Archive for the ‘Special Economic Zones’ Category

[Updated] Kim Jong-un oversees master plan for Sinuiju facelift and construction

Wednesday, December 5th, 2018

By Benjamin Katzeff Silberstein

A couple of weeks ago, KCNA carried a report of Kim Jong-un’s oversight of a grand, general reconstruction plan for Sinuiju, North Korea’s most important hub for trade with China.

North Korea, it seems, expects that trade primarily with China will continue to grow and remain the country’s most important source of foreign currency revenue for the foreseeable future. This is something to keep in mind through the speculations about US and other western investments in North Korea in the event that sanctions are lifted and denuclearization (whatever version of it) comes through.

The plans for Sinuiju are also notable simply because Sinuiju is not Pyongyang. There has been quite a bit of work done in the past few years, under Kim Jong-un, at extending the renovations drive and infrastructure construction to smaller, provincial cities (mostly provincial capitals). One message seems to be that Kim Jong-un’s ambitions and promises of economic development aren’t just for the elite, but for the population as a whole.

It’s unclear how the plans that Rodong speaks of are related to the Sinuiju International Economic Zone. An issue of the quarterly North Korean magazine Foreign Trade in 2015 indicated that renovations of Sinuiju would focus on infrastructure renewal, but as the example of the bridge to nowhere shows (see below), it’s unclear what actual progress is being made in reality on this.

Some specific thoughts and annotation below (my emphasis, except on the leader’s names, that’s all standard KCNA):

Pyongyang, November 16 (KCNA) — Kim Jong Un, chairman of the Workers’ Party of Korea, chairman of the State Affairs Commission of the Democratic People’s Republic of Korea and supreme commander of the Korean People’s Army, examined and guided the master plan for Sinuiju City together with leading officials of the party, administration and design organs of North Phyongan Province.

Learning about the implementation of the behests of President Kim Il Sung and Chairman Kim Jong Il for the construction of Sinuiju City and examining in detail the master plan for the construction of Sinuiju City and a diorama of the future city, Supreme Leader Kim Jong Un set forth the tasks and ways of successfully sprucing up Sinuiju City to meet the demand of the present era.

“The present era” = likely, the era of a growing middle class with demands for consumption and entertainment, many of which make their money through the markets and semi-private business.

He said that it is necessary to form the center of Sinuiju City deep up to the southern Sinuiju area with the statues of

Kim Il Sung and Kim Jong Il at the center square of the city as the axis, arrange high-rise apartments and public buildings at provincial and city levels in its surroundings in a dimensional way, successfully arrange the blocks of high-rise and skyscraper apartment buildings along the main axis and arterial road of the city and the bank of the Amnok River in formative artistic way and build many parks within the dwelling area and thus turn the city into the one in the park.

This all sounds very expensive. Meanwhile, North Korea faces largely unfunded humanitarian needs, which could be met relatively cheaply. In fact, the equivalent of one-sixth of North Korea’s total luxury goods imports in 2017 would be enough.

Saying that it is necessary to build many modern and majestic architectures rich in national character in order to build the city befitting to a gateway city of the country, he called for successfully arranging the public buildings such as theatre, cinema, sports village, ice rink and sci-tech library and service facilities including hotel and department store in a rational way and to be of modern taste.

Books have been written about the concept of “rationality”, so I won’t go into what the use of that phrase means in this context. But it does sound like what Kim is talking about is simply making Sinuiiju “modern”, with all of what that entails. These days, there’s quite a bit of reporting and chatter around about how Pyongyang, and other North Korean cities, have undergone stark modernizations during Kim’s tenure. This is clearly true, but it’s worth remembering the reason why these things are news: the presence of “service facilities”, “department store[s]” and the like, things taken for granted in much of the world, is still not widely spread in North Korea outside of Pyongyang. (This is also true for Wi-fi.)

He also gave a direction of sprucing up the present industrial areas and remodeling the railway station of the city and Uiju Airport in a modern way.

Speaking of infrastructure: this is the only part of the article where infrastructure is mentioned. It is interesting and notable that despite the attention and grand plans for Sinuiju, the new bridge connecting the city to Dandong had still not been connected to North Korea’s road network as of mid-February this year, as far as I can tell from satellite imagery. This is the most recent date for which imagery is available.

The end of the new bridge from Dandong, on the North Korean side. Photo: Google Earth.

Underlining the need to pay deep attention also to the creation of cultural environment including urban greening, he called for creating green belts near the city’s main road and around the industrial area to make sure that one citizen has 50 square meters of green tract of land, and for building city park, botanical garden and recreation ground in a cozy and peculiar manner to suit the specific conditions of the local city.

Again, that’s going to cost a lot of money, and not least, human effort. Citizens might be happy about green spaces, but they’ll be less so at having to go out and construct them through “voluntary” labor.

Noting that it is most important in urban construction to make sure that citizens don’t feel any inconvenience, he said that it is necessary to increase electricity production and make a maximum use of natural energy so as to round off the city electricity supply network system, perfect the heating system, put the water supply on an international standard and properly establish the system for purifying industrial waste water and sewage as the city has dense arrangement of residential quarters and industrial establishments.

Electricity and energy supply is one of the main achilles heels for the North Korean economy, and its industry is highly vulnerable to shortages in electricity supply. “Maximum use of natural energy” sounds like hydrogen power to me, which is North Korea’s most plentiful source of electricity. Aside from coal, that is, but given the export value of coal, its use for domestic electricity production comes with a high opportunity cost. In any case, the North Korean administration is clearly aware (and has been for decades) that energy is a big problem, and bringing it up in conjunction with a city plan inspection is likely a way of sending the message that the authorities are working on it. How exactly that is being done is less clear.

On the theme of energy in Sinuiju, it might be worth noting that the city is home to one of the country’s main oil refineries, the Ponghwa Chemical Factory, south of the city.

Ponghwa Chemical Factory, south of Sinuiju. Photo: Google Earth.

As I keep stressing all the time, the provincial party committees should pay special attention to the work of intensifying the provincial design organs and construction forces and put constant efforts on it and thus decisively raise the level of the building in the construction projects of local areas, he pointed out.

Calling for reviewing the master plan for Sinuiju City and the long-term goals for city construction in cooperation with powerful design organs of the country, remapping it out to be realistic and submitting it within a few months, he said that the Party Central Committee would discuss and decide on the plan after going through relevant procedures, and the construction of the border city would be conducted year by year and phase by phase with the state backing after setting the goals of 5-year plan.

Noting that the work of remodeling Sinuiju City for which President Kim Il Sung and Chairman Kim Jong Il gave instructions dozens of times is a very important task of carrying out their behests, he stressed the need to gain good fruition within a few years to come.

Article source:
Supreme Leader Kim Jong Un Guides Master Plan for Construction of Sinuiju
Political News Team
Rodong Sinmun
2018-11-16

[Updated 2018-12-6: I added a few details throughout the post, as well as satellite imagery.]

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Hyundai’s aspiration to reverse N Korea fortunes

Wednesday, October 31st, 2018

Benjamin Katzeff Silberstein

Reuters:

South Korean President Moon Jae-in, who has pushed for rapprochement with the North since his election last year, calls the Kaesong industrial park a “lifeline” for South Korea.

Asia’s fourth-biggest economy is being squeezed globally between high-end, innovative manufacturers and low-cost producers in China and elsewhere.

Before the 2016 closure of Kaesong, some 120 South Korean companies employed 55,000 North Korean workers there, making everything from clothes and kitchen utensils to electronic components. The North Korean workers were well qualified, hard working and cost just a fraction of what workers in the South were paid, factory owners said.

Almost all small and medium enterprises which used to operate in Kaesong said they would like to go back, according to an April survey.

Seven out of 10 South Korean companies would prefer to use North Korean workers instead of foreign migrants due to language barriers and high costs associated with hiring foreign labor, a separate survey by the Korea Federation of SMEs found.

Hyundai Asan has the most riding on the prospect of a peaceful peninsula.

It paid $1.2 billion to buy exclusive rights for Kaesong and Mount Kumgang, and has interests in railroads and infrastructure projects including reconnecting inter-Korean railways.

Hyundai Asan’s rights to land the size of Manhattan in Kaesong last for 50 years, and it has a plan to build an even bigger factory town if the complex reopens, accommodating 2,000 companies and 350,000 North Korean workers.

Less than 5 percent of the total property in Kaesong has been developed currently, Hyundai told Reuters.

Officials say Hyundai has also agreed with the North to run tours in the coastal city of Wonsan, which North Korean leader Kim Jong Un is trying to build into a hotspot for tourism and foreign investment, as well as Mount Paektu, the famed homeland of both Koreas.

Hyundai’s Baek said the company is also in talks with Seoul and state-run corporations about projects to reconnect railroads between the North and South.

“The government respects Hyundai’s business rights it signed with the North,” said a spokeswoman at South Korea’s Unification Ministry, who did not respond to a question about its discussions with Hyundai.

NO LOVE FROM WASHINGTON

South Korean government officials and business executives say the biggest hurdle is opposition from Washington, which wants to maintain sanctions until Pyongyang completely denuclearizes.

In July, Mark Lambert, director for Korean affairs at the U.S. State Department, called about 10 South Korean businessmen for a meeting at the U.S. embassy in Seoul to deliver a stern message: No resumption of any businesses until denuclearization.

“The mood in the room was bleak,” said SJTech Chairman Yoo Chang-geun, who used to operate a factory at Kaesong and attended the meeting.

Baek, who was also present, unsuccessfully argued Kaesong and Mount Kumgang should be waived from sanctions “to show our goodwill to North Korea.”

A spokeswoman for the U.S. State Department declined to comment on details of “private diplomatic conversations.”

Article source:
After tragic losses, Hyundai aims to reverse N. Korea fortunes
Reuters
2018-10-31

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Seoul says reopening Kaesong will wait till sanctions are lifted

Friday, August 3rd, 2018

Benjamin Katzeff Silberstein

Korea Herald:

“The government’s stance remains unchanged when it comes to the issue of the resumption of the Kaesong Industrial Complex,” Lee Eugene, a deputy spokesperson of the unification ministry, told reporters during a regular press briefing.

“The stance has not been changed either that things will be considered in line with progress in denuclearization efforts and within the frame of sanctions,” she added. “From a broad perspective, it would be desirable to push for its resumption after the lifting of the sanctions.”

Opened in 2004, the industrial park in the North’s border town of Kaesong was hailed as a key symbol of economic cooperation between the rival Koreas as it combined South Korean capital and technology with cheap labor from North Korea. The Seoul government, however, halted its operation in 2016 in retaliation for Pyongyang’s missile and nuclear provocations.

The North has recently ramped up its call for the South to reopen the industrial park amid a thaw in relations, but the US.

Article source:
Seoul says reopening of Kaesong complex should wait until sanctions lifted
Korea Herald/Yonhap
2018-08-03

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South Korean companies gearing up to rush north

Sunday, June 10th, 2018

By Benjamin Katzeff Silberstein

These days, it seems that scarcely no South Korean company isn’t looking north. Hopes are high that with a diplomatic opening – if this time is different, which we really don’t know – North Korea will be open for business. And aside from some Chinese companies and entities, no other have the know-how and language skills to make investments in North Korea profitable. Indeed, those that have happened have largely been in the realm of “adventure capital”, that is, high risks with the potential of high rewards. It seems that relatively few have reached the latter.

Many South Korean businesses will likely ask that the government underwrite potential investments, given the vast political risk. Moon’s government doesn’t seem completely adverse to this, despite the questions it raises about moral hazard and market fairness.

Looking at the types of investments that companies are talking about, it is hardly a given that they will – if they happen – have a positive, broad impact on the North Korean system and society. See below for the sorts of investments being talked about:

SM Group said it has set up a task force to check the country’s mineral resources, particularly in iron ore. The group said its ownership of South Korea’s sole operational iron ore mine effectively gives it an edge over others in terms of processing know-how and facilities it has on hand.

North Korea’s iron ore deposits are estimated at 50 billion tons worth some 213 trillion won (US$197.7 billion).

Besides resources, companies such as Keangnam Enterprises Co. and Dong Ah Construction Industrial have said they are moving to secure a foothold in the North’s building business once all sanctions are lifted.

Dong Ah said its past experience as a builder for the defunct Korean Peninsula Energy Development Organization that moved to build a light water reactor for Pyongyang could help it win future orders, especially in power infrastructure work areas.

Keangnam said that its participation in Seoul’s Official Development Assistance program for emerging economies will make it easier for it to engage in similar projects in the North if conditions permit.

SM Line Corp said it wants to ship North Korean resources using the country’s cheap labor and explore the opening of new shipping routes and related shore infrastructure.

“Work in the North will be a win-win development for all sides, and this is the reason why the company is looking into the matter,” a source at the shipping line said.

Besides medium-size companies, the large conglomerate Lotte said it has set up a team that can expand business ties not only with North Korea but also Russia and China.

Meanwhile, there has been growing interest by local companies who want to set up operations at Kaesong Industrial Complex in North Korea, which has been shuttered following the North’s nuclear and long-range missile provocations.

Dong-a Publishing said it wanted to take advantage of the low labor costs to set up business in Kaesong.

The company said due to the labor intensive work in the publishing field it makes sense to move its plant to the North.

Related to such moves, a business group representing South Korean firms that had operated factories in Kaesong said recently that upwards of 20 companies a day have called to make inquiries about opening new factories in the special economic zone.

Article source:
S. Korean mid-tier companies interested in biz opportunities in N. Korea
Yonhap News
2018-06-10

Much of what’s being talked about, in other words, is extraction of natural resources. Sure, this would be done with North Korean labor, but even though the domestic economy could get an upswing through these sorts of operations, North Korea wouldn’t necessarily reap the full potential benefits of its mineral assets, which could be sold for much higher prices if they were locally refined and processed. This is likely something that the North Korean leadership is very well-aware of, and Kim Jong-un talked about it in speeches in the 1990s. But given the need for hard currency, they may not see that they have much of a choice in the matter.

Other companies want to get in on the cheap labor. That’s all fine and good for the companies and the potential prospective North Korean employees, but factories of this sort can be set up pretty easily without sourcing raw materials locally, and with few connections with overall North Korean society.

In other words, if these investments come to see the light of day (again, a big “if”), it’s not a given that it’ll be in any way transformative for the North Korean economy. We have seen much of this before, and we know from Kaesong that the state is indeed both capable and willing to contain economic development to specific areas, keeping it separated and in check from broader North Korean society.

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Q1 of Foreign Trade Magazine highlights

Friday, April 27th, 2018

The North Korean web portal Naenara has been negligent in keeping us updated with the latest publications from the DPRK. However, through USKI-SAIS I was able to obtain a copy of the most recent issue of Foreign Trade Magazine (2018-1). I post the most interesting parts (to me) below. I don’t have time to go through them and analyze them here, so if you are interested, you may do so.

Topics include:
1. Regulations of the DPRK for Labor in Economic Development Parks (apologies for image quality)

 

2. Pukchong Agriculture Development Zone

3. Law of the DPRK on the Chamber of Commerce

4. Waudo and Jindo Export Processing Zones

5. Prospect of processed goods export in the DPRK

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Kalma Coastal Tourist Area Update via Planet Labs

Wednesday, April 4th, 2018

Planet Labs uploaded some high-resolution imagery of the Kalma Peninsula from 2018-3-25 (you can see a sample of the imagery in my tweet here). With it, we can begin to assess the progress of the construction of the Kalma Coastal Tourist Area. I overlaid this imagery onto Google Earth and traced out the buildings under construction. This allowed me to make a reasonably accurate map of the completed tourist area:

The final large-scale housing project launched under Kim Jong-il was the eastern end of Mansudae Street (AKA Changjon Street, “Pyonghattan”). Kim Jong-il died before this was finished, but the completion of this project was one of the first policy successes claimed by Kim Jong-un.  Several others quickly followed: Unha Scientists Street, Wisong Scientists Street, Mirae Scientists Street, and Ryomyong Street.

I have only conducted superficial measures (this is only a blog post after all), but it appears the Kalma Coastal Tourist Area is the most ambitious construction project launched yet in the Kim Jong-un era (in terms of size and number of buildings). There are well over 100 facilities under construction on the beach, stretched over a four-kilometer-long construction site (the Ryomyong Project site was just over two kilometers long by comparison).

Some of the inputs for this project can be domestically sourced, particularly labor (conscripted soldiers), steel, and concrete. Other amenities like flat screen TVs (component parts), electrical equipment (solar panels), computers, sports equipment, transportation equipment will have to be imported at a time when constraints on North Korea’s ability to conduct foreign trade are most acute.

Pictured below (KCTV): Soldier working on the Kalma construction site:

Another item of concern to me is that the North Koreans are literally building houses on sand, and for this kind of work, you need to install a strong foundation before the actual building can be erected. KCTV footage of the construction site (broadcast the same day as the Planet image was taken) reveals that they don’t appear to be doing this:

Completing this project within one year (the rumored construction time) would be a monumental feat. It is possible that, as with Mirae Scientist Street (and maybe others), the buildings will be “completed” on the outside, but only one or two will be completed on the inside (the ones Kim Jong-un will visit). The rest will remain uncompleted on the inside for the unknown period of time it takes for them to be finished. Mirae Scientist Street still has unoccupied buildings, and it is possible Ryomyong does as well.

Click here to read the updated post on the history of this facility.

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Kalma Coastal Tourist Area Update

Thursday, March 15th, 2018

Planet Labs (@planetlabs) has posted some March 2018 imagery of construction of the Kalma Coastal Tourist Area construction site which help bring the project into greater focus.

There appear to be two staging areas for the construction site where workers live and supplies are stored.

Below are close-ups of the two large staging areas circled in yellow in the image above:

 

I overlaid recent Planet images onto Google Earth and outlined the building and facility construction site. The coastal resort is taking place in the area outlined in yellow below:

Here are a couple of Planet images of the construction site where we can see a few building foundations have been set:

I believe this project is supposed to be completed in about a year, so it will be worthwhile to check in on it periodically with Planet images to see how the project is developing.

See previous (and updated) blog post on this topic here.

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Wonsan-Kalma Coastal Tourist Area

Wednesday, January 31st, 2018

UPDATE 6 (2018-3-15): Planet Labs (@planetlabs) has posted some March 2018 imagery of construction of the Kalma Coastal Tourist Area construction site.

There appear to be two staging areas for the construction site where workers live and supplies are stored.

Here are close-ups of the two large staging areas circled in yellow in the image above:

 

I overlaid recent Planet images onto Google Earth and outlined the building and facility construction site. The coastal resort is taking place in the area outlined in yellow below:

Here are a couple of Planet images of the construction site:

I believe this project is supposed to be completed in about a year, so it will be worthwhile to check in on it periodically with Planet images to see how the project is developing.

UPDATE 5 (2018-2-2): The web page DPRK Today conducted an interview with a North Korean official about the Kalma project.  NK News offers a good English-language article about the interview here.

UPDATE 4 (2018-2-1): The Pyongyang Times offers information on the Kalma tourist area (like construction is expected to be completed in one year):

Wonsan-Kalma area shows promise as seaside resort

The development of the Wonsan-Kalma coastal tourist zone is a priority project in the DPRK this year.

Seaside resorts are tourist destinations that are found by the coast.

The most suitable places for them are those with conditions favourable for such seaside tourist activities as swimming, sunbathing, angling, yachting, boating, motorboating, surfing and scuba diving in terms of the percentage and duration of sunshine, number of days with average temperature of 18-20℃ and with no or weak wind and the condition of seashore. Especially those with sandy beaches are so suitable for coastal tourism that many countries develop such areas into seaside resorts.

Currently, such resorts hold a significant proportion of the world-class natural tourist destinations and most of summer vacationers tour the seaside.

In the DPRK, many renowned seaside scenic attractions, including Songdowon and Lake Sijung of Kangwon Province, Majon of South Hamgyong Province and Ryongsupho of South Hwanghae Province, turned into coastal tourist centres.

The Wonsan-Kalma area in Kangwon Province is also a very promising seaside resort.

The Kalma peninsula in the southern part of the Wonsan Bay is an attached island which was formed by the wave-driven accumulation of granitic sand from the Namdae River.

The northern part of the peninsula which stands long from south to north consists in gently rolling hills and the coastline is mostly straight and smooth.

To the north lies the Hodo peninsula which stretches out from the opposite direction and in between there are Sin, Tae and other islets, serving as a natural breakwater that protects the port of Wonsan.

There is a scenic attraction called Myongsasipri which means a famous sand beach stretching for 4 kilometres in the Kalma peninsula.

A goldenrain tree rare to be found in the eastern coastal areas of the country stands at the entrance to the beach which is dotted with sweet briars. The red flowers in full bloom along the seaside surrounded by tall pines and clear blue waves of the East Sea form a harmonious whole to present a spectacular beauty.

The construction of the seaside resort in the Wonsan-Kalma area with Kalma airport will help satisfy the demands of local and foreign tourists and provide an ideal place for stopover between different tourist destinations and Wonsan-Mt Kumgang International Tourist Zone.

At present, preparations are being pushed ahead to complete as early as possible the Wonsan-Kalma project which will mark a turning point in raising the country’s tourism to the world level.

UPDATE 3 (2018-1-31): The Daily NK reports that construction on the Kalma tourist zone has started, and it looks like they are right. According to a recent article:

The North Korean authorities are mobilizing ordinary citizens and military conscripts alike in a push to accelerate construction of the “Wonsan Kalma Shore Tourist Zone” situated on the country’s east coast. Sources inside North Korea report that the authorities have conveyed their intentions to complete the project before the July 27 “Victory Day” holiday, which is referred to as National Korean War Veterans Armistice Day in South Korea.

The beach resort project, along with Kalma Airport and the Masik Pass Ski Resort, all appear to be part of a larger plan by Kim Jong Un to address economic difficulties by generating more tourism revenue. He made this clear in his 2018 New Year’s address, saying, “This year, service personnel and residents should join efforts to complete the construction of the Wonsan-Kalma coastal tourist area in the shortest period of time.”

“The authorities have mobilized 120,000 military members and 20,000 ordinary citizens for the Wonsan construction project,” a source in China close to North Korean affirms told Daily NK on January 28. “People are worried over implications of another ‘speed battle’ (intense construction mobilization) after Kim Jong Un’s order to complete the project by July 27.”

Read the rest of the article here. 

If North Korea was engaging in this sort of work, we should see evidence of it–and we can via Planet Labs. Pictured below is a plot of land on the south end of the Kalma Airport runway. On the top is the Google Earth image dated 2017-5-19. On the bottom is the Planet Labs image dated 2018-1-31:

The bottom photo clearly shows a large compound of temporary housing for construction workers. This kind of facility can be seen at all of North Korea’s large scale construction projects. The coordinates are  39.144608°, 127.503932° for those that are interested.

It is still difficult to see any significant construction taking place on the northern end of the peninsula. Planet imagery in this case is rather limited, but it also appears the construction project itself is rather recent. In the Planet image below, dated 2018-1-12, we can see just how much worker housing has been constructed in just the last two weeks.

(Note: Planet Labs created a .gif of the construction site. You can see it on Twitter here.)

If the Daily NK is correct, and this is the “Wonsan Kalma Shore Tourist Zone,” and not part of the “Wonsan-Mt. Kumgang Tourist Zone,” then this indicates that plans for the area are still changing. This will be an interesting area to watch.

Here are previous posts I have done on the Kalma Peninsula and Wonsan-Mt. Kumgang International Tourist Zone. Here is a relevant article I wrote for NK News back in 2013.

UPDATE 2 (2018-1-31): KCNA releases some propaganda posters for the Kalma project:

   

These posters  give the impression that this project as ambitious as any of the major construction projects they have done in Pyongyang (Mansudae parts 1 and 2, Unha Scientist Street, Satellite Scientist Street, Mirae Scientist Street and Ryomyong Scientist Street). I previously posted about Part 2 of the Satellite Scientists Street, but it looks that that project will take a back seat to this one.

The previously announced (2015) “Kalma Street” project appears to have stalled in 2017, and this new tourist zone is apparently unrelated. It is unclear if the Kalma Street project will be completed or if it has been scrapped.

UPDATE 1 (2018-1-25): KCNA announces more information on the Wonsan-Kalma Coastal Tourist Area:

Wonsan-Kalma Coastal Tourist Area to Be Built in DPRK

A tourist resort is to be built in the Wonsan-Kalma coastal area in Kangwon Province, the DPRK on a large scale.

The Wonsan-Kalma area is good for coastal tourism.

The Kalma Peninsula in the southern part of Wonsan bay is the connecting bar formed with granite sand.

The northern part of the peninsula ranging north and south is low hill and its coastline is straight and smooth as a whole.

It faces the Hodo Peninsula to the north and Sin, Tae and other islets are located between them which serve as seawall of Wonsan Port.

There are four-kilometer-long famous sandy beach resorts called Myongsasipri and modern Kalma Airport in the peninsula.

When the tourist area is built, it will satisfy the demand of domestic and foreign tourists and will be the most ideal place to link various tourist destinations to the Wonsan-Mt Kumgang international tourist zone.

Now, a preparatory work is brisk for completing the construction of the Wonsan-Kalma coastal tourist area, a radical turn in putting the country’s tourism on world level.

ORIGINAL POST (2016-7-15): KCNA announces new special economic zone:

Kalma Area of DPRK to Turn into Tourist Resort

Pyongyang, July 15 (KCNA) — The Kalma area, located on the central east coast of Korea, will be turned into a tourist resort.

The area boasts of four-kilometer-long beach resort, not far away from such scenic spots as Mt. Kumgang, Lake Sijung, Chongsokjong and Lagoon Samil and the Masikryong Ski Resort.

The DPRK Law on Economic Development Parks, enacted in May Juche 102 (2013), is applicable to the area. Under this law, foreign investors are allowed to conduct their business activities independently in the area.

An international friendship air festival is to take place in Wonsan City, adjacent to the Kalma area, at the end of September.

The official media hinted at this project a few days prior in a report on the Mubong Mubong Special Zone for International Tourism.

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Kim Jong-un’s 2018 new year address

Monday, January 1st, 2018

Below I have posted the economic section of Kim Jong-un’s 2018 new year speech in English and Korean:

Comrades,

동지들!

This year we will mark the 70th anniversary of the founding of the glorious Democratic People’s Republic of Korea. To mark the 70th anniversary of their state with splendour is of real significance for the great people, who have raised with dignity the status of their socialist country, the greatest patriotic legacy of the great Comrades Kim Il Sung and Kim Jong Il, to that of a strategic state recognized by the world. [Translation note: In the Korean version below, Kim Il-sung and Kim Jong-il are not mentioned by name, only by title]

올해에 우리는 영광스러운 조선민주주의인민공화국창건 일흔돐을 맞이하게 됩니다.위대한 수령님과 위대한 장군님의 최대의 애국유산인 사회주의 우리 국가를 세계가 공인하는 전략국가의 지위에 당당히 올려세운 위대한 인민이 자기 국가의 창건 일흔돐을 성대히 기념하게 되는것은 참으로 의의깊은 일입니다.

We should make constant innovations and continued progress until we win the final victory of the revolution by carrying on the tradition of heroic struggle and collective innovation which adorned the founding and course of development of Juche Korea. A revolutionary general offensive should be launched to achieve fresh victory on all fronts of building a powerful socialist country by taking the historic victory in the building of the DPRK’s nuclear forces as a springboard for fresh progress.

우리는 주체조선의 건국과 발전행로에 빛나는 영웅적투쟁과 집단적혁신의 전통을 이어 혁명의 최후승리를 이룩할 때까지 계속혁신,계속전진해나가야 합니다.공화국핵무력건설에서 이룩한 력사적승리를 새로운 발전의 도약대로 삼고 사회주의강국건설의 모든 전선에서 새로운 승리를 쟁취하기 위한 혁명적인 총공세를 벌려나가야 합니다.

“Let us launch a revolutionary general offensive to achieve fresh victory on all fronts of building a powerful socialist country!” This is the revolutionary slogan we should uphold. All officials, Party members and other working people should launch an all-people general offensive to frustrate the challenges of the hostile forces who are making last-ditch efforts and raise the overall strength of our Republic to a new stage of development as they brought about a great upsurge in socialist construction overcoming all difficulties through the great Chollima upswing after the war.

《혁명적인 총공세로 사회주의강국건설의 모든 전선에서 새로운 승리를 쟁취하자!》 이것이 우리가 들고나가야 할 혁명적구호입니다.모든 일군들과 당원들과 근로자들은 전후 천리마대고조로 난국을 뚫고 사회주의건설에서 일대 앙양을 일으킨것처럼 전인민적인 총공세를 벌려 최후발악하는 적대세력들의 도전을 짓부시고 공화국의 전반적국력을 새로운 발전단계에 올려세워야 합니다.

A breakthrough should be made in reenergizing the overall economic front this year, the third year of implementing the five-year strategy for national economic development.

국가경제발전 5개년전략수행의 세번째 해인 올해에 경제전선전반에서 활성화의 돌파구를 열어제껴야 하겠습니다.

The central task facing socialist economic construction this year is to enhance the independence and Juche character of the national economy and improve the people’s standard of living as required by the revolutionary counter-strategy put forward by the Second Plenary Meeting of the Seventh Central Committee of the Party.

올해 사회주의경제건설에서 나서는 중심과업은 당중앙위원회 제7기 제2차전원회의가 제시한 혁명적대응전략의 요구대로 인민경제의 자립성과 주체성을 강화하고 인민생활을 개선향상시키는것입니다.

We should concentrate all efforts on consolidating the independence and Juche character of the national economy.

인민경제의 자립성과 주체성을 강화하는데 총력을 집중하여야 합니다.

The electric-power industry should maintain and reinforce the self-supporting power generation bases, and direct a great deal of efforts to developing new power sources. A dynamic campaign should be conducted to drastically increase thermal power generation, and lower the loss of electric power and increase its production as much as possible by maintaining and reinforcing imperfect generating facilitates. Provinces should build power generation bases to suit their local features and put power generation at the existing medium and small-sized power stations on a normal footing to satisfy the needs of electric power for local industry by themselves. Alternated production should be organized scrupulously throughout the country, and a vigorous struggle waged against the practices of wasting electric power to make effective use of generated electric power.

전력공업부문에서는 자립적동력기지들을 정비보강하고 새로운 동력자원개발에 큰 힘을 넣어야 합니다.화력에 의한 전력생산을 결정적으로 늘이며 불비한 발전설비들을 정비보강하여 전력손실을 줄이고 최대한 증산하기 위한 투쟁을 힘있게 벌려야 합니다.도들에서 자기 지방의 특성에 맞는 전력생산기지들을 일떠세우며 이미 건설된 중소형수력발전소들에서 전력생산을 정상화하여 지방공업부문의 전력을 자체로 보장하도록 하여야 합니다.전국가적인 교차생산조직을 짜고들며 전력랑비현상과의 투쟁을 힘있게 벌려 생산된 전력을 효과적으로 리용하기 위한 된바람을 일으키도록 하여야 합니다.

The metallurgical industry should further improve the Juche-oriented iron- and steel-making technologies, increase the iron production capacity and drastically raise the quality of metallic materials in order to satisfy the needs of the national economy for iron and steel. It is necessary to ensure a preferential, planned and timely supply of electricity, concentrated iron ore, anthracite, lignite, freight wagons, locomotives and funds for the metallurgical industry. By doing so, we can fulfil next year’s iron and steel production plans and make the industry Juche-oriented without fail.

금속공업부문에서는 주체적인 제철,제강기술을 더욱 완성하고 철생산능력을 확장하며 금속재료의 질을 결정적으로 높여 인민경제의 철강재수요를 충족시켜야 합니다.금속공업부문에 필요한 전력,철정광,무연탄,갈탄,화차와 기관차,자금을 다른 부문에 앞세워 계획대로 어김없이 보장하여 다음해 철강재생산목표를 무조건 수행하며 금속공업의 주체화를 기어이 완성하도록 하여야 하겠습니다.

The chemical industry should step up the establishment of the C1 chemical industry, push the projects for catalyst production base and phosphatic fertilizer factory as scheduled, and renovate and perfect the sodium carbonate production line whose starting material is glauberite.

화학공업부문에서 탄소하나화학공업창설을 다그치고 촉매생산기지와 린비료공장건설을 계획대로 추진하며 회망초를 출발원료로 하는 탄산소다생산공정을 개건완비하여야 합니다.

The machine-building industry should modernize the Kumsong Tractor Factory, Sungri Motor Complex and other factories to develop and produce world-level machinery in our style.

기계공업부문에서는 금성뜨락또르공장과 승리자동차련합기업소를 비롯한 기계공장들을 현대화하고 세계적수준의 기계제품들을 우리 식으로 개발생산하여야 합니다.

The coal and mineral production and rail transport sectors should make concerted efforts to make the country’s self-reliant economic foundations prove their effectiveness.

나라의 자립적경제토대가 은을 낼수 있게 석탄과 광물생산,철도수송에서 련대적혁신을 일으켜야 합니다.

Notably, the rail transport sector should make the best use of the existing transport capacity by making transport organization and control more scientific and rational, and maintain discipline and order in the railways as rigid as in the army, so as to ensure an accident-free, on-schedule rail traffic.

특히 철도운수부문에서 수송조직과 지휘를 과학화,합리화하여 현존수송능력을 최대한 효과있게 리용하며 철도에 군대와 같은 강한 규률과 질서를 세워 렬차의 무사고정시운행을 보장하도록 하여야 합니다.

A turn should be brought about this year in improving the people’s standard of living.

올해에 인민생활향상에서 전환을 가져와야 합니다.

Light-industry factories need to transform their equipment and production lines into labour- and electricity-saving ones and produce and supply more diversified and quality consumer goods with domestic raw and other materials, and provinces, cities and counties should develop the local economy in a characteristic way by relying on their own raw material resources.

경공업공장들의 설비와 생산공정을 로력절약형,전기절약형으로 개조하고 국내원료와 자재로 다양하고 질좋은 소비품들을 더 많이 생산공급하며 도,시,군들에서 자체의 원료원천에 의거하여 지방경제를 특색있게 발전시켜야 합니다.

The agricultural and fishing fronts should effect an upswing. We should introduce seeds of superior strains, high-yield farming methods and high-performance farm machines on an extensive scale, do farming scientifically and technologically so as to fulfil the cereals production plan without fail, and boost the production of livestock products, fruits, greenhouse vegetables and mushrooms. We should enhance our ship building and repair capacities, launch scientific fishing campaigns, and reenergize aquatic farming.

농업과 수산전선에서 앙양을 일으켜야 하겠습니다.우량종자와 다수확농법,능률적인 농기계들을 대대적으로 받아들이고 농사를 과학기술적으로 지어 알곡생산목표를 반드시 점령하며 축산물과 과일,온실남새와 버섯생산을 늘여야 합니다.배무이와 배수리능력을 높이고 과학적인 어로전을 전개하며 양어와 양식을 활성화하여야 하겠습니다.

This year the service personnel and people should join efforts to complete the construction of the Wonsan-Kalma coastal tourist area in the shortest period of time, push ahead with major construction projects including the renovation of Samjiyon County, the construction of the Tanchon Power Station and the second-stage waterway project of South Hwanghae Province, and channel steady efforts into the construction of houses.

올해에 군민이 힘을 합쳐 원산갈마해안관광지구건설을 최단기간내에 완공하고 삼지연군꾸리기와 단천발전소건설,황해남도물길 2단계 공사를 비롯한 중요대상건설을 다그치며 살림집건설에 계속 힘을 넣어야 합니다.

Building on the success we achieved in the forest restoration campaign, we should properly protect and manage the forests that have already been created, improve the technical conditions of roads, conduct river improvement on a regular basis, and protect environment in a scientific and responsible manner.

산림복구전투성과를 더욱 확대하면서 이미 조성된 산림에 대한 보호관리를 잘하는것과 함께 도로의 기술상태를 개선하고 강하천정리를 정상화하며 환경보호사업을 과학적으로,책임적으로 하여야 합니다.

Every sector and every unit of the national economy should enlist their own technical forces and economic potential to the maximum and launch a dynamic struggle to increase production and practise economy, so as to create a greater amount of material wealth.

인민경제 모든 부문과 단위들에서 자체의 기술력량과 경제적잠재력을 총동원하고 증산절약투쟁을 힘있게 벌려 더 많은 물질적재부를 창조하여야 합니다.

A shortcut to developing the self-sufficient economy is to give precedence to science and technology and make innovations in economic planning and guidance.

자립경제발전의 지름길은 과학기술을 앞세우고 경제작전과 지휘를 혁신하는데 있습니다.

The scientific research sector should solve on a preferential basis the scientific and technological problems arising in establishing Juche-oriented production lines of our own style, ensuring domestic production of raw and other materials and equipment, and perfecting the structure of the self-supporting economy. Every sector and every unit of the national economy should make a contribution to achieving production growth by intensifying the dissemination of science and technology and waging a brisk technological innovation drive.

과학연구부문에서는 우리 식의 주체적인 생산공정들을 확립하고 원료와 자재,설비를 국산화하며 자립적경제구조를 완비하는데서 제기되는 과학기술적문제들을 우선적으로 풀어나가야 합니다.인민경제 모든 부문과 단위들에서 과학기술보급사업을 강화하며 기술혁신운동을 활발히 벌려 생산장성에 이바지하여야 하겠습니다.

The Cabinet and other economic guidance organs should work out a realistic operational plan to carry out the national economic plan for this year and push forward the work for its implementation responsibly and persistently. Positive measures should be taken by the state to ensure that the socialist system of responsible business operation proves its worth in factories, enterprises and cooperative organizations.

내각을 비롯한 경제지도기관들은 올해 인민경제계획을 수행하기 위한 작전안을 현실성있게 세우며 그 집행을 위한 사업을 책임적으로 완강하게 내밀어야 합니다.국가적으로 사회주의기업책임관리제가 공장,기업소,협동단체들에서 실지 은을 낼수 있도록 적극적인 대책을 세워야 합니다.

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Kangnam Economic Development Park Announced

Saturday, December 23rd, 2017

I am on Christmas holiday, but took a quick minute to write this blog post about North Korea’s newest Special Economic Zone.

According to KCNA (2017-12-23):

SPA Presidium Decides to Establish Kangnam Economic Development Park

Pyongyang, December 23 (KCNA) — The Presidium of the Supreme People’s Assembly of the Democratic People’s Republic of Korea decided to establish Kangnam Economic Development Park in several parts of Koup-ri, Kangnam County of Pyongyang.

The DPRK is to exercise sovereignty over Kangnam Economic Development Park.

A decree on the decision of the SPA Presidium was promulgated on Thursday.

North Korea announced fourteen new SEZs in 2013, seven new SEZs in 2014, and 3 new SEZs in 2015. None were announced in 2016. This is the first SEZ to be announced in 2017, and it was announced just a day after UNSC voted to tighten sanctions on the country.

Although the article does not give many specifics, I believe this project aspires to be a manufacturing/ processing/ shipping hub built on the Taedong River. But we will learn more later, no doubt.

See Google Earth image of the area below:

Koup-ri has over 4km of waterfront property along the Taedong River and a partially completed port at  38.876443°, 125.572246°.

It also has a new fish farm constructed sometime after September 2015:

North Korea and SEZs:

My impression is that to date North Korea had scaled back expectations on their many SEZs to focus on Rason Economic and Trade Zone and Wonsan-Mt. Kumgang International Tourist Park (neither of which are expected to see much growth owing to international sanctions measures, North Korea’s corrupt business environment, poor infrastructure, and poor human human rights record). A few other SEZs have seen some construction progress or are occasionally mentioned in the official media, but have seen little progress (nothing to make up for losses at the Kaesong Industrial Zone). These include the Hwanggumphyong and Wihwado Economic Zone (Management Commitee Building constructed), the Sinuiju International Economic Park (Chinese Tourist Zone constructed), the Kangryong International Model Green Park (advertised in official media), the Unjong Hi-Tech Development Park (advertised in official media), and the Mubong Special Park for International Tourism (new border crossing and limited construction).

Seeing this announcement was a surprise to me.

More later. Happy holidays.

 

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