Since the start of Kim Jong-un regime, internal economic management measures continue to be established. Recently, a new law was enacted for the establishment of economic development zones.
The KCNA reported on June 5 that a law for economic development zones was adopted and “in this regard, ordinance of the DPRK Supreme People’s Assembly’s Standing Committee was promulgated at the session on May 29.”
This legislation is a follow up to the decision reached on April 1 this year by the Supreme People’s Assembly for the creation of economic development zones.
The legislation is composed of 7 chapters and 62 sections, which cover matters such as configuration, development, management, conflict resolution, and so forth.
The report added that “Economic development zones, in accordance with the regulations set forth by the state, are entitled to various privileges as special economic zones.”
In addition, “Foreign corporations, individuals, economic organizations, and overseas Koreans are able to invest in the economic development zones, and can freely engage in economic activities including establishment of businesses, branches, and offices.” It also indicated that “the state will provide preferential terms to investors in areas such as land usages, recruitment, and tax payments.”
The details of the rights granted to investors were expounded, emphasizing that economic development zone is a special zone, and provides legal safeguards to protect the rights, investment properties and legitimate profits of foreign investors.
According to the KCNA, the economic development zones will include various economic and science and technology sectors such as industrial development, agricultural, tourism, export processing, and high-tech development zones.
Chairman Kim Jong-un delivered a speech at the WPK’s Central Committee Meeting entitled “Economic Development Zones Must Be Created in Every Province Reflecting the Regional Characteristics,” hinting at the state’s policy to attract more foreign investment to accelerate the development of the economic zones.
In particular, investments in infrastructure construction, state-of-the-art science and technology sector, and production of goods highly competitive in the international market were especially encouraged.
The management of these economic development zones will be separated into local-level and central-level zones, indicating that economic development zones will be established in all parts of the country.
However, this law does not apply to the preexisting economic and trade zones in Rason, Hwanggeumpyeong, Wihwa Island, Kumgang and Kaesong. The new legislation indicates that North Korea is committed to economic development regardless of the tense relations on the Korean Peninsula.
On March 31, KCNA reported on the recent plenary meeting of the Korean Worker’s Party:
The historic March, 2013 plenary meeting of the Central Committee of the Workers’ Party of Korea took place at the building of the WPK Central Committee, supreme staff of the Korean revolution, on Sunday.
First Secretary of the WPK Kim Jong Un guided the meeting.
Present at the meeting were members and alternate members of the WPK Central Committee and members of the Central Auditing Commission of the WPK.
Present there as observers were senior officials of ministries, national institutions, provincial, city and county committees of the WPK, complexes, major munitions factories and enterprises.
The participants paid silent tribute to President Kim Il Sung and leader Kim Jong Il.
Taken up for discussion at the meeting were the following agenda items “1. On tasks of our Party on bringing about a decisive turn in accomplishing revolutionary cause of Juche as required by the present situation and the developing revolution”, “2. On personnel affairs issue to be submitted to the 7th Session of the 12th Supreme People’s Assembly” and “3. On organizational matter”.
Kim Jong Un made a report and concluding speech on the first agenda item.
The plenary meeting set forth a new strategic line on carrying out economic construction and building nuclear armed forces simultaneously under the prevailing situation and to meet the legitimate requirement of the developing revolution.
This line is a brilliant succession and development onto a new higher stage of the original line of simultaneously developing economy and national defence that was set forth and had been fully embodied by the great Generalissimos.
It was stressed at the meeting that the party’s new line is not a temporary countermeasure for coping with the rapidly changing situation but a strategic line to be always held fast to, in the supreme interests of the Korean revolution.
The nuclear weapons of Songun Korea are not goods for getting U.S. dollars and they are neither a political bargaining chip nor a thing for economic dealings to be presented to the place of dialogue or be put on the table of negotiations aimed at forcing the DPRK to disarm itself.
The DPRK’s nuclear armed forces represent the nation’s life which can never be abandoned as long as the imperialists and nuclear threats exist on earth. They are a treasure of a reunified country which can never be traded with billions of dollars.
Only when the nuclear shield for self-defence is held fast, will it be possible to shatter the U.S. imperialists’ ambition for annexing the Korean Peninsula by force and making the Korean people modern slaves, firmly defend our ideology, social system and all other socialist treasures won at the cost of blood and safeguard the nation’s right to existence and its time-honored history and brilliant culture.
When the party’s new line is thoroughly carried out, the DPRK will emerge as a great political, military and socialist economic power and a highly-civilized country which steers the era of independence.
The meeting set forth tasks for carrying out the new line and ways for doing so.
All the officials, party members and other people should wage bold offensive and all-people decisive battle with faith in sure victory and strong determination and thus make the flame of miracle and innovation sweep all fields of national economy.
The pilot fields of the national economy, the basic industrial fields should be drastically developed and production be increased to the maximum. Forces should be directed to agriculture and light industry, key fields in building an economic power to improve and put on a stable basis the people’s living standard at the earliest possible date.
The self-reliant nuclear power industry should be developed and the work for developing light water reactor be dynamically promoted to actively contribute to easing the strain on the electricity problem of the country.
Spurs should be given to the development of space science and technology and more advanced satellites including communications satellites be developed and launched.
The country’s economy should be shifted into knowledge-based economy and the foreign trade be made multilateral and diversified and investment be widely introduced.
The economic guidance shall be fundamentally improved as required by the new situation and Korean-style advantageous economic management methods be completed by embodying the Juche idea.
The DPRK’s possession of nukes should be fixed by law and the nuclear armed forces should be expanded and beefed up qualitatively and quantitatively until the denuclearization of the world is realized.
The People’s Army should perfect the war method and operation in the direction of raising the pivotal role of the nuclear armed forces in all aspects concerning the war deterrence and the war strategy, and the nuclear armed forces should always round off the combat posture.
As a responsible nuclear weapons state, the DPRK will make positive efforts to prevent the nuclear proliferation, ensure peace and security in Asia and the rest of the world and realize the denuclearization of the world.
Institutions in charge of security and safeguard, judicial and prosecution and people’s security and the Korean People’s Internal Security Forces should resolutely foil the vicious moves of the imperialist reactionaries and class enemies, devotedly defend the party, social system and people and surely guarantee the new line of the party with arms and by law.
The party and working people’s organizations and power bodies should increase their militant function and role in every way in the struggle for implementing the party’s line.
The meeting entrusted the Presidium of the SPA and the Cabinet with the matters of taking legal, administrative and technical measures for implementing the tasks.
At the meeting a decision on the first agenda item “On carrying out economic construction and building nuclear armed forces simultaneously and thus bringing earlier the final victory in the cause of building a thriving socialist nation” was adopted with unanimous approval.
The second agenda item, personal affairs issue to be submitted to the 7th Session of the 12th SPA, was discussed and decided at the meeting.
The meeting also dealt with an organizational matter, its third agenda item.
Members of the Presidium of the Political Bureau of the WPK Central Committee, members and alternate members of the Political Bureau were recalled and new ones were elected to fill vacancies.
Pak Pong Ju was elected to fill a vacancy of a member of the Political Bureau of the WPK Central Committee.
Hyon Yong Chol, Kim Kyok Sik and Choe Pu Il were elected to fill vacancies of alternate members of the Political Bureau of the WPK Central Committee.
Members and alternate members of the WPK Central Committee were recalled and new ones were elected to fill vacancies.
Upon authorization of Kim Jong Un, Paek Kye Ryong was appointed as director of the Light Industrial Department of the WPK Central Committee and Yun U Chol as editor-in-chief of Rodong Sinmun, organ of the WPK Central Committee.
Members of the Central Auditing Commission of the WPK were also recalled and new ones were elected to fill vacancies.
Central Committee of the Workers’ Party of Korea Stresses Development of Agricultural, Light, and Nuclear Industries
Institute for Far Eastern Studies (IFES)
The Korean Central News Agency (KCNA) reported on March 31 that a plenary meeting of the Central Committee of the ruling Workers’ Party of Korea was held. At the meeting, a new strategic line was announced to have been set, which called for building a stronger economy and nuclear arsenal. This meeting is drawing attention as it is suspected that Pyongyang will pursue a new economic policy.
The news described the new strategic line as, “most revolutionary and people oriented policy for the construction of a powerful socialist nation by consolidating defense capacity through development of defensive nuclear weapons and economic construction.”
It stressed that this policy is significant as a “creative and parallel policy for defense and economy continuing the policies of Kim Il Sung and Kim Jong Il, which must be adopted as a permanent strategy.”
At the plenary meeting, the main agendas for the parallel policy of economy and defense were announced as: 1) Improvement of the production of people’s economy and capacity enhancement for agricultural and light industries to stabilize prices to improve the lives of the people; 2) development of self-reliant nuclear power industry and light water reactors; 3) development and launch of more satellites including communication satellites through advancement in space science and technology; 4) transition to knowledge economy and diversification of foreign trade to vitalize foreign investments; and 5) establish legislation to be recognized as a nuclear state and develop nuclear arsenal both in quantity and quality until denuclearization is realized worldwide.
At the plenary, the new parallel policy was commended, “The supremacy of the policy is demonstrated by expanding capability in war deterrence and national defense without increasing defense budget and enabled concentration on economic development and improvement of the lives of the people.”
The statement released by the KCNA stated that the plenary meeting’s emphasis on transition to knowledge economy and diversification of foreign trade as the main tasks and appears to be pursuing a “fundamental improvement in economic leadership.”
In addition, the plenary assigned the presidium of the Supreme Peoples’ Assembly and the Cabinet to serve as the economic control tower to oversee the future projects decided at the plenary meeting.
North Korea is continuing to place emphasis on light and agricultural industries. The Kim Jong Un regime entered its second year. The leader was reported to have attended the light industry conference, which was held for the first time in ten years and underscored the importance of concentrating on development of the capacity of light industry.
The new Korean line, 병진 (Pyongjin, Byungjin) is the simultaneous development of nuclear weapons and the economy. Learn more about it here.
Following the central committee plenary meeting, the 7th Session of the 12th Supreme People’s Assembly was held. According to KCNA:
The Seventh Session of the 12th Supreme People’s Assembly (SPA) of the DPRK took place at the Mansudae Assembly Hall Monday.
Kim Jong Un, first secretary of the Workers’ Party of Korea, first chairman of the National Defence Commission of the DPRK and supreme commander of the Korean People’s Army, was present at the session.
Present there were deputies to the SPA.
Also present there as observers were officials of party, armed forces and power bodies, public organizations, ministries and national institutions and those in the fields of science, education, literature and art, public health and media.
All the participants observed a moment’s silence in memory of President Kim Il Sung and leader Kim Jong Il in humblest reverence.
The session decided the following agenda items of the Seventh Session of the 12th SPA of the DPRK:
1. On amending and supplementing some contents of the Socialist Constitution of the DPRK
2. On adopting the DPRK Law on the Kumsusan Palace of the Sun
3. On adopting the ordinance of the SPA of the DPRK “On Consolidating the Position of Nuclear Weapons State for Self-Defence”
4. On adopting the DPRK Law on Developing Space
5. On adopting the decision of the SPA of the DPRK “On Setting up the DPRK State Space Development Bureau”
6. On the work of the DPRK Cabinet for Juche 101 (2012) and its tasks for Juche 102 (2013)
7. On the review of the fulfillment of the DPRK’s state budget for Juche 101 (2012) and state budget for Juche 102 (2013)
8. Organizational matter
The session discussed the first and second agenda items.
Deputy Kim Yong Nam, president of the Presidium of the DPRK SPA, made a report on amendment and supplement to some contents of the Socialist Constitution of the DPRK and on adopting the law on the Kumsusan Palace of the Sun.
Then followed speeches on the first and second agenda items.
Deputy Kim Ki Nam, secretary of the WPK Central Committee, spoke on behalf of the WPK, Deputy Choe Ryong Hae, director of the General Political Bureau of the KPA, on behalf of the KPA and Deputy Jon Yong Nam, chairman of the C.C., the Kim Il Sung Socialist Youth League, on behalf of the youth.
The speakers fully supported and approved of deliberation and adoption of the draft amendment and supplement to the Socialist Constitution of the DPRK and the law on the Kumsusan Palace of the Sun at the current SPA session reflecting the unanimous feelings of all party members, service personnel and youth across the country.
The ordinances of the SPA of the DPRK “On Amending and Supplementing Some Contents of the Socialist Constitution of the DPRK” and “On Adopting the DPRK Law on the Kumsusan Palace of the Sun” were adopted at the session with the approval of all deputies.
The session discussed the third, fourth and fifth agenda items.
The ordinances of the SPA of the DPRK “On Consolidating the Position of Nuclear Weapons State for Self-Defence” and “On Adopting the DPRK Law on Developing Space” and the decision of the SPA of the DPRK “On Setting Up the DPRK State Space Development Bureau” were adopted at the session with the approval of all deputies.
Deputy Choe Yong Rim, premier of the Cabinet, made a report on the sixth agenda item.
Deputy Choe Kwang Jin, minister of Finance, made a report on the seventh agenda item.
Then followed speeches on the sixth and seventh agenda items. Written speeches were presented at the session.
The speakers noted that the Cabinet work and the fulfillment of the state budget for last year were correctly reviewed and summed up, clear tasks of the Cabinet were set forth to meet the requirements of the general offensive to open an epochal phase in building an economic power at the final stage of the all-out action against the U.S. and the state budget was correctly shaped. They expressed full support and approval of them.
They expressed their determination to reenergize the overall economy of the country, step up the grand advance for improving the standard of people’s living to make loud shouts of hurrah for the Workers’ Party and socialism heard this year marking the 65th anniversary of the DPRK and the 60th anniversary of the victory in the Fatherland Liberation War, true to the historic New Year Address of Kim Jong Un and the decision of the March, 2013 plenary meeting of the WPK Central Committee.
The decision of the SPA of the DPRK “On Approval of the Report on the Work of the DPRK Cabinet and the Review of the Fulfillment of the State Budget for Juche 101 (2012)” and the ordinance of the SPA of the DPRK “On the DPRK’s State Budget for Juche 102 (2013)” were adopted at the session with the approval of all deputies.
The session discussed the organizational matter.
At the session Deputy Choe Yong Rim was recalled from the post of premier of the DPRK Cabinet and Deputy Pak Pong Ju was elected premier of the DPRK Cabinet at the proposal of the WPK Central Committee.
Choe Yong Rim was elected honorary vice-president of the Presidium of the DPRK SPA.
Deputies Kim Jong Gak and Ri Myong Su were recalled from the posts of member of the DPRK National Defence Commission (NDC) due to the transfer to other jobs.
Deputies Kim Kyok Sik and Choe Pu Il were elected members of the DPRK NDC to fill vacancies at the proposal of the WPK Central Committee and the WPK Central Military Commission.
Deputy Thae Hyong Chol was recalled from the post of secretary general of the Presidium of the DPRK SPA and Deputy Hong Son Ok was elected secretary general of the Presidium of the DPRK SPA.
Some members of the Cabinet were relieved of their posts and appointed at the session.
Deputy Pak Pong Ju, premier of the DPRK Cabinet, took an oath at the SPA.
KCNA also issued several reports that stemmed from the SPA meeting:
Report on Adopting Draft Amendment and Supplement to Socialist Constitution and Law on Kumsusan Palace of Sun
Pyongyang, April 1 (KCNA) — Kim Yong Nam, president of the Presidium of the Supreme People’s Assembly, made a report on adopting the draft amendment and supplement to the Socialist Constitution of the DPRK and the law on the Kumsusan Palace of the Sun.
According to the report, the draft amendment and supplement to the Socialist Constitution and the law on the Kumsusan Palace of the Sun to be submitted to the session for discussion will legalize the plan and intention of the Workers’ Party of Korea to fix by law the shining achievements made in accomplishing the cause of perpetuating the memory of the leaders and complete it on a new higher stage.
To be supplemented to the preface of the Socialist Constitution is the sentence which says that the Kumsusan Palace of the Sun where President Kim Il Sung and leader Kim Jong Il lie in state is a grand edifice for the immortality of the leaders, a symbol of the dignity of the whole Korean nation and its eternal sacred temple.
The law on the Kumsusan Palace of the Sun specifies that its noble mission is to preserve and glorify forever the palace, which is the supreme temple of Juche, as the eternal temple of the sun of the entire Korean nation.
The law stipulates that Kim Il Sung and Kim Jong Il will be held in high esteem forever as in their lifetime at the Kumsusan Palace of the Sun and that it is the obligation of all the Koreans to regard the Palace as a symbol of dignity and a great pride of the nation.
It also specifies the state duty to spruce up the Palace in a sublime and perfect way with the state, all-people and nationwide efforts and devotedly safeguard the Palace in every way so that no one can violate.
Also stipulated in the law are matters for carrying out the work of eternally preserving the Palace as the most important state work with consistency, organizing the committee for the eternal preservation of the Palace and preserving for photos, train coaches, cars, boat and other relics and orders which represent the noble lives of the great Generalissimos.
Orders were also set so that Korean people, overseas Koreans and foreigners can pay respects to the great Generalissimos at the Kumsusan Palace of the Sun.
Also mentioned in the law are the matters of establishment of special sanctuary of the Palace for its protection and management as well as the management of buildings in the premise of the palace, park, arboretum, outdoor lighting and lighting facilities and orders concerning the operation of the plaza and the park of the Palace.
It was specified in the law that electricity, facilities, materials and other supplies needed for the Palace shall be planned separately and be provided without fail on a top priority basis. The law also set the duty to be fulfilled by relevant institutions to strictly supervise and control on a regular basis the work for safeguarding, eternally preserving and providing the conditions for the management and operation of the Palace.
The reporter said that the law on the Kumsusan Palace of the Sun is the unique code for the immortality of the leaders, adding that it is the biggest honor for the army and people of the DPRK to have the legal weapon for the immortality of the leaders.
The adoption of the law will serve as a historic occasion for defending and further glorifying the idea on perpetuating the memory of the leaders clarified by the dear respected Kim Jong Un, he stressed.
The reporter said that the Presidium of the Supreme People’s Assembly of the DPRK submits the draft amendment and supplement to the Socialist Constitution and the draft law on the Kumsusan Palace of the Sun to the SPA session for discussion according to Article 95 of the Socialist Constitution.
DPRK’s Law on Kumsusan Palace of Sun Adopted
Pyongyang, April 1 (KCNA) — The DPRK’s Law on the Kumsusan Palace of the Sun was adopted.
The ordinance of the DPRK Supreme People’s Assembly on it was promulgated Monday.
The Kumsusan Palace of the Sun where President Kim Il Sung and leader Kim Jong Il lie in state is the
eternal temple of the sun of the whole Korean nation.
The ordinance says that the SPA decides to adopt this law to eternally preserve and glorify forever the
Kumsusan Palace of the Sun as a grand edifice for the immortality of the leaders symbolic of Kim Il Sung’s and Kim Jong Il’s Korea.
Law on Consolidating Position of Nuclear Weapons State Adopted
Pyongyang, April 1 (KCNA) — A law on consolidating the position of nuclear weapons state for self-defence was adopted in the DPRK.
An ordinance of the Supreme People’s Assembly of the DPRK in this regard was promulgated on Monday.
The ordinance said as follows:
The DPRK is a full-fledged nuclear weapons state capable of beating back any aggressor troops at one strike, firmly defending the socialist system and providing a sure guarantee for the happy life of the people.
Having an independent and just nuclear force, the DPRK put an end to the distress-torn history in which it was subject to outside forces’ aggression and interference and could emerge a socialist power of Juche which no one dares provoke.
The Supreme People’s Assembly of the DPRK decides to consolidate the position of the nuclear weapons state as follows:
1. The nuclear weapons of the DPRK are just means for defence as it was compelled to have access to them to cope with the ever-escalating hostile policy of the U.S. and nuclear threat.
2. They serve the purpose of deterring and repelling the aggression and attack of the enemy against the DPRK and dealing deadly retaliatory blows at the strongholds of aggression until the world is denuclearized.
3. The DPRK shall take practical steps to bolster up the nuclear deterrence and nuclear retaliatory strike power both in quality and quantity to cope with the gravity of the escalating danger of the hostile forces’ aggression and attack.
4. The nuclear weapons of the DPRK can be used only by a final order of the Supreme Commander of the Korean People’s Army to repel invasion or attack from a hostile nuclear weapons state and make retaliatory strikes.
5. The DPRK shall neither use nukes against the non-nuclear states nor threaten them with those weapons unless they join a hostile nuclear weapons state in its invasion and attack on the DPRK.
6. The DPRK shall strictly observe the rules on safekeeping and management of nukes and ensuring the stability of nuclear tests.
7. The DPRK shall establish a mechanism and order for their safekeeping and management so that nukes and their technology, weapon-grade nuclear substance may not leak out illegally.
8. The DPRK shall cooperate in the international efforts for nuclear non-proliferation and safe management of nuclear substance on the principle of mutual respect and equality, depending on the improvement of relations with hostile nuclear weapons states.
9. The DPRK shall strive hard to defuse the danger of a nuclear war and finally build a world without nukes and fully support the international efforts for nuclear disarmament against nuclear arms race.
10. The related institutions shall take thorough practical steps for implementing this ordinance.
DPRK Law on Developing Space Adopted
Pyongyang, April 1 (KCNA) — The Law on Developing Space was adopted in the DPRK.
The ordinance of the DPRK Supreme People’s Assembly on it was promulgated Monday.
DPRK SPA Decides to Set Up State Space Development Bureau
Pyongyang, April 1 (KCNA) — The DPRK decided to set up the State Space Development Bureau.
The decision of the Supreme People’s Assembly (SPA) of the DPRK promulgated on Monday said:
The DPRK is a full-fledged satellite manufacturer and launcher.
It is an invariable stand of the DPRK to develop the country into a world-class space power by exercising its legitimate right to space development for peaceful purposes.
To step up economic construction and improve the people’s standard of living by radically developing the space science and technology of the country and guide and manage all the space activities of the DPRK in a uniform way, the SPA decides as follows:
1. The DPRK State Space Development Bureau shall be set up.
2. The bureau is a state central institution which guides and manages the supervision and control over the working out of a space development program and its implementation and space development work in a uniform way.
3. The Cabinet of the DPRK and other institutions concerned shall take practical measures to implement this decision.
Work of Cabinet for Last Year and Tasks for This Year
Pyongyang, April 1 (KCNA) — At the 7th Session of the 12th Supreme People’s Assembly held on Monday, Deputy and Premier Choe Yong Rim made a report on the last year’s work of the DPRK Cabinet and this year’s tasks.
According to the report, last year electricity and coal production and the volume of railway freight transport increased amid the endeavors to shore up the four pilot fields of the national economy. Increase was also made in the production of a variety of industrial goods, the report said, and went on:
The Kumsusan Palace of the Sun was remodeled to be the supreme temple of Juche, the National Gifts Exhibition House, Pyongyang Folklore Park, Changjon Street, Rungna People’s Pleasure Park and other big edifices in the era of Songun have been built.
Big industrial projects such as the Huichon Power Station, Tanchon Port, Taedonggang Building Materials Factory were completed and technological updating and modernization of major factories and enterprises in the field of metal, machine, chemical and light industries have been pushed forward, consolidating the material and technological foundation of the national economy.
Satellite Kwangmyongsong 3-2 was successfully manufactured and launched and the third underground nuclear test by the use of smaller and lighter A-bomb of great explosive power was successfully conducted.
The bases for the production of cutting-edge technical goods were built and projects for the development of science and technology have been successfully carried out and the modernization of the information and communications field have been stepped up.
A law on the enforcement of the universal 12-year compulsory education was promulgated. This paved a wide avenue for consolidating the socialist education system and raising the quality of education.
In the field of health care, a telemedicine service has been successfully introduced. The DPRK’s players glorified the honor of the country at major international sports events including the 30th Olympic Games and other signal achievements were made in the field of cultural construction.
The reporter said that this year’s tasks are to realize at an early date the lifetime desire of President Kim Il Sung and leader Kim Jong Il, who devoted their whole lives to putting the country’s economy on the level of a prosperous and powerful country and to making the people live with no more to desire in the world.
According to the report, this year the Cabinet will organize the economic work with a main emphasis on solving issues arising in the people’s living by shoring up the pilot fields, the basic industrial field, consolidating the springboard for building an economic power and concentrating all efforts on agriculture and light industry while regarding coal industry and metal industry as key fields.
It is necessary to increase the production of coal.
Technological updating and modernization of iron works and steel works will be stepped up while improving the bases for the production of Juche iron which have already been built in the field of metal industry. Strict measures for supplying raw materials and fuel should be taken to increase the production of rolled steel more than 3.5 times as compared with last year and thus meet the need for steel.
The field of railway transport will ease strain on transport by consolidating the material and technical foundation of railways.
The grain production plan for this year should be carried out without condition.
The whole country should make efforts for the reclamation of Sepho Tideland and the construction of stock-breeding bases and thus complete the creation of grassland within this year.
The production should be put at a high rate at major chemical factories and the percentage of locally available raw materials should be significantly increased. The production at mines, factories and enterprises in Tanchon area should be increased and exports be boosted to ensure in a responsible manner funds for improving the people’s living standard.
Big efforts should be directed to the construction of dwelling houses. Wonsan area should turn into a world-level resort and tourist destination and living environment and conditions be improved in provinces, cities and counties.
The state investment in the field of science and technology should be increased and the flame of industrial revolution in the new century be raised so as to bring about a decisive turn in building an economic power by dint of science and technology.
Ultra-modern technological goods of high competitiveness should be massively researched and developed. Scientific and technological issues arising in the technological updating and modernization of the national economy should be satisfactorily solved.
The state investment will be increased in education and the preparations for enforcing the universal 12-year compulsory education system be rounded off within this year and fresh progress be made in education, public health, literature, arts, sports and all other fields of cultural construction.
All the fields and units of the national economy should build under a long-term plan export bases for producing second-stage and third-stage processed goods and finished goods of high competitiveness at international markets by relying on locally available resources and indigenous technology. Latest scientific and technological achievements should be positively introduced to increase the varieties of exports and remarkably raise their quality.
Trade should be made diversified and multilateral while conducting a variety of trade activities. The joint venture and collaboration should be actively promoted and the work for setting up economic development zones be pushed forward.
Review of Fulfillment of State Budget for Last Year and State Budget for This Year
Pyongyang, April 1 (KCNA) — Deputy Choe Kwang Jin, minister of Finance, made a report on the review of the fulfillment of state budget for last year and the state budget for this year at the 7th Session of the 12th Supreme People’s Assembly held on Monday.
According to the report, the state budgetary revenue last year was over-fulfilled by 1.3 percent, an increase of 10.1 percent over the previous year.
The plan for local budgetary revenue was carried out at 113.8 percent.
The state budgetary expenditure was implemented at 99.6 percent, an increase of 9.7 percent over that in the previous year.
44.8 percent of the total state budgetary expenditure for the economic development and improvement of people’s living standard was used for funding the building of edifices to be presented to the 100th birth anniversary of President Kim Il Sung, the consolidation of the material and technological foundation of Juche-based, modern and self-supporting economy and the work for face-lifting the country.
38.9 percent of total expenditure was spent for enforcing popular policies and measures for social culture under socialism such as the universal free compulsory education system, free healthcare, social insurance and social security, recuperation and relaxation systems as well as those for development of literature and art and building of a sports power.
Some of the total state budgetary expenditure went to national defence.
According to the report, this year’s state budgetary revenue and expenditure have been shaped in such a way as keeping the overall economy afloat and bringing about a decisive turn in stabilizing and improving the standard of people’s living.
The state budgetary revenue is expected to increase 4.1 percent over that last year.
Out of this, the transaction tax, main source of budgetary revenue, is expected to grow 3.5 percent, the revenue from the profits of state enterprises 6 percent, revenue from the profits of cooperative enterprises 5.3 percent, the revenue from the depreciation 2.8 percent and revenue from real estate rent 3.4 percent.
In the total state budgetary revenue, national budgetary revenue will account for 83 percent and local budgetary revenue 17 percent.
Provinces, cities and counties are envisaged to ensure expenditure with local import and put a huge amount of fund into national budget.
The state budgetary expenditure is expected to grow 5.9 percent over last year.
It was decided to increase expenditure in the field of coal, electricity, metal and railway transport 7.2 percent, the field of agriculture and light industry 5.1 percent, basic investment in capital construction and big overhaul 5.8 percent, the field of science and technology 6.7 percent, the field of education 6.8 percent, the field of public health 5.4 percent, the field of social insurance and security 3.7 percent, the field of sports 6.1 percent and the field of culture 2.2 percent.
Some of the total state budgetary expenditure will go for national defence.
A large amount of educational aid fund and stipends will be sent for the education of Korean children in Japan to promote the development of the democratic national education of the General Association of Korean Residents in Japan.
The reporter called for working hard to glorify this significant year marking the 65th anniversary of the DPRK and the 60th anniversary of the victory in the Fatherland Liberation War as a year of gigantic creation and innovations, in hearty response to the historic New Year Address by Kim Jong Un and the decision made at the March, 2013 plenary meeting of the WPK Central Committee.
Here is what Yonhap had to say about the DPRK’s defense budget:
North Korea is expected to spend 16 percent of its budget on national defense in 2013, up 0.2 percentage point from the year before, the country’s state media said Tuesday.
According to the Rodong Sinmun, an organ of the North’s ruling Workers’ Party, Finance Minister Choe Kwang-jin reported to a meeting of the Supreme People’s Assembly in Pyongyang on Monday that the money is needed to effectively cope with “indiscriminate” provocations by the United States and its followers.
The paper, however, did not disclose the exact size of the defense budget, although South Korea’s unification ministry speculated that last year’s military budget totaled US$910 million.
The proportion of the spending plan compared to the overall budget, is the highest tallied since 1998, according to South Korean analysts.
From 1998 through 2002, the North is estimated to have spent 14.4 percent to 14.5 percent of its annual budget on defense, with numbers going up and being fixed at 15.8 percent in the 2007-2012 period, they said.
1. Here and here is KCTV footage of the SPA meeting.
The North Korean authorities are apparently proposing to reduce the size of hillside plots farmed privately from thirty pyeong down to ten (1 square meter is equal to 0.3025 pyeong), while all remaining acreage is meant to be handed over to existing cooperative farms.
A source from Hoiryeong in North Hamkyung Province told Daily NK on the 29th, “A cadre from the county Party Committee just told a packed meeting of the Union of Democratic Women that ‘the policy is that from this year all private plots of land are to be limited to ten pyeong, and the other twenty will be taken away and assigned to cooperative farms. That which is in the mountains will be used for planting trees’.”
The source continued, “We must also pay fifty won per pyeong in order to farm the ten pyeong that is allowed, and there will be severe penalties for transgressors,” before reiterating a common refrain in conversation with North Korean civilians: “The rations only last for three to four months anyway, so people have to live off their plots of land. Taking away their land is the same as taking away their food.”
From a state policy perspective, the step appears designed to refocus energies on cooperative farming activities, in the hope that this will increase the productive capacity of the official farming sector in an effort to attain the sort of production levels required for the implementation of the June 28th Policy of farming reforms announced domestically in July 2012. However, it is thought unlikely that this will come about, and, conversely, the source predicted that the measure, if widely implemented, would have a detrimental effect on overall output and decrease the amounts of grain entering markets.
Partly this is because, while people are not technically meant to hold more than 30 pyeong of private land, in reality many are cultivating more even than this; in many cases, more even than their formal work unit is responsible for. This is because only by farming soybeans, cabbage, radish and other agricultural goods are many able to eek out a secure living.
Read the full story here:
Farmers in a Muddle over Private Land Order
The Choson Sinbo, a Japan-based pro-North Korean newspaper, reported on November 9 that the role and the authority of the North Korean cabinet are increasing, especially in the planning and implementation of North Korea’s economic policies.
“North Korea is establishing new order and actions to maximize the potential of its national economy. The cabinet-government system and the cabinet-oriented system are being strengthened as economy-related matters are decided in cooperation with the cabinet,” the newspaper said.
The newspaper also commented that many North Korean news outlets are reporting on DPRK Premier Choe Yong Rim’s activities in detail, including his frequent visits to economic units, saying that “the central and regional party committees are committed to provide support and encouragement to the cabinet and various administrative and economic institutions so the workers can assume responsible roles in the economy.”
Putting the cabinet in charge of the economic sector is a major break from the past, where the Workers’ Party of Korea (WPK) enforced strict restrictions and control over all administrative and economic institutions.
In addition, the news also suggests that the recent economic revitalization efforts are being stressed at a different level than in the past. The report also mentions that North Korea is promising to “boldly go forward with all projects beneficial to the people of North Korea.”
Many high ranking economic officials from the cabinet are quickly moving in to take high-ranking positions in the WPK. Typically, economic experts remain in the cabinet for many years to develop their expertise.
However, this is quickly changing, as can be witnessed from recent appointments in the WPK. Han Kwang Bok, the former vice premier and minister of electronics industry was recently appointed as a director in the central committee of the WPK. Kwak Bum Ki, who was the vice premier of the cabinet (from September 1998 to June 2010) was recently promoted to the position of party secretary and director of the WPK’s Finance and Planning Department (since this past April’s Party Conference).
These recent promotions in the economic departments of the WPK show that people are being replaced by high-ranking and experienced officials from the cabinet, particularly in the departments of light industry, finance and planning, and science and education.
These changes and promotions of economic experts suggest that heavier emphasis is being placed on economic development and improvement of the people’s livelihoods.
North Korea’s recent changes in the cabinet and the WPK — although limited only to the economic sector — indicates a major shift in the decision-making process. The WPK normally creates policy and the cabinet executes it. However, by placing officials equally across these two bodies, it appears as though efforts are being made to minimize the friction between the two organizations and increase the effectiveness of the economic policy through cooperation.
A quick note related to the story below: I have located on Google Earth the Workers’ Party headquarters, headquarters of the Democratic Women’s Union of Korea, headquarters of the Kim Il-sung League of Socialist Working Youth, and the headquarters of the General Federation of Trade Unions of Korea. The headquarters of the Union of Agricultural Workers of Korea, however, eludes me. If you have any idea of its location please let me know…
Andrei Lankov writes about the purposes of these organizations in the Asia Times:
In the early 1980s, when the present author was a student at the Soviet University, my teacher often described North Korea as a “country where meetings never end”. Having grown up in Stalin’s Russia, he knew a thing or two about meetings and indoctrination, but the North Korean standards appeared excessive even to him.
The more I interact with North Koreans, the more skeptical I become about how outsiders understand the working of a repressive system.
For outsiders, regime repressiveness is usually associated with an omnipresent political police, but it appears that other, less sinister-looking, institutions have played a major role in shaping the consent of the North Korean populace.
Read more of the article below…
Since its foundation in the late 1940s, the North Korean state has followed a zero tolerance approach in its dealings with dissent. The authorities strive to discover and punish/correct even minor deviations from the prescribed way of thinking.
But the political police only get involved in rare and extreme cases. In most cases, the real and alleged offenders are disciplined by their own peers and immediate supervisors within their “organization”.
Indeed, so-called “organizational life” has been a peculiar and omnipresent feature of North Korean life since the 1960s, even though it has declined in the past two decades.
Every single North Korean must belong to a cell of one (and only one!) organization, and this cell, usually consisting of one or two dozen people, has multiple opportunities to control and correct his/her behavior. There are five such organizations in the North, with each having easily definable and mutually exclusive membership – the Korean Workers’ Party (KWP), the Youth Union, the Trade Union, the Farmers Union and the Women’s Union.
Once a North Korean turns 14, he or she is expected and, indeed, required to join the Kim Il-sung Youth Union and stay there until the age of 30 (unless he or she is lucky enough to be admitted into the KWP at young age).
After 30, the lucky and socially ambitious can still theoretically join the party (not an easy undertaking), while the rest become members of the Trade Union or Farmers Union, depending on whether they work in the fields or on a production line. Even housewives, without a job, are not left out, since they are required to be members of the Women’s Union.
The rules are simple and unambiguous. An industrial worker in his late 20s will attend meetings and other activities of the Youth Union in his work place. Once he turns 30, he is required to switch membership to the Trade Union. He might marry a woman from the same factory, but if she decides to become a housewife (a very common occurrence), she would switch membership to the Women’s Union.
Typically, every organization holds three meetings every week, each one lasting between one and two hours. Two of the three weekly meetings are indoctrination sessions. Their participants are lectured about the greatness of the Kim family, the glories of the socialist economy and the depraved nature of the pro-American South Korean puppet regime, as well as about other similarly lofty, ideologically useful topics.
The content of the lectures is supposed to be memorized and tests are occasionally held, but examiners are not excessively strict.
This system makes sure that propaganda messages are delivered to every Korean. It is possible that people do not read newspapers (because North Korean newspapers are seriously boring) or do not listen to official radio, so the major ideas of propaganda are delivered straight to their workplace.
But it is another weekly function that seems to constitute the true core of North Korea’s organizational life – the so-called “self- and mutual criticism sessions”. In most cases, such sessions are usually held on a weekly basis.
During a criticism session, every member of an organization – in other words, every adult North Korean – is supposed to deliver something akin to public penitence and confession. He or she must admit some improper acts that he or she committed in the previous week.
Serious deviations are seldom admitted and discussed; people usually limit themselves to relatively trivial matters like, say, being a few minutes late for a job or not taking proper care when cleaning the shop floor.
Every act of public confession should be accompanied by a proper quote from Kim Il-sung (leader from 1948 to 1994) or his son Kim Jong-ll (leader from 1994 until his death in 2011).
Then a repentant sinner must be criticized by another member of the same organization. Usually both confession and criticism are kept short, taking hardly more than a minute or two per person.
In most cases, these sessions are essentially performances where people admit the sins they know to be relatively minor and hence harmless.
It is also known that future participants of the Saturday performance (“self- and mutual criticism sessions” tend to be scheduled for Saturdays) sometimes make preliminary deals and agree on who should criticize whom and for what.
Nonetheless, there is always the small but real risk of a public denunciation, a situation getting out of control, and therefore the sessions do exercise significant pressure over organization members.
If something more improper has taken place, a more specialized session can be conducted within the organization (often called “the ideological struggle session”).
When this is to be done, the offender is subjected to one or two hours of a verbal harangue, often of a quite offensive and rude nature. Usually, this is the way in which an organization deals with offenses that are too trivial to be dealt with by the police, but are nonetheless seen as relatively serious – like, say, frequent absence from work without sufficient reason, or traveling to another part of the country without obtaining a proper permit (and being caught there).
Through organizational life, the state ensures that every single North Korean is exposed to the official ideology and also gets regular training in the politically correct ways of conduct.
The slow but unstoppable disintegration of Kim Il-sung’s “national Stalinism” in the past two decades seriously undermined the foundations of organizational life. Nowadays, a majority of North Koreans make a living outside the official state economy and they have now become much less dependent on their workplaces and supervisors.
Increasingly, they see organizational life as a troublesome and time-consuming formality. They can nowadays negotiate a deal with their supervisors, getting permission to be absent from the workplace, if they pay a contribution to the factory’s budget – this is known as an “August 3 contribution” (after the date of a government decree that allowed such practice).
Tellingly, this contribution frees the payer not only from attending his/her workplace but also from time-consuming indoctrination and mutual criticism sessions – after all, the average adult North Korean is supposed to spend three to five hours a week attending these functions.
When the functions are conducted, they are much easier than was the case in the 1970s and 1980s. The meetings are shorter nowadays, and absenteeism – once almost unthinkable – came to be ignored if it remained relatively infrequent (or if the “August 3 contribution” had been paid).
This relaxation seems to be especially pronounced in the Women’s Union, since most North Korean housewives are much involved with the black market economy and hence, if compared to workers of state factories, have less time for the boring activities of their local Women’s Union cells.
Like many institutions of the “old North Korea”, organizational life is seemingly on the decline. But this decline is by no means complete, and a majority of North Koreans are still taken care of by their organizational supervisors. And these people make sure that even minor deviations from what is considered to be correct are likely to be discovered and censured.
Read the full story here:
North Korea’s ‘organizational life’ in decline Asia Times
This year, the North Korean authorities are once again emphasizing the need to strive for greater food production as the farming season begins, launching the annual 40-day total farm mobilization period with the words “Let’s mobilize the whole party, the whole nation and all the people to reach the grain production targets.”
Rodong Shinmun published editorials on the subject on both the 11th and again on the 12th, reflecting the emphasis being optimistically placed on solving food security issues in 2012. Kim Jong Eun also emphasized the same in his major statements on the 6th and 27th of last month, understandably so given that farm productivity has the potential to play such a decisive role in stabilizing the first full winter of his rule.
Inside sources say that the mobilization atmosphere is unusually intense this year in farming villages. Cadres and people alike are feeling the strain of Kim Jong Eun’s first season in charge, with the assumption being that this year could see severe punishments meted out for any wrongdoing.
A South Hamkyung Province explained to Daily NK yesterday, “The whole nation is out there supporting the farms, including enterprises affiliated with state agencies, upper middle school and college students and military bases. People are not allowed to be at home or in the streets. Restaurants are not open either. Everybody is out on the farms. It’s just like martial law, really brutal.”
“5 or 6 safety agents have set up a desk in the street and are stopping people passing by, confiscating their identifications and the bikes they are on and sending them to nearby farms,” he went on. “People can only pass if they have a confirmation slip from a cooperative farm management committee.”
“The markets are only allowed to open from 5PM to 8PM after farm work is done for the day, so excluding preparation and organizing time, there is only an hour or so that the market is open. Buyers and sellers are all super busy,” he added.
During the 40-day total mobilization period, school classes are halted and students sent off to farms for forty days carrying their food and bedding. Laborers, workers in administrative organs and members of the Union of Democratic Women all commute from home to local collective farms until the planting and seeding is done.
North Korea has had the policy in place since 2006. Prior to that, students still had to farm every day, but full-time workers and members of the Union of Democratic Women went out just twice or three times a month.
In 2006, five provincial Party cadres from North Hamkyung Province were caught enjoying a spa during the period. They were summarily kicked out of the Party and sent into internal exile with their families.
“Until last year we were able to get confirmation of attendance from farm management committee cadres by giving a bribe, but with this year being the first under Kim Jong Eun, those tricks are unlikely to work,” the source concluded.
Read full story here:
Farming Regions in State of Tension Daily NK
Choi Song Min
The North Korean authorities have called on the people to provide supplies for care packages to be given to military units on People’s Army Foundation Day, which falls today. It is not a new burden, but is relatively larger this year, according to a source.
The source from Chongjin in North Hamkyung Province told the Daily NK yesterday, “The people feel seriously burdened by the project going on nationwide to gather support supplies ahead of the military holiday. Each household is required to offer up towels, soap, toothpaste, socks and underwear.”
“Usually they collect around 1,000 won from each family, but this year they told us to give 10,000 won,” the source went on. “Since even providing food for the family is not easy, many people are playing a waiting game on this.”
The source explained that societal organizations (the Union of Democratic Women, General Federation of Korean Trade Unions etc) have also been gathering care packages for delivery to local military units by ‘People’s Delegations’ consisting of municipal and county Party cadres.
“Middle school classes are also suspended while students prepare and perform ‘People’s Army Comfort Concerts’ at art centers and in military camps, and the Union of Democratic Women are preparing art performances,” she added.
Problematically, the various April holidays also mean that markets are closed more often than normal, and this is driving down household incomes.
For the Day of the Sun, the markets were closed from the 14th through the 17th. The markets are also closed today for Army Foundation Day today. Moreover, they were also closed on the day Kim Jong Eun was elevated to 1st Secretary and the day of the mass rally organized to denounce the Lee Myung Bak administration, to name but two.
As such, the source concluded, “April is a hectic month. Aside from the fact that the people are exhausted because of the pressure from the authorities their income has dropped by around half so many will likely end up in debt.”
Read the full story here:
Army Founding Day a Source of Stress Daily NK
Choi Song Min
UPDATE 18 (2012-4-11): In addition to honoring Kim Jong-il and promoting Kim Jong-un, KCNA also reported other party personnel changes:
Pyongyang, April 11 (KCNA) — Members of the party central guidance body were elected to fill vacancies, elected and appointed at the 4th Conference of the Workers’ Party of Korea.
Choe Ryong Hae was elected member of the Presidium of the Political Bureau of the Party Central Committee, Kim Jong Gak, Jang Song Thaek, Pak To Chun, Hyon Chol Hae, Kim Won Hong and Ri Myong Su members of the Political Bureau of the Party Central Committee, Kwak Pom Gi, O Kuk Ryol, Ro Tu Chol, Ri Pyong Sam and Jo Yon Jun alternate members of the Political Bureau of the Party Central Committee to fill vacancies.
Kim Kyong Hui and Kwak Pom Gi were elected secretaries of the Party Central Committee.
Choe Ryong Hae was elected vice-chairman of the Party Central Military Commission and Hyon Chol Hae, Ri Myong Su and Kim Rak Gyom were elected members of the Party Central Military Commission to fill vacancies.
Members and alternate members of the Party Central Committee were elected to fill vacancies.
Kim Yong Chun, Kwak Pom Gi and Pak Pong Ju were appointed as department directors of the Party Central Committee.
Members of the Party Central Auditing Commission were elected to fill vacancies.
The first quarter of 2012 is almost over. Where did it go, so fast? And for those parts of the world where the calendar is marked by four distinct seasons – which doesn’t apply to much of Asia, but very much includes the Korean peninsula – spring has begun to arrive. Welcome warmth and relief, after the rigors of chilly winter: an especially harsh one in North Korea.
Pictured above (Google Earth): (L) Kumsong Youth Publishers (금성청년출판사), (R) Pyongyang General Printing Factory (평양종합인쇄공장). According to the Daily NK article below, both factories print calendars in the DPRK.
UPDATE 1 (2012-3-23): The Daily NK updates us on the DPRK’s 2012 calendars:
The slogan on the cover of the calendar has been edited from “The Great Leader President Kim Il-sung will always be with us” to “The Great President Kim Il-sung and the Great Leader Kim Jong-il Will always be with us”
The new calendar marks February 16th (Kim Jong-il’s official birthday) as “The Day of the Shining Star”. This same day is also celebrated as the day Kim Jong-il received the title “generalissimo”.
“The Day of the Sun” (April 15th–Kim Il-sung’s birthday) was always there, however, revised text about other dates has been added.
The May picture comes from the DPRK film Petition. The June image comes from The Blessed Land.
July – October calendar pages
December 17th 2012 commemorates “Juche 100″. December 17th is the day Kim Jong Il passed away.
ORIGINAL POST (2012-1-10): According to the Daily NK:
North Korea has recalled all 2012 calendars because they do not specify the date of Kim Jong Il’s death (December 17th), and is producing new ones.
A Shinuiju source confirmed for Daily NK on the 5th, “Pyongyang Combined [General] Printing and other printers are creating new calendars marking Kim Jong Il’s death.”
“An order was handed down through Party organs, enterprises and people’s units calling for the return of those calendars which had been distributed. Calendars stored by traders who were planning to go and distribute them outside of North Korea are also being recalled,” the source added.
However, most of those calendars which have already been exported, such as the one obtained by Daily NK [see picture here], will continue to circulate.
The absence of the date of death is not the only problem with the new calendar. There are also problematic messages such as ‘We hope for great leader comrade Kim Jong Il’s good health.’ As such, the new calendar will reportedly both include Kim Jong Il’s official date of death and the latest slogan, ‘Great leader comrade Kim Jong Il is with us forever.’
Official North Korean calendars are designed and published by a number of publishing houses including Keumsung Youth Publishing House and Agricultural Publishing Company on the authority of the Party Propaganda and Agitation Department. They are still distributed to all Party organs, enterprises and military bases, although due to economic and production limitations the paper quality has dropped in recent years, and even this measure has not been enough to stop distribution to households breaking down.
On this, one defector from North Hamkyung Province commented, “There are 28 households in a people’s unit, but only 10 calendars were given to us once.”
Other than the official calendar published for distribution, each of the authorized publishers produces a higher quality 7-page calendar for sale in places like the jangmadang. Some high-quality scroll calendars are also produced by People’s Army Publishing House, People’s Safety Ministry, and National Security Agency etc.
An additional point of interest for the reproduced calendars is whether Kim Jong Eun’s birthday (January 8th) will be made prominent. January 8th, 2012 is a Sunday and as such would typically be marked in red anyway, but usually to emphasize special days the numbers are printed in a bigger font.
Read the full story here:
North Korea in Mass Calendar Recall Daily NK
Park Jun Hyeong