North Korean Economy Watch

Pictured above (Google Earth) is Changsong Town in North Pyongan Province. This town is the home of the Changsong Joint Conference which was held in August 1962.  This meeting was referenced in the DPRK’s most recent Cabinet plenary meeting on the DPRK economy.

According to KCNA (2012-1-22):

An enlarged Cabinet plenary meeting was held.

Present there were Premier Choe Yong Rim and cabinet members.

Attending the meeting as observers were senior officials of the organizations under direct control of the Cabinet, directors of management bureaus, chairpersons of provincial, city and county people’s committees, chairpersons of provincial rural economy committees, chairpersons of provincial planning committees, directors of provincial foodstuff and daily necessities management bureaus and managers of major factories and enterprises.

Prior to the meeting, the participants paid silent tribute to the memory of leader Kim Jong Il.

The meeting reviewed the fulfillment of last year’s national economic plan and discussed how to implement the decision of the Political Bureau of the Central Committee of the Workers’ Party of Korea, joint calls of the WPK Central Committee and the Central Military Commission and the militant task put forward in the joint New Year editorial.

Vice-Premier Ro Tu Chol made a report to be followed by speeches.

The enlarged meeting set it as a priority task for this year to direct efforts into developing light industry and agriculture to improve the people’s livelihood and successfully carrying out the WPK’s prosperity-oriented strategy in the pilot domains and basic industries of the national economy upholding the flames of South Hamgyong Province. It also indicated the tasks and ways for it.

Also discussed was an issue of raising higher the flames of great innovation of South Hamgyong Province in the light industrial and agricultural fields.

The meeting mentioned the need to produce quality consumer goods favored by the people in the field of light industry and effect a decisive turn in development of local industry this year marking the 50th anniversary of the historic Changsong joint conference.

It also stressed the need for ministries and national institutions to help Changsong County in its industrial development.

Also discussed at the meeting were such issues as fulfilling the assignments for grain production for 2012 both in lowland and mountainous areas, making the best use of modern stockbreeding and poultry bases and large fruit and fish farms as well as the tasks for ministries and national institutions to preferentially supply materials, equipment and electricity to farming processes.

The meeting drew attention to the tasks for the industrial fields of electric power, coal, metal, railways and machine and construction and building materials, etc.

The meeting tabled the tasks for all ministries, national institutions and provincial people’s committees to lay their own scientific and technological foundations for stepping up the work for turning the economy into one based on technology in a forward-looking manner as required by the industrial revolution in the new century.

It also discussed the tasks for the fields of education, literature and art, public health, sports, capital construction, land management and urban management.

The meeting stressed the need for all economic officials to preserve the socialist principle and ensure profitability in economic management, operate and manage the economic work on the basis of detailed calculation and science as well as the need for ministries, national institutions and industrial establishments to set up strict order regarding planning, financial dealings and administration.

Relevant decisions were made at the meeting.

As premier of the Cabinet Choe Yong-rim has made quite a few prominent appearances in the DPRK media in the last two years which highlight his official efforts to improve the North Korean economy. His most recent public appearance (January 12) is reported to have been at the Jenam Coal Mine.

Kim Jong-un, however, is not a member of the Cabinet, so he did not attend the meeting. To date his legitimacy is being established through his relationship to Kim Jong-il/Kim Il-sung and as a leader of the KPA—rather than as a leader in the government or even the party (at least so far).

As a result, Kim Jong-un’s guidance visits have consisted almost exclusively of visits to KPA units.  In this month alone, he has visited the 105 Tank Brigade, KPA Unit 169, KPA Unit 3870, KPA Unit 354, KPA Unit 671, and the KPA soldiers constructing the Pyongyang Folk Village on the outskirts of Pyongyang. Uriminzokkiri has also credited him with spearheading the DPRK’s nuclear tests.

UPDATE: Here is Yonhap coverage of the meeting.

“Changsong Joint Conference”
The KCNA article prompted me to look into the “Changsong Joint Conference”, a term that did not ring a bell. The most recent reference I can find to it is this blurb from a March 2011 article in Korea Magazine:

The Changsong Joint Conference of Local Party and Economic Officials was held in August 1962.

The conference marked the beginning of developing the local industry throughout the country.

In recent years the county has made strenuous efforts to carry out the plan of the Workers’ Party of Korea for the building of a thriving nation and achieved many successes.

Hundreds of hectares of forests of raw materials and timber forests including pine-nut, wild-walnut and larch forests have been newly created.

The Changsong Foodstuff Factory gathers in scores of kinds of wild fruits including acorns, wild grapes, fruits of Actinidia arguta and Crataegus pinnatifida every year in mountains.

Recently its officials and workers have modernized all production processes including wild fruit drinks and wines as required in the IT age to produce foodstuffs in time.

Wines made from the fermented juice of wild grapes, fruits of Actinidia arguta and other wild fruits, Crataegus pinnatifida, Rubus crataegifolius, carbonated Actinidia arguta and other fruit juices, dried bracken and sliced bracken and other wild vegetables preserved in soy sauce are in great demand for their peculiar flavour.

The Changsong Textile Mill which started operation with six housewives has been turned into a modern fabric producer. As a treasure mill, it makes a great contribution to the improvement of the people’s standard of living. It produces quality fabrics, woolen knitted goods and quilts and blankets with local raw materials.

The Changsong Paper Mill produces paper from ground pulp. It has streamlined the equipment to improve the qualities of goods.

Looking round the local-industry factories in Changsong County in November last year, Kim Jong Il kindled the flame of developing the local industry throughout the country after the model of Changsong.

Changsong County stands at the head of development of local industry. Now its people work harder to change further the looks of their home village.

Another blogger seems to have located a single page of a book on the Changsong Joint Conference. Fortunately, he typed out the introduction:

The great leader Comrade Kim Il Sung had made a farsighted plan for bridging the gap between town and country and between regions and raising equally the living standards of all the working people. For this Changsong County had been taken as a model.

The great leader who had long pushed preparations for rapid improvement in the livelihood of the mountain peasants, studied deeply the state of affairs in this part of the country, and through his several on-the-spot guidances, paved the shortest cut to establish a socialist paradise.

In August 1962, in order to spread the example of Changsong across the land he convened the historic Changsong Joint Conference of Local Party and Economic Functionaries. There he put forward a new policy and overall ways and means to enhance the role of the county and develop local industry and agriculture, so as to improve radically the people’s living conditions.

In 1974, our people erected in Changsong the historic monument to the on-the-spot guidance of the respected and beloved leader Comrade Kim Il Sung, out of their wish to retell throughout generations the profound care of the fatherly leader who had shown the bright future of mountain villages and transformed that area into a people’s paradise fine to live in.

Kim Jong-il last visited Changsong in November 2010 where he visited the Changsong Foodstuff Factory, Changsong Textile Mill, and Changsong House of Culture. The first two locations are the shining examples of the success of the Changsong Joint Conference.  The Changsong House of Culture is where the meeting was officially held in 1962.

But if the goal of the conference is to reduce the disparity in the DPRK’s living standards, Changsong is probably not the best place to start. Changsong is home to one of the North Korean leadership’s most well-known luxury retreats.  This is because it was was extensively photographed by Kenji Fujimoto while he was working as Kim Jong-il’s personal chef.   See a satellite image and Mr. Fujimoto’s pictures of the compound here. You can see the Taegwan leadership train station Kim used to visit the compound here.

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.

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
2012-01-10

UPDATE (2011-12-19): KJI’s financial manager appears on tour of Kwangbok.  According to Yonhap:

The head of a shadowy North Korean agency charged with managing slush funds for leader Kim Jong-il has again appeared in public after five months.

Recent footage from the North’s state television network showed Jon Il-chun standing closer to Kim than Kim’s heir apparent son, Kim Jong-un, on an inspection tour of a supermarket in Pyongyang.

Kim Jong-un is being groomed to succeed his father Kim Jong-il as the country’s next leader in what would be the country’s second hereditary power transfer.

Jon and Kim Jong-un were also seen standing side by side on an escalator at the Kwangbok Area Supermarket, according to recent photos released by the North’s official Korean Central News Agency.

Jon, who has rarely been exposed to media, was last seen on Kim’s trip to a factory in July.

He heads Office 39, which has often been referred to as Kim’s “personal safe” for its role in raising and managing secret funds for the North Korean leader.

The office is also believed to be involved in counterfeiting US$100 bills and drug trafficking.

Last year, the United States blacklisted Office 39 as one of several North Korean entities to come under new sanctions for its involvement in illegal activities such as currency counterfeiting.

ORIGINAL POST (2011-12-16): According to the Daily NK:

Chosun Central News Agency (KCNA) today reported news of an onsite inspection by Kim Jong Il, Kim Jong Eun and others to the Kwangbok District of Pyongyang, the city’s commercial center. The main site on the visit was reportedly the newly expanded and redesigned Kwangbok Department Store.

The redevelopment of the store was ordered by the elder Kim following his trips to China earlier this year, where he was repeatedly exposed to the full force of China’s commercial development.

According to KCNA, “To enhance the people’s welfare and improve their lives, upon the direct suggestion and boundless affection of the fatherly General with his perpetual concern for the people, Kwangbok Department Store, which was constructed in October, 1991, has been transformed anew into the commercial center of Kwangbok District.”

“From warehouse to sale, the realization of information technology and numerical control of all management operations guarantee accuracy and speed, and the store has been stocked to guarantee the utmost convenience of visitors,” it went on.

KCNA went on to say that Kim Jong Il listening to information from related officials, and subsequently declared himself satisfied with the way the store matched the people’s needs in all areas, from sales plans to the amount and quality of goods available.

“We must proceed with the kind of commercial activity that can sell to the people of the capital city those things that they would not be able to live without in their daily lives such as clothing, shoes, food, conveniences, family items, school goods and cultural things, and leave them with no complaint,” he emphasized.

Read the full story here:
Kim Satisfied with “Transformed” Store
Daily NK
Kang Mi Jin
2011-12-16

According to the Daily NK:

It has been confirmed that over one month in February and March this year, the Chosun Workers’ Party replaced the membership of all male party members over 60 and women over 55 with ‘honorary membership’.

It reportedly took just a month for the plan to be implemented from the Central Party down through provincial, city and county levels.

Honorary members are not required to attend weekly, monthly and quarterly self-criticism sessions in their areas of residence. In addition, honorary membership grants the right to absent themselves from frequent official meetings including study sessions, Party lectures, meetings for the dissemination of Party orders etc.

Honorary members are also exempt from a 2% deduction from wages for Party membership dues. Hitherto, cadres were still required to pay their Party dues even when the enterprises to which they had been dispatched were not operating due to shortages of raw materials, and even in retirement (usually after turning 60) Party members were still required to pay dues to local Party organizations.

On the other hand, honorary membership does still mandate presence at important events including reporting meetings or events to commemorate the birthdays of Kim Il Sung and Kim Jong Il.

Many newly-honorary members are understood to have welcomed the new measure. One source from Pyongan Province told Daily NK, “When they heard it, elder Party members were calling it ‘another act of kindness from the great General’.”

However, some of the targeted cadres are less happy with having their wings clipped. A source from North Hamkyung Province said that some irritated elderly members of the Union of Democratic Women are leaving before being pushed, putting in minimum effort or simply not attending events at all.

Elsewhere, while senior Central Committee, Cabinet and other central government organ staff are holding onto their administrative duties for now, many apparently believe they know which way the wind is blowing.

Looking at the situation today, one high level official who defected to South Korea in May this year commented to Daily NK, “It is a message to all the veterans that they need to leave because this is the Kim Jong Eun era.”

Read the full story here:
Party Elders Handed Honorary Membership
Daily NK
Lee Beom Ki and Choi Song Min
2011-12-6

Cars 

Uriminzokkiri posted this short video of rush-hour traffic in Pyongyang (YouTube):

I will leave it up to the reader to determine if the video was staged. What is more interesting to me is to see the variety of vehicles used in the shots.  I saw at least one American Dodge Van in the footage (similar to the one I saw parked next to the Pueblo in 2005).  If you know a lot about cars, feel free to try identifying other vehicles in the footage.

And continuing on the automotive front–a tourist to the DPRK took this picture in September 2010:

The picture above is of an American-made, petrol-guzzling “Hummer H2″ (MSRP in 2008 – USD$53,286; 10 mpg_-US; 24 L/100 km; 12 mpg_-imp). The license plate on the vehicle is 평양 22-2722.

In September 2011, Eric Lafforgue took the picture below of what appears to be a second Hummer on the streets of the DPRK.

The license plate on this vehicle is “23-199″. I cannot read the city name on the plate.  According to the photographer:

During my stay in North Korea, i [sp] saw 2 Hummer cars. This is the fist time i [sp] hear north korean people making cristisms about something in their country! They all told me it was a shame to see such a car in North Korea, as it needs lot of fuel. Some people told me that the car number tells that it belongs to a local media (press or tv).

Cola

Mr. Lafforgue has also brought up another interesting topic through his pictures: North Korea’s cola wars!

On the left is a Picture of Cocoa “crabonated drink” [sp] taken by Eric Lafforgue in 2008.  On the right is a picture of  ”코코아 탄산단물” (Translation: “Cocoa Carbonated Drink”) taken by Eric Lafforgue in September 2011.

I might have been inclined to believe they were the same product with different labels (and maybe they are?), however, they appear to be manufactured by different companies.  The cola on the left is manufactured by a company called “룡진” (Ryongjin), a company about which I cannot find any additional information, and the beverage on the right is manufactured by “모란봉” (Moranbong).  I presume that “Moranbong” is actually the Moranbong Carbonated Fruit Juice J.V. Company. According to Naenara:

Moranbong Carbonated Fruit Juice J.V. Company
Add: Taedonggang District, Pyongyang, DPR Korea
Fax: 850-2-381-4410

The company formed in 2004 produces a wide assortment of carbonated fruit juice and health drink.

It has an affiliated factory equipped with hi-tech facilities that conform to hygienic requirements of GMP, ranging from production of bottles and drinks to packing.

Its products include apple, grape, peach, orange, cocoa, lemon and strawberry carbonated juices.

A multifunctional super-antioxidant health drink “Pirobong” is a drawing card in the world market.

The company will steadily increase investment in the development of new brand of drinks and further promote exchange and collaboration with partners across the world.

So why does the DPRK produce competing colas? Wouln’t that be wasteful duplication of processes? No.  Monopolys are generally more wasteful than competitive firms. Though in the past there were few producers of carbonated drinks in the DPRK (Ryongsong Food Factory, Kyongryon Patriotic Soda Factory), the DPRK seems to have moved away from near-monopoly production to a more competitive industrial organization in the production of soda.

Kim Jong-il’s sister, Kim Kyong-hui (KKH), is director of the Light Industry Department in the Worker’s Party and as a result holds all colas in her job portfolio. Without having any special data on the DPRK’s cola market, I would speculate that KKH promotes competition between the different soda producers to increase efficiency and profits for the ultimate goal of improving the positions of her discretionary official and unofficial budgets.

As an aside, earlier this year Forbes ran a story about meetings held between the DPRK’s Taepung International Investment Group and Coca Cola. Taephing is directed by Jang Song-thaek, Kim Kyong-hui’s husband.

Disney

In the past I have pointed out the appearance of Disney characters on North Korean apparel (see here for example). Now they are showing up on mobile phones:

History 1

Here is a video of Lim Su-kyung in Pyongyang (1989). Here is a story about her in the Daily NK. I think I just found her Facebook profile!

History 2

Here is a map of Pyongyang produced int he 1800s.  Other maps of the region here. Hat tip to Kwang On Yoo.

Lift troubles

Here is a 30+ minute video shot in Pyongyang–nearly entirley in the dark. Hat tip to Leonid Petrov.

The video caption reads: “We were touring the 3 Revolutions Exhibition in Pyongyang in 2009, when our elevator lost all power and 11 of us were stuck in blackness, hanging by a North Korean thread.”

UPDATE 3 (2011-11-3): According to the Daily NK:

Following September’s mass censure of more than thirty Party cadres in North Pyongan Province and Shinuiju, sources have informed Daily NK of an additional investigation leading to at least five executions and one suicide in a fishing region of the province.

According to the sources, the investigation was concentrated Unjong Village on the island of Shinmi, part of Seoncheon County around 70km south east of Shinuiju City [See in Google Maps here].

According to one of the sources, “On the 28th of last month they gathered provincial Party cadres and trading organ workers at Seoncheon Hall [See in Google Maps here] to report the inspection results and strengthen solidarity.”

The source gave more detail, saying, “They said they shot the head of the unit, his vice (female; 39), the captain of a clam fishing vessel, the local Party secretary responsible for food distribution and the head of Unjong Village cooperative farm, firing sixty bullets into each person at the shooting range of Seoncheon County Chosun People’s Army Base.”

The head of the fishing unit was executed on suspicion of having embezzled $60,000 and shifted it to a bank in China, the source explained.

“Aside from the execution of those five people, the local chief prosecutor then committed suicide,” the source went on. “The head of the local NSA and ten cadres were also dismissed.” The source also noted that the incident led to the dismissal of at least one provincial Party secretary.

While the investigation was ongoing the adopted daughter of the head of Unjong Village cooperative farm apparently even tried to hide the head of the fishing team in their family home so as to conceal her own father’s misconduct, but ended up in detention herself as a result.

According to the sources, the investigation was conducted by agents sent not from Pyongyang but from North Hamkyung Province, and as the shockwave of the devastation in Seoncheon County spread up to the provincial Party level, this fact began to cause regionalism to flare.

One of the sources explained, “The inspection team from North Hamkyung Province had no love for that place and they punished everyone one-by-one, so the incident got bigger. I have no idea where they will destroy next.”

This was apparently done so that the work could be driven forward by that regionalism, but also so its planners in Pyongyang could avoid complaint. This is not uncommon on the Korean Peninsula; indeed, in South Korea under military dictatorship units were frequently dispatched to other parts of the country to quell disturbances.

Elsewhere during the Seoncheon Hall meeting, the fates of key people in the original purge of North Pyongan Province (as previously reported by Daily NK) were also reported;

Kim Yoon Ho, the provincial guidance department head, was exiled to Dongrim County on charges of illegally mobilizing farm workers. However, his case is now under review thanks to the intervention of the provincial Party Chief Secretary.

Kim Cheol Ho (son of candidate member of the Politburo and head of the Party Cadres Department Kim Pyeong Hae, and Shinuiju municipal guidance head) was exiled to Dongchang County.

Local People’s Committee Chairman Park Cheon Geun was demoted.

The secretary of Wonlim, a marine products enterprise, was sent to Changson County on charges of embezzling $2,000.

However, Kim Jae Hwa, a Supreme People’s Assembly delegate and Shinuiju city commercial director, only received a light punishment from the Party even though he stole 70 tons of beans from the state.

UPDATE 2 (2011-10-4): According to the Daily NK:

The Daily NK has learned that the recent mass purge of more than 30 cadres from the provincial and municipal arms of the Party in North Pyongan Province and Shinuiju City came about as part of efforts to help bed in the Kim Jong Eun era while aiding new provincial Party Chief Secretary Lee Man Geon in taking hold of provincial affairs.

3 of the top 10 figures in the North Pyongan Province Party hierarchy were among those swept away in the purge at the start of last month, including the provincial Party propaganda and guidance heads and figures from within the security apparatus.

Lee, who reportedly led the purge, rose to his current position as a result of the promotion of predecessor Kim Pyeong Hae to a central Party post at the Chosun Workers’ Party Delegates’ Conference in September, 2010

However, it appears that, partly because Kim had been promoted rather than removed, Lee struggled for almost a year to seize control of the provincial levers of power. Accordingly, the current assessment from inside North Korea is that Lee, with the backing of Kim Jong Eun, launched a power struggle to liquidate the Kim Pyeong Hae faction.

One source explained more today, saying, “On July 6th, a ‘gruppa’ from the central Party accompanied the General on an onsite inspection in Shinuiju, and they did some extensive vetting of provincial and city cadres. At that time, Chief Secretary Lee Man Geon joined with the Kim Jong Eun faction and set about sorting them out on charges of corruption.”

“Lee Man Geon read Kim Jong Eun’s mind and, so as to implant the successor’s faction, actively pursued charges of corruption against the cadres then kicked them out,” the source went on.

Meanwhile, Kim Pyeong Hae, who had become a candidate member of the Politburo and the head of the Party Cadres Department, also appears to have stopped work for the time being.

According to the source, “Kim Pyeong Hae was stopped from working in the middle of September. His second son Kim Gyeong Ho (former guidance head for the Shinuiju municipal Party) also lost his job; this really surprised Shinuiju cadres.”

Kim Pyeong Hae has not been seen in public since September 12th, after appearing on name lists at public events every day from the 8th until that time. That does not mean that Kim has been removed permanently, it is too early to say that, but it does appear that he may have been taken out of the front line for the time being.

UPDATE 1 (2011-9-27): According to the Daily NK:

The removal of more than 30 cadres in North Pyongan Province represents an anticipated shift in the provincial power structure for the purpose of establishing the Kim Jong Eun leadership structure. Branding existing cadres as corrupt, removing them and transfusing in fresh blood are all part of the liquidation and reformation work of the Kim Jong Eun era.

Although unsurprising in itself, the ‘purge of North Pyongan’ has, however, exceeded expectations in terms of target and scale. Everyone knew that Kim Jong Eun, having guaranteed the loyalty of organs of state security, had begun to work on the Party apparatus, but that he would do so in such a lightning fast and apparently violent manner did come as a surprise.

More than 30 cadres have been dismissed, including the North Pyongan Province propaganda secretary and Guidance Department head. The two, in addition to the head of workers’ unions in the province, were among the ten most powerful Party figures in the whole region. In particular, the head of the Guidance Department could be called the yoke at the core of the egg of provincial Party operations.

But slicing off limbs in this way, only one year after the former North Pyongan Province Party secretary was himself replaced by Lee Man Geon, offers a warning; show absolute loyalty to Kim Jong Eun.

As the second-in-command in practice, Kim has been dealing out cadre changes at higher levels since 2009. This has included inflicting retirement on Kim Young Joo, Kim Il Cheol and more, while rapidly elevating people like Lee Young Ho.

The purging of the former deputy head of the National Security Agency, Ryu Kyung, was taken in much the same way when it came to light earlier this year; namely as a part of the establishment of the succession system.

It was thus to be expected that having changed much of the central structure via the Workers’ Party Delegates’ Conference last year, Kim would begin to realize changes in the provincial structure. Kim is now doing so, exercising his oversight powers via the central Party guidance structure and purging corrupt cadres.

“He can take away from this the ‘effect of a domestic crackdown’, namely the atmosphere of loyalty it creates, and the ‘effect of change’, namely the ability to plant his own younger people by cutting people for being corrupt,” explained Cheong Seong Chang of the Sejong Institute to The Daily NK today.

Such processes are rather common in dictatorships, and this is far from being the first time such events have unfolded in North Korea, either. Various corruption incidents ‘came to light’ during the March of Tribulation in the 1990s, used by Kim Jong Il to quiet complaints about the leadership in Pyongyang.

“Kim Jong Il regularly dismissed people, to both turn people’s anger at the leadership onto the mid-level cadres and at the same time evade responsibility for anything by suggesting that it was mid-level bribery that was precluding the people’s economy from improving,” according to Cheong.

In 1999, for example, there was the simultaneous purging of a number of figures from Yangkang Province, including the provincial Party general secretary and NSA secretary, Unheung County secretary and the political commissar for the No. 376 Unit of the Chosun People’s Army.

The provincial general secretary was dismissed on the premise that he had failed to prevent the rapid influx of ‘capitalist culture’ across the Sino-North Korean border, the NSA man because he had embezzled Party funds, and the Unheung County secretary and political commissar because they had taken bribes. All were subsequently executed, as is also often the case.

ORIGINAL POST (2011-9-26): According to the Daily NK:

The punishment of more than thirty officials from Party organs in North Pyongan Province is sending shockwaves through the national Party apparatus.

A number of sources within North Korea have confirmed the news in conversation with The Daily NK in the last few days, saying that the situation began to unfold at the beginning of this month and that the individuals were nominally singled out due to corruption.

The recent purge reportedly includes:

▲ Dismissal and loss of all privileges for the head of the provincial Guidance Department
▲ Sacking for the provincial propaganda secretary, as well as the head of the workers’ union and department responsible for power supply
▲ Demotion for the head of the Shinuiju People’s Assembly
▲ Sacking for the head of the city’s security forces and more than ten other city cadres
▲ Internal punishment for more than ten other party officials

A source from Sinuiju said “The dismissal of the propaganda secretary and head of the Guidance Department, people who are effectively in charge of the provincial party, as well as the removal of the municipal People’s Assembly chairman, all within a few days of one another, has left Shinuiju cadres in shock.”

The dismissed propaganda secretary was effectively the third most powerful cadre in North Pyongan Province, a man whose principal responsibilities include overseeing the idolization of the Kim family and the political education of the people, while the head of the Guidance Department and the workers’ union were effectively the 4th and 10th most powerful. As the main figure in the provincial Party Assembly, the head of the Guidance Department also had oversight powers over the chief secretary and organizing secretary. The appointment of all the dismissed officials falls under the direct jurisdiction of the Central Party Guidance Department.

Thus, the majority of defectors believe it implausible that the Party would punish so many heavyweight figures for corruption at once, even with the storm trooper inspections of a month ago as a catalyst.

Vice-President of Radio Free Chosun, Jang Sung Moo agreed, telling The Daily NK today, “It is highly unlikely that the authorities would get rid of the third, fourth and tenth most powerful figures in North Pyongan Province just for corruption. There is a good chance that there will be further charges down the track regarding other matters; espionage for example. That’s the only way ordinary people will be able to grasp it.”

South Korean intelligence agencies are already aware of the high profile sackings.

The highly irregular events in North Pyongan Province have caused consternation in other regions as well, sources say. According to one, “The numerous sackings of important cadres has left other cadres worried. Many of them can’t understand why their colleagues are being replaced all of a sudden.”

Interestingly, one of the dismissed cadres, the now ex-head of Shinuiju’s Guidance Department, is former North Pyongan Province Chief Secretary Kim Pyeong Hye’s son. Kim is regarded as one of Kim Jong Il’s closest associates after being promoted to the head of the Party Cadres Department at last year’s Workers’ Party Delegates’ Conference. Thus, many people find it unlikely, at best, that corruption would be enough to bring down the son of one of Kim Jong Il’s trusted associates.

Accordingly, the purge could be a part of plans to facilitate Kim Jong Eun’s seizure of control of the Party. It is generally accepted that his takeover of the security forces is mostly complete, and instilling a measure of fear in the provincial elite is one method Kim is now likely to employ to help cement his grip.

Read the full stories here:
North Pyongan Party Cut Down to Size
Daily NK
Lee Seok Young
2011-9-26

Pictured above, the DPRK’s local cola logo. Image source here.

UPDATE 1: Stephan Haggard believes this is a non-story.

ORIGINAL POST (2011-10-5): According to Forbes:

Global capital is an inherently lonely trade, but as Gabriel Schulze ambles into the conference room of Yanggakdo International Hotel, a towering edifice separated by a ring of water from the rest of Pyongyang, the most impenetrable capital in the world, it’s hard to imagine a more isolated business meeting.

“We warmly welcome you, the Coca-Cola delegation, with Mr. Schulze as your leader,” says Park Chol Su, the president of North Korea’s Taepung International Investment Group, singling out the 6-foot-7 American from his entourage of four people. “I hope this will be a good opportunity to make progress in the relations between the U.S. and Korea.”

Why is a U.S. businessman in Pyongyang pitching America’s most iconic consumer brand to the world’s most inhospitable marketplace? Because, surprisingly, the Democratic People’s Republic of Korea is ready to buy, and eager enough to flex its atrophied capitalistic muscles that it let a FORBES reporter follow along–and record everything–as the Coca-Cola discussions heated up.

Park says his Taepung Group, established by Kim Jong Il himself, wants to bring market principles to a planned economy, even down to setting what price a bottle of Coke made in Pyongyang would go for–sort of. “Costs are based on the demands of the market, but we will respect your price,” Park tells Schulze’s delegation. “If the price is too high, it will be restricted.”

North Korea, the most hidebound and repressive of socialist states, is slowly inviting not only China but also the wider Western World to invest in its near-moribund economy. Officials claim the country is open for business with outsiders, and that the political stripes of the investors do not matter as much as the money in their pockets and the willingness to deal. Chinese companies have signed a number of multimillion-dollar deals to extract resources and build and repair infrastructure, such as making port improvements in the northeastern region of Rason and paving a road from there to the Chinese border. Taepung also claims to have inked billiondollar contracts, including one to develop a huge coal mine, but those deals haven’t been nailed.

American signature brands may actually be most welcome, despite or perhaps because of decades of propaganda casting the U.S. as the devil incarnate. Pyongyang’s economic representatives made clear in this and other meetings, with focus and determination, that they want Yum Brands to open up KFC franchises.

Extreme wishful thinking though this may be, it’s linked to a planned ten-year revamp of the North Korean economy to expand national GDP from a meager $30 billion last year to $1 trillion by 2020. (The country can’t even feed its people; there is severe malnutrition in the countryside.) That all but impossible goal cannot be approached without an unshackling of enterprise, which may never occur, and massive help from the outside world, which may never come. The expression “reform and opening,” so familiar in China, is not yet politically acceptable language in Pyongyang. But North Korea’s courtship of the West has begun.

“Coke is strategic. I hope that Coke will serve as a bridge for relations between the two governments,” says Park, a slight man with a toothy smile and a taste for liquor, over a traditional Korean hot pot lunch and beer. Then, perhaps, sanctions could be lifted and more substantial investments could follow. “The door will be open to the whole world, not only China–even the U.S., even Western countries.”

But so far the West hasn’t come calling. North Korea remains in the dysfunctional totalitarian grip of Kim Jong Il. The regime is a defiant nuclear provocateur linked to proliferating weapons, drugs and counterfeit cash abroad, while operating a terrifyingly effective police state at home. Western companies will require more than the usual amount of persuasion. They will want something the North Koreans can’t possibly provide: a blessing from the White House.

That’s where Gabriel Schulze, scion of the Newmont Mining fortune, with a prospector’s taste for risk and opportunity, comes in. He has been surveying this forbidden market on the strength of informal connections to Coke and one of its bottlers, SABMiller, without either company’s toplevel approval–a Cold War-style mission that affords the higher-ups plausible deniability.

SABMiller sent a regional executive, at Schulze’s invitation, to the May meeting with Taepung Group, adding in a statement for this story, “We have no plans to invest in North Korea.” Coke turned down a request from Taepung Group (via Schulze) to visit this summer, and distanced itself from the remotest hint of soft-drink summitry with this statement: “No representative of the Coca-Cola Co. has been in discussions or explored opening up business in North Korea.”

Coke’s skittishness is striking from a company with a history of selling into almost any market–including such villainous or pariah states as Hitler’s Germany in the 1930s, Franco’s Spain and Pyongyang’s historical sponsors, China and the Soviet Union, in the 1980s (though Pepsi got to the Soviet Union first). North Korea is one of the last frontiers. “That is your task, to become a pioneer,” says Jang Gwang Ho, the senior North Korean official in the coterie greeting Schulze’s group.

Tall, blue-eyed and devout, Schulze is full-blooded pioneer. The great-great-grandson of Newmont founder William Boyce Thompson, he runs a family investment office out of Beijing, Schulze Global Investments, which specializes in China and difficult emerging markets.

While he has close ties to Republicans in U.S. politics, Schulze’s forays abroad, such as a cement plant in Ethiopia, are far from conservative. Schulze Global seeks “double bottom-line returns,” he says, profiting while helping poor emerging markets develop. Bringing Coke to North Korea would be historic, but he knows engagement with Pyongyang might be seen as a folly back home, both financially and politically.

“We understand that there’s a high likelihood that there could be all sorts of trouble and that we could end up losing money,” Schulze tells me after his trip. “There’s a lot of [U.S.North Korea] mistrust, there’s a lot of gamesmanship, and for us it’s not about pretending that that’s not there. We’re not in a little bubble of happiness.”

Would it even be legal for Coca-Cola to do business in North Korea, given international and U.S. sanctions? Those sanctions have proven to be narrow and permissive in practice, and there is no stricture against soft drinks (a sip of CocaCola is already imported, mostly from China, and sold to the few with disposable hard currency).

Hundreds of foreign businesses, most of them Chinese, have come into North Korea despite cautionary tales of investments gone bad, of officials changing the terms or the rules, soliciting bribes, demanding substantially higher payments or expropriating joint ventures.

And these businesses have made money. In a 2007 survey of 250 Chinese operations in North Korea, scholars Stephan Haggard and Marcus Noland found 88% saying they could turn a profit. (A majority also reported paying bribes.) Enterprises routinely encounter difficulties, yet many persist, hopeful for economic liberalization.

At least one American investor has profited in North Korea as well: Schulze Global. Three times in 2008 it made loans of hundreds of thousands of dollars to mining companies to buy equipment and expand, and each was repaid. This summer Schulze lent an additional $1 million to finance a North Korean conglomerate’s purchases of corn to feed its workers. (He consulted with sanctions lawyers in America before making the loans and has filed notices with the U.S. Treasury Department.)

“That opened the doors” to the Coke project, Schulze says. Making the world’s favorite carbonated beverage in Pyongyang would be quite another matter, though. The country still operates on a planned economy and has difficulty even manufacturing plastic bottles and cans. The government barters for sugar from Castro’s Cuba and would probably have to import steel to build a Coke factory. And although the estimated per capita income is $1,200 a year, the Coke factory’s workers would be paid barely more than a dollar a day (low wages are a key selling point to foreign investors). Further, the nation is plagued with persistent food shortages that force the regime to rely on international aid. Does a country this poor have consumers for the iconic American drink?

The answer is yes, at least in the capital. Home to the privileged upper crust, or an eighth of the nation’s 24 million people, Pyongyang has a visibly robust elite economy. The city’s wide Stalinist thoroughfares, bereft of private automobiles five years ago, are now filled with tens of thousands of foreign cars, including American and Japanese brands.

Mobile phone use is common, with more than 300,000 accounts in the capital using the 3G network built by Egyptian telecom Orascom. That includes some of the city’s traffic women, famous for white gloves and powder-blue uniforms. With traffic lights now doing most of their work for them, one was spotted on the sidewalk jabbering into her cellphone.

The city’s new Pothonggang Department Store was fully stocked with imported fare to be had at prices in North Korean won that are affordable only at the black-market exchange rate (2,500 won to the dollar at the time, compared with the official rate of 100 won). Name brands like Heinz Ketchup (the equivalent of $4 a bottle), Mars bars (a little more than $4 per bag) and all manner of high-end liquors and cigarettes are on offer, usually imported from Europe or Asia. On another floor you can find imported sweaters, dresses and shoes.

The checkout lines run briskly in midafternoon, the shopping done mostly by women, many of them likely the wives of government officials and army officers. (Kim Jong Il showcased the store with a visit in December.) Out on the streets the proles shop for snacks and locally made sodas–typically fruity concoctions in glass bottles–at hundreds of kiosks throughout the city, mostly priced at the black market rate of 20 cents to 40 cents.

Those prices would be 25 times higher at government exchange rates and thus out of reach for almost all North Koreans on their official salaries–but hard currency is flowing into the capital, “through this and that channel,” Jang says, and is spent. “Although officially they are not receiving the salaries from the government in hard currency, they have! So they like to spend the hard currency for their children because the children like to drink the Coke,” he explains.

Jang, of course, is not a commoner or for that matter a typical North Korean apparatchik. He speaks fluent if idiosyncratic English, was educated partly in the U.K. and is married to a doctor. First vice president of Taepung Group, he has a dual appointment on a government body overseeing economic development. Over two days of meetings Jang exudes an almost relaxed air of detachment. He typically parries questions with humor and stories while puffing on Dunhill cigarettes and flashing a Longines watch. (The president of Taepung, Park Chol Su, is a Chinese national, chosen in part for his Chinese contacts and experience.)

Do North Koreans like to drink beer? asks Anton van Heerden, a South African who runs SABMiller’s Asian supply chain. Yes, especially a growing cadre of retirees. “I can see so many old men, over 60, normally in the evening if we look around the city, they are making a queue to buy the beer,” Jang says, adding with a laugh: “There are crazy people! A lot of people drink the beer–30 bottles in the evening! I don’t know how.”

Friendly though they are with Schulze, Jang and Park both make clear that they answer to a higher power, the leader they refer to only as “the top man,” “the General” or the “Dear Leader”: Kim Jong Il. Park was born to Korean parents in northeastern China in 1959, as Kim Il Sung’s regime recovered from the Korean War. Park built relationships with North Korean officials by selling them much-needed gasoline in the 1990s. He is a salesman again, puffing up his chest as he blusters about the will of the General to change North Korea’s economy, led by his Taepung Group.

Parse the bombast and you get a rare glimpse inside the complexities of power relationships. Park says he has never met the top man and instead takes his instructions from a close Kim confidant, 73-year-old Kim Yang Gon, who is chief of the United Front Department, an intelligence arm of the Korean Workers’ Party, and chairman of the Taepung Group. Still greater power at Taepung likely lies with another member of the board of directors, Kim Jong Il’s brother-in-law Jang Song Taek, who as vice chairman of the National Defense Commission is considered North Korea’s second-most-powerful man. The National Defense Commission, chaired by Kim Jong Il, is also Taepung’s controlling shareholder.

To some Western analysts the tight control of Taepung signals that Kim’s coterie is not an agent of change and reform but precisely the opposite–a means to tighten its grip over the North Korean economy. The reasoning: Kim wants Taepung to bring in multibillion-dollar deals for resources, power plants, ports and roads, they say, so that he and his cronies can control the spoils.

Schulze hears the skeptics. But he notes that a Coca-Cola investment would be far more symbolic than lucrative. The total ante probably wouldn’t exceed $10 million (with Schulze Global’s share at $2 million)–tiny by comparison with some resource deals. He also argues that the only realistic way to engage with North Korea is precisely through those in power. “People say this is the leadership looking to benefit itself, and I would say yes, that is absolutely true.” But, he adds, “it doesn’t negate the fact that selfish ambition can still drive positive change and development, particularly in the economy, which can make a real difference in the lives of North Koreans.”

His groundwork laid in North Korea, Schulze will continue his quixotic quest to lobby not only Coke but also Capitol Hill and the Obama Administration. He is, in a way, following in the footsteps of his great-great-grandfather Thompson, the mining magnate. Thompson shocked his friends in the business establishment when, after returning from Russia after a trip in the fall of 1917, he urged that the U.S. and Britain engage with the new communist regime there to moderate the impulses of Lenin and Trotsky. No one, obviously, followed that advice.

Read the full story here:
Invading North Korea
Forbes
Gady Epstein
2011-10-5

Geoffrey See and Andray Abrahamian (both representatives of Choson Exchange) wrote an article in the Harvard International Review which asserts that economic successes are becoming more important to the political narratives that reinforce the DPRK leadership’s claims to legitimacy. Below is an excerpt from their article:

North Korea’s most important domestic policy statement comes each New Year, when the major newspapers publish a joint editorial. The editorial often signals where government priorities will be in the coming year. In 2010 the newspapers spoke of “Bring[ing] about a decisive change in the people’s lives by accelerating once again light industry and agriculture.” Similar themes were echoed in 2011. This is opposed to the joint editorials of the past few years, which have focused on the more traditional themes of military strength, revolution, and socialism.

Another public sign of a shift towards focusing on economic issues is the type of official visits and inspections carried out by Kim Jong Il. Following in the footsteps of his father, Kim uses these visits to signal emphasis or encouragement of specific industries, activities, and policies. According to a report by the Institute for Far Eastern Studies, the first six months of 2011 have seen Kim exceptionally busy, participating in 63 official activities. Unlike previous years, however, the number of military visitations has dropped off: only 14 visits were military related, the lowest number ever recorded. By contrast, 28 visits were economic related.

In terms of policy, North Korea has been haltingly experimenting with Special Economic Zones (SEZ) since the mid-nineties, but has recently built a bit more momentum in this area. Rason, an SEZ in the far northeast, is finally seeing some basic infrastructure upgrades that were long talked about but always delayed. Government investment bodies have started to promote the idea that Rason will be the “next Singapore,” an ambitious marketing claim to anyone who has been to Rason. With both Russia and China leasing port space, it seems more likely to be transformed into a regional transportation hub. Meanwhile, along the Chinese border in the northwest, the Hwanggumpyong SEZ recently held a groundbreaking ceremony, attended by high-ranking North Korean officials and Wang Qishan, China’s commerce minister.

Senior politicians in North Korea are increasingly judged by their ability to bring in foreign direct investments. These efforts appear to be competitive rather than coordinated. North Korean leaders associated with the National Defense Commission, the highest level policy body, have been meeting with visiting foreign investors. In 2009, the Daepung International Investment Group was re-purposed along the lines of a holding company model as a vehicle for attracting foreign direct investment l with “27 joint ventures planned and to be managed by the Group.” Daepung Group is backed by specific high-level individuals. Jon Il-Chun, reportedly the Director of Office 39, a murky international trade and finance organ, is definitely involved with the Daepung Group. Media reports also indicate that Kim Yang Gon, Director of an organization tasked with managing contacts with South Korea, the United Front Department of the Workers’ Party, is also behind the group.

In July of the same year, the Joint Venture & Investment Commission (JVIC) was established. Instead of a holding company model, JVIC is a government institution modeled as a “one-stop shop” for investors – that is, JVIC is meant to “seek out investments and assist investors in setting up operations in North Korea.” While multiple institutions claiming to hold such authority have always existed in North Korea, many of these institutions have been merged into JVIC and long-time investors have been directed to liaise with JVIC as their primary government contact. JVIC’s nominal and public head is Ri Chol, a high-ranking North Korean government official.

In August of 2010, we received credible reports that foreign investors were approached to help set up a group similar to Daepung that would be backed by another member of the National Defense Commission. Given this proposed initiative’s similarities to Daepung, the prior establishment of JVIC, and that all three groups do not appear to communicate with each other, we surmise that these various groups have a competitive relationship with the support of different patrons. Investment officials with whom our teammates have met confirm that the relationship between the agencies is “very competitive.” If this is the case, it is a signal that influential groups in Pyongyang sense that future power bases will require the ability to attract and deploy capital.

The full article is worth reading here:
Harvard International Review
Geoffrey K. See and Andray Abrahamian
August 23, 2011

Pictured above (Google Earth): The National Academy of Science and what I believe is the Natural Science Academy (University of Natural Science) on the border of Pyongyang and Phyongsong.  If any readers beleive the facility is in a different location, please let me know. See in Google Maps here.

Choi Sung writes in the Korea IT Times:

The University of Natural Science which is a North Korea’s science education university is located in Eunjunggu in Pyongyang. It used to be in Pyeongseong-si with the National Academy of Science, where the university is affiliated to, but it was moved to Pyongyang to benefit scientists as a citizen of Pyongyang. The National Academy of Science is North Korea’s best scientific research complex. Every year, Kim Il Sung University hosts a science competition in early January. The competition subjects include Mathematics, Physics, Chemistry and English and a thousand students who already passed previous competitions in local institutes participate in the final competition.

Students who win first, second and third places in this competition are eligible to enter any Natural Science university of their choice. Also twenty to thirty top students are awarded and are given a chance to sit for an exam at Kim Il Sung University, The University of Natural Science or Kim Chaek University of Technology. However, the top students gets additional points in their admission, so virtually, seats for them are already secured. North Korea’s top talents usually choose between Kim Il Sung University and the University of Natural Science, but the formal is more for the social title and the latter is more for improving science research skills.

The Best Science Educational Institution

The University of Natural Science, where North Korea’s science and technology talents receive full scholarship (including meals, clothes and even underwear) from the government, is affiliated to the National Academy of Science and is nurturing professional science researchers. The National Academy of Science is North Korea’s top scientific research complex, having the University of Natural Science as a branch.

This University was established on 27 January 1967 by Kang Young Chang, the then director of the National Academy of Science and a member of the Central Committee of the Workers’ Party of Korea, and his determination to foster bright scientists. It was rather an unexpected move in the time when the environment variation theory (Lysenkoism- a theory that believes genetic abilities can be changed depending on the circumstance) that doesn’t admit the existence of the gifted was overflowing through the society as well as it was in other socialism countries like Eastern Europe and China. However, as a result of the establishment of the university, North Korea had a significant turning point in its science and technology development.

The University of Natural Science started from Mathematics, Physics, Chemistry and Biology departments in Kim Il Sung University, and all of the professors were members of The Central Committee of the Workers’ Party of Korea. Furthermore, this university was financed by the ruling party’s finance and accounting department as its direct institution and was received special treatment until October 1985. Since then, it became a branch institution of the National Academy of Science, and has established its firm foothold as the top science educational university in North Korea up to now.

Admission Process

Generally, in North Korea, which family one comes from or what kind of social background one has is more important than academic records, however, the ruling party’s Central Committee ordered to select students solely by their academic performance or excellence since 1984. Consequentially, the university has more students who just graduated from high schools, and famous for its young graduates’ scientific achievement after their graduation.

Every university in North Korea has to receive certain percentage (twenty to thirty) of discharged soldiers (served longer than three years) or workers (employed longer than five years), however the University of Natural Science is an exception. It means the university education is focused more on academic performance than ideology, so talented young students can study in this school no matter how old they are. If a gifted student achieves early completion from a high school, he or she can enter the University of Natural Science. Most of the professors at school have Doctorate degree from this university and thirty to forty percent of them have studied in Eastern Europe and the Soviet Union.

Generally, the admission process is divided into two parts, and the first part is that the government sends the university’s professors to the high schools that are considered to be the best in each region, and give top thirty students who want to enter the University of Natural Science a pre-exam. The exam subjects are Mathematics and Physics and top five students are selected to proceed to the next part. In the second part, students take extra Mathematics and Physics exams specially set by the professors of the University of Natural Science in July to August which is the same time as the general university exams are conducted. Students who get ten out of ten in any of those extra exams are specially chosen even if their general exam scores are not as good. For the students who graduate early from high schools are only allowed to enter the University of Natural Science.

Curriculum

Six to seven hundred students a year are entered the university and they study at six departments including Mathematics, Physics, Chemistry, Electronics and Automation, Computing and Biology, and three thousand students are studying at the graduate school, and four thousand researchers and university personnel are working at the research center, and female students account for fifteen percent.

Most of the professors have degrees from this university and currently forty to fifty percent of the professors have studied in China or Eastern Europe, and almost all of them studied abroad at least from six months to a year and they are mostly teaching modern science theories. The University of Natural Science is famous for being the first university to have higher degree graduates in their twenties and the graduates are known for their excellent performance, so now they takes up the major part of North Korean research centers.

Especially, the graduates are the mainstream in the scientific recerch centers of military agencies and the special agencies. The textbooks used in classes are usually written by professors from this university and original books in English. Since 2005, major subjects have been taught in English and the university has quickly adapted revolutionary measures like South Korean style discussion classes and presentation sessions to provide world-class education system.

It takes seven years to receive bachelor’s degree, the longest school system in North Korea and the graduates get the Expert Qualification which is only given to the natural science graduates from Kim Il Sung University while the graduates from other universities are given the Engineer Qualification. Especially, the University of Natural Science requires one to one and half years to finish graduate dissertation, and students conduct research at the research center at the Nationa Academy of Science. Thus it is the only university that has academic-industrial collaboration system which resembles that of South Korea.

In general, foreign books are not allowed to read without permission in universities in North Korea, the University of Natural Science is an exception. The students in this university can read any natural science books even if that was written by authors from capitalism countries, and it is well known that its graduates have no problems in reading in three or more languages.

As for examinations, getting one F means the student will be flunk, and getting two F mean getting expelled automatically. Because there are only ten students in one class, the competition in classes is so intense that one to three students are flunked or kicked out before graduation. It is the only university in NK where actual experiments takes up thirty percent of curriculum and the exams mainly consist of essay questions. Recently, even though major science research institutions welcome its graduates, students in South Korea tend to choose different majors other than natural science because of the economic recession, and the same phenomenon is also found in North Korea.

All of the students in the university live in dormitories. They wake up at five in the morning (six in summer and winter) for stretching and jogging, after that, they line up and sing while they are going to a cafeteria. Every university in North Korea has the same system and lifestyle as those in military base, and the University of Natural Science is not an exception there. After all that, students take ninety-minute-long classes from eight in the morning.

The main text books are written by professors at the university and original English books are used as a subsidiary. Students are not allowed to read foreign books of Social Sciences without permission but they have free access to foreign science books. The library has foreign books mostly from Japan, Russia and the United States. Also, students learn English, Russian and Japanese, mostly focused on reading, and read books written in those three languages fluently.

The exams are taken at the end of semesters in August and January. If a student gets an F in one subject, he or she will be flunked, and two F means getting expelled. Generally, two to three people among fifteen students in a class get flunked and one to two people are expelled before graduation. Because there are only selected intelligent people in the school, competition could get tough.

Educational Achievements

The graduates from the University of Natural Science can have chances to work at special government agencies such as the National Defense Commission, The Central Committee, Ministry of People’s Security and Ministry of State Inspection and also work as a professor at other universities. These incentives seem to attract more students year by year. Especially, it is confirmed that the graduates play the main role to develop strategic technologies such as missiles, nuclear technology and computer hacking.

For example, it was reported in South Korean and international scientific journals that North Korea announced their success in thirty new generic engineering development including embryonic transplant, polytcocia and sex control of goats, and it is known that the graduates from the University of Natural Science are in the center of these cutting-edge scientific achievements.

Recently, a company in South Korea advertised their newly developed Finger Key, a fingerprint recognition system operated by computer, so that people with registered fingerprints can only open the door. However, North Korea already received a gold medal from 22nd International Exhibition of Inventions of Geneva with the same technology in 1994, four years ahead of South Korea. NK has also developed a medical program that can diagnose people’s health by the computer-recognized picture of their faces. All these program development projects were led by the first graduates from the computer engineering department in the University of Natural Science.

The GPS system which was the core technology in recent NK’s rocket launch was the work of software developers at the university, collaborating with China.

Read the full story here:
NK’s Top-Notch Science Education and Research Institute
Korea IT Times
Choi Sung
2011-8-24

Pictured Above (Google Earth): WPK Building No. 3 compound (Third Building) mentioned below.  See in Google Maps here.

Andrei Lankov has a great article in the Korea Times on the WPK’s naming conventions. I have attached the article below and supplemented it with related material taken from Helen-Louise Hunter’s Kim Il-Song’s North Korea and the Yonhap North Korea Handbook.

Lankov writes in the Korea Times:

Anybody who has ever dealt with North Korean officials or documents is aware that the nation’s bureaucracy loves number-based names and titles.

To a very large extent this is related to the deeply militaristic nature of the country’s culture. The military usually numbers units and often gives top secret armaments or projects numerical names. In North Korea, the same practice is applied to the society at large. The resulting names sound mysterious and this is probably part of its objective.

More or less every North Korean knows what the term ‘number-one event’ means. This is the name of all events in which the “Dear Leader,” Marshall Kim Jong-il, is expected to participate. When inhabitants of a town see their streets swamped with plain-clothes police, and when they are ordered to paint all fences anew, they understand: A number-one event is expected.

Everything related to the Kim family is “number one.” For example, painters who have a license to depict the members of the Kim family are known as number-one painters (and such a license is not easy to obtain). Predictably, an actor who is playing a member of the ruling family is known as a number-one actor.

Numbers are everywhere. If you need permission to go outside your native city or country, you should apply for a travel permit at Department 2 of the local municipal office. Of late, affluent North Koreans have become annoyed by the activities of Department 27. This department is responsible for the control of privately-owned electronic equipment. Now, as electric equipment is becoming increasingly common in North Korean homes, the officials of Department 27 are expected to conduct random checks of privately-owned computers. They are to ensure that no improper content is kept on hard-drives, and nowadays such visits must be time-consuming and stressful.

At the same time, North Koreans are (or at least used to be) quite happy to be number 65 distribution targets. North Korea, until the early 1990s, was a country of total rationing, where the government decided how much food and basic daily provisions were to be distributed to each citizen, depending on their perceived worth (admittedly food and goods were heavily subsidized and were essentially provided free). This is clearly an egalitarian approach, but, as Orwell once wrote, some are more equal than others. Members of the elite were given better rations and issued goods and services beyond the reach of the common people. They were referred to as number 65 distribution targets.

The place where they were issued special rations of pork and beer (luxuries by North Korean standards) were known as number 65 distribution centers.

Rations are long gone, so access to special distribution quotas is far less important than it was in the 1960s or 1970s. Money talks nowadays, so one should not be surprised that it is extremely prestigious to work for Bureau 38 or Bureau 39, the money-earning branches of the ruling ― and for all practical purposes, only ― party. The task of these bureaus is to earn hard currency which is then used to keep the Kim family and the upper crust of the regime sufficiently comfortable. There are some differences in their functions, but it’s not known exactly how these two agencies differ.

Another part of the central committee bureaucracy is the “Third Building.” This is a common name used to refer to all agencies that deal with South Korea. Actually the name is historic since, once upon a time, all South Korea related agencies and departments were once housed together in a building with the above designation.

Within the Third Building bureaucracy, a special role is played by Bureau 35. The bureau is essentially the intelligence-gathering branch of the ruling Korean Workers Party. Most countries worldwide have two intelligence services, one serving the military and the other gathering political intelligence. On top of that, North Korea also had a party intelligence service.

The initial role of Bureau 35 was to bring about revolution in the South. But with no revolution in sight, it gradually became just another intelligence bureaucracy. Recently North Korea conducted a major reshuffle of its spy agencies, and according to reports, Bureau 35 has had its functions either acquired by another agency or was at least downsized.

It was glamorous to work at Bureau 35 and/or be a number 65 distribution target. It is far less glamorous to be a “target 49.” This is what mentally handicapped people are called in the North. The “49 centers” are the agencies that take care of the needs of people with mental and psychiatric problems.

The list of North Korea’s mysterious numbers has many more interesting entries. Sometimes it seems that numbers are more frequently used there than real names. But what can we expect from a state which unabashedly models itself after the military?

On a related note, Helen-Louise Hunter wrote in Kim Il-song’s North Korea (p. 14–Order at Amazon, Google Books):

The numerical identification of a factory or collective farm is derived from the date of Kim’s first visit . For Example, the 18 September Nursery School in Pyongyang is named for the day when Kim [Il-sung] visited it. Although this name for the most prestigious nursery school in North Korea, which caters to the crème de la crème in Pyongyang, seems unimaginative and unimpressive, it establishes Kim’s personal connection with the school.  In North Korea that is all-important.

Additionally, North Korean organizations are named after important political dates.  According to the Yonhap North Korean Handbook (p.675–Order at Amazon, Google Book):

North Korea had declared the People’s Army Founding on February 8, 1948, and February 8 was commemorated as the People’s Army Fonding Day before 1978.  In February 1978, North Korea changed it to April 25 while arguing that “the People’s Army is the direct heir of Choson People’s Revolutionary Army” and the former president Kim Il-sung had organized Choson People’s Revolutionary Army (anti-Japan guerilla corps) on April 25, 1932.

Perhaps you have heard of the February 8 Vinalon Complex (2.8 Vinalon Complex) or the April 25th House of Culture?