North Korean Economy Watch

Asia Times
Robert Neff
1/18/2007

In a country infamous for famines, it is no wonder that cattle in North Korea are prized so highly and considered “national property”. According to government sources, North Korea had about 575,000 head of cattle in 2002, but considering the recent floods and food shortages this number may have dropped. In addition to the floods and food shortages, North Koreans must contend with the bovine diseases that cause health concerns not only to the cattle, but also for the people.

The most serious incident took place last summer. It began in the North Korean region of Yanggang. A horrible and mysterious disease that the frightened residents called “leprosy” for the impact on victims, causing them to break out in boils and oozing skin that progressed to the point that, as one North Korean defector described it, left its victims looking “like pieces of sliced meat”.

The story was first reported by the North Korea Daily (July 27, 2006), which described the disease as an epidemic, but no one knows just how many victims it has claimed. One defector living in South Korea told a newspaper reporter that he had spoken with some members of his family still in North Korea who informed him the “rotten flesh disease” was spreading throughout the northern provinces.

Many North Korean residents believed that the disease originated from contaminated beef sold in the Jangmadang markets. Apparently there was some truth to their suspicions. According to the North Korea Daily, the sale of beef and the movement of cattle in the region were banned or tightly controlled.

What was the disease? Several veterinarian experts contacted suggested that it was anthrax, a naturally occurring disease among cattle and other hoofed mammals. All agreed that if a person ate the flesh of an anthrax-diseased animal he had a high risk of dying.

But not all of the experts agreed that it was anthrax. Dr Martin Hugh-Jones of Louisiana State University conceded that the “oozing skin sores” might well be anthrax cutaneous lesions, but “while it is tempting to suggest ‘anthrax’, I know of no lesions involving peeling skin or people looking like ‘sliced meat’.”

It is almost inconceivable that people would willingly eat the flesh of a possibly diseased animal, but it has happened several times in North Korea. In fact, many North Korean people believe that contaminated meat can be eaten if it is boiled at 100 degrees Celsius or higher.

Last January, farmers in the Tuman River region began to lose cattle to a disease they simply called the “cow disease”. The cattle all displayed the same symptoms: hooves splitting, heavy drooling, and sores in their mouths and on their tongues. Local health officials were called in. They determined that the disease had traveled across the Tuman River from China.

In December 2005, China reported several outbreaks of foot-and-mouth disease in the interior provinces, but it was suspected that the disease had also spread to Heilongjang province, one of China’s key cattle raising areas located along the North Korean border, and possibly into neighboring Russia.

Dr Peter Roeder of the Food and Agriculture Organization of the United Nations and Dr Hugh-Jones agree that the symptoms appear to be indicative of foot-and-mouth disease. Roeder stated, “I did not have information that it had got into North Korea but I am not surprised.”

At least one region was quarantined to prevent the spread of the disease. Cattle that displayed any of the symptoms were quickly killed and buried in deep pits in a further effort to prevent the spread of the disease. Despite the North Korean officials’ precautions to ensure that the cattle carcasses were buried, it was soon discovered that two of the infected cows were missing. Someone had dug them up.

The local officials warned the people that eating the contaminated meat could kill children under the age of five. Roeder insisted that foot-and-mouth disease did not affect humans, and Hugh-Jones supported him by adding, “Eating such a carcass should not of itself be dangerous other than the usual dangers from eating meat from sick and moribund animals.”

Did contaminated meat cause the strange leprosy-like disease that allegedly plagued Yanggang? Were diseased cattle carcasses dug up from pits, butchered, sold and eaten by hungry or greedy residents? Both doctors agreed that North Korea is a black hole for disease information and that in such countries nasty diseases will be politically unattractive and therefore official reports will be played down and minimal.

Both doctors were again in agreement when they observed that defectors and refugees have a poor record of reliability in what they say and write. Exaggeration is the commonest characteristic, they said.

But not all possibly contaminated meat originated in North Korea.

In 2001, during the height of the bovine spongiform encephalopathy (mad-cow disease) scare in Europe, many countries slaughtered hundreds of thousands of head of cattle in an effort to check the disease. Famine-stricken North Korea agreed to accept some of the possibly contaminated beef from Germany and Switzerland (see German meat may be North Korean poison, Asia Times Online, February 23, 2001).

As retired veterinarian Patricia Doyle noted, “It is a very nasty stunt to pass on infected cattle to any people, regardless of their ideology. It is the government who may have political differences not the people.”

But if a government would be desperate enough to feed its citizens meat possibly contaminated with a fatal disease, how far are starving people willing to go to satisfy, if only for a short time, the hunger in their bellies? Further, it seems, than most of us would like to acknowledge.

Daily NK
Yang Jung A
1/17/2007

Recently, infectious diseases have been spreading throughout North Korean regions with North Korean authorities in a state of emergency, sources informed.

A source revealed in a phone conversation with the DailyNK on the 15th “There are 4 different diseases spreading throughout North Korea. Scarlet fever, typhoid, paratyphoid and typhus fever” and said “North Korean regions including Pyongyang are under extreme caution.” However, the source informed that figures indicating the number of deaths caused by the diseases had not yet been released.

He said “Scarlet fever originated in the province of Yangkang last October and has spread to Pyongyang, prevailing throughout the country” and added “though it could be easily treated with antibiotics, the nation cannot give us the supplies and we cannot go to the hospital as the cost of medicine has risen.”

Though it is not the right season for these illnesses to be spreading, the source revealed his thoughts that the diseases had dispersed due to the contamination of drinking water.

He said “As electricity is only supplied 1~2 hours a day, the water pump does not function properly and so water can only be derived from the tap for 1 hour, once a week” and “As a result, people resorted to the mountains and river for water and despite it being winter, it seems the diseases spread this way.”

In the conversation, the source residing in North Korea said “Chongjin is in a severe crisis” and “Undoubtedly schools and enterprises found to be infected have closed doors. Train operations have also been suspended, so all movement has been stopped.”

Also, he reported “As all modes of transportation have been suspended beginning with the trains, whenever transport is used, health permits (certifying that you have no infectious disease) are verified and so travel has become regulated.”

“The whole city has been infected with the disease and has become immobilized” explained the source.

In addition, he said “About 300~400 people from each district have been found to be infected with the disease and are receiving treatment at home. In Chongjing alone, it is likely that more than 3,000 people are disease infected with the majority of people infected with scarlet fever.”

Further, he informed “More and more of the lower class are dying of starvation and are becoming street dwellers as they cannot work due to their sickness” and said “in order to prevent people from dying of starvation, each district is accommodating 200 people in the hospitals.”

Yonhap
1/15/2007

Four infectious diseases have stricken a North Korean city on the east coast, affecting up to 4,000 people, a source claimed Monday.

“Chongjin is overrun by scarlet fever, typhoid, typhus and paratyphoid. About 3,000 to 4,000 are suffering from the diseases,” the source said, asking to remain anonymous.

The source reported the infected people are mostly under 40 years of age. North Korean health authorities have halted railway operations to prevent the spread of disease and have imposed travel bans.

“When scarlet fever erupted late last year, North Korean authorities also imposed travel bans across the country,” the source added.

Good Neighbors International, a South Korean civic organization which provides aid to North Korea, confirmed that the rapid spread of disease in the North has resulted in school closings and travel bans.

Another source also claimed that Chongjin has only one hospital equipped with 150 beds in each district, but about 600-700 patients are seeking treatment in one district.

Last Thursday, South Korea’s unification minister said the government will not provide any medical aid to North Korea to help stem the spread of scarlet fever in the communist country.

But a South Korean civic group already shipped 36 types of medicine such as penicillin and antibiotics, worth approximately US$5 million, to the impoverished North.

Last month, the Join Together Society, a humanitarian aid group in Seoul, shipped a total of 400,000 injectable doses of penicillin to the North.

Scarlet fever is not an intrinsically serious communicable disease, but if not treated properly it can become as serious as cholera or typhoid.

Korea Herald
Lee Joo-hee
1/12/2007

The newest building in the inter-Korean industrial park in Gaeseong will be up for lease from early next month, Unification Minister Lee Jae-joung said yesterday.
The apartment-style factory, with a space of some 8,000 pyeong (25,000 square meters), will be large enough for as many as 40 small manufacturers.

Units in the building, constructed by the Korea Industrial Complex Corporation, will be leased to smaller-sized businesses making garments, accessories and other such goods, the Office of Gaeseong Industrial Complex Project at the ministry said.

The building will be completed this June, it said.

This is the first open lease of a building in the industrial park since North Korea’s missile launches last July.

“We have agreed that there was no reason to delay the lease any longer, considering it would provide momentum to the economy and offer opportunities for small- and medium-sized businesses,” Lee said in a weekly press briefing.

The Gaeseong park is favored by companies seeking low rental and labor costs.

But the sale of the remainder of the main complex is still suspended due to a deadlocked security situation following the North’s nuclear test last October.

Output at the industrial park surpassed $10 million for the first time in December last year, Lee said.

Touching on the reported spread of scarlet fever in the North, the minister said the government will not provide medical aid.

“As scarlet fever is not a fatal infectious disease we deem that North Korea will be able to solve the problem on its own. There will be no aid regarding this matter.”

Scarlet fever broke out in northern Ryanggang Province in October last year.

Good Neighbors International, a South Korean civic organization, shipped 36 types of medicines, including penicillin and antibiotics worth some $5 million, to the region.

Last month, the Join Together Society, a humanitarian aid group in Seoul, shipped a total of 400,000 doses of penicillin to the North.

Korea Times
Lee Jin-woo
1/11/2007

Unification Minister Lee Jae-joung said Thursday that some 40 small factories, mostly clothing manufacturers, will move into the joint industrial complex in North Korea this year.

But he said it would take more time for the ministry to fully resume the halted expansion of the Kaesong Industrial Complex.

Last September, the South Korean government decided to hold off expanding the inter-Korean business venture because of heightened tension on the Korean Peninsula after the North’s launching of ballistic missiles in July. After the Stalinist state’s first-ever nuclear test on Oct. 9, tensions increased further.

“We’ve decided not to postpone helping small South Korean manufacturers, which have been struggling with adverse domestic business conditions, especially high wages,” Lee said during a press briefing at the ministry.

The manufacturing companies will move into a new five-story building constructed by the state-run Korea Industrial Complex Corp. involved in a pilot project for the industrial complex.

Construction of the building will be completed by June. It is not related to the postponed sale of the second section of the industrial complex, the minister said.

The number of North Koreans working for the 18 South Korean firms at the industrial complex surpassed 10,000 last year.

When fully expanded by 2012, the complex is expected to house about 2,000 South Korean manufacturers employing about half a million North Koreans, according to the Ministry of Unification.

The minister, however, said more progress in the stalled six-party talks is necessary for the government to resume expansion of the project.

He said he will continue discussing the matter with the Korea Land Corp., a state-run land developer, which has been involved in the Kaesong project, and Hyundai Asan, the business arm of Hyundai Group that handles the Mt. Kumgang tourism project.

Lee said the government would not provide medical aid to the Stalinist state to help stem the spread of scarlet fever, an infectious disease.

“Scarlet fever is not a fatal infectious disease. Given the significance of the disease, we believe that North Korea itself will be able to solve the problem,” Lee said.

The ministry considered providing medical aid to the North after scarlet fever broke out in the northern part of North Korea last October.

Earlier, South Korean humanitarian aid groups shipped 36 types of medicine including penicillin and other antibiotics to Pyongyang.

Yonhap
1/10/2007

A South Korean civic group said Wednesday that it provided medicine to North Korea to help stem the spread of scarlet fever in the communist country.

“We shipped 36 types of medicines such as penicillin and antibiotics worth some US$5 million,” said Good Neighbors International, a South Korean civic organization which provides aid to North Korea.

The group noted that scarlet fever broke out in northern Ryanggang Province in October and spread rapidly to other provinces, which resulted in school shutdowns and travel bans.

Last month, the Join Together Society, a humanitarian aid group in Seoul, shipped a total of 400,000 injectable doses of penicillin to the North.

Scarlet fever is intrinsically not a serious communicable disease, but if it is not treated properly it could become a serious one like cholera or typhoid. The impoverished North lacks medicines.

Daily NK
12/15/2006

“Spread of Scarlet Fever?… Yangkang in Isolation”

An inside North Korean source informed on the 13th that North Korea that has been suffering from “scarlet fever” has completely disconnected all trains to rural districts as well as closing schools in a great attempt to stop the spread of this infectious disease.

A defector Kim revealed a telephone conversation with his family in Musan “Since an infectious disease began to plague the country, all trains ceased have not yet been remobilized and lately due to the movements of the people’s units, regulations have become even stricter.”

Scarlet fever is a contagious disease that often spreads throughout late autumn and early spring. Symptoms include painful tonsils, high temperature and body rash. In South Korea, scarlet fever is merely a group 3 infectious disease and can easily be cured when treated, however in North Korea the disease is known to be spreading as a lack of resource and antibiotics.

The virus began to spread mid-October in the Northern border districts such as Hyesan, Bochoenbo, Baikam of Yangkang province and has began to spread towards rural inland areas of North Korea. Presently, the virus has spread to southern districts such as North Pyongan, Jagang province.

A defector Lee relayed his telephone conversation with his family “All trains that come from northern districts reach Kilju and then turn back. All trains scheduled from Pyongyang-Manpo-Hyesan only reach Manpo, Jagang province and then turn back.” On analyzing the two sources, it can be assumed that trains scheduled for the districts of North Hamkyung and Yangkang have been ceased and the regions in isolation.

Baikam, Hyesan, Bochoenbo elementary and middle school “winter vacation”

Actions taken by authorities to stop the spread of scarlet fever by ceasing train movements is decisively different to that of infectious viruses spreading in the past.

In the 80’s~90’s North Korea experienced an outbreak of a disease similar to “salmonella” and though there was a time when all adults (children and students were excluded) had to obtain a “health report card” for travel, never had trains been immobilized like this time.

Also, it has been confirmed that in the northern districts of Yangkang and Baikam, elementary and middle schools have been temporarily closed due to scarlet fever and the recommencement of study continues to be postponed.

A defector born of this district Kang relayed information “As ‘scarlet fever’ began to spread last November, schools began to close down” and “They ordered not to return to school until early-December but then this was postponed to mid-December.”

Winter vacation in North Korean elementary schools and middle schools roughly last a month beginning in January until early February. Whether or not this long break will replace the winter vacation in January has not yet been revealed by the Education authorities, Kang said.

Kang informed “Until students are told by schools to return, they must remain in isolation” and “It is unknown when this will end as there is no sign as to when the infectious virus will die out.”

He said “As there are no alternate immunization treatments for ‘scarlet fever’, North Korean authorities continue to exhort ‘drink boiled water.’ Even hospitals are short of drugs and medical facilities that they are insensitive to the growing number of patients.”

From the Daily NK
10/30/2006
Kim Young Jin

A number of sources in North Korea told the Daily NK on Wednesday about an epidemic spread along the northern border area of NK including Hyesan, Bochun and Baek-am counties, all in Ryanggang Province. The area was closed and quarantined.

An anonymous former defector in Seoul reported, based on a telephone conversation on Wednesday with her family living in Hyesan, because of a spread of scarlet fever, transportation around the region was interrupted.

Break out of scarlet fever in that area was, reportedly, the first time since 1945.

And “residents of Hyesan do not possess any medical knowledge about the disease,” the informant continued.

North Korean health officials closed the border north to Hyesan and administrative body of the regional government stopped issuing travel permits.

In addition, Railroad Agency and People’s Security Agency (NK police organization) ordered operation of regional transportation system to be suspended. Merchants from other regions were prohibited to enter Hyesan and adjacent area. Also, transaction with Chinese people across the border was banned.

The family of the informant said the local government announced travel permits would not be reissued by Nov. 5.

Besides, due to the temporary travel ban rule, commodity prices in black market skyrocketed; exchange rate reached 100 Chinese yuan per 40,000 NK won and 1 kg of rice cost 1,500 NK won.

Another former defector analyzed that North Korea authorities were trying to regulate the residents after the nuclear test, preventing them from defecting to China.

“In the mid 90s,” the ex-defector continued, “inland residents mass-defected across the border, so the current control of border might be a preventive measure against possible wave of defection after the UN sanction.”

From the Korea Times:
9/6/2006

A medical checkup of more than 1,000 North Korean defectors indicates that their fellow countrymen in the communist country are generally left defenseless against epidemics, a lawmaker said Wednesday.

Quoting a 2005 report by the state-run Korea Center for Disease Control and Prevention, Rep. Chung Hyung-keun said 77 percent of 1,075 North Korean defectors examined here were found to have suffered diphtheria and rubella while in the North.

From the Daily NK:

North Koreans “1 out of 10 Households Have Diseased Patients”

Paratyphoid, an acute illness of the digestive system, is spreading over North Hwanghae province, including Haeju City.

Paratyphoid is an epidemic which spread throughout Hamkyung, Jakang, Yangkang provinces during the ‘March of Tribulation’ in the mid-90’s.

“Just Education, No Inoculation”

On July 12, Choi Gil Yeo (pseudonym, 59, Haeju of South Hwanghae province) who returned from visiting her relatives in Dandong, China said that, “Since May, the number of Paratyphoid patients has been rising in Haeju city, Chongdan-gun and Shinwon-gun. At least 1 out of 10 households has a Paratyphoid patient”.

Regarding the measures the North Korean government has taken, Choi said that, “the administration and the Public Health administration instructed people “to drink boiled water” and “confine patients to houses”, but did not take any action on vaccination or prevention of the epidemics”.

On the 13th, Kim, a Chinese trader staying in Shinuiju, said during a phone interview that, “In Shinuiju, rumor has it that Paratyphoid is spreading over Hwanghae province, and wholesalers from Haeju, Sariwon, and Nampo have been purchasing increasingly more antibiotics, dextrose packs and syringes.

An interview with Choi is as follows:

To what degree is Paratyphoid spreading?Have there been any deaths?

“Some people have died. I heard from a people’s unit (a neighborhood association) meeting that some have died in Seohae-dong, Gwnagsuk-dong, Yeonha-dong, and Sukmi-dong of Haeju city. Chongdan-gun and Shinwon-gun have had a few deaths. I do not know what the number is, yet at least 1 out of 10 houses has a patient. In the apartment where I live there are two patients.”

The Main Causes Are Polluted Water and Malnutrition

How did the North Korean people discover the causes of the illnesses?

“Originally, tap water from Haeju city and South Hwanghae province was not sufficient to drink. Tap water is salty and has rust as well as some earthworms and insects in it, but that has been the case since two or three years ago. Each district has dug wells to solve the problem. People think that polluted water is the cause of the epidemic, although the more important cause is malnutrition.”

What symptoms do Paratyphoid patients experience?

“A woman living in the house below me had begun to get sick in mid-June, with a 41℃ temperature. She had a high fever, and for one or two days at a time she would be delirious, then would be herself again. But if diarrhea begins, there is no chance of survival. Surviving would mean living without normal brain capacity for the rest of your life.”

How are hospitals treating patients?

“Hospitals? At the moment, Haeju does not have any fully-functioning hospitals. No medicine, no doctors, no patients who want to go to the doctor. Only for surgical operations do people go to the hospital. These kinds of epidemics are not curable even at hospitals. People just treat themselves at home as much as possible. The Haeju 1 hospital and Haeju medical university are also hopeless.”

“The government takes “No responsibility”, everything should be solved in Jangmadang”

What does home treatment consist of?

“Wealthy people just go and buy medicine, but poor people put a cool towel on their head to lower fever and then eat warm soup. The poor do not care whether they live or die…Because they have no way of receiving help. A doctor’s visit costs about 5,000 to 10,000 won ($1.67~$3.33) each. With that money, they could buy medicine in Jangmadang and try to treat themselves.”

What kinds of medicine do they buy?

“Usually they buy Chinese medicine called “Lebo” in Jangmadang. “Lebo” consists of tablets and powdered medicine which is taken with dextrose. They also take antifebriles sent by the U.N.”

How much does the medicine cost?

“Syringes are 200 won ($0.07) a piece, which can be used again with sterilization. Dextrose (25 mg) is 250 won a pack. “Lebo” is 1,500 won ($0.5) a piece. Antifebriles sent by the U.N. are 300 won ($0.1) a tablet. “Lebo” is effective if injected with powdered medicine and dextrose twice a day. Twice daily injections and a piece of antifebrile cost 3.000 won ($1), which for a month costs a patient 10,000 won.”

Is it easy to buy the medicine in Jangmadang?

The Seo Market in Yeonha-dong, Haeju city has the biggest variety of medicine. You can buy the medicine anytime if you have the money. But the price of Paratyphoid medicine and antifebriles are increasing. In Seo Market there are a couple of stalls which buy medicine from wholesalers in Shinuiju and sell it. State-run drug stores do not have medicine any more, so they are used as grocery stores. In Jangmadang, most of the medicine is from the U.S. and China, and the little medicine that was made in North Korea is very coarse.

Paratyphoid is an epidemic from malnutrition and poverty

Are families of patients preparing for the epidemic?

“Paratyphoid is an epidemic that generally the poor and malnourished people are vulnerable to. A normal monthly wage for many is less than 2000 won ($0.67), which means if the people come down with the illness, they cannot afford to buy medicine. Poverty leads to the disease, and also often leads to the worsening of the situation.”

How about tap water?

“Only in places such as Gwangsuk-dong and Haewoon-dong, does tap water still run sufficiently. altough it is only public tap water. Almost everyone must rely on wells and springs buried in the mountains.”

What kind of action has the Health administration taken?

“The only thing the government does is “education”, instructing people to drink boiled tap water, confine patients to their houses, and sterilize bowls and spoons. The government has only watched as people die of starvation and illness.”

Have you ever received medicine sent by the U.N and South Korea?

“Everyone knows that the U.N. and South Korea send medicine. However, hospitals and clinics do not receive the medicine. Even state-run pharmacies do not have any medicine. All the medicine is sold in Jangmadang.”