization of Marshal Kim Jong Un.

KCNA also reports “SPA Session Reviews Cabinet Work Last Year and Advances Its Tasks for This Year“:

Deputy Pak Pong Ju, premier of the Cabinet, delivered a report on the work done by the Cabinet last year and tasks facing it this year at the Third Session of the 13th Supreme People’s Assembly (SPA) of the DPRK Thursday.

According to the report, last year was a year of shining victories as the foundation for winning a final victory in all fields of building a thriving nation was consolidated and invincible might of Juche Korea was strikingly demonstrated under the wise leadership of Marshal Kim Jong Un.

Farming materials including chemical fertilizers, rice-seedling transplanting machines, mobile threshing machines, farm machine parts and oil were provided as planned last year, true to the intention of the party which set the agricultural field as a key field in the drive of pushing forward economic construction and improving the standard of people’s living and an outpost of defending socialism.

Pasture covering 50 000 hectares was created in the Sepho area and the work of securing livestock was pushed ahead simultaneously with the construction of structures and preparations for their operation to provide a guarantee for completing the stock-breeding base in Sepho area as a gift to the 70th anniversary of the Workers’ Party of Korea.

The Wisong residential district for scientists, Yonphung Rest Home for Scientists, Pyongyang Orphanage and Baby Home and lots of other monumental structures were built as icons of Juche-based architecture.

More than 1 000 valuable scientific and technological development projects were carried out.

The coal industry showed 28 percent increase in production over last year.

The production of cement jumped 12 percent over last year and that of various industrial indices including nitrogen fertilizer, salt and timber also went up.

Players of the DPRK bagged many gold medals at the 17th Asian Games and other international sports events, demonstrating the honor of the country. The popular policies of the party were implemented at a higher level in the fields of education and public health.

Referring to the tasks for this year, he stressed the need to consistently hold fast to the implementation of the behests of leader Kim Jong Il as a lifeline and the most important work. The main thrusts for this year are to organize the economic work with a main emphasis on solving the food problem of the people with agriculture, stock-breeding and fisheries as the three pivots, drastically increasing power production and putting metal industry on Juche basis, the reporter said.

He called for improving the production environment of the units associated with the leadership feats of President Kim Il Sung and Kim Jong Il and steadily raising their modernization level so as to continue glorifying their undying feats.

It is important to thoroughly carry out the party’s strategic line on simultaneously developing economic construction and the building of a nuclear force and provide equipment, raw materials and funds necessary for the combat readiness of the People’s Army and the defence industry in a responsible manner and thus actively contribute to bolstering up the defence capabilities.

Investment in the field of science and technology should be increased and efforts be concentrated on solving scientific and technological problems urgently required by reality including key state projects for the development of science and technology.

Scientific farming methods should be actively introduced into the agricultural field and drive of securing and saving water should be conducted and such farming materials as chemical fertilizers, rice seedling transplanting machines, rolled steel, farm machine parts and oil be satisfactorily provided.

Ministries, national institutions and provincial people’s committees should complete flawlessly and qualitatively the construction of dwelling houses, pens of domestic animals, public buildings, pavement of roads and creation of windbreaks by the 70th anniversary of the WPK. The management of modern stock-breeding bases, fish breeding bases, greenhouses and mushroom production bases in different parts of the country should be put on normal footing and production be boosted there.

In the fisheries field fishing boats and fishing tackle should be modernized and scientific fishing methods be actively introduced to haul fishes all the year round.

In the field of light industry, local supply of raw and other materials should be actively pushed forward and their production be markedly boosted to provide the people with more consumer goods.

A decisive measure should be taken to provide equipment and materials needed for thermal power plants and coal mines on a top priority basis.

The power stations in tiers on the River Chongchon, Paektusan Songun Youth Power Station, Ryesonggang Power Station, Orangchon Power Station and other hydroelectric power stations that were planned by Kim Jong Il should be completed in a short span of time.

Efforts should be focused on further rounding off the work of putting metal industry on a Juche basis.

In the chemical industrial field, production should be put on a normal footing at Juche fertilizer and Juche fiber production bases.

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.

Sustained great efforts should be directed to reenergizing the production in the vanguard sectors and key industries of the national economy such as railway transport, mining, forestry and machine-building industry.

All the fields and units should turn out in the drive of restoring forests and work hard to turn the mountains of the country into those in thick verdure full of nuts and fruits. Substantial work should be conducted to turn Pyongyang into the hub and model of Songun culture and a world class city and to spruce up provincial, city and county seats so that they may preserve their local characteristics.

The work to drastically improve education in the new century should be actively pushed forward, enthusiasm for sports should be raised higher and lots of fine literary pieces be created to encourage all people in the general offensive for glorifying the grand October festivals.

The reporter called on all the officials in the field of economic guidance to thoroughly carry out the important tasks set forth by Kim Jong Un in the New Year Address and at the enlarged meeting of the Political Bureau of the Central Committee of the Workers’ Party of Korea and fulfill their responsibilities and duties in the general offensive this year marking the 70th anniversaries of the WPK and the liberation of Korea.

Finally, KCNA reports “SPA Session Reviews Implementation of State Budget for 2014 and Sets forth State Budget for 2015“:

Deputy Ki Kwang Ho, minister of Finance, made a report on the review of the fulfillment of the state budget of the DPRK for Juche 103 (2014) and the state budget for Juche 104 (2015) at the Third Session of the 13th Supreme People’s Assembly on Thursday.

According to the report, the plan of state budgetary revenue for last year was over-fulfilled 1.6 percent, 6 percent increase over the previous year.

The local plan for budgetary revenue was carried out at 122.2 percent and the plan for state budgetary expenditure at 99.9 percent.

46.7 percent of the total budget was spent for the development of the national economy.

37.2 percent of the total state budgetary expenditure was spent for the cultural field including education, public health, sports and literature and art.

15.9 percent of total expenditure was directed to national defence.

The state budgetary revenue and expenditure for this year have been shaped in such a way as to bolster up the capabilities for self-defence and effect a turn in building a socialist economic power and a highly civilized nation by giving definite precedence to science and technology.

The state budgetary revenue will grow 3.7 percent over last year; transaction revenue is expected to swell 2. 6 percent, revenue from the profits of state enterprises 4.3 percent, revenue from the profits of cooperative organizations 3. 2 percent, real estate rent 0.7 percent, social insurance fee 2.8 percent, revenue from sale of properties and price differential 1.4 percent, revenue from other sources 0.8 percent and revenue from economic trade zones 3.6 percent.

The national budgetary revenue will account for 79 percent and the local budgetary revenue 21 percent of the state budgetary revenue. Provinces, cities and counties are expected to ensure expenditure with the revenue from local sources and provide profits to the national budget.

The national budgetary expenditure is expected to grow 5.5 percent over last year for focusing investment in augmenting the national power, developing science and technology and undertaking the projects for fulfilling the grandiose plan of the party so as to financially guarantee the general advance for greeting the grand October festival with labor achievements.

15.9 percent of total expenditure will be spent for national defence.

The allocation of funds for the field of science and technology is expected to go up 5 percent.

4.2 percent more financial disbursement will be made for the agricultural field, 6.8 percent more for the fisheries field, 5.1 percent more for the industrial field including light industry and vanguard fields of the national economy, 8.7 percent more for capital construction and 9.6 percent for the forestry field to shore up the national economy as a whole, bring about a turn in improving the people’s living standard and wage a dynamic drive for the building of monumental edifices and reforestation.

Expenditure for education goes up 6.3 percent, that for public health 4.1 percent, that for sports 6.9 percent and that for culture 6.2 percent so as to provide a financial guarantee for the drive for bringing about a turn in building a highly civilized socialist state.

A large amount of funds will be sent as educational aid fund and stipends for the children of Koreans in Japan this year, too.

The reporter stressed that the Korean people faced with huge tasks this year but the DPRK is sure to emerge victorious as there are the tested and seasoned leadership of the Workers’ Party of Korea, invincible revolutionary spirit and fighting spirit and the army and people full of revolutionary and patriotic enthusiasm.

Here is a summary in Yonhap:

 

Additional information:

1. 38 North offers analysis by Ruediger Frank and Alexandre Mansourov.

2. The Institute for Far Eastern Studies (IFES) offered two reports.

3. Here is coverage in the Daily NK.

4. Here is coverage in Yonhap.

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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 annual North Korea-China Economic, Trade, Culture and Tourism Expo

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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