North Korean Economy Watch

Daily NK
Namgung Min
10/13/2008

The Chosun (North Korean) Workers’ Party controls and restricts all types of people: from party members to non-members, from the upper-class to the proletariat.

As the Party rules over the state, it coerces people to follow not the socialist constitution of the DPRK, but the party’s Ten Principles for the Establishment of the One-Ideology System (hereafter referred to as the Ten Principles).

The Ten Principles that the Party uses to restrict the people are something that everyone born in North Korea has to memorize and follow at home, work and school for their whole life.

The framework for the Ten Principles was laid by Kim Jong Il in his role as Party Secretary. Later he declared the principles throughout North Korea in February, 1974.

With the Ten Principles Kim Jong Il set standards for North Koreans’ daily lives and their daily activities.

Supervision and Restriction through Regular Party Evaluation Meetings

The Party’s regular evaluation meetings are the tools most typically utilized to monitor all affairs related to the work and personal lives of Party members.

According to Article 8, Section 5 of the Ten Principles, party members are required to “actively attend the Party’s regular evaluation meetings that are held every other day or every week in order to train oneself to become a revolutionary and to continuously rebuild oneself through criticism using the standards of the Leader’s teaching and the Party’s policies as a guide.”

During the regular evaluation meetings, first members within a certain period of time are to confess flaws and mistakes they or others made in their work or personal lives; what they said and did; and, one’s ways of thinking. Then they criticize themselves and one another.

These evaluation meetings are held weekly. There also are monthly and quarterly evaluation meetings, which vary in subject and scope.

If one tries to hide or minimize one’s mistakes during these evaluation meetings, then the level of criticism gets stronger.

“You can pass an evaluation meeting safely only when you seem to be repentant by showing tears and exaggerating even when the flaws are not that serious,” explained Mr. Kim, who defected in 2006.

The quarterly meetings sometimes last a half a day or a day.

Especially after reciprocal criticisms during the evaluation meetings, upper-level cadres of the Party submit the results to Kim Jong Il or the Guidance Department of the Central Committee of the Party for review. Later, the results of the evaluation are announced to the people involved.

The evaluations (similar to a South Korean court decision) can result in comparatively light sentences such as a warning, a severe warning or suspension of one’s qualifications. However, at times, severe punishments are given out such as mining work, farm labor without pay, suspension of one’s titles, banishment to remote regions, or referral to the National Security Agency. If charged and prosecuted, one may be sentenced to intensive labor or re-education camps.

Supervision through Various Forms of Guidance and Education

The Workers’ Party supervises and restricts the people by brainwashing them using various forms of instruction and lectures.

According to Article 4, Section 5 of the Ten Principles, everyone must “attend meetings, lectures and lessons without missing any to learn the Great Father Kim Il Sung’s revolutionary ideology and actively study the rules for more than two hours everyday.”

The mandatory Saturday meetings in particular are known to be the basic brainwashing tool; they are thoroughly prepared by the Propaganda and Agitation Department and involve lectures and documentary film lessons.

The brainwashing process that North Koreans have the hardest time with is the catechetical lessons.

The catechetical lessons take the form of a competition and include preliminary, semi-final and final rounds. During these lessons, all cadres, party members and residents have to memorize more than 100 pages of “catechetical lesson material” that have been prepared by the Propaganda and Agitation Department without getting one word wrong.

The catechetical lesson material includes Kim Il Sung and Kim Jong Il’s works, the Ten Principles for the Establishment of the One-Ideology System, Juche ideology and related philosophical issues, documents that praise the morals and majesty of Kim Il Sung and Kim Jong Il, and various poems and songs praising the Kims.

The groups or individuals that win the competition get awards like a television and honor. But those who do not claim victory become the targets of criticism by the organizations to which they belong and the Party apparatus for slacking on studying ideology.

Restricting People Through Various Organizations

In North Korea, all people who are not part of the Workers’ Party must be mandatorily restricted by the Party’s quasi-governmental organizations.

Such organizations include the Kim Il Sung Socialist Youth League, the General Federation of Trade Unions of North Korea, the Union of Agricultural Working People, the Union of Democratic Women the and Korean Children’s Union.

The Kim Il Sung Socialist Youth League (the Youth League) is the biggest and most active political group, the only non-party member group for young people, and includes working youths, students, and military men.

The Youth League, by restricting the ideological culture and organized groups of all youths, monitors any changes in the society’s way of thinking that may happen with the change of generations. It also organizes all youths to be actively involved in production, construction and military service.

The Youth League plays the important role of restricting any form of opposition groups or actions among the youths of North Korea.

Youth League members who have reached the age of 30 but have not joined the Party must join the General Federation of Trade Unions, if one is a laborer or low-ranking manager, the Union of Agricultural Working People if one is a farmer, or the Union of Democratic Women if one is a housewife.

These workers’ organizations are managed by the work departments of the committees and the Central Committee of the Party.

Therefore, non-Party members in North Korea receive double supervision–from the organizations they belong to and from their workplace.

The Chosun Workers’ Party has been strictly restricting and supervising its people for 63 years, which is the period of disgrace of the Kim Il Sung and Kim Jong Il dictatorships.

Daily NK
Namgung Min
10/8/2008

As rumors regarding Kim Jong Il’s illness surfaced during North Korea’s 60th anniversary celebrations, opinion was divided on whether the military or the Party will rise in power post-Kim Jong Il.

It is true that the power of the military rose post-Kim Il Sung, according to the “military-first” political line. The National Defense Commission (NDC) began leading various agencies and councils, and came to hold greater power because Kim Jong Il was introduced as the National Defense Commission Chairman during North-South Summits.

Thus, the National Defense Commission under military-first politics began to appear to be North Korea’s sole power base, as news on general-level promotions was released publicly by the National Defense Commission.

However, despite military-first politics, it remains the Chosun (North Korea) Workers’ Party that fundamentally controls the North Korean regime. Therefore, in order to understand the North Korean regime, one must understand the Chosun Workers’ Party.

Upcoming October 10th is the founding anniversary of this most important of organizations. The eyes of the world are focused on whether Kim Jong Il will appear on this day or not.

Therefore, it is time to closely examine what the Chosun Workers’ Party does and how it controls the North Korean regime.

The Korean Workers’ Party claims to be the direct heir to the North Korean Branch of the Chosun Communist Party that was established during “The Chosun Communist Party Convention of Leaders and Devotees of the 5 Northwest Provincial Party Committees” held on October 10th, 1945. Hence the founding date is October 10th. In April, 1946 the name was changed to the North Chosun Communist Party, which then became the Chosun (North Korean) Workers’ Party after being merged with Chosun New People’s Party in August of the same year.

North Korea is operated under the leadership of the Chosun Workers’ Party, as previously seen in other socialist countries; the nation’s power is concentrated in the Party. This implies that as the Party controls the country, the country is evolving into a socialist society and from there into a communist society.

The Workers’ Party, venerable as it is, not only holds the highest position of authority in North Korea but thus stands above other national agencies, organizations or the military.

I. The positions and roles of the Chosun Workers’ Party

The positions and roles of the Workers’ Party are described in detail in the “Rules and Regulations of the KWP,” “Ten Principals for the Party’s Unique Ideological System” and the “Socialist Constitution of North Korea.”

It is written in Article 11 of the Socialist Constitution, amended in 1998, that “The DPRK shall conduct all activities under the leadership of the Workers’ Party.” Furthermore, the Workers’ Party is stated to be an organ that controls other agencies and organizations as the highest revolutionary organization leading all other working organs.

However, the socialist constitution and the rules of the Party are only for the purpose of propagating the notion of the rationality and legitimacy of North Korea abroad while concealing a dictatorship. The reality within North Korea is completely different from the actual contents of the constitution.

In actuality, the socialist constitution and the rules and regulations of the Party defines that all sectors such as government, military, administration, judiciary, and even public prosecutor’s office are led by the Party, while being utilized as the apparatus for Kim Jong Il’s Stalinist dictatorship. That is, the regulations recognize the Party’s leadership of the country and simultaneously state that the Party can only be operated and led by Kim Il Sung and Kim Jong Il.

The Workers’ Party in legal terms is an organ that guides North Koreans, but in reality it is only an organ under the iron command of the supreme Leader. Therefore, the Leader stands in the highest position, above the Party, nation and sovereign organs.

II. The structure and functions of the Chosun Workers’ Party

The utmost decision-making organ of the Workers’ Party is the National Party Congress.

According to the rules and regulations of the Party, all decision making of the Party regarding policies, strategies, and tactics should be passed through the National Party Congress. However, in actuality the Party Congress only rubber stamps the decisions that were already made by the Central Committee of the Party.

It is theoretically a ground rule that the Party Congress meets once every 5 years. The first congressional meeting was held in August 1946, the Congress met for the 6th time in October 1980, but has failed to meet since; 28 years. The fact that the Congress is not meeting regularly signifies that the regime system is not operating according to accepted principles of socialist states in the past.

If the Congress fails to meet, the Central Committee of the Party functions as the highest decision-making organ. The Central Committee should meet and discuss issues once every 6 months.

During these meetings, the General Secretary, committee members and the Presidium of the Politburo and committee members of the Central Committee of the Party should be elected. The Central Committee also has the authority to organize the Secretariat and the Central Military Commission.

However, even these twice annual meetings have not been held since the 21st meeting of the 6th cohort in 1993. When the meetings are not held, then the Politburo needs to take authority. However, the Secretariat of the Central Committee, whose General Secretary is currently Kim Jong Il, currently does so.

The highest organ in a communist society is officially the Presidium of the Politburo. In North Korea, Kim Jong Il is the only left in the presidium after the deaths of Kim Il Sung and Oh Jin Woo. This is why North Korea is sometimes called a totalitarian state. In the Chinese government, the Politburo presidium is properly functioning and decisions are made here. From a “democratic” perspective, the Chinese Communist Party and the Chosun Workers’ Party are completely different.

In any case, within the Secretariat of the Central Committee there are specialty departments such as the Guidance Department, Propaganda and Agitation Departments, and the United Front Department, and it also includes departments that supply secret funding to Kim Jong Il such as the 38th and 39th Departments.

The provincial organs of the Party consist of party committees of provinces, cities and counties that even include the most basic low-level party committees such as elementary party committees and sector party committees.

The structure of the Workers’ Party can also be divided into permanent party organs and temporary collective leadership groups. The permanent party organs include all members who work in any specialty departments, from the Central Committee down to low-level provincial party organs. Temporary collective leadership groups signify councils of high-level or low-level leaders of the central and provincial organs, made to implant permanent authority within the society through various meetings.

There are approximately 4,000,000 members of the Workers’ Party, including Kim Jong Il, high-level officials to low-level members, and figures from the legislature, judiciary, and the administration.

III. Main Departments and Their Roles

The main government complex of the Central Committee of the Worker’s Party is located in Changkwang-dong, Joong-district of Pyongyang. There are many buildings in the complex which include Kim Jong Il’s personal office and most of the Central Committee departments.

The second government complex is located in Junseung-dong, Moranbong-district of Pyongyang. The Social Culture Department, United Front Department and Operations Department are included in this complex.

The Workers’ Party has placed all specialty departments under the authority of the Secretariat, to function as restriction and guidance on all areas of the party members, citizens and North Korea. There is a Guidance Department that observes party members then there are other departments that exercise political functions.

The Guidance Department actualizes party guidance and restraint within communities. The department functions as Kim Jong Il’s right hand and as the core department by restraining the lives of all officials, members and citizens within the party.

The Guidance Department sub-divides into the inspection department, official department, party-member registration department, administration department and a communication department that allows direct reports regarding any incident or accident. The Guidance Department also manages the judiciary and the public prosecutor’s office.

The inspection department is responsible for inspecting any anti-party, non-party, undisciplined or unreasonable activities that develop within the regime or leadership of the Party and report to Kim Jong Il. The Guidance Department inspection section is strictly separated from other departments and North Korean party members or officials are all fearful of it.

There are approximately 20 specialty departments such as the Propaganda and Agility Department, the 38th and 39th Departments to supply fund to Kim Jong Il, the United Front Department dealing with South Korea, the International Department, the Science Education Department, and the Operations Department that carry out political activities.

Currently the Korean Workers’ Party is in the middle of the process of replacing 1st or 2nd generation leaders with 3rd or 4th generation, often more practical, personnel.

Daily NK
Lee Sung Jin
10/7/2008

An inside source from North Korea reported on the 6th that the North Korean authorities have ordered that any woman under the age of 70 who is able to hear, see, and move should participate in the activities of the “Chosun (Korean) Democratic Women’s Union.”

According to the source, “The Central Committee of the Women’s Union Chairwoman Kim Soon Hee decreed that the elderly who are able to move must participate in Union activities, rather than uselessly sitting around and complaining about society.”

After the worsening food situation, the source said that the elderly often sit around and pour forth their complaints about society, saying that “We did not live like this before… If we worked, at least we received wages and provisions, but what kind of a situation is this nowadays?” and blaming the inadequate governance of officials.

Since the food crisis, there have been many instances of the elderly selling goods in alleyways or at street-stands. In particular, after the implementation of the regulation of December 2007 which prevents women less than 40 years of age doing business in the market, the elderly increasingly sell products at stands which are managed by young women from behind the scenes.

Elderly women who do business in the jangmadang (market) have been accordingly playing the role of circulators of all kinds of rumors and complaints, such as saying, “How many more years are left in our lives? At least our children must live well, but there is no sign of that and it is much worse than the Japanese colonial period; how can we not blame the world?”

The recent measure can be seen as another ploy to control the citizens by the North Korean authorities. However, involving elderly women in organizational activities to prevent the worsening of civilian sentiment has been protested against by constituents as well as the elderly.

The elderly who heard the recent news have complained, “It is difficult enough just to live until our 60s, how can they tell us to participate in the Women’s Union activities as well?”

Also, the source relayed elderly concerns over their livelihoods, “Members participate in study sessions twice a week and have to carry out tasks distributed by the Union, so they do not have time to sell in the market. In their free time during the difficult period, they have been doing business and helping their families get by. The changed regulation is a death sentence for these families.”

Currently, the total number of members in the Korean Democratic Women’s Union, which started out as the “North Chosun Democratic Women’s Union” on November 18, 1945, is around 200,000. Until now, the targeted entrants have been women over 31 and below 55 who do not belong in other organizations or working places. The main activities of the Women’s Union are studying political ideology regarding women and rolling out various projects.

Choson Ilbo
9/18/2008

Gen. Hyon Chol-hae, the 74-year-old deputy director of the general political department of the North Korean People’s Army (KPA) has been North Korean leader Kim Jong-il’s most frequent companion on official occasions. Hyon has accompanied Kim, who is said to be recovering from a stroke, on 32 occasions this year.

In analysis of senior North Korean officials who have accompanied Kim on his inspections of various facilities until Aug. 14, Hyon was followed by Gen. Ri Myong-su (71), director of the administrative department of the National Defense Commission (29 occasions); Kim Ki-nam (82), director of the propaganda department of the North Korean Workers’ Party (KWP) (22 occasions); Pak Nam-gi (74), director of the planning and fiscal affairs department of the KWP (10 occasions); Kim Jong-gak (62), first vice-director of the KPA’s general political department, Pak To-chun, chief secretary of the WPK Jagang Provincial Committee, Kim Kyok-sik, chief of the KPA general staff (seven occasions); Jang Song-taek (62), director of the administrative department of the KWP (five occasions); and North Korea’s first vice foreign minister Kang Sok-ju (67) (five occasions).

During these inspections, Kim has given instructions to military officers, government officials and plant managers. The more often these elderly men accompany Kim, the closer the Unification Ministry, which carried out the analysis, considers them to the North Korean leader. Hyon, Ri, Kim and Pak ranked first through fourth in 2007 as well

Song Dae-sung, a senior researcher at the Sejong Institute, said there is no big change in the ranking order of those closest aides to Kim Jong-il, who are assisting Kim on his sickbed or governing North Korea on his behalf.

Hyon Chol-hae
The KPA’s general political department, which Hyon controls as deputy director, is in charge of the entire KPA organization. A graduate of the Mangyongdae Revolutionary School, which families and descendants of the anti-Japanese partisans attend, he controls the school’s graduates, most of whom serve in the military. During the Korean War, he was Kim Il-sung’s bodyguard. He accompanied Kim junior on his visit to China in 2001.

Hyon stood on the platform alongside other North Korean leaders during a military parade on North Korea’s 60th anniversary on Sept. 9. According to analysts, normally only vice marshals or higher-ranking military officers are allowed to stand on the platform, and Hyon, a general, was an unprecedented exception.

Suh Jae-jean, director of the Korea Institute for National Unification, said, “It seems that Hyon Chol-hae is currently running North Korea behind the scenes. He is expected to play a leading role in laying the foundation for the post-Kim Jong-il era according to Kim’s wishes.” The institute says Hyon also has connections with Kim’s second son Jong-chol (27).

Ri Myong-su
Ri is director of the administrative department of the National Defense Commission, North Korea’s de facto supreme leadership. As the NDC’s administrative department director, he controls inspection and intelligence activities within the KPA. Until last year, he was under Kim Jong-il’s direct command as the director of the KPA’s operations department.

Ri emerged as a strongman in the process of Kim’s succession to power in the 1970s, by displaying loyalty to him. He has been Kim’s second most frequent companion since 2003.

Ryu Dong-ryeol, a researcher at the Police Science Institute, said, “Hyon and Ri directly report to Kim Jong-il.”

Kim Ki-nam
Kim is a well-known figure in South Korea since making an unannounced visit to the Seoul National Cemetery when he was in Seoul as the chief of a North Korean delegation to a “Unification Festival” marking Liberation Day on Aug. 15, 2005. He is Kim’s mouthpiece as secretary for propaganda for the KWP Central Committee. He was the editor-in-chief of the Rodong Shinmun, the organ of the KWP Central Committee, in 1976. In 1985, he was appointed director of the propaganda department of the KWP Central Committee.

Lee Ki-dong, a senior researcher at the Institute for National Security Strategy, said, “Kim Ki-nam will be in charge of publicizing at home and abroad Kim Jong-il’s decision about a successor.”

Pak Nam-gi
Pak is in charge of North Korea’s economy. Since 1976, he has worked as an economic expert as vice chairman of the State Planning Commission, the agency that controls North Korea’s planned economy.

As the first vice-director of the KPA’s general political department, Kim Jong-gak is in charge of propaganda within the military. Kim Kyok-sik assumed the post as the chief of KPA general staff in April last year, and Pak To-chun has served as the chief secretary of the KWP Jagang Provincial Committee since 2005.

Jang Song-taek, Kim Jong-il’s brother-in-law, fell out of favor with Kim in May 2004. But he came back in 2006 and has since controlled powerful agencies such as the Ministry of Public Security and the State Security Department, and prosecutors’ offices. He is reportedly close to Kim’s eldest son Jong-nam (37).

Kang Sok-ju played a major role in reaching the U.S.-North Korean Geneva Agreement in 1994.

UPDATE 13-August 28:   Yoon Man-jun stepped down as CEO of Hyundai Asan over the July 11 killing of the 53-year-old South Korean woman by a North Korean soldier at the North’s Diamond Mountain resort, the company said in a statement. The company quoted Yoon as saying that he wanted to take “moral responsibility” for the death. (ETN news)

UPDATE 12-August 8: Despite bringing a halt to tourism in Kumgangsan, South Korea sent arrears to the DPRK.  From the Choson Ilbo:

Despite stalemate over the shooting death of a South Korean tourist at North Korea’s Mt. Kumgang, tour operator Hyundai Asan made its July payment for tours to North Korea.

Asan said Thursday it paid US$675,250 to North Korea to cover costs accrued by 10,380 South Korean tourists who visited the mountain resort on July 1-11, until the tours halted after a South Korean tourist was shot and killed by a North Korean soldier at Mt. Kumgang.

Update 11-August 8: DPRK to expel all remaining ROKs from Kumgnag starting August 10.   

UPDATE 10-Auguts 4: KCNA issues statement. 

UPATE 9-August 3: Though no date was given, North Korea intends to expell most remaining South Koreans from Kumgang (Yonhap):

North Korea’s official media said earlier in the day that Pyongyang will expel all “unnecessary” South Korean personnel from the Mount Geumgang resort, where a South Korean tourist was shot dead by a North Korean soldier last month.

More than 260 South Korean workers are stationed at the scenic resort, according to Hyundai Asan, the South Korean tour organizer. 

UPDATE 8-July 26: North Korea succeeds in preventing shooting concerns from being mentioned in official summary of ASEAN meeting.

UPDATE 7- July 23: South Korean government prevents South Korean civic groups from visiting DPRK until the North’s government agrees to participate in shoting investigation. (Donga Ilbo) 

As of Tuesday, six organizations had been offered invitations to visit the DPRK (Donga Ilbo):

One hundred members of the Korean Teachers and Educational Workers’ Union applied for permits to visit North Korea during August. In addition, 120 South Gyeongsang Province officials including Governor Kim Tae-ho are reportedly planning to visit the regime.

Humanitarian organizations such as Good Neighbors International, Nanum International and the Korean Sharing Movement will reportedly send 40-150 delegates to the North in August (for the former two) and September. In addition, North Korean officials invited around 120 members of Peace Three Thousand, and the representatives of the two will meet in Gaesong on Saturday to discuss the invitation.

These organizations [would] stay two to four days in North Korea and [] attend joint meetings with the North Korean Teachers’ Union, visit North Korean industrial facilities, tour Mount Baekdu, and attend an Arirang performance – a play propagandizing the regime.

UPDATE 6- July 21: Suspension of the Kumgang Tours will cost the DPRK $20 million per year.  If South Korea suspends the Kaesong tours (to the city, not the industrial zone) it will cost the DPRK government $15 million. (Choson Ilbo)

Maybe these numbers are sinking in. According to the Donga Ilbo:

North Korean officials recently followed one after another in expressing their perplexity regarding the incident, and fell over themselves to invite a horde of South Korean civic groups in August. These recent moves by the North have led some to believe that the North Korean authorities have somehow changed its stance towards the South.

An American source who recently met with North Korean officials in China and a working-level official at a South Korean civic group also said, “North Korean authorities told us that the shooter was a ‘very young’ person.”

The source added, “North Korean authorities told us that the incident equally took them aback. They added that especially at a time when the South Korean authorities are anxious to give them 50,000 tons of corn, those who thought the incident was intentional simply do not know anything about their regime.”

Unification Ministry spokesman Kim Ho-nyun also confirmed the Dong-A Ilbo’s report that North Korea invited a large group of South Korean visitors to Mount Baekdu and Pyongyang.

The Choson Ilbo remains skeptical. 

UPDATE 5 – July 17: The North’s story has changed.  DPRK rejects South’s inspectors. Seventy percent of officials of the United Front Department who were in charge of foreign affairs with South Korea were expelled from their positions early this year. It seemed to be an initiative step for taming the Lee administration and controlling the South’s policy (Daily NK).

UPDATE 4 – July 15: South Korea ups the ante by threatening to suspend tours of Kaesong unless the DPRK participates in the Kumgang shooting investigation (Bloomberg). 

NKeconWatch analysis: Suspending tours to Kumgang is relatively expensive for both North and South.  Hyundai and the South Korean government spent a lot of money developing the facilities, and by this time, the North Koreans who were earning from the project have grown accustomed to the cash flow.  The tours of Kaesong are different, however.  The South invested relatively little capital in the Kaesong tours, so suspending them idles few of their resources but hits the pocketbooks of the North Koreans who sponsor the program.  Could the Kaesong Industrial Zone be turned into a bargaining chip? 

UPDATE 3 – July 14: South Korea officially casts doubt on North Korea’s portrayal of events leading up to the shooting based on CCTV video and an eyewitness account. (Choson Ilbo) 

UPDATE 2: This story in the Korea Times (h/t ROK Drop) seems to indicate that there was a witness to the shooting and that there were no substantial barriers or warnings that vacationers could wander into a restricted military zone.   

UPDATE 1: The North Koreans expressed regret for the shooting, but says the responsibility lies entirely with Seoul.  They also refuse to cooperate with the South Korean government in an investigation of the incident citing that they have already sorted things out with Hyundai Asan. Although South Korea’s President Lee Myung-Bak ignored the situation in a parliamentary speech he gave shortly after the shooting, the Unification Ministry has now publicly stated that the shooting was “wrong by any measure, unimaginable, and should not have occurred at all.” 

ORIGINAL POST:Tourism numbers at the Kumgnag resort were up this year, despite high political tensions. 

From the AP:

A North Korean soldier fatally shot a South Korean tourist Friday at a mountain resort in the communist North, prompting the South to suspend the high-profile tour program just as South Korean’s new president sought to rekindle strained ties between the divided countries.

The news of the unprecedented shooting of a 53-year-old woman at Diamond Mountain resort emerged just hours after new President Lee Myung-bak delivered a nationwide address calling for restored contacts between the two Koreas, which have been on hold since he took office in February.

Kim said South Korea would suspend future Diamond Mountain tours until it completes an investigation. The other some 1,200 tourists already at the resort are to complete their tours as scheduled by as late as Sunday, said Hyundai Asan, the South Korean company that operates the resort.

Links to full stories below the fold:

(more…)

Daily NK
Moon Sung Hwee
6/17/2008

The Central Committee of the Chosun (North Korea) Workers’ Party recently commanded the People’s Safety Agency (PSA) to increase its authority.

A source from North Korea reported in a telephone interview with Daily NK on the 11th that “According to a document from the Central Committee of the Party, the legal authority of agents of the PSA is being strengthened.”

The source explained that “From now on, agents of the PSA can investigate every criminal offense committed by the military, the National Security Agency, the public prosecutors and cadres of courts. This command from the Party was delivered to the cadres’ lectures over the country on May 10.

The most remarkable part is that in every field except anti-nation or anti-regime crimes the PSA can inspect and search the houses of suspects from the military, the Party, the NSA and the public prosecutor’s office.

Through this, control over the military, which abused its power and was acknowledged as a public enemy by average residents for a decade under the military-first policy, is being systematized.

The document stated clearly that the PSA has the right to detain anyone who disobeys the agents’ onsite inspections in their homes and even to arrest them, according to the source.

One proviso only was added that when the agents undertake a house search of the cadres of the Party, they have to receive prior approval from upper levels within the PSA and they do not have the authority to arrest cadres of the Party on the spot as a suspect.

The source explained that up to this point general crimes committed by soldiers were just dealt with by the military police or the Defense Security Command of the People’s Army. Since the Shimhwajo Case in 1998, the PSA has not examined the cadres of the NSA or prosecutors.

The source relayed that regulations regarding punishment towards agents who intentionally overlook an inspection or who leak information on an inspection are specified in the document.

Since Jang Sung Taek, a brother-in-law of Kim Jong Il, led the Ministry of Administration of the Chosun (North Korea) Workers’ Party, the political authority of the PSA accordingly started being strengthened. The source explained that “In the past, the PSA was not able to intervene in any case without the permission of the prosecutors, but since October 2007 the agents of the PSA were granted the authority to deal with the arrest of criminals and with sending them to court themselves.

The position that Jang Sung Taek took in October 2007 was that the Director of the Ministry of Administration of the Chosun (North Korea) Workers’ Party is responsible for general public security organizations such as the National Security Agency, the People’s Safety Agency, the Central Prosecutor Office and the Special Court.

The source analyzed that “The Party did not push legislation on the expansion of the authority of the PSA, because political conflicts with other governmental organizations would be brought out.”

Some say that the background to the promotion of the PSA stems from Kim Jong Il’s fear that the authority of the NSA and of the military were too big while the Party’s power was extraordinarily weakened.

One other source said that “Although the military or information organizations have attempted many coups in human history, the police force has always sided with the government. Therefore, Kim Jong Il drastically strengthened the authority of the PSA.”

The source added that “Regarding the promotion of the PSA, the cadres of the Party took concrete examples of assassinations such as Nicolae Ceauşescu of Romania and Park Chung Hee of South Korea, emphasizing the Romanian police’s fight against the military in order to protest Ceauşescu.”

“The People’s Safety Agents,” which is a newspaper circulated just in the PSA, and lecture materials for the PSA lately describe the PSA as the “escort warrior for the General” or “the second Escort Bureau,” the source explained, regarding the change of the PSA’s state.

A little over a week ago, the North Korean government announced an anti-corruption campaign in two agencies: the United Front Department and the National Economic Cooperation Council. 

As I said then, these sorts of campaigns have nothing to do with making the bureaucracy more accountable or responsive to public demands, but are political maneuvers to prevent “rents” or funds from being channeled to uses that lie outside the leadership’s control (or some faction of the leadership).  In other words, they are regime enhancing (like a purge).

Today, the Daily NK offers a scenario whereby this anti-corruption drive might be a necessary precondition for a drastic policy change: 

The fact that the Guidance Department is involved in the current investigation may be a sign that Kim Jong Il is trying to rebuild the party so that he can change the focus of policy from the military to economic matters. Kim Jong Il has already created a militarily powerful country by acquiring nuclear weapons. Now he wishes to improve other areas.

Within the context of the anti-corruption campaign, today’s Daily NK does a wonderful job identifying the specific agencies involved in reorganizing the DPRK’s levers of power:

The Defense Security Command of the [Korean] People’s Army and the National Security Agency are also launching inspections, but these kinds of inspection are limited. A Defense Security Command investigation can inspect military organizations, local party organizations and individual cadres, but it cannot investigate party branches in the capital and the National Security Agency. At the same time, the National Security Agency’s investigators cannot access the party organizations in Pyongyang, the military and the Defense Security Command.

However, the Guidance Department’s inspection can examine every organization including party organizations in Pyongyang, the Defense Security Command, and the National Security Agency. [A Guidance Department investigation requires Kim Jong Il’s direct authorization. It is often said that if one is the target of such an investigation, one stands little chance of reprieve.]

There are only two known examples of a Guidance Department-led investigation in North Korean history. The first was the investigation of the National Security Agency in February, 1984. […] The second case occurred in 1997 and was known as the Shimhwajo case, resulting in the hushed-up removal of many of Kim Il Sung’s close associates. This inspection was approved by Kim Jong Il and was operated by Jang Sung Taek, Kim’s brother-in-law and the First Vice-Director of the Guidance Department. Through the investigation, thousands of high officials who followed Kim Il Sung were punished, expelled, secretly executed, or sent to prison camps.

To read about another similar change in the balance of power in the DPRK, read the rest of the story here:
Inside the North Korean Shake-up
Daily NK
Moon Sung Hwee
2/21/2008

Last Friday, Yonhap reported that Kim Jong Il has ordered an anti-corruption investigation of two key agencies, both of which manage South Korean investments in the DPRK: the United Front Department (which Lankov claims is involved in clandestine operations) and the National Economic Cooperation Council.

North Korea is in the midst of a massive anti-corruption drive which has already resulted in the arrest of one of its top officials handling business with South Korea, informed sources in Seoul said Saturday.

The campaign, ordered by leader Kim Jong-il, was prompted by widespread allegations that some top party and administration officials took bribes as they pushed business projects with South Korean industrialists, said the sources well versed in North Korean affairs.

“The probe was launched as National Defense Commission Chairman Kim Jong-il said there was a lack of supervision over the United Front Department [a key party organization that supervises inter-Korean affairs], although lots of suspicions were raised over the department’s corruption,” one source told Yonhap News Agency.

According to the sources in Seoul, the North Korean leader was enraged after getting a report that some party and government officials allegedly pocketed bribes and diverted food and other aid from South Korea to black markets.

Also under investigation is the National Economic Cooperation Council, a government body that handles business with South Korean entrepreneurs, the sources said.

The Council’s chief, Jeong Woon-eop, remains under arrest pending investigation into allegations that he took “huge amounts” of bribes, said the sources, who wanted to remain anonymous. (Yonhap excerpted)

Frequently “anti-corruption campaigns” in developing countries have nothing to do with making the bureaucracy more accountable or responsive to public demands, but rather are political maneuvers to prevent “rents” or funds from being channeled to uses that lie outside the leadership’s control (or some faction of the leadership).  In other words, they are regime enhancing.  The announcement of this campaign demonstrates two important principles that deserve explicit mention:

1. Not all profits earned by North Korean joint ventures are channeled to the leadership, and in fact many of them are siphoned off by middlemen who actually control the financial machinery.  Once skimmed off the top, it is likely that these funds are used in illicit private commercial operations since they cannot be legally declared by the owner (unless there are domestic channels for laundering money in North Korea).

2.  If funds are being siphoned off of high-profile official joint venture operations, then the leadership is not in control of its internal fiscal affairs.  Indeed it is likely that, as in the Soviet Union, the people who keep the private economy running are the trusted mid- to senior-level officials who can skirt the rules and know how to actually get things done within the system.

Update 2/24/2008:

North Korean authorities have been investigating the chief of a North Korean committee in charge of inter-Korean economic cooperation for months after seizing $20 million from his house, a report said Friday.

The full article can be found here:
NK Official Suspected of Embezzling Funds From Seoul
Korea Times
Jung Sung-ki

Update 2/12/2008:

The chief of Daesung General Bureau, a division of the 39th Department which manages foreign transactions, was fired on suspicion of embezzling US$1.4 million last fall.” (Daily NK)

The full article can be found here:
North Korea launching massive anti-corruption drive
Yonhap
2/9/2008

Daily NK
Lee Sung Jin, Yang Jung A
12/27/2007

In contrast to the news that Kim Kyung Hee (Kim Jong Il’s blood sister) will visit Hoiryeong in commemoration of the 90th birthday of Kim Jong Suk, it was confirmed that only upper-level Party officers participated in the celebrations.

Rumors started circulating early this year that Kim Jong Il would visit Hoiryeong, North Hamkyung, which is the birthplace of Kim Jong Il’s mother Kim Jong Suk. However, with the commemorative event approaching, Kim Kyung Hee, instead of Kim Jong Il, was supposed to visit Hoiryeong.

A source in Hoiryeong said in a phone conversation with a reporter on the 23rd, “An event commemorating the 90th birthday of Kim Jong Suk was held in Hoiryeong from the 18th to the 20th of this month and after the 20th, celebrations were held in Pyongyang. Kim Kyung Hee, who was supposed to come, did not show up.”

He added, “Provisions resumed on the 21st in time for the holiday (Kim Jong Suk’s birthday). Items that were given out were rice, corn, noodles, and oil. Holiday provisions such as liquor, gum, juice, socks, hot pepper paste, snacks, and soap were disbursed starting on the 23rd.“

The footsteps of Pyongyang’s upper-level leaders have not ceased coming into Hoiryeong. Chairwoman Park Soon Hee of Union of Democratic Women, Im Kyung Sook of the Ministry of Commerce and other representatives females in North Korea visited Hoiryeong and participated in the 90th anniversary commemorations.

The news of Kim Jong Suk’s 90th birthday anniversary commemorations has been relayed through North Korea’s media.

The Chosun Central Television, with Kim Jong Suk’s birthday coming up, reported on the 21st that oath ceremonies at the party, army, and office levels took place in Hoiryeong on the 20th.

At the ceremony site, the broadcast relayed that large-sized banners were set up praising Kim Il Sung and Kim Jong Il and the propagandistic signs stating, “Our greatest tribute to Mother Kim Jong Suk, the anti-Japanese heroine. May the revolutionary life and the results of the struggles of the great brethren Kim Jong Suk be immortal!”

The participants in the commemoration were Kim Il Cheol (Minister of the People’s Armed Forces), Kim Jung Gak (First Vice Director of KPA General Political Department), Choi Tae Bok and Kim Ki Nam (the secretaries of the Central Committee of the Party), Yang Hyung Sup (the Vice-Chairperson of the Supreme People’s Committee), Jeon Seung Hoon (the Vice-Minister of the Cabinet), and others high level officials.

In Hoiryeong, a joint performance by the People’s Army’s orchestra opened the day with a concerto “May the loyalty go on forever.” On the 19th, the “Nationwide Youth Students’ Poetry and Singing” took place among 3,000 participants, which consisted of youth and related persons of the Youth League Central Committee in each region.

Even prior to this, the nationwide landscape and crafts exhibitions commemorating Kim Jong Suk 90th birthday anniversary were held on the 12th at the Pyongyang International Cultural Exhibition Hall and on the 18th, a variety of events such as the opening of the Central Arts Show at the Korean Fine Arts Museum was held.

One researcher at a national policy research institute said regarding Kim Kyung Hee’s absence, “It is known that she has been suffering from an alcohol addiction for a long time, so does not make frequent public appearances.”

Institute for Far Eastern Studies
NK Brief No. 07-12-13-1
12/13/2007

North Korea has paved the way to achieve its goal of becoming a strong and prosperous country by 2012, the one-hundred year anniversary of the birth of Kim Il Sung. This goal of reaching such a status in only five years was announced at the recent nationwide open assembly of intellectuals, the first such meeting in 15 years. Pyongyang first introduced the ‘Strong and Prosperous Country’ strategy in August 1998, announcing the national strategy of the Kim Jong Il regime through an article printed in the ‘Rodong Shinmun’, the newspaper of the North’s communist party.

Choi Tae-bok, secretary of the political department of the Workers’ Party central committee, stated in the closing speech of the recent intellectual’s assembly that the 100-year anniversary of the birth of Kim Il Sung was deeply significant, and stressed that “every intellectual must open the doors to [the era of] a strong and prosperous country” by the 100th anniversary of the birth of the nation’s founder.

Taking the position that North Korea has already become a strongly ideological nation by sticking to socialism, that on October 9, 2006, the North became a strong military nation by testing a nuclear weapon, and the focus in this year’s New Year’s Editorial on becoming an economically powerful country through economic development and improvement of the lives of the people, it appears that the North is proceeding with this national strategy on all fronts. This means that if the North can focus on its economic problems and become an economically strong nation over the next five years, it can proclaim to have become a Strong and Prosperous Country.

North Korea’s recent position on solving its nuclear issues and improving relations with the United States and South Korea adds some credence to the idea that Pyongyang has decided to solve its economic woes in a move to become this strong and prosperous country.

According to the North Korean point of view, the three issues of security, economy, and succession are related, and that security and succession issues cannot be resolved without first solving economic problems. North Korea showed a bold initiative in beginning to implement the February 13 agreement, and hosting the inter-Korean summit meeting was a reflection of Kim Jong Il’s ‘strategic resolve’.