North Korean Economy Watch

From Daily Business News Mongolia:

At the submission of the Government of Mongolia, the Parliament ratified Mongolia-North Korea Inter-governmental Agreement on exchanging work forces on the 20^th of July, 2007. According to the Agreement, Ministry of Social Welfare and Labor of Mongolia is to negotiate in the near future with Foreign Trade Ministry on realizing the agreement and exchange of work force, especially number and need of work force, the minimum wage /by USD/, labor conditions /normal and abnormal/, social welfare /social insurance/ and therefore those interested in employing North Korean wok force in 2009 should formulate their TORs accurately as well as submit them to the MSWL within 23 July. Currently orders should be submitted on the basis of position vacancy since number of workers is not specified yet.

Read more here.

UPDATE 2: According to the Associated Press:

[A South Korean] NIS official, who asked not be named, citing an internal policy, told The Associated Press that China had no plans to close all bridge links with North Korea “out of concerns of diplomatic friction with North Korea.”

The official also said China would not ask all North Koreans in China to leave, saying that Beijing plans to crackdown on North Koreans who illegally stay in China and Beijing plans to restrict renewing visas for North Koreans. 

UPDATE 1:  According to the Associated Press, China plans to close all the bridges to the DPRK during the Olympics, starting next month.  This will have a devastating impact on trade with Sinuiju, Manpo, Hyesan, Hoeryong, and many other trading hubs along the Chinese border.

ORIGINAL POST: According to an interesting article in Bloomberg (thanks to reader) China is acting to reduce the chances that North Korea issues will interfere with coverage of the Olympic games in Beijing this summer.

According to the article:

China asked some North Korean work units to leave the country or move their business operations during the Olympic Games, according to documentation from the North Korean embassy obtained by Bloomberg News.

Citing security issues, China asked North Koreans, except trade representatives and government-dispatched personnel, to leave by July 31 and not return until the end of September, the Korean-language statement said. The embassy in Beijing gave the order to North Koreans in a July 11 directive, according to a copy of the document obtained by Bloomberg News.

The order took effect from July 13 and those who delay departure would be fined or not allowed to reenter China, according to the document. Workers scheduled for dispatch to China from July 1 should delay their departure until Sept. 25, it said.

and…

It isn’t clear how authoritative the directive is. Five North Korean businessmen contacted by Bloomberg news provided different departure dates, or said they were not affected by the directive. The people refused to be identified in print, citing possible recriminations.

A press attaché at the Chinese embassy in Tokyo who declined to give his name said he wasn’t aware of the directive and that there would be no way to confirm its existence.

Read the articles here:
China asks some North Koreans to leave ahead of Olympics
Bloomberg
Hideko Takayama
7/15/2008

Report: China to shut down all bridges linked to NKorea during Olympics
Associated Press
7/21/2008

China to step up inspections at border with North Korea during Olympics to stop migrants
Associated Press
Kwang-Tae Kim
7/22/2008

From the BBC:

A North Korean worker was killed and four others were injured in an accident in the Kaesong industrial complex in North Korea, Southern officials said.

It happened when a steel frame collapsed at a factory owned by a South Korean company, Pyeongan, on Wednesday.

An investigation into the cause of the accident is reportedly under way.

Two of the four injured are in critical condition, a spokesman for South Korea’s Unification Ministry said, according to Associated Press.

They are all being treated in a hospital in the zone.

Read the full story here:
N Korea worker killed in Kaesong
BBC
7/17/2008

According to the Korea Times, the end of official North-South dialogues has put plans on hold to expand housing for workers in the Kaesong Industrial Zone. 

From the article:

Officials at the complex expressed concerns that South Korean companies intending to set up operations there may be unable to do so as a lack of housing will likely see manpower shortages.

According to the Gaesong Industrial District Management Committee, the number of North Korean workers at 72 companies operating in the site totals 30,084 and the figure could reach 40,000 by late this year.

Besides, approximately 80,000 to 100,000 workers would be needed by 2010 when 450 companies are expected to settle in the industrial park.

However infrastructure projections show that less than 60,000 North Korean workers will likely be able to commute to the industrial site.

Currently, North Korean workers head for their workplaces by 88 commuter buses and bicycles and the authorities promised to provide an additional 100 buses until the year’s end.

South and North Korea agreed last December to build dormitories to accommodate 15,000 North Korean workers.

The two sides were to conduct a geological survey early this year and start construction work in the first half of the year following the agreement but the suspended talks have hindered the plan.

After conservative President Lee Myung-bak vowed a tougher line toward the North, the communist North kicked South Korean officials out of its territory in March and cut off official communication channels.

The Seoul government recognizes the lodging problem as urgent. Yet, it admitted it cannot find a solution at the moment since the North is rejecting any talks.

Read the full story here:
Gaeseong Complex Lacks in Lodgings for N. Korean Workers
Korea Times
Kim Sue-young
7/9/2008

Institute for far East Studies (IFES)
NK Brief No. 08-7-4-1
7/4/2008

It appears that the number of people involved in handmade goods manufacturing, trading, and other small-scale, individual businesses is steadily increasing among North Korean citizens.

According to a source inside North Korea on June 30, ever since North Korean authorities announced the ‘Market Stimulation Measure’ in March 2003, the number of small-scale private businesses employing between 1~8 people has continued to grow as citizens in the North have taken to markets aggressively in order to earn money,

As the North’s economic woes continue to stretch over time and the government is unable to provide basic living necessities, the people are looking for other ways to support themselves.

In March of 2003, North Korea expanded farmers’ markets into general markets, allowing not only the sale of agricultural goods, but of manufactured goods as well. At the same time, the state introduced ‘market use fees’ for vendors wishing to rent space to hock their wares, thus bringing about a tax-like ‘state payment’.

Small-scale commercial and industrial businesses took on the form of family manufacturing or collaboration between factories, enterprises and engineers working together, but ‘Chinese-model’ small enterprises hiring just one or two workers also appeared.

In-home food preparation or handmade goods manufacturing, restaurants, bus services, repair work and other service-related industries grew. There also appeared examples of those leasing import rights from organizations or enterprises and making a living through trade.

Authorities have given these businesses tacit permission to operate, recognizing their role in increasing public revenue and supplying the people with daily necessities, but at the same time, they have laid down some restrictions, criticizing those “bitten by the capitalist bug, working only to make money for themselves.”

Small-scale private commerce and industry has the positive benefit of expanding the provision of daily necessities and absorbing unemployed labor in the North, but on the other hand, anti-socialist side effects such as the increasing gap between the rich and the poor and mammonism are also on the rise.

Excerpt from Yonhap:

A South Korean factory operating in the joint industrial complex in Kaesong has been closed for nearly 20 days over a feud with a North Korean controller, government and company officials said Monday.

The company, which employs around 300 North Korean workers, took the measure on June 12 after South Korean employees and North Korean officials scuffled over supplies, they said.

The firm demanded the North Korean authorities replace the North Korean controller who allegedly assaulted South Koreans in the fight, but the demand was not met.

It was not known exactly what caused the fight.

A total of 28,277 North Koreans were working for 70 South Korean labor-intensive manufacturers in Kaesong as of the end of May, according to the Unification Ministry.

Read the full article here:
Factory in Kaesong complex closed down over dispute
Yonhap
Shim Sun-ah
6/30/2008

Via Interview Blog:

UPDATE: Here is an interview with Jürgen Bein about the Kaesong Industrial Zone (In German)

Klaus-Martin Meyer: Mr. Eloesser, you recently became the President of Nosotek Joint Venture Company in Pyongyang, the capital of North Korea. In which the field of business is Nosotek operating?

Volker Eloesser: We do general IT outsourcing. This includes data base applications, 3D technology development as well a games production. Nosotek’s customers come from all over the world and some of our products are even used in the US.

Klaus-Martin Meyer: According to your CV, before you were heading to North Korea, you’ve been the general manager of Elocom, a subsidiary of a German Joint Venture between News Corporation (NWS.A) and Verisign (VRSN). It’s quite unusual for a high-ranking manager of a US based public company to move to North Korea.

Volker Eloesser: That’s true. But I don’t see my job as a political mission. At Elocom, I was managing a company producing mobile phone software technology. Neither my old job nor my new one is a political one.

Klaus-Martin Meyer: What’s your opinion about the demolition of the nuclear cooling tower in Yongbyon and the announcement of the US President George W. Bush to remove the country from the terrorism blacklist?

Volker Eloesser: This was great news. I think that both parties, the Korean and US government, took wise decisions which hopefully help giving peace a chance through diplomacy. For our business, lifting the sanctions will have a very positive impact, as well as for the People in the DPRK. North Korean Companies, domestic and foreign-invested, were suffering a lot under the sanctions. Foreign trade was very difficult and many potential customers feared to get trouble when making business with the DPRK.

Klaus-Martin Meyer: When did you first get interested into the DPRK? Did you already do active business with North Koreans before?

Volker Eloesser: Of course I did. In the beginning of 2005, I held lectures at the Pyongyang Business School. The Korean participants of my lectures were great people really interested into international business.

Klaus-Martin Meyer: Who are the shareholders of Nosotek? Is it a state-run company?

Volker Eloesser: Nosotek is a joint-venture between a European owned private holding company and the General Federation of Science and Technology of DPRK, a non-government organization.

Klaus-Martin Meyer: Along being the president of Nosotek, you are Chairman of the Supervisory Board of Next Generation Entertainment N.V. (NGE), a Dutch public company. Are there any links between NGE and North Korea?

Volker Eloesser: NGE’s management is highly interested in investing into the DPRK software industry. The CEO Dr. Stefan Heinemann believes that the DPRK will become a very important sourcing market in the near future, which has many advantages over China and India. Having this in mind, it makes a lot of sense for NGE to have a board member with experience in dealing with North Koreans.

Klaus-Martin Meyer: How would you describe the difference of outsourcing software in the DPRK compared to China or India?

Volker Eloesser: The DPRK’s software industry is already very well developed, but only for the demands of the domestic market. Although the skill level of the engineers is as high as the skill level in China or India, most DPRK software companies never made successful international business in large scale. The Korean engineers usually have no experience with western culture, habits and taste. But of course you’ll experience the same, when working with some small Indian or Chinese companies. One major advantage of the Korean engineers is that they don’t move to a new job frequently, like the Chinese. In this matter, you can compare the Koreans with Japanese staff, who usually never leave the company to move to another job. The result is obvious: the experience and knowledge stays within the company and there is no risk of IP leak.

Klaus-Martin Meyer: Are you personally living in North Korea or can you do your job remotely?

Volker Eloesser: It’s definitely required to have western management in a company dealing with western customers. Every attempt of people trying to do this remotely has failed. I’m planning to live in Pyongyang most of the year. I have a nice apartment in the city centre.

Klaus-Martin Meyer: Living in Pyongyang sounds hard. How are the living conditions for foreigners in Pyongyang? What about your family?

Volker Eloesser: Well, it’s not as hard as western readers may think. Of course the hardest thing is to live separated from my wife, but she promised to visit me frequently. Generally, the living conditions for westerners in Pyongyang are good: The air is totally clean, there is no risk of becoming a crime victim, there is a lot of green in the city and the Korean people are generally very friendly .

Klaus-Martin Meyer: Usually, western media has almost no idea about the real working and living conditions of the people in North Korea. Can you tell us something about the working conditions of your local staff?

Volker Eloesser: One of my goals is to achieve working conditions according to German standard. The staff is equipped with the latest computer hardware and enjoys a lot of incentives from the company to make their live comfortable. For example, the company is providing free lunch for the whole staff, which is delicious and nutritious. I myself have lunch together with my engineers every day, and I like it very much. Additionally to the large number of public holidays, the company even sponsors a one-week holiday trip. This is the way we appreciate the performance on the job.

Klaus-Martin Meyer: What are the most difficult obstacles, western managers are facing in the DPRK? Do you stuffer from political pressure?

Volker Eloesser: I’ve not yet experienced any political pressure, but of course you need to get used to the local security regulations and bureaucracy. When you behave politely, don’t do derogative statements about politics and respect the Korean culture, you won’t face any serious problems. The most difficult obstacle is the absence of international experience of the software engineers, combined with the cultural differences typical to Asian countries.

Klaus-Martin Meyer: How many European businesspeople like you have discovered the DPRK as tomorrow’s sourcing market?

Volker Eloesser: Actually, not many so far. The European community in Pyongyang is very small. After a few weeks, you know every foreigner. Most Europeans who do business in the DPRK are organized in the European Business Association. But I feel that the community is growing since business managers are more and more recognising that doing business in and with the DPRK is of course working with a frontier framework but also with a great potential of highly-skilled people with an impressive work ethic and an attractive cost-performance ratio – and also an emerging domestic market.

Klaus-Martin Meyer: What drives you personally to go there and build up an internationally operating company?

Volker Eloesser: Leading a foreign invested company in North Korea is a great challenge for me. During my lectures at the Pyongyang Business School, I realized that the skilled North Korean IT engineers have a huge potential for successful software development. This potential is almost unrecognized in the world and therefore unused. I like to be the pioneer who builds up this new outsourcing destination. I believe that economic progress will lead to a general improvement of the people’s living conditions and IT business is a key to economic progress. If you ask me, I would tell you that my work will have a greater impact on improving the North Korean living conditions then just sending bags of rice.

Klaus-Martin Meyer: Do you experience economic progress or political changes in North Korea?

Volker Eloesser: The question about political changes should better be answered by the politicians. But indeed you can see economic progress: Compared to my first visit in 2005, there are now much more cars in the street and the number of foreign investment seem to have significantly grown. A group from Hong Kong is building a large shopping and business area along the Taedonggang river and Orascom from Egypt is continuing the Ryugyong Hotel construction as well as investing into a modern mobile phone network. And recently the German-based Prettl Group (Automotive industry) announced that it will be the first foreign non-Korean company to build a factory in Kaesong.

Klaus-Martin Meyer: Nosotek is located in Pyongyang. Do you think things could be easier for companies operating out of the Kaesong free trade zone?

Volker Eloesser: I’ve never been in Kaesong myself. From what I’ve heard, the free trade zone, which has been build with ROK investment, is a modern factory area, mostly targeted to low-cost production of shoes or textile. I don’t know of any software development in Kaesong. Pyongyang, being the economic and cultural centre of the DPRK with large universities, offers a huge number of qualified engineers.

Klaus-Martin Meyer: What are your plans for Nosotek’s future? How do you see your company in five years? What is your strategy?

Volker Eloesser: My plan for Nosotek is a constant growth. First of course, everybody in Nosotek has to understand the demands of our customers; not only the technical demands but also the usual communication style and habits of the western world. At the moment, we’re only fifty people and I’m starting to build up a powerful middle management, who knows their customer’s expectations. After this has been done, we can begin scaling the business volume.

Klaus-Martin Meyer: Are there other western IT companies having operations in the DPRK?

Volker Eloesser: Nosotek still is the only one. But according to Paul Tjia of GPI Consultancy who organizes business missions to the DPRK, the number of people interested into software development in the DPRK is constantly growing. I hope that Paul will bring more people here to operate software companies. With other Foreigners here, working in the same or similar field of business we together can help strengthening the DPRK to become a better known source for software development. Bangalore is still far, but I’m sure the quality delivered by the Korean IT engineers will be convincing, not only to grow Nosotek, but also to grow the country itself as an outsourcing destination.

Klaus-Martin Meyer: Mr. Eloesser, thank you for the interview.

Michael Rank, a China/North Korea specialist based in London reports:

A Chinese company has opened a joint venture iron mine in North Korea with registered capital of €36 million ($57 million), a Chinese website specialising in North Korea reports (link here).

The Chinese partner is S Group, whose main aim includes developing magnesite mines in North Korea, but for some reason it switched from magnesite to iron mining.

The mine in Ongjin-gun (gun=county), Hwanghaenam-do (South Hwanghae, do=province), south of Pyongyang, has been in operation since the second half of last year, and the company running it is the Xihai/Seohae (West Sea) Joint Enterprise, the website says, but gives no further details.

The Chinese report erroneously places Ongjin-gun in Hwanghaebuk-do (North Hwanghae) but it is confirmed as being in Hwanghaenam-do by  조선지도첩 (Joseon Jidocheop, Atlas of Korea, Pyongyang, 1997), p. 45. I have not been able to find any other reference to a Chinese mining company called S Group.

Chinese steel company Tonggang (Tonghua Steel), based in the northeastern province of Jilin, was reported by a Chinese newspaper in January 2006 to be spending four billion yuan ($506 million) to develop the Musan iron mine in Hamgyeongbuk-do (North Hamgyong province), said to be North Korea’s largest iron deposit – and the biggest in Asia, according to some estimates.

Magnesite (magnesium carbonate) is used in protecting the linings of steel furnaces, in the production of synthetic rubber and in making fertilisers.

Daily NK
Jung Kwon Ho
6/21/2008

The price of rice in the jangmadang has been on the decline since June. The rice price which had risen to 3,000 won at one point is now at 2,400 won per unit (1kg in North Korea), which was the standard in the beginning of April. With the upcoming potato harvest season and spreading the news that U.S.’ food aid will come, the forecast has also been proposed that the food crisis will be mitigated from a climax in mid-June. However, even though it is not at a life and death situation, the hunger of citizens still continues. The Daily NK, through the testimonies of three witnesses who came out of North Korea between May and June, got a glimpse into the lives of North Korean citizens.

Mr. B is a farmer in a county, Hwanghae Province. He met with a reporter while visiting relatives in China early last month, when the food shortage was severe in North Korea.

B said that food in Hwanghae Province, traditionally a granary area, is absolutely insufficient. Since the mid-90s, food has not been adequately distributed and a vicious cycle of food crisis and a lack of an effort by farmers have been occurring.

Regarding the cause of the reduction in the volume of food production, B noted, “You could possibly name several reasons, but the most important factor is the lack of earnestness by farmers. It is difficult to find people who work with consciousness. There is no reason to work, because even if people work hard, there is no food provision. In the 80s, before Kim Il Sung’s death, the estimated corn yield per unit of an area (approx. 2.45 acres) was even up to 10 tons. After his death, the yield has been about 3 tons per unit area.”

In June in Hwanghae Province, the reaping of wheat and flour begins. Accordingly, the food crisis can temporarily recover. If wheat and flour are produced, around 20 kilograms are distributed. However, these are excluded from the total distribution from the autumn harvest.

He stated that North Korean farmers have been finding a way to get by on their own for last 10 years after the March of Tribulation in late 1990s, due to the unstable food provisions. He cited three methods of survival for farmers in Hwanghae Province: “private farming, pilfering grains of farms, and doing business.”

Furrows are allocated to farmers for private farming

Because distributed food for individuals has not been enough, he said that land has been allocated according to the number of family members so that private farming could be carried out. This means, the authorities distribute no filed of the farm, but furrows and footpaths in the farm, so that farmers could plant peas or potatoes between crops.

“The state was supposed to provide 280kg of unpolished grain after a year of farming by the farmers, but only 120~130 kg are provided, which is not sufficient for the year. So all kinds of other crops are planted in the furrows and shared among the people. Furrows do not have to be registered with the state, so they can be operated independently. In Jaeryong County, Hwanghae Province, such methods have first been adopted. Half of the Province has started to employ this method.”

In actuality, the production volume of potatoes planted among corn furrows exceeds that of state potato farms. Mr. B said, “Farmers are zealous about planting potatoes in the furrows, because it has to do with private profits. They share over 50kg amongst each other. This helps get over the difficult month of June.”

Mr. B said that 150kg of food was produced from private field cultivated on an inclined plane of a mountain and in his home site. He said, “After discussions with the mountain surveillance directors, they have agreed to give a 30% of their production, even plant some trees, and engage in farming. If the deal is not kept, however, the steep land on mountains is not given to them for the subsequent year.”

B explained that besides private farming, another critical method of survival for the citizens in Hwanghae Province is pilfering grain under the control of the state. For several years, national provision has not been carried out properly, so coping methods by farmers have also become more aggressive.

He said, “Before harvesting officially the farm’s crops, farmers pilfer grains on fields every night. These stolen grains are actually their lifeline for the next year. Farmers are saving corn and rice for a year in this way.”

He said that the amount of food secured by farmers via such a method is different from person to person, but in the Jaeryong plain, people have been able to secure up to one ton of food. Through that rice, people are able to acquire daily necessities and send them to relatives in the cities.

During falls in North Korea, it is a well-known fact that the farmers and the state frequently scramble for grain. As a result, the North Korean authorities, since three years ago, have dispatched nation widely the People’s Safety Agency Political College students and have engaged in food recovery operations.

“Hide the food in a pigsty.”

B said, “Even a few years ago, there were a lot of people whose food were confiscated by the students, but the situation is different now. However, even last year, food was not preserved in the homes, but was hidden under the floor of pigsties or buried underground and covered with garlic fields. During last year’s harvesting season, the citizens benefitted this way and have been able to get by until now.”

However, he said that people who are who is honest and forthright or the elderly inevitably have a difficult time in the battle for pilfering grain.

Mr. B added, “Going out to the fields at night and gathering enough food before the harvesting period is a life and death matter. Without stealing, one ends up starving, so who would just sit there?.”

He additionally introduced a different style of persons belonging to a farm besides farmers. He said “There are about five traders in agricultural districts per work unit which consists of 50 households.” According to him, the managers of work units call them “8.3.” The name stuck after Kim Il Sung’s decree on August 3rd that necessities of daily life were to be independently produced in factories or work units. These people are often deployed by farms to be in charge of civilian projects ordered by the state. When the state demands necessary commodities, money or food from farmers under the pretext of support for the army or national construction, these traders take charge of the management.

They are the ones who go around to secluded villages and purchase 2~3 tons of corn and pea from the villagers in exchange for rice, oil, seasonings and flour, which usually produces a profit of 50 to 100 won per kg. But they have to sell over 15kg per day in order to buy a kilogram of corn.

B said, “Most of the people get by from private farming, theft, or doing business, but a minority do not even have any know-how to do that, so are in adversity. They have to endure the spring shortage period, skip meals, or eke out an existence on porridge. As a last resort, they borrow food at a high rate of interest and get by. Such a pattern is repeated the next year, so their debt only increases and they end up in even more desperate situations.”

The Daily NK posted a fascinating interview with a local North Korean merchant.  He provides interesting anecdotes of everyday life:

Tongil Market (Featured in A State of Mind):

Nowadays, the way to survive is selling in the jangmadang (market). With the exception of the residents of the Joong-district and its vicinity, who are often mobilized to national events, seven out of 10 households do business in the jangmadang. In the Pyongyang Tongil (unification) Market alone, the number of people doing business is between 5,000~6,000 people. The size of a street-stand is approximately 50cm by 50cm large. There are also about 2,000 people selling outside of the market.”

“There are people also selling in the alleyways. The Tongil Market usually consists of people from the Tongil Street, so merchants from the other regions cannot do business there. In the Tongil Market alone, there are around 8,000 people [doing business]. Because the Market is so large, the cadres from the other regions frequently come to buy goods.”

Even in North Korea, capital enhances worker productivity: 

Mr. A said that in the markets, the sale of industrial goods (all kinds of products such as clothing brought from China) and cosmetics are supposed to be lucrative. The traders usually bring in about 5,000 won per day and 15,000 won per month. Such an amount of money can buy about 2kg of rice per day. The people who make a lot of money are the marine product merchants. They make around 7,000~8,000 won per day. Marine products are often purchased by officials who have money and rice.

The people in the lowest class do not have the capital to do business, so a majority of them sell noodles or food. They make about 1,500 won per day, which can purchase about a kilogram of corn. People who sell food sell rice, sidedishes, and snacks on site. To them, selling is a battle to survive.

Coping mechanisms:

Mr. A relayed that not-so-affluent households raise several domestic cattle, collect medicinal herbs or brew liquor to sell. The remnants of the liquor are used as livestock feed. Selling two bottles of liquor made of corn as raw material generates about 500 won in profit. However, the authorities have strictly been regulating brewing liquor in homes, resulting in difficult situations. If exposed for making liquor, both the person-in-charge and the People’s Party Unit chairman are banished to the countryside.

Beekeeping is seasonally supposed to be lucrative. In May when the acacia flowers start to bloom, the number of people who collect honey in the mountains increases. In the surrounding areas of Pyongyang, there are at least trees on the mountains, so beekeeping has been feasible. One person can collect about 100kg of honey per month by keeping around 15 beehives. The honey is usually consumed by people who want to use it in medicine or by officials.

Work overseas:

“The utmost goal of workers in Pyongyang is to go to another country to earn money. Recently, they have even gone to the Middle East, Southeast Asia, Africa, and the Democratic Republic of Congo. Once they leave, they do not return for three years. They can go back or stay in Pyongyang. Workers who have gone to Russia or to Congo for farming come back with 10,000~20,000 dollars in three years.”

“With that money, they can buy a house and prepare a significant amount of capital for business. Those who have gone abroad not only do the work ordered by organizations, but also engage in private farming, do business and save as much money as they can. There have been a quite a few people around me who have gone abroad recently to make money this way. Out of 100 male workers, there is at least one or two. In order to go overseas, one has to pay 300~400 dollars in bribes.”

Read the full article here:
Doing Business Is a Battle
Daily NK 
Jung Kwon Ho
6/18/2008