North Korean Economy Watch

Now available on Google Earth! 
(click above to download to your own Google Earth)

North Korea Uncovered v.3

Google Earth added a high-resolution overlay of the area between Pyongyang and Nampo.  In it, most of the Koguryo tombs listed with UNESCO are now distinguishable.  In addition, viewers can see the latest Kim Jong Il palace (including a yacht), the DPRK’s premier golf course, and the Chinese-built Taean Glass factory.  I have also made some progress in mapping out the DPRK electricity grid.

This is the most authoritative map of North Korea that exists publicly today.  Agriculture, aviation, cultural institutions, manufacturing, railroad, energy, politics, sports, military, religion, leisure, national parks…they are all here, and will captivate anyone interested in North Korea for hours.

Naturally, I cannot vouch for the authenticity of many locations since I have not seen or been to them, but great efforts have been made to check for authenticity. In many cases, I have posted sources, though not for all. This is a thorough compilation of lots of material, but I will leave it up to the reader to make up their own minds on the more “controversial” locations. In time, I hope to expand this further by adding canal and road networks.

I hope this post will launch a new interest in North Korea. There is still plenty more to learn, and I look forward to hearing about improvements that can be made.

Bloomberg
Bradley K. Martin
7/26/2007

To make painkillers and antibiotics in his factory in Pyongyang, Swiss businessman Felix Abt needs reagents, chemicals used to test for toxic impurities. Abt can’t get them now — because the world refuses to sell North Korea a product that is also used to manufacture biological weapons.

Such sanctions on trade with the regime of Kim Jong Il — some dating back to the Korean War — may be the next diplomatic battleground after North Korea bowed to pressure last week and shut down five nuclear facilities at Yongbyon.

North Korea said July 16 that ending sanctions, and its removal from a U.S. list of countries that sponsor terrorism, are prerequisites for further progress in the negotiations to end its nuclear weapons program. The U.S., meanwhile, says the next step is for North Korea to disclose all its nuclear capabilities, followed by a permanent dismantling of Yongbyon.

North Korea is playing a “tactical game,” said David Straub, a Korea specialist at Johns Hopkins University’s School of Advanced International Studies in Washington. After shutting down Yongbyon and receiving a pledge of 950,000 tons of oil, the reclusive nation will try to “force the U.S. and others to lift sanctions,” Straub said in an e-mail exchange.

While many of the post-Korean war sanctions were lifted between 1994 and 2000 by President Bill Clinton, Americans are prohibited from exporting “dual-use” products or technologies, a wide range of items that might have military as well as civilian applications — including reagents and even aluminum bicycle tubing, which might be used to make rockets.

UN Sanctions

Much of the world joined the sanctions regime after North Korea tested an atomic device last October. The United Nations called on member states to stop trade in weapons, “dual-use” items and luxury goods. Japan went further, stopping used-car exports and banning port calls by North Korean vessels.

Now that North Korea has shut its facilities at Yongbyon and allowed in international inspectors, the haggling will begin on the next steps. If its demands aren’t met, North Korea could kick out the inspectors and restart the plants, as it did in 2002.

“The Bush administration must choose between settling for a temporary closure of the nuclear sites and taking a strategic decision to coexist” with North Korea, said Kim Myong Chol, Tokyo-based president of the Center for Korean-American Peace, who for three decades has encouraged foreign reporters to consider him an informal North Korean spokesman. “Otherwise, the agreement will break up, leaving the U.S. with little to show.”

‘Contentious Issue’

Sanctions represent “a multiplicity of issues that could become contentious,” said economist Marcus Noland, North Korea specialist at the Peterson Institute for International Economics in Washington, in an e-mail exchange. China has already called for the lifting of the UN sanctions imposed Oct. 14.

North Korea agreed with the U.S., South Korea, Russia, China and Japan on Feb. 13 to close its Yongbyon reactor, which produced weapons-grade plutonium, and to eventually declare and disable all of its atomic programs. Working groups will meet in August before another round of talks in September.

If the U.S. insists on a list of all the country’s nuclear facilities without starting to negotiate on sanctions, North Korea might consider that “a spoiler” for the talks ahead, Kim Myong Chol said.

Swiss businessman Abt said that in the past he could get around U.S. sanctions for his North Korean pharmaceutical factory by buying supplies from other countries. The UN sanctions shut off those sources.

Using Old Stocks

“Luckily, we have enough stock of reagents, but when it runs out we would not be able to guarantee the safety of our pharmaceuticals any longer,” he said.

Abt, 52, is president of Pyongsu Pharma Joint Venture Co., an enterprise with ties to the Ministry of Public Health that makes painkillers and antibiotics for humanitarian organizations in North Korea. He is also president of Pyongyang’s European Business Association.

“The same is true in many other civilian industries,” said Abt, who moved to North Korea from Vietnam five years ago. Gold mines are affected too, he said: “If they cannot import cyanide, they can’t extract the gold.” Cyanide is another “dual-use” product, part of the process for making some chemical weapons, he said.

All this has “a highly negative impact” on the economy at a time when the regime has announced it wants to focus on development, Abt said. Foreigners are showing “more and more interest in doing business here,” Abt said, predicting that North Korea will eventually be regarded as a successor to Vietnam as “the newest emerging market.”

KCNA
7/25/2007

The world medical circles call for producing natural medicines today when various synthetic medicines are rampant.

The Unphasan Pharmaceutical Institute of the DPRK has developed and perfected natural medicines efficacious for the diseases such as arteriosclerosis, hyperlipemia, diabetes, obesity, hyperuricemia, hepatitis and pancreatitis which should be treated for a long time. Now the medicines are being applied to clinical treatment.

Director of the institute Sonu Su Yong told KCNA that the research team has developed medicines with natural substances as their main raw material and they are made an effective use in the treatment of diseases.

He went on to say:

To prevent the break of immune systems by anticancer agent, antituberclosis agent and other medicines, the team has made immune activator-Immunoton injection from fish skin. The injection is efficacious for the treatment and prevention of diseases including the acute and chronic hepatitis and pancreatitis.

Discle is potent for hyperlipemia. It, which has no side effect and prevents the disease from returning, is more effective than Symbastatin.

High-Ins is made of various natural substances. It improves insulin selectivity. It is good for the treatment of diabetes.

Health food Defatty is potent for simplex obesity which has not high lipid in blood. Among the newly developed medicines are health food Lipohepa for liver, health food Kumsanjong for hyperuricemia, health food Chitosan for hyperlipemia and osteoarthrosis and combined enzyme health food Dipansin for the digestive diseases. They are all patented medicines made by the institute with natural medical stuffs.

BBC
7/24/2007

The North Korean capital, Pyongyang, has reportedly become the latest city to impose a smoking ban.

However, rather than being for the good of the general public, it is all about the country’s leader Kim Jong-il.

The move comes after doctors advised Mr Kim to stop smoking and drinking after a recent heart operation, reports say.

“Kim’s home, office and all other places he goes to have been designated as non-smoking areas,” a former South Korean lawmaker said.

“A Chinese diplomat who has close relations with the North Koreans told me by telephone that doctors had asked Chairman Kim Jong-il to quit smoking and drinking,” Jang Sung-Min, an associate of former South Korean president Kim Dae-Jung, told the French news agency AFP.

“Even the highest-ranking officials are going outdoors to smoke,” he said.

Former chain-smoker

Mr Kim, 65, has reduced his official activities this year, and a month-long disappearance from public view in May prompted rumours of failing health.

A team of German doctors visited Pyongyang in May, sparking speculation among some foreign and local news media that Mr Kim might have had a heart operation. This has never been confirmed.

While accurate information is hard to obtain, several accounts portray Mr Kim as a former chain-smoker and a heavy drinker with an appetite for fine dining.

Such rumours are hard to confirm because of the highly secretive nature of his regime.

Korea Herald
7/19/2007

The international Red Cross will continue to help North Korea in treating measles-related illnesses, including medicine aid, the organization said Wednesday in its program update, Yonhan News Agency reported.

In the first phase of a joint immunization plan, the International Federation of Red Cross and North Korea campaigned to vaccinate 6 million children between 6 months and 15 years old.

“The DPRK Red Cross and the federation are contributing 10.2 million doses of vitamin A. The federation is also contributing 262,000 doses of ampicillin to health facilities in four provinces for the treatment of measels-related complications,” the update said.

DPRK stands for Democratic People’s Republic of Korea, an official name of North Korea.

Yonhap
Tony Chang
7/11/2007

A South Korean pharmaceutical association said Wednesday it had provided North Korea with drugs worth about 3 billion won (US$3.25 million) in May in response to a request from the impoverished country.

In February, the North Korean Red Cross Society sent a letter requesting antibiotics, tuberculosis medicine, pneumonia medications, and other basic drugs, the Korea Pharmaceutical Manufacturers Association (KPMA) said.

“Drugs made in the South are precious to us because medicines from China are often fake and not fitting to the North Korean constitution,” the society was quoted as saying in the letter.

The North even requested drugs that have outlived their shelf life, underscoring its urgent need for basic drugs, the KPMA said, adding that it had rejected the request for safety reasons.

In late 2006, the North was hit by an outbreak of scarlet fever, which led to travel bans and school closings, according to reports. The country’s east coast was also reported to have been struck by a series of infectious diseases in January, affecting up to 4,000 people.

North seeks medicine, even if expired for a year
Joong Ang Daily
Kim Young-hoon
7/11/2007

A letter from a Red Cross hospital official in North Korea did not mince words. “We welcome any donation of medicine, even if its expiration date has passed,” the official said.

Moon Kyung-tae, vice chairman of the Seoul-based Korea Pharmaceutical Manufacturers Association, said yesterday the official sent the letter through a civic group, Unification Affairs Research Institute, in February.

The North is willing to take medicine that has expired for up to a year, Moon said, and also was willing to accept responsibility for any problems that might arise.

However, Moon said, “We just cannot do that.”

The association sends about 5 billion won ($5.4 million) worth of medical aid packages to the North every year, but the amount is not nearly enough for what is needed.

In 2005, the South provided support to build pharmaceutical factories in the North, but the facilities could not operate properly due to water and electricity shortages.

The country is extremely vulnerable to epidemics. In October, scarlet fever, which can be treated by taking three pills a day for 10 days, broke out in the North. A significant number of children and the elderly died because they lacked the proper medicine, sources well-informed about the North’s situation said.

Daily NK
6/25/2007

It was known that Kim Jong Il received Percuteneous Transarterial Coronary Angioplasty (PTCA), a heart malady treatment by German doctors.

Early last May, Japanese weekly “Shukan Gendai” reported that Kim Jong Il suffered from a myocardial infraction and received a “percutaneous transluminal coronary recanalization bypass” surgery at the Kim Man Yoo Hospital in Pyongyang. “Bonghwa Treatment Center, through the Kim Jong Il family, is in charge of treating top North Korean officials and of course, the Kim Jong Il family, but due to the lack of surgical equipment in the ancient city, surgeries related to heart diseases are treated at the Kim Man Yoo Hospital, which has the top of the line materials and technology from Germany,” reported ” Shukan Gendai.”

However, upon inspecting the hospital system where the ranking system is actively used, there is possibility that he received treatment from the Bongwa Treatment Center, not at the Kim Man Yoo hospital. At the Bongwa Treatment center, “the top treatment facility,” for use by Kim Jong Il, can be found.

Lee Young Kook’s (45), a former guard of Kim Jong Il who defected to South Korea, memoir “I was Kim Jong Il’s guard” (Zeitgeist) introduces in detail North Korea’s hospital ranking system. According to the book, North Korea divides the civilians into 10 ranks by class and implements a “hospital ranking system” which treats members of each rank separately.

The place where North Korea’s top-level officials, including Kim Jong Il, receive treatment is the Bongwa Treatment Center, located in Shinwon-dong in Botong River-district. It is a hospital where heads of government (general-level) and the Party Committee chiefs’ immediate family members are treated. The Bongwa Treatment Center has a general department and a special department. The general department treats the medical needs of chief-level leaders and the special department treats Party Political National Committee Members, committee member candidates, Central Party Committee Secretary, and Vice-Premier of the Cabinet and above.

The reason for the high possibility of Kim Jong Il receiving treatment at the Bongwa Treatment Center is that this hospital has a “Number 1 treatment center,” which treats Kim Jong Il and his relatives. It is known that the treatment center is known to be overseen 24 hours by the Ministry of Security, which is in charge of Kim Jong Il’s security.

The hospital, which is ranked second, is the Namsan Treatment Center, which is adjacent to the Pyongyang Maternity Hospital in Daedong River-district, Munsu-dong in Pyongyang. It also oversees the Assistant-Chief (Vice Minister) of the Cabinet and the Central Party Committee’s Vice-Head, Lieutenants General of the People’s Army, and the immediate family of Foreign Ambassadorial Talks’ dispatched delegates. The resident diplomat in Pyongyang also receives treatment at this hospital

The third-ranked hospital is the Pyongyang Medical College Hospital and the Chosun (North Korea) Red Cross Central Hospital. The treatment departments of this hospital are in charge of Central Party Committee’s Department Head, Assistant Department Head, and the immediate family of the Cabinet’s middle management.

Hospitals ranked immediately below are the Kim Man Yoo Hospital and Pyongyang’s No. 1 Hospital. The members of the Central Party Committee and superintendents, the department chiefs, and their families can be seen at this hospital. If the rank of Kim Man Yoo Hospital, which “Shukan Gendai” reported as the place where Kim Jong Il received his surgery, is to be classified, then it would fall into the 4th rank.

Besides this, there is the No. 2 Treatment Center and the Staff Treatment Center, which treats the members of the People’s Army and their families. Average laborers and farmers receive treatment at the factory treatment centers or at the dong (neighborhood) or li (village) treatment centers.

North Korea is a society, which absolutely protects the safety of Kim Jong Il. It has not clearly revealed whether or not Kim Jong Il received surgery, what kind of a surgery he had, and where he received it. Subsequently, one cannot exclude the possibility of him having received surgery, not at a hospital, but at the Workers’ Party’s office building, which is located at Kim Jong Il’s oval office, at a mansion located in Pyongyang City, or at a third location.

Daily NK
Yang Jung A
6/21/2007

Kim Jong Il underwent a Percuteneous Transarterial Coronary Angioplasty (PTCA) performed by German doctors in mid-May.

An inside Japanese source well acquainted with North Korea reported by telephone on the 20th that Kim Jong Il received medical treatment from doctors of the Berlin Heart Center in mid-May and was back at work a day later.

This source said that North Korean authority asked the German doctors to closely examine Kim Jong Il’s health and perform surgery if necessary. The examination revealed a myocardial infarction, but no other serious heart condition.

According to the doctors, Kim’s health was not bad except for kidney hypertrophy and some symptoms of diabetes. After examination he received the relatively simple PTCA treatment instead of surgery.

PTCA expands a narrow artery by inflating a tiny balloon. The balloon is introduced into the artery through catheter. It is an effective treatment for coronary artery diseases without the use of thoracotomy, and results in high success rates and few complications. Patients need just a couple of days’ rest. Dr. Jung Yong Suk, a heart specialist at the Sunrin Hospital in Handong University, explained to the Daily NK that “PTCA is a medical treatment for coronary arteries supplying blood into the heart. If Kim Jong Il required the procedure, he may have some problem in his coronary arteries, but it is uncertain if it is a stricture of the heart or myocardial infarction.”

The Japanese source said that the “German doctors promised to keep Kim Jong Il’s procedure a secret and to coordinate a faked story with North Korea authority.” Therefore, the spokesperson of Berlin Heat Center revealed that 6 members of the center stayed in Pyongyang from May 11th to the 19th, treating only three laborers, a nurse, and a scientist.

A North Korea expert speculated that Kim Jong Il might be addressing health concerns prior to the year end South Korean Presidential Election and further nuclear negotiations. Many groundless reports have circulated regarding possible Kim Jong Il heart surgery. A Japanese magazine, Shukan Gendai, claimed that Kim Jong Il received coronary artery bypass surgery for myocardial infarction.

Original claim:
Kim Jong-il had artery surgery in May
Korea Herald
6/14/2007

North Korean leader Kim Jong-il was operated on by a team of German doctors last month to open a blocked artery, a person connected to the Kim regime said.

While doctors from German Heart Institute Berlin arrived in Pyongyang prepared to perform major surgery on Kim, they found only one clogged artery, the person said. The 65-year-old Kim, who suffers from diabetes and high blood pressure, recovered well from the surgery, said the person, who asked that his name not be used because North Korea wanted the operation kept secret.

The person said while other members of North Korea’s elite go abroad for medical treatment, only Kim is important enough to have a team brought into the country. Barbara Nickolaus, a spokeswoman for the institute in Berlin, confirmed that the doctors had been in Pyongyang, and said they were there to treat three workers, a nurse and a scientist.

Kim’s health has been the subject of repeated recent speculation. Chosun Ilbo, South Korea’s biggest daily newspaper, said late last month that South Korean and U.S. intelligence agencies were checking reports Kim was suffering from heart, kidney or liver disease.

The Japanese weekly magazine Shukan Gendai said on June 8 a team of six doctors from Berlin was in Pyongyang from May 11 to 19 and conducted heart-bypass surgery on Kim.

The North’s official Korea Central News Agency said Kim visited factories in North Pyeongan Province near the border with China and spoke with workers on June 7, or less than three weeks after the German doctors left North Korea.

NK Daily, a Seoul online news organization staffed by defectors from North Korea, reported on June 11 it had confirmed the report with an “inside source” in North Korea who said the apparently vigorous Kim’s June 7 schedule lasted until 1 a.m.

Since the 1970s, when he was unofficially designated as successor to his father, Kim Il Sung, Kim Jong-il’s health has been the subject of speculation.

“Kim does have diabetes and high blood pressure,” said C. Kenneth Quinones, a retired U.S. State Department Korea specialist who teaches at Japan’s Akita International University. “But there is no firm evidence that either has worsened recently.”

Kim, who has three sons in their 20s and 30s, hasn’t publicly said whether one of them or someone else will be his successor in the world’s only communist dynasty.

U.S. Concern

“The State Department is concerned about his health, at least until he publicly designates an heir,” Quinones said.

Kim’s failure to keep to his usual quota of appearances, such as visits to work units to deliver what the official Korea Central News Agency calls “on-the-spot guidance,” often triggers speculation.

Given North Korea’s nuclear program, all reports about Kim’s health have to be taken seriously, said Michael Breen, author of “Kim Jong-il: North Korea’s Dear Leader,” a biography.

“One day the reports will be true,” Breen said. “So we can never ignore them.”

Chosun Ilbo reported in May that Kim had been on official activities 23 times between Jan. 1 and May 27, half the number reported during the same period in 2006.

At an April 25 military parade, Kim’s eyeglass lenses were different from his usual sunglasses, leading to speculation his diabetes had worsened, making his eyes more sensitive to sunlight, the newspaper said. That was a “false alarm,” Quinones said. He said Kim was actually wearing “transition” lenses that turn darker according to the sun’s brightness.

South Korea’s National Intelligence Service concluded Kim’s health probably wasn’t in serious decline, according to a person who spoke with service agents.

At the April parade in Pyongyang, South Korean agents watched Kim review troops for two hours with no signs of fatigue, a sign his health isn’t fragile, said the person, who asked not to be named because of the sensitivity of the information.

Chain-Smoker

Kim is a former chain-smoker whose lifestyle — including a reported fondness for cognac and delicacies — may contribute to his diabetes and high blood pressure. His father died, reportedly of cardiovascular disease, at 82 in 1994.

Questions about the younger Kim’s health were heightened during a long disappearance in the late 1970s, prompting speculation he was dead or seriously incapacitated from injuries in a car accident caused by people opposed to a hereditary succession.

After his formal elevation to succeed his father in 1980, the official media portrayed him as a tireless worker for the people’s welfare even at the risk of his own health.

Kim looked pale and thin at the ceremony designating him as successor, causing North Koreans to write critical letters to officials for failing to take care of his health, official media reported at the time.

Kenji Fujimoto, a Japanese chef who served Kim at his Pyongyang palace, said in a pseudonymous book he wrote about the experience that the North Korean leader would complain about the medicine he had to take.

In the book, “The Private Life of Kim Jong-il,” Fujimoto quoted Kim as saying, “Do I have to keep taking these pills every day until I die?” (Bloomberg)

Daily NK
Kim Young Jin
6/12/2007

Recently, it has been reported that businesses in charge of facial plastic surgery and skin maintenance are becoming more popular among the wealthy class.

Through a survey DailyNK conducted on actual living conditions in the Northeast region of North Korea, it was discovered that massage rooms, steam baths, beauty-related enterprises (plastic surgery and skincare maintenance) are the main thriving businesses.

Beauty-related businesses such as these prevail in relatively large-sized cities, such as Chongjin in North Hamkyung, Hamheung in South Hamkyung, and Wonsan in Kangwon. This trend seems to follow the up and coming wealthy class who have risen through doing business in North Korea.

Skin maintenance and plastic surgery which has caused a stir among the women in Shinuiju and Pyongyang have spread to inland countrysides within the last several years.

Double eye-lid surgery, eyebrow tattoos, and others can be simply performed by a plastic surgeon doctor or beauty operation specialists, so it has been widely popular among young women.

The cost of plastic surgery, in the case of double eye-lid surgery, was 500 North Korean won per one-eye in 2004, but the asking price has been 1,500 won since 2006. The North Korean exchange rate was recently 2,980 won per dollar.

In addition to double eye-lid surgery, breast augmentation has been spreading to a portion of upper-class women. The popularity of the breast enlargement surgeries demonstrates an encouragement of beauty among North Korean upper-class women.

◆ “Massages” a rage, centered on large-scale cities = Chinese-style health massages cost around 10,000 (US$3.4) North Korean won per hour and for an additional 2~30,000 won, on-the-spot sex with a female masseuse is possible.

This survey, based on the latter half of May, took place by focusing on the price of commodities in five cities, such as Kim Chaek and Chongjin City in North Hamkyung, Danchun and Hamheung in South Hamkyung, and Wonsan Kangwon.

The results of the survey showed that the region with the highest standard of living in the Northeast region is Wonsan City of Kangwon. The reason why Wonsan has a relatively high standard of living is that it has been a central place of trade with Japan.

If North Korea and China’s trade can be represented by Shinuiju, then Wonsan has played that role with trade with Japan. However, it has recently been severely targeted by the suspension in North Korea and Japan’s trade.

Wonsan’s upper-class restaurants are known to show aggressive service by shouting “Welcome” when guests come in, by decorating the interior of restaurants, and by adopting a Chinese-style waiter and waitress system.

In addition, Japanese secondhand goods have been highly traded in Wonsan. Electronic rice cookers, sewing machine, fans, TVs and other Japanese thrift goods are commonly traded and have more reasonable prices than the other regions.

Newly released 2-3 person electronic rice cookers are around 13~150,000 won, fans around 7~80,000 won, used gas stoves around 15~200,000 (approx. US$50.34~67.10), used TVs around 20~250,000 won, and flat-screen TVs over 350,000 (approx. US$117.50) won.

The supply of electricity is not an issue, so it is provided 24 hours long and electricity is better-supplied than in Hamheung.

Further, the “105 factory (furniture production factory)” in Wonsan produces furniture which is delivered to the Central Party and the quality, compared with the cost, is supposed to be the best in North Korea.

Industrial goods in Chungjin are relatively economical, but Chinese-made color TVs and flat-screen newly-released TVs are sold for 20~250,000 and 350,000 won, respectively. Used bicycles imported from Japan is sold for 10~150,000 won.

In Chongjin, the number of taxis have risen lately, but because of the expensive cost, not too many people take advantage of it. Going 4km costs around 5,000 won. Taxis that are operating are either Chinese used taxis or imported cars which are past the expiration date.

◆ The price of rice narrowly rises = In Hamheung, the cost of taxis is supposed to be slightly higher than Chongjin. There are not too many people who ride taxis, so the rate is doubled beyond the center of cities and in remote places.

The cost of penicillin has risen significantly in Chongjin, with the spread of the measles, the scarlet fever, and other infectious diseases since last winter. Chinese penicillin is hard to acquire due to its reputation for having poor quality and North Korean penicillin is sold at Jangmadang (market) for 500 won per one.

The cities considered to have low standards of living are Kim Chaek of North Hamkyung and Danchun in South Hamkyung. The size of the jangmadang (market) is smaller than in other regions and there is a limit in the variety of goods. Steam baths or massage places do not even exist. The price of medical goods are also supposed to be exorbitant.

The specialty of Kim Chaek City is its low cost of nails. The Sungjin Steel Works Complex in Kim Chaek produces nail by melting steel and sells them, which is sold for 2,200 won~2,500 won per kg in Hoiryeong, at 1,200 won in Kim Chaek. However, not only is the weight heavy and is difficult to package, but the usage by civilians is not very high, so the incidence of sale to other provinces is low.

In Danchun, the price of fruit is very expensive, so it is not sold by the kilogram unit, but is sold individually. One medium-size apple is sold for up to 800 won.

On one hand, the price of rice in North Korea’s northeast region showed a narrow upward tendency in the latter half of May at the end of the spring shortage season. Corn, the staple of low-income civilians, did not show a huge change.

Yonhap 
6/3/2007

NKeconWatch: Joshua at One Free Korea is skeptical about the article below, read here.  As a side note, see how much lower health care prices can be if consumers are permitted to pay for it themselves. 

High-tech portal devices such as music players and cameras are almost ubiquitous in South Korea, but many may believe they are nowhere to be found in poverty-stricken North Korea.

Unlike the conventional wisdom, however, a growing number of North Koreans, though still confined to some privileged classes, listen to music with MP3 players and take pictures with digital cameras in their daily life, a North Korean souvenir shop clerk told Yonhap News Agency.

A group of South Korean reporters visited North Korea last week to cover a delegation from South Korea’s Gyeonggi Province which has been promoting agricultural exchanges with the communist government. The reporters were allowed to visit a department store and other attractions in the North’s capital, Pyongyang.

When asked what he was listening to with an earphone, the North Korean clerk answered plainly, “MP3 music files,” adding that he downloaded songs from the Internet.

When asked if he has a digital camera, the clerk replied, “I am using the same model Canon that you are carrying now.”

In terms of IT development, the reclusive North has been regarded as lagging far behind South Korea where almost all younger people take it for granted to use digital devices.

The clerk’s response does not provide any insight into the North’s IT sector, including how many of them use such digital devices, but experts say that they offer a glimpse into changes taking place in North Korea, though slowly.

Meanwhile, a North Korean restaurant worker said that many beauty-conscious North Korean women receive plastic surgeries to look prettier. “You can easily see a woman on the street who had a double eyelid operation,” he said.

Such eyelid plastic surgery costs around 0.7 euro in the North, slightly less than the average monthly salary in the country, he said.