North Korean Economy Watch

The Nation
1/18/2007

North Korea’s energy minister has been fired because he suggested that the power supply to leader Kim Jong-Il’s guesthouse should be diverted for public use, a Japanese newspaper said Thursday.

Ju Tong-il, minister of power and coal industries, was fired late last year by the leaders of the impoverished Communist state, the evening edition of the Mainichi Shimbun daily said in a story from Beijing.

“Our country’s energy situation is extremely severe,” Ju told a meeting of energy-related officials last spring, according to the daily, quoting unnamed sources close to the North Korean government.

“Or better yet, why don’t we get back electricity fed to the guesthouses of our general?” Ju reportedly suggesting, referring to Kim.

Ju later excused his remarks, saying: “I just wanted to express the fact that our domestic electricity condition is paralyzed.”

But he came under fire from leaders of the ruling Workers Party and was then dismissed, the daily said.

Agence France Presse

Golden Villas, Let’s Share Electricity!
Daily NK
Yang Jung A
1/19/2007

While North Korea’s electrical power supply worsens, North Korea’s Premier Park Bong Ju pushes for the expansion of energy supply and civil electrical support only to receive a personal punishment from authorities or in actual, his position changed.

“As a result of energy and other issues, Ju Dong Il, the Minister of the Electricity and Coal Industry was removed from his position” a Japanese newspaper “Mainichi” reported on the 18th, citing a source related to the North Korean government.

The Minister Ju was known for his proposal on energy made at a policy meeting early 2005 where a comment was made “The electricity situation in our country is seriously grave” and suggested “How about we redirect the electricity from our leader’s personal residence and use that.”

This proposal suggested that the electricity crisis be partly solved by redistributing some of the electricity supplying Kim Jong Il’s numerous personal villas throughout the nation, to much needed industries and homes.

As the Minister Ju realized his comments had set a predicament, he tried to justify himself stating “I simply wanted to express that the country’s electricity is in an immobilized state” but was known to have been reprimanded by the central authorities and his position changed. Since last October, the Ministry of the Electricity and Coal Industry had been separated to the Ministry of Electrical Industry and the Ministry of Coal Industry.

In the same month, Premier Park expressed his concerns on the export of coal to China at a trade conference saying “If this situation continues, our country will be faced with serious implications from the energy crisis. The people will be unable to use their central heating and industries will stop. It would be better to refrain from further exports.” The newspaper also mentioned that Premier Park had gone to the extent of submitting a proposal and that the ministry had even settled on the suspension of coal exports.

However, following the nuclear experiment, the National Defense Commission asserted that the acquirement of foreign currency was an absolute necessity in strengthening the military and strongly urged for the resumption of exports. In the end, the ministry’s decision was overturned and exports recommenced.

Though Premier Park has not yet been replaced, under the orders of authorities, he is known to be spending his time in self-discipline as “for now, revision is necessary.” Though Premier Park’s name is listed on the roll of honors, he has not been seen in the presence of Kim Jong Il. 

KCNA
1/15/2007

Officials of the Ministry of Power Industry, with a sense of responsibility for a pilot in the building of an economic power, are working hard to make an epochal turn in the power production from the outset of the year. Pak Nam Chil, minister of the Power Industry, told KCNA:

The ministry is concentrating all the forces on operating the already repaired generating equipment at full capacity, while considerably raising the existing capacities of the thermal- and hydro-power stations across the country.

In particular, it is gearing up preparations for the general overhaul of facilities at the power stations with main emphasis on putting production of the Pukchang Thermal-power Complex and the Pyongyang Thermal-power Complex on normal track.

The workers of the hydropower stations are successfully carrying on the repair of hydraulic power structures, managing water well and operating them in a scientific and technical way. Great efforts are channeled to manufacturing highly efficient turbines so as to boost the turbine efficiency.

Along with this, they are taking various measures to make best use of the produced electricity. They are readjusting the power transmission system to reduce the line loss and distributing electricity in a rational way.

Officials, workers and technicians of power stations in different parts of the country including the Chongjin Thermal-power Plant have turned out in the increased production of electricity, solving the needed materials and equipment components with their own efforts.