North Korean Economy Watch

According to the Daily NK:

International sanctions against North Korea are leading to declining bilateral trade volumes with the European Union (EU), it has been revealed.

“The total amount of trade between North Korea and the EU in 2012 fell 40%, from 159,000,000 Euros in 2011 to 92,000,000 Euros in 2012,” Voice of America reported yesterday, citing the latest trade statistics from the European Commission.

The root of the decline lies in exports from North Korea; in other words, Pyongyang’s exports to the EU decreased dramatically, and this led to an overall decrease in bilateral trade.

North Korean imports from the EU last year amounted to 73,000,000 Euros, a 60% increase from the previous year. However, exports in the same period were only worth 19,000,000 Euros, not even 1/5 of the previous year’s 116,000,000 Euros.

A report released by the Korean International Trade association last month yielded a similar outcome, concluding that trade between North Korea and the EU in the first five months of 2013 was on a declining curve, being worth just 12,500,000 Euros, a 77% decrease over the same period of 2012.

The EU also reported that North Korea’s foreign trade last year was worth 690,000,000 Euros overall. North Korea’s biggest trade partner was China, with 470,000,000 Euros, 68% of total foreign trade.

North Korea’s other major trade partners in 2012 India, the Democratic Republic of Congo, Saudi Arabia, and the Dominican Republic.

Read the full story here:
North Losing Out in European Market
Daily NK
Yang Jung A
2013-10-7

According to Yonhap:

North Korea’s exports to China rose 8 percent on-year to US$1.85 billion in the first eight months of this year, thanks to higher exports of coal, ores and woven garments, a South Korean diplomat said Monday.

The North’s imports from China fell 6 percent on-year to $2.24 billion in the eight-month period, with two-way trade totaling $4.09 billion, said the diplomat at the South Korean Embassy in Beijing.

Total trade volume between North Korea and China was little changed in the January-August period, compared with $4.1 billion for the cited period a year earlier, the diplomat said on the condition of anonymity, in a sign that their trade is on a recovery track.

It was not immediately clear, however, whether the rebound in bilateral trade meant that Beijing might ease its tougher stance on Pyongyang’s nuclear weapons program.

“North Korea’s exports of coal and ores to China showed a double-digit growth during the eight-month period, despite declines in their international spot prices,” the diplomat said.

North Korea’s traditional ally has become increasingly frustrated with its wayward neighbor, particularly after the North’s third nuclear test in February in defiance of China. Beijing voted in favor of tougher sanctions by the United Nations Security Council to punish Pyongyang for conducting the nuclear test.

In May, the Bank of China closed accounts with North Korea’s Foreign Trade Bank, which was accused by the U.S. of helping finance the North’s nuclear weapons program.

Last month, China disclosed a list of weapons-related goods banned for export to North Korea, highlighting Beijing’s commitment to enforcing international sanctions against Pyongyang.

Still, many Chinese businesses keep close trading ties with North Korea, supplying key commodities and hard currency to the North.

Yonhap also offered additional information in an artiucle published by the Korea Herald:

However, he said sales of clothing topped $290 million as of end-August, compared to $200 million during the same period last year.

On imports, the North brought in mostly crude oil, food and fertilizers from China, although overall numbers were down 6 percent on-year.

Imports of food and fertilizers were down 57 percent and 27 percent, respectively, with crude imports dipping 6 percent compared to the year before.

The North has been importing less food from China after a good harvest last year.

Read the full story here:
N. Korea’s exports to China rise 8 pct in Jan.-Aug.
Yonhap
2013-10-7

N. Korea-China trade in 2013 largely unchanged from previous year
Korea Herald
29103-10-9

According to Yonhap, the DPRK’s food imports increased over the summer:

North Korea’s crop imports from China rose 16.5 percent in August from the previous month, data showed Tuesday, indicating stability in food supply for people in the impoverished nation.

According to the data compiled by Kwon Tae-jin, a researcher at the Korea Rural Economic Institute, North Korea imported 26,804 tons of grains such as flour, rice, corn and bean in August from its neighboring country, compared with 22,988 tons a month earlier.

The North spent a total of US$15.4 million to buy the crops that month, the largest monthly spending for the year, the data showed.

August also marked the seventh consecutive month that the North’s crop imports topped 20,000 tons.

“Since February, the North has imported more than 20,000 tons of crops per month from its strongest ally,” Kwon said.

“Factoring in the forecast of good harvests for the autumn thanks to good weather conditions, the North is expected to enjoy a relatively stable supply of crops at least for the rest of the year,” he added.

Meanwhile, North Korea’s fertilizer imports from China totaled 183,639 tons in the January-August period, down 27.1 percent from the same period a year earlier, according to the data.

North Korea’s domestic food production is also apparently higher. According to Yonhap:

North Korea’s grain harvest is expected to grow about 8 percent this year from 2012 thanks to relatively favorable weather conditions, a source with the knowledge of food situation in the communist nation said Wednesday.

The North is estimated to produce as much as 5.3 million tons of grains this year, a 7.7 percent increase from 4.92 million tons last year, the source said on the condition of anonymity.

This year’s estimated grain harvest roughly meets with the North’s annual demand of 5.4 million tons. The annual demand was calculated by South Korea’s state-run Korea Rural Economic Institute.

“Grain harvest in North Korea this year is much better than last year because there were no big natural disasters, except for heavy rains in July this year,” the source said.

Despite the positive assessments of the DPRK’s food supply, the UN warns more food assistance is needed. According to Yonhap:

North Korea remains one of the 34 countries in the world that require external assistance to properly feed their people, a media report said Friday.

The Voice of America said the October issue of Crop Prospects and Food Situation by the Food and Agriculture Organization (FAO) estimated that there will be some 2.8 million “vulnerable” people in the communist country needing assistance until this year’s fall harvest.

The Washington-based media outlet said that judging by official estimates tallied by the United Nations organization, Pyongyang’s spring cereal harvest for 2013, mainly winter, wheat and barley, fell shy of the initial forecast, and that this is the main reason for the current shortage.

The country had reported improved harvests in the fall of 2012.

The U.N. agency also said people in the country are experiencing “widespread lack of access” to food caused in part by past floods.

The latest findings added that overall conditions in the North have not changed vis-a-vis July when the last food situation report was released.

At the time, the North was the only country in East Asia to be placed on the list requiring external aid. Others on the list of the 34 countries were in Africa and Central Asia.

The FAO, meanwhile, estimated that the North has been able to secure 328,000 tons of various grain from November of 2012 to early last month. This is equal to 65 percent of the 507,000 tons of grain Pyongyang needs to properly feed its population.

Read the full stories here:
N. Korea’s crop imports from China up 16 pct in Aug.
Yonhap
2013-10-1

N. Korea’s grain harvest seen improving: source
Yonhap
2013-10-2

N. Korea needs external aid to feed its people: report
Yonhap
2013-10-4

…although I cannot find a copy of it anywhere.  It is probably being sent around in PDF form and only available in Chinese.

According to the New York Times:

In a sign of growing concern about North Korea’s nuclear ambitions, China published a long list on Tuesday of equipment and chemical substances to be banned from export to North Korea for fear they could be used in adding to its increasingly sophisticated nuclear weapons programs.

If put into place, the export controls would be some of the strongest steps taken by China, the North’s closest ally, to try to limit the country’s nuclear programs. The announcement indicates that China is now following through on some United Nations Security Council sanctions it approved months ago, according to a noted American arms expert.

The list of banned items was released amid a flurry of reports suggesting that North Korea is accelerating its two nuclear weapons programs. Two weeks ago, new satellite photographs showed that North Korea might be resuming production of plutonium at its newly reconstructed nuclear reactor at Yongbyon. And this week, two American arms experts reported that North Korea appeared to have learned to produce its own crucial components for uranium enrichment.

The move also comes less than a week after China made an unsuccessful attempt to revive talks aimed at persuading the North to give up its nuclear capabilities. The United States continues to resist restarting the talks, which North Korea has used in the past to extract concessions without making long-term changes to its nuclear program.

“The release of the new export control list is a signal China is concerned about the speeding up of weaponization” of North Korea’s nuclear capabilities, said Zhu Feng, the deputy director of the Center for International and Strategic Studies at Beijing University, who called the move “very important.” In particular, he said, the Chinese are concerned about resumption of plutonium production at the Yongbyon complex, the centerpiece of North Korea’s nuclear program.

Another Chinese expert on North Korea, who declined to be identified because of his position in the government, said the publication of the list “says that China is increasingly unsatisfied with North Korea’s actions.”

“This is one of the practical actions to show it,” he said.

Both plutonium and highly enriched uranium can be used in nuclear bombs, but analysts say the North’s plutonium program is much further along. At least two of the three bombs the country has tested used plutonium.

China has long resisted punishing North Korea for its nuclear programs, but has appeared increasingly frustrated as the North’s young leader, Kim Jong-un, has appeared to ignore Chinese pleas for moderation. China agreed to the United Nations sanctions after the North conducted a nuclear test this year over Chinese objections.

The North responded to the sanctions with months of nuclear threats against South Korea and the United States, which, analysts say, ended only after China exerted strong pressure, apparently fearful of instability that could harm its economic progress.

David Albright, the American expert who said China was now implementing the United Nations sanctions passed in March, added that the Chinese ban “will help, since North Korea procures so much from China.” Mr. Albright, the president of the Institute for Science and International Security, added that China could take additional measures to “dramatically increase the inspection of goods into North Korea by road and rail.”

China has moved before to stop the export of other technologies that could be used in nuclear programs, including missile technology, though it did not single out any countries when it did so.

The items on the list China released Tuesday were called “dual-use technologies” because they can be used for either civilian or military purposes, and they included items that could be used to build more chemical weapons and to make biological weapons.

Banned items include Ebola, a virus that can be used for medical research as well as a biological weapon; nickel powder; radium; flash X-ray generators; and microwave antennas designed to accelerate ions. China’s Commerce Ministry, the Ministry of Industry and Information Technology, the General Administration of Customs, and the Atomic Energy Authority jointly published the list.

In a statement, the Ministry of Commerce said the items in the 236-page document were prohibited from being sent to North Korea because “the dual-use products and technologies delineated in this list have uses in weapons of mass destruction.”

Reuters also adds:

Released by the commerce ministry along with the Ministry of Industry and Information Technology and the China Atomic Energy Authority, the document describes items that could be used to build nuclear and chemical weapons, as well as technology that could build and fuel nuclear reactors.

Yonhap adds:

The ban took effect on Monday (September 23).

Read the full stories here:
China Bans Items for Export to North Korea, Fearing Their Use in Weapons
New York Times
Jane Perlez
2013-9-24

China releases list of goods banned from export to North Korea
Reuters
Megha Rajagopalan
2013-9-23

China issues long list of banned items for exports to N. Korea
Yonhap
2013-9-24

According the Russian outlet Izvestia (translated by Google Translate):

Tensions between the U.S. and North Korea do not interfere with the group Evraz, the largest shareholder is Roman Abramovich, it is advantageous to work with both countries: part of the holding coal company “Raspadskaya (Распадской)” began selling coal in North Korea. At the end of 2013 the total supply of “Raspadskaya” to North Korea could reach $ 32 million – half of it is comparable to last year’s total exports from Russia to North Korea.

During the first half of 2013 “Raspadskaya” delivered to North Korea coking coal at $ 4.5 million, follows from the statements of the company. In the total volume of exports “Raspadskaya” is about 4%, which makes the DPRK fifth largest export market for sales of coal (after China, Ukraine, South Korea and Japan).

…

In the DPRK embassy in Russia, “Izvestia” reported that, except for “Raspadskaya”, none of the Russian coal industry supplies goods to North Korea. There’s also clarified that the recipient of coal – Metallurgical Works named. Kimchaek– one of the largest steel companies in North Korea.  Total design capacity metkombinatu them. Kimchaek on all kinds of products, according to various estimates, 6.5 million tons, but in recent years the plant has significantly underutilized. According to South Korean estimates, the actual production of steel in all of North Korea is 1.25 million tons per year (Statistics Korea itself does not publish a lot of years). 

The volume of coal supply to the “Raspadskaya” to North Korea – to 20 kt (4-5 railroad tracks) on a monthly basis under the current annual contract, described in the company. Price is tied to the international price system (quotation Australian HCC with a discount for the quality of the brand SHCC). That is the sum total of the contract – about $ 32 million, considered BCS analyst Oleg Peter and Paul: The current market price of coking coal at $ 152 per ton (FOB Australia), but the average price for the first half was $ 134.

– Last year, the entire bilateral trade between Russia and North Korea amounted to less than $ 80 million – says Ludmila Zakharova, a senior researcher at the Center for Korean Research Institute of Far Eastern Studies. – At present, trade between our two countries in a state of crisis, Russia accounts for less than 1% of North Korea’s foreign trade.

In 2012, Russian exports to Korea totaled $ 65 million, told “Izvestia” in Economic Development. North Korea among foreign trade partners of Russia occupies 124th place with a “specific weight of 0%,” stated in the department.  Starting this year, however, there is growth of sales: in January-July 2013 two-way trade turnover of Russia and North Korea reached $ 56 million ( an increase of 31% compared to the same period in 2012), including Russian exports totaled nearly $ 51 million (an increase of 38%).

A small volume of direct trade is partially offset by other forms of economic cooperation continues Ludmila Zakharova. For example, it is estimated that about $ 100 million a year is the so-called labor services: experts from North Korea come to work in Russia (for the current year quota for North Korean workers reached 35 thousand people). Since the DPRK shortage of agricultural land, there are projects to provide Koreans to lease farmland in the Primorye Territory. In the last few years has intensified investment direction of Russian-North Korean cooperation. The other day, completed the reconstruction of the railway Hasan-Rajin. Investment in this project is a joint Russian Railways and the Ministry of Railways North Korea amounted to more than $ 200 million

According to data provided by the Ministry of Economic Development, the amount of accumulated investment of Russia to the DPRK at the end of the first quarter of 2013 amounted to only $ 572 million, while the DPRK in Russia – more than $ 79 million

Evraz – a vertically integrated global company with assets not only in Russia but also in other countries, including the United States. Evraz North American division includes several large steel companies formerly known as Oregon Steel, Rocky Mountain Steel, Claymont Steel and Ipsco.

– Evraz to some degree of risk. Under existing U.S. sanctions against the DPRK any large company with offices in the U.S. carries certain risks, working with North Korea – warns Ludmila Zakharova. – America includes a list of objects sanctioned North Korean banks and organizations that are involved in nuclear and missile program. All legal entities operating in the United States, engaging in economic relations with the companies on this list are subject to the relevant law and can not only get the fines, but generally lose access to the U.S. market and the U.S. banking system. In this case, unlike the UN sanctions, the U.S. rules imply a sufficiently broad interpretation than may be exploited Evraz. Of course, the steel industry is difficult to draw to a nuclear program, but you can.

The contract with the DPRK was verified for international risks assured “News” in the “Raspadskaya”.

– At Evraz in America a lot of assets, but the supply of this market are small. Much more dangerous for her to lose access to local banking system – says Oleg Peter and Paul. – Still, the U.S. market civilized, hardly any of the competitors Evraz want to speculate on its relations with the DPRK. Also tied to the steel industry’s nuclear program would be extremely difficult. 

If any Russian translators care to improve on the text offered by Google Translate, please do so.

Read the full story here:
Компания Абрамовича подзаработает в Северной Корее
Известия
2013-9-23

UPDATE 1 (2013-10-1): Briefing session for investors held at the Pyongyang International Product Exhibition
Institute for Far Eastern Studies (IFES)
2013-10-1

North Korea recently held a briefing session for foreign investors at the 9th Pyongyang Autumn International Products Expo.

According to Choson Sinbo, pro-North Korean Newspaper in Japan, the expo was held from September 23 to 26, 2013 and many foreign businessmen took part in this event at the Koryo Hotel in Pyongyang.

The briefing sessions for investors was organized by the Korea Foreign Economic Cooperation Committee. An official from the joint venture investment committee, which is responsible for attracting foreign investment, announced that North Korea has great interest in expanding economic cooperation with other nations and working to promote a favorable investment environment.

North Korean government is reported to be welcoming foreign investments and is taking actions to establish protection of foreign investors’ legal rights and interests, and stressed that various tax incentives and benefits for foreign businesses will be granted.

Choson Sinbo reported foreign businesses listened with great interest and expressed hope in investing in North Korea.

The Expo consisted of participants from twelve countries and 226 trading companies with over 800 participants. Out of the total companies, 118 were foreign companies, mostlyfrom China. The number of Chinese companies participating at the Fall Expo increased greatly compared to the Spring Expo where participation of Chinese businesses drastically decreased against the previous year. This increase is attributed to the improved relations between the two allies.

North Korea hosts the Pyongyang International Product Exhibition twice a year — spring and autumn — for the purpose of attracting foreign investments. At this recent event, North Korean machinery, electronics, light industrial goods and food products were on display. There were over 2,400 different items and a total of 57,000 products.

The president of the Korea International Exhibition, Kim Ung Sik, delivered a speech at the opening ceremony saying, “North Korea is working to improve investments, trade, and tourism with many countries in wide-ranging areas and we are hopeful that this exhibition will contribute to the expansion of economic and trade relations with foreign countries and contribute to regional economic development.”

ORIGINAL POST : According to KCNA (2013-9-23):

The 9th Pyongyang Autumn International Trade Fair was opened with due ceremony at the Three-Revolution Exhibition House on Monday.

Present there were Kang Sok Ju, vice-premier of the Cabinet, officials in the trade field, delegations of foreign countries and regions, diplomatic envoys of different countries here and their embassy officials.

Pak Ung Sik, director of the Korean International Exhibition Corporation, made an opening address. Then followed a congratulatory speech by So Kil Bok, vice-minister of Foreign Trade.

The speakers said that the trade fair will offer a good occasion in promoting friendship and unity and boosting broad and multi-faceted economic trade, introducing goods and conducting scientific and technological exchange among countries.

They expressed their will to steadily expand and develop bilateral and multilateral cooperation in the fields of the economy and trade with foreign countries and regions on the principle of equality and mutual benefit.

Then the participants went round products displayed by companies of different countries and regions including the DPRK, Germany, Russia, Malaysia, Mongolia, Singapore, Italy, China, Cuba, Turkey and Taipei of China.

The trade fair will last till Thursday.

On 2013-09-24, KCNA reported the following:

Taking part in it are more than 220 trading companies from 10-odd countries and regions, mostly from Beijing, Dandong, Dalian, Shenyang and other areas of China.

Popov Sergey, commercial director of Russia’s Maritime Territory Confectionary Company, told KCNA that he hoped for strengthened economic cooperation between the DPRK and Russia, expecting products of his company to be favored by Korean people.

Juana Navarrete Mendoza, a section chief of Cuba’s LABIOFAM Enterprise Group, said it was honor for them to attend the excellent fair with main products of the Group.

On display at the fair are more than 57,000 products of 2,400-odd kinds, including machinery, electric and electronic appliances, light industrial goods, foodstuffs, medical instruments, medicines, building materials, chemicals and vehicles.

On 2013-9-26 KCNA reported the following:

The 9th Pyongyang Autumn International Trade Fair is going on with attendance of many foreign companies.

Among them is the Beijing Bridge International Trading Company Ltd. of Germany, which has been strange to Korea. The company, founded in Juche 97 (2008), engages itself in sale of Germany-made foodstuffs and electronic appliances in China.

On 2013-9-26 KCNA also reported the following:

Li Nan, general manager of the Shenyang International Exhibition Corporation of the Shenyang Sub Council of China Council for the Promotion of International Trade, said:

President Kim Il Sung was the great leader of the Korean people and a close friend of the Chinese people.

He made a great contribution to the victory of the Chinese revolution.

The Chinese people will always remember his exploits.

Li Yongjian, manager of overseas business of the Beijing Purkinje General Instrument Co., Ltd., said that the President dedicated all his life to the prosperity of the country and the happiness of its people, adding that he was a great revolutionary and a peerless patriot.

Martyn Williams tracks down other participating companies here.

According to the Daily NK:

Following the formal tightening of controls along the Sino-North Korean border for much of this year, it has emerged that smugglers have been suffering at the hands of the National Security Agency (NSA) [More properly Ministry for State Security-MSS]*. NSA officers have been described as engaging in “excessive” interrogation techniques in order to build their credentials and improve their bribe-taking, a source inside North Korea claims.

“A week ago, someone from a family that smuggles second-hand clothes with Chinese merchants was caught by a border patrol as he was receiving the goods, and is now getting interrogated by the NSA,” a North Korean source based in Yangkang Province reported to Daily NK on September 16th. “When I went to meet him at the NSA, I found that his limbs had been broken with a piece of wood. His face was so beaten up I couldn’t even recognize him.”

According to the source, people caught smuggling used items along the border with China used to pay a bribe of around 1000 Yuan approx. $160) to secure their release, but now that has risen to 5000 Yuan (approx. $800). The rise in beatings is believed to have occurred because smugglers are unable to pay the higher bribe rate.

“If smugglers are detained by border guards they are supposed to pay 5,000 won now, and if they don’t have the money they get handed over to the NSA,” the source confirmed. “If that happens they have to pay 5,000 to 10,000 Yuan, but poorer ones find it impossible to do that.”

“To a smuggler living off selling used clothes, 10,000 Yuan is an very large amount of money,” continued the source. “While smugglers’ families may do everything they can to raise the money to pay for the release, selling everything they have wouldn’t make that amount of money.”

“As Chuseok approaches there is a rise in smuggling activity, and this is being used by the border patrols and NSA to make a killing off ordinary people,” the source went on to allege. “Some particularly unsavoury NSA agents first show the relatives the broken limbs of a family member prior to demanding money.”

*Added by NKeconWatch

Read the full story here:
Smugglers Facing Big Fines and Beatings
D
Kang Mi Jin
2013-9-17

Institute for Far Eastern Studies (IFES)
2013-9-12

After North Korea’s launch of a long-range rocket in December 2012 and third nuclear test in February 2013, China endorsed UN sanctions against North Korea. Consequently, North Korea appears to be increasing its economic cooperation with Mongolia and Russia.

On September 6, the 7th annual Northeast Asia joint high-level forum was held in Changchun (Jilin Province), China. Ku Bon Tae of the DPRK Ministry of Trade is reported to have been present and to have delivered a presentation on North Korea’s recent economic cooperation activities.

Ku stated, “Currently, cooperation between North Korea and Mongolia is making positive progress,” and “the international freight transport coordination issue and Mongolian corporate investments, telecommunications and other cooperation issues at the Rason Special Economic Zone are at the final stages of agreement.”

He added, “We hope more Northeast Asian nations will actively take part in the Rason Special Economic Zone.”

In May, a Mongolian oil companies HB Oil JSC acquired 20 percent stake in North Korea’s state-run Sungri oil refinery. In July, the two countries signed an agreement on information and communication cooperation and exchanges. In addition, Mongolian experts in the field of livestock are said to be involved in North Korea’s Sepho tableland (Gangwon Province) reclamation project, which seeks to create a large stockbreeding complex.

As for economic cooperation with Russia, the Khassan–Rajin railway — part of an international container rail transport line connecting Russia and North Korea and linking Northeast Asia to Europe — has its opening ceremony scheduled for this month after having received extensive reconstruction. Russia also has a long-term lease on Rajin Port’s pier No. 3. Russia has been renovating the pier, and renovations are expected to be completed by the end of this year.

North Korea and Russia plan to develop Khassan–Rajin rail line and Rajin Port in order to transport cargo from Asia to Europe: as containers arrive at Rajin Port, they are moved to the Khassan-Rajin railway and then transferred to the Trans-Siberian Railway (TSR), headed for Europe.

Ku further added, “After the projects are completely finished friendly cooperation between Russia and North Korea and international transport pathway will be opened connecting Asia to Europe through the development of economic and trade relations between the two countries.”

In Ku’s speech, the public economic cooperation with regards to China was covered briefly, and exclude the recent progress made. He commented only on the establishment of Joint Management Committees in Rason and Hwanggeumpyeong economic zones and that banks of the two countries are in the process of negotiating the usage of Chinese renminbi as the currency of trade.

Ku emphasized, “As with our past, our Republic hopes to promote independence, peace and friendship between Northeast Asian countries in the future, based on our foreign policy and will make every effort to further develop and expand this friendly cooperative relationship.”

The 9th China–Northeast Asia Expo opening ceremony was also held (in Changchun) on the same day as the forum. Political and business leaders from China, South and North Korea, Russia, Japan, and Mongolia were present at the event.

According to the Los Angeles Times:

North Korea tried to export gas masks to Syria this spring, presumably for use in the Middle East nation’s chemical weapons program, but the shipment was intercepted by Turkey along with arms and ammunition, a Japanese newspaper reported Tuesday.

The Libya-flagged ship El Entisar (“Victory”) was stopped April 3 by Turkish authorities as it passed through the Dardanelles, the Sankei Shimbun reported. Acting on the tip from the United States, authorities searched the ship and seized 1,400 rifles and pistols and about 30,000 rounds of ammunition as well as the gas masks.

The captain of the vessel admitted that the shipment had come from North Korea, according to the newspaper, which said the plan was for the arms to be unloaded in Turkey and transported by land into Syria to support the government of President Bashar Assad.

The revelation comes amid international outrage over accusations that Syrian troops used chemical weapons against civilians suburbs of Damascus last week. Any connection between North Korea and the alleged attacks could further isolate North Korea.

…

This is not the first time that North Korea has been accused of supplying equipment related to chemical arms to Syria. In November 2009, Greece seized almost 14,000 suits that provide protection from such weapons on a North Korean ship they believed was headed to Syria. South Korean authorities also intercepted a North Korean shipment of protective gear on a vessel sailing near the South Korean port of Busan that year.

“There is a long-term relationship between North Korea and Syria, similar to the agreement with Iran, on nuclear and conventional weapons,” said Park Syung-je, a military expert at the Asia Strategy Institute in Seoul. “I don’t see any signs that it has diminished.”

A Syrian delegation was reported to have visited Pyongyang, North Korea’s capital, in late July. The Korean Central News Agency quoted North Korean leader Kim Jong Un saying the talks were aimed as “boasting bilateral relations” between their countries.

Read the full story here:
North Korea tried to ship gas masks to Syria, report says
Los Angeles Times
Barbara Demick
2013-8-27

According to Yonhap:

The only sign of activity at the North Korean trade promotion agency here in Beijing is the faintly lit banner in front, and it is hard to tell whether the office is open for business.

No one is seen at the reception desk of North Korea’s Investment and Development Group building, located in a northern Beijing suburb, and its front door, though appears to be open, remains stationary for most of a weekday.

“North Koreans are still working there,” said a Chinese cleaner near the building, who only gave his surname Wu.

The Beijing branch of North Korea’s Investment and Development Group was believed to have launched operations early last year, but it appears certain to be a dead duck as the North’s unpredictability continues to keep Chinese investors away.

Its website has not posted any statement since Jan. 23 this year, and there was no response to a phone call made on Aug. 16.

A South Korean diplomatic source in Beijing, who spoke on the condition of anonymity, said the North Korean branch has been dormant since the North’s defiant launch of a long-range rocket last December.

Tensions on the Korean Peninsula soared early this year, with North Korea conducting its third nuclear test and its near-daily war threats during an annual joint military drill between South Korea and the United States.

“We have figured out that operations at the Beijing office of the North’s Investment and Development Group almost ground to a halt,” the source said.

…

China, North Korea’s biggest trading partner and aid donor, has become increasingly frustrated with its wayward ally, particularly after the North’s February nuclear test. In May, the Bank of China closed accounts with North Korea’s Foreign Trade Bank, which was accused by the U.S. of helping to finance the North’s nuclear weapons program.

According to the South Korean Embassy in Beijing, North Korea’s trade volume with China fell 6 percent on-year in the first six months of this year.

The North’s trade with China stood at US$2.95 billion in the January-June period, compared with $3.14 billion a year earlier, embassy officials said.

Exports to China rose 6 percent to $1.36 billion, while imports declined 14 percent to $1.59 billion, they said, citing official data.

Read the full story here:
N. Korea appears to struggle to woo Chinese investors
Yonhap
2013-8-23