Archive for the ‘International Aid’ Category

Ten Years at the Kaesong Industrial Complex: South Korea’s Listed Firms Demonstrate Strong Growth

Friday, January 30th, 2015

Institute for Far Eastern Studies (IFES)
2015-1-30

The Kaesong Industrial Complex (KIC, also known as Gaeseong Industrial Complex) has recently celebrated its tenth anniversary of operation. Despite years of twists and turns, most of the listed South Korean firms with operations at the KIC generally showed a higher than average annual growth rate of 10 percent.

According to the financial investment industry and the Corporate Association of Gaeseong (Kaesong) Industrial Complex (CAGIC), the ten companies in the KIC recorded average sales and operating profits of 116.84 percent and 143.23 percent from 2005 to 2013. This translates into a compound annual growth rate (CAGR) of 10.16 percent in terms of sales, and 11.75 percent in operating profit.

Taekwang Industry, Korea Electric Terminal, Cuckoo Electronics, Jahwa Electronics, and Romanson were among five companies that showed highest sales, operating profits, and net profits that recorded high annual growth rate of more than double digits. Excluding Cuckoo Electronics, which was listed with the KIC from last year, all nine companies (out of ten) reached the average of 485.91 percent in terms of market capitalization from 2005 to 2014 and averaged yearly increase of 19.34 percent. In addition, Cuckoo Electronics emerged as a star company with a market capitalization of 1.7 trillion KRW due to its high-speed growth, recording annual average sales of 12.89 percent since 2005 and an operating profit of 22.4 percent.

South Korean companies entered the KIC from 2004, began operations, and saw their first production in December 2004. The companies in the KIC suffer whenever tensions are high between North and South Korea, but they were hit hardest in 2013 when North Korea unilaterally shut down the complex for five months. However, the financial investment industry positively evaluates the KIC to have significant advantage such as low labor costs.

Although this strong growth cannot be seen entirely as the ‘KIC effect’, the competitiveness of the KIC seems to have contributed to some extent to these earnings. In fact, “Hi Korea Unification Renaissance Stock Fund,” launched by local asset manager Hi Asset Management Co., delivered a return of 9.79 percent during the eight-month period since its introduction in May.

The low cost of labor of North Korean workers in the KIC is considered as an advantage for the competitiveness of companies. This is leading to higher earning and consequently a rise in their share prices.

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ROK to resume training of DPRK doctors

Wednesday, January 28th, 2015

According to Yonhap:

South Korea said Wednesday it will resume a program to support North Korean medical doctors’ training in Germany.

The move, the first of its kind in seven years, is in line with the Park Geun-hye administration’s push for expanding humanitarian aid for the impoverished neighbor.

The unification ministry plans to provide a North Korea-Germany group with 90 million won (US$83,000) from the inter-Korean cooperation fund. It will be delivered through the (South) Korea Foundation for International Healthcare.

In 2001, the North Korea-Germany Medical Association launched a project to help train the communist nation’s doctors. A number of North Korean doctors were invited to Germany to learn the latest medical techniques for several months at local hospitals.

South Korea offered funds for the program in 2007 and 2008, but cut the assistance amid worsened relations with Pyongyang.

Read the full story here:
S. Korea to support N. Korean doctors’ training in Germany
Yonhap
2015-1-28

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UN to provide $2 million in aid in 2015

Saturday, January 24th, 2015

According to Yonhap:

The United Nations will provide US$2 million in aid to North Korea as part of its humanitarian efforts, a news report said Saturday.

The Office for the Coordination of Humanitarian Affairs, part of the U.N. Secretariat responsible for humanitarian actions, plans to deliver the financial support to its peer organizations working in the reclusive regime, according to a new report by Radio Free Asia (RFA).

The aid will be provided through the Central Emergency Response Fund (CERF), which has offered a total of $6.5 million to Pyongyang since 2011. The annual sum given to the communist state has varied each year: $5 million in 2011, $7 million in 2012 and $2.1 million in 2013.

U.N. offices based in the North decide on the spending through negotiations with the head of United Nations Development Programme stationed there. Other U.N. affiliated organizations that provide financial aid to the North include the World Food Plan, the Food and Agriculture Organization, the World Health Organization and the United Nations Children’s Fund.

The CERF plans to send $100 million to 12 countries around the world in this batch.

Syria will receive the highest amount of $30 million, followed by Lebanon with $18 million. North Korea will receive the least.

The Daily NK reports the following:

On January 27th, Radio Free Asia reported that over the past nine years, the UN has contributed 98.9 million USD in humanitarian assistance to North Korea.

The UN’s Office for the Coordination of Human Affairs (OCHA) reported the UN’s Central Emergency Response Fund (CERF) distributed 6.5 million USD overall through four different UN agencies last year, and 96.9 million USD in total between 2007 and 2014.

An additional 2 million USD for support to North Korea was contributed by the UN just in the past three months.

The UN’s Central Emergency Response Fund (CERF) began offering assistance in 2006 to those nations that were in drastic need of humanitarian support, but were not getting those needs filled by the international community.

Since that time, the 98.9 million USD sent to North Korea represents 7.4% of the UN’s overall international donations budget, which stands at approximately 1.34 billion USD.

The UN organizations currently providing assistance to North Korea include the World Food Program (WFP), the Food and Agriculture Program (FAO), the World Health Organization (WHO), the United Nations International Children’s Emergency Fund (UNICEF), and the United Nations Population Fund (UNFPA).

Read the full story here:
U.N. to provide N. Korea with US$2 mln aid
Yonhap
2015-1-24

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Eugene Bell expands TB work in DPRK

Tuesday, November 11th, 2014

According to Yonhap:

A U.S. charity group said Tuesday it has agreed with North Korea to expand its medical aid program in the impoverished nation.

Under the deal, the Washington-based Eugene Bell Foundation will construct three new wards at tuberculosis (TB) treatment centers in Pyongyang.

It is the fruit of a three-week trip to the communist nation by a group of 13 officials from the foundation.

“The number of patients at those treatment centers has grown as the activity of our foundation is increasingly known,” a foundation official said. “Every treatment center suffers a severe lack of wards.”

The foundation has long provided medical humanitarian assistance to North Korea, especially for multidrug-resistant tuberculosis.

In a new program, it is sending 770 million won (US$750,000) worth of TB medication to the North.

Read the full story here:
U.S. charity group to expand medical aid program in N. Korea
Yonhap
2014-11-11

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ROK agricultural assistance heads to DPRK

Wednesday, October 1st, 2014

The Hankyoreh reports on some agricultural aid heading to the DPRK:

ace-Gyeongnam-Hanky-2014-10-1

Picture above via the Hanhyoreh

The article reports:

Trucks carrying materials for greenhouses, fertilized soil and plant seeds for North Korea crosses Unification Bridge in Paju, Gyeonggi Province, Sept. 30. The 200 million won worth of goods were donated by Ace Gyeongnam.

Greenhouses have been constructed all across the DPRK in the last few years.

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Private aid driven to DPRK from ROK

Wednesday, October 1st, 2014

According to the JoongAng Ilbo:

Twenty container trucks from Ace Gyeongam, a charity foundation fund by bed manufacturer Ace, cross the inter-Korean border yesterday to provide agricultural aid to North Korea. About 200 million won ($190,000) of farming goods will be sent to North Hwanghae Province, marking the first time aid was delivered on a round trip using inland highways between the two Koreas.

Read the full story here:
Aid on the way
JoongAng Ilbo
2014-10-1

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North Korea’s donor fatigue

Thursday, September 25th, 2014

The Wall Street Journal reports on the difficulties the UN World Food Program faces trying to find supporters for its operations in North Korea:

The United Nations aid program for malnourished North Koreans may close after raising only a fraction of the money it needs to operate in the country, a senior U.N. official said in a call for donations.

“We may need to scale down or think about closing altogether,” Dierk Stegen, the Pyongyang-based North Korea head for the U.N. World Food Program, said in an interview.

The agency, which has operated in North Korea since 1995, could shut early next year if there is no indication it will be able to raise needed funds by the end of October, he said. One complication is that North Korea’s humanitarian crisis has been overshadowed by the conflict in Syria and Ebola outbreak, he said.

While North Korea is getting better at feeding its people, hundreds of thousands of young infants and their mothers remain chronically malnourished, he said.

Contributions from private organizations and the South Korean government in recent weeks have helped, but the program is far from its goal of $50 million, already a significant reduction from the original target of $200 million it set last year.

The North Korea food-assistance program has drawn flak from critics who say the regime takes advantage of the agency’s largess, devoting its resources to developing its nuclear weapons program and constructing amusement parks while its people suffer. Critics also say the agency can’t be sure its assistance is reaching the intended recipients.

Nicholas Eberstadt, a political economist at the American Enterprise Institute in Washington who has studied North Korea’s food situation, said that the WFP’s work in the country was “a disappointment—perhaps a terrible disappointment,” arguing that the agency has put up little resistance even as Pyongyang restricts oversight from foreign aid groups.

“Outside humanitarian assistance will not work in North Korea unless it is ‘intrusive’—and the WFP has no stomach for such work,” Mr. Eberstadt said.

Mr. Stegen acknowledged past shortcomings in its ability to monitor the distribution of its aid, but blamed a lack of funding and cited recent improvements in its access inside the country. He said that the WFP can now get permission within 24 hours to visit any school or household that is receiving its aid. In the past, two weeks’ notice was required.

Mr. Stegen said that criticism of a government’s priorities isn’t unique to North Korea, and urged donors to prioritize vulnerable infants over politics.

“Intervention and assistance on a humanitarian basis should be separated from political things,” he said.

Earlier this month, South Korea’s government approved $7 million in new funding to the WFP, its first such contribution since 2007. While South Korea’s conservative government has talked tough on North Korea, it has also pursued a policy of “humanity” toward the North, particularly infants and young mothers.

The U.S., by far the largest donor to the WFP’s North Korea work, hasn’t contributed since 2009, when Pyongyang tightened its rules on monitoring food aid by restricting the number of Korean-speaking monitors allowed into the country, according to a U.S. Congressional Research Service report published in April.

The WFP’s fundraising efforts have also been hampered by rising awareness of North Korea’s human-rights violations. Earlier this year, a special U.N. commission published a landmark 400-page report which said the regime selectively starves its population based on factors like political loyalty, and recommended the U.N. Security Council refer Kim Jong Un and other senior officials to the International Criminal Court.

Ahead of the U.N. General Assembly, U.S. Secretary of State John Kerry on Wednesday called North Korea’s system of prison camps “unfathomable” and a sign of what he described as “barbarity, inhumanity—I think you can call it evil.”

Mr. Stegen said North Korea had markedly improved its capacity to produce food for its people since a devastating famine in the 1990s. He said that fewer people in the country remain hungry today, even as the population has increased.

But he cautioned that the country’s agricultural efforts have focused too much on producing rice and other grains, at the expense of protein. That has led to malnourishment of infants and children under the age of four, he said, putting them in danger of stunting, even as Kim Jong Un has made a public show of encouraging fisheries as a potential source of protein.

“For many of the children of North Korea, it’s already too late,” said John Aylieff, the WFP’s deputy regional director for Asia. “They’ve been dealt a life sentence of impaired mental functioning and impaired physical development.”

A drought earlier this year has also meant a throttling back of government rations to ordinary citizens, which fell to about 250 grams a day, Mr. Aylieff said. That is less than half the targeted rations, and the lowest in several years.

As a result, the aid agency is expecting a surge in acute malnutrition this year. “We hope potential donors will see the humanitarian imperative,” Mr. Aylieff said.

Marcus Noland, an economist and North Korea expert at the Peterson Institute for International Economics in Washington, said that given the WFP’s funding problems, its ability to monitor its work would be limited.

“Trying to maintain an underfunded program in that environment is practically inviting an aid diversion scandal,” he said. But the WFP’s absence from North Korea would also likely exacerbate any food crisis.

“The advantage of having the WFP in-country in even a limited capacity is that they are pre-positioned to monitor conditions and respond if there is an emergency,” Mr. Noland said.

Read the full story here:
U.N. North Korea Food Program in Danger
Wall Street Journal
Jonathan Cheng
2014-9-25

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German Government offers TB assistance to DPRK

Tuesday, August 26th, 2014

According to Yonhap:

The German government has provided North Korea with US$600,000 in medical aid via [Caritas International], a U.S. media reported Tuesday.

The Roman Catholic group Caritas International, which was launched in Germany in 1897, has been campaigning to help the needy in the impoverished communist nation, especially those infected with tuberculosis (TB) and hepatitis.

“The German government is providing 450,000 euros [$600,000] to be used for the TB patients in the DPRK,” Reinhard A. Wurkner, a Caritas official in charge of Asia, was quoted as telling the Voice of America. DPRK is the acronym for the Democratic People’s Republic of Korea, North Korea’s official name.

Caritas began its North Korea project in 1996. It has since offered medical and nutritional assistance to TB and hepatitis patients in the country.

Read the full story here:
German gov’t offers US$600,000 in N. Korea aid
Yonhap
2014-8-26

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2014 Inter-Korean development plans

Tuesday, August 19th, 2014

According to the Daily NK:

The Ministry of Unification released its plans for the 2014 Inter-Korean Development Program on August 18th. 96 new enterprises are among the proposals stipulated in the report’s 30 articles.

The chief components of the plan include:

1. the establishment of a channel for consistent Inter-Korean dialogue
2. a solution for the Separated Families issue
3. provision of humanitarian aid geared towards North Korean citizens
4. adherence to international regulations through a cooperative exchange system
5. the restoration of national solidarity through sociocultural exchanges
6. expanding other ongoing inter-Korean economic collaboration projects
7. normalization of Kaesong Industrial Park operations and
8. tailoring refugee resettlement funds to individual defector needs.

In a statement about the plan, a Ministry of Unification official said, “There is much significance in the fact that this proposal was a government-wide effort; a total of 24 administrative bodies came together to formulate these ideas and strategies.”

The comprehensive program also included detailed plans for the repair and renovation of the Kaesong-Pyongyang Expressway and the Kaesong-Sinuiju Railway. The premise of the official Inter-Korean Development Program has always been to improve overall conditions in the North while fostering better relations between North and South, but this most recent plan is the first to delineate detailed plans for large-scale investments in infrastructure.

Expansion of other inter-Korean economic collaborations were also outlined, such as:
1. Kaesong-Sinuiju railroad and Kaesong-Pyongyang railroad repairs
2. Imjin River flood prevention business
3. Food and Agriculture Organization [FAO] support of the North Korean fishing industry
4. proposals such as vitalization of inter-Korean shipping are included. In addition, depending on the situation, 5. they plan to gradually introduce reopening trade and commerce, resumption of basic economic cooperation and, launching of new businesses.

A continued dedication to improving human rights in North Korea was also announced, starting with continued pressure on lawmakers to overcome the impasse and pass the North Korean Human Rights Act. The proposed law first appeared in 2005 but has since stagnated in the National Assembly due to failure by ruling and opposition parties to reach a consensus. Additional plans to increase support to private organizations advocating human rights in North Korea as well as striving to implement the recent recommendations by the UN based on the Commission of Inquiry [COI] findings on human rights in North Korea.

The South Korean government expressed its intentions to improve the quality of life for North Korean residents by increasing humanitarian aid and support. Most notably, the South vowed to separate political and humanitarian issues, ensuring that vulnerable social groups receive the support they need, regardless of tensions on the Korean peninsula.

Read the full story here:
Report: 2014 Inter-Korean Development Plans
Daily NK
Koo Jun Hoe
2014-8-19

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ROK aid to the DPRK in 2014

Monday, August 11th, 2014

According to Yonhap:

South Korea said Monday it will provide North Korea with US$13.3 million in humanitarian aid, in another show of its resolve to separate inter-Korean military tensions from efforts to help the needy in the North.

The South has decided to offer $7 million worth of nutritional assistance to mother and child health services in the communist nation via the World Food Program (WFP), according to the unification ministry.

Seoul will also deliver $6.3 million to the World Health Organization (WHO) for its projects to ship essential medicine to the North, improve clinics and train related manpower there, it added.

“The government plans to tap the Inter-Korean Cooperation Fund for the aid,” ministry spokesman Kim Eui-do told reporters.

It is the first time that South Korea has offered assistance to North Korea through the WFP since 2007, he said. Last year, the South used $6 million to support the WHO’s project in North Korea.

Seoul’s new aid program is apparently to follow up on President Park’s ambitious “Dresden Declaration” in March.

Read the full story here:
S. Korea to offer US$13 mln in aid to N. Korea
Yonhap
2014-8-11

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