North Korean Economy Watch

Institute for Far Eastern Studies (IFES)
2012-1-25

A month into Kim Jong-un’s ascension to power, it is reported that food distribution is likely to resume nationwide in North Korea.

Many experts evaluate this as a symbolic measure to propagate the construction of a powerful economy and improve the lives of the people. For the North Koreans, the most apparent and obvious economic accomplishment is the improvement of the food situation. Thus, North Korea is most likely to take action to normalize food rations as its top priority.

According to a statement made by a South Korean government official on January 20, “Kim Jong-un and his leadership will begin the food distribution as a way to prove to its people about changes forthcoming in the new regime.”He also added, “After years of propagation for the building of a strong and prosperous nation, they must demonstrate it to the people with noticeable results.”

The amount of rations to be provided is still unclear. However, the source emphasized that it was very likely for rice rations to resume, especially with the approaching national holidays, such as the Lunar New Year and Kim Jong-il’s birthday (February 16).

He also commented that “the food distribution will be a nationwide movement and the food ration system will go into effect based on the distribution network of available food supply.”

According to the Food and Agricultural Organization (FAO) and the World Food Programme (WFP), North Korea’s food production in 2011 compared to the previous year rose by 8.5 percent, sitting at about 5.48 million tons (of rough grains or 4.66 million tons of milled grains).

The minimum amount of food consumption in North Korea is 5.4 million tons, but a shortage of about 400,000 tons is expected, including the international food aid and industrial food imports. Among the recent years, this marks the largest deficiency in food supply.

However, such shortages can be overcome with additional food imports and distributing mainly rice reserves.

The last national food distribution in North Korea was in 2005, seven years ago.

North Korea is also likely to exert more effort in food processing production to improve the distribution of daily necessities. With relatively little dependence on raw material imports, North Korea is planning to improve the food situation through expanding the food processing production in agricultural, fishery, and livestock industries, with less competition with Chinese products.

Institute for Far Eastern Studies (IFES)
2012-1-18

North Korea is continuing to put forward new laws for the special economic zones (SEZs) such as Rajin-Sonbong and Hwangumpyong Island. Recently, North Korea announced special guidelines for the tax investigations of foreign businesses in the zones.

North Korea’s Academy of Social Science Newsletter Volume 4 (published on November 2011) released an article titled, “Suggestions to Improve Tax Investigations in the Special Economic Zone,” which included detailed instructions for the policy improvement for tax investigation for SEZs. Here, particular emphasis was placed on the enhancement of the tax investigation system — to be accurate and rational — for the foreign investment companies.

The article explained, “Based on the principles of equality and reciprocity for the construction of powerful economic state, the tax investigation system in the SEZ must be improved especially at the present time when SEZs are being constructed and expanded to increase economic trade with other nations.”

It also stressed tax officials must be equipped with, “comprehensive knowledge and experience who accurately understand the entire process of business management. They must be capable of creating new tax investigation methods and be able to discern the various forms of tax evasions.”

For the qualifications of the tax officials, the article recommended that the officials be selected based on their knowledge and experience; ability to develop techniques for tax investigation; awareness of rules and regulations of tax laws and bylaws, and regulations of rights and responsibilities of taxpayers; and capability of conducting research on foreign tax investigation policies.

The Academy of Social Science is a government agency of the DPRK, and the recent article on the tax investigation reflects that the government has already begun the process of implementing the tax investigation guidelines and laws in the SEZs.

The article emphasized establishing a tax investigation system acceptable to foreign companies. One can construe this as North Korea’s effort to attract more businesses to the SEZ, which is currently suffering from poor performance.

In addition, North Korea is believed to be placing weight on the tax investigation based on its past experiences with the South Korean companies in the Kaesong Industrial Complex (KIC). In the past, the officials of the Central SpecialDirect General Bureau toured the industrial districts in China and showed keen interests in the tax management.

On December 8, 2011, the KCNA reported that the Standing Committee of the Supreme People’s Assembly (SPA) has adopted the Economic Zone Act for Hwanggumpyong and Wihwa Islands. The law was revised and supplemented to include the Free Economic and Trade Act of Rajin-Sonbong. However, the details of these laws were not disclosed and some experts are predicting that these laws are likely identical to the Chinese laws in China’s flourishing SEZs.

However, on January 11, 2012, Yonhap News Agency of South Korea reported that China rejected the new Special Economic Zone Act of the DPRK because it is “not business-friendly.” The news reported, “China said the law was not business-friendly, telling North Korea that the law had some problemsregarding taxes, accounting, remittance of profits and stability of investment.” It is reported that North Korea is working on the revision of these laws and likely for a new special zone act to be passed by the Standing Committee of the DPRK’s Supreme People’s Assembly (SPA).

Pictured above (Yonhap): Food aid to be delivered to the DPRK (2012-1-27)

According to Yonhap:

Representatives of a South Korean charity group plan to visit North Korea next week to deliver 180 tons of flour aid to North Korea to help ease its chronic food shortages, officials said Friday.

The planned shipment by the Seoul-based Korea Peace Foundation marks the first flour assistance to the communist country following the death last month of North Korean leader Kim Jong-il.

The UNDP also made public that it will place a priority on the DPRK this year:

Radio Free Asia says the United Nations Development Programme will place a priority on improving food security in North Korea by reducing crop losses after harvests.

The U.S. based broadcaster said the UNDP plans to save more crops and improve seed production by revamping North Korea’s crop storage facilities and farm equipment such as threshers and grinders.

Around 15 percent of crops harvested in Pyeongyang are said to be damaged every year, while only 13 percent of the 150-thousand tons of seed produced meet international standards.

Food security is achieved by securing a certain amount of food, taking into account potential population increases, natural disasters and war.

Additional Notes:
1. I believe the “Korea Peace Foundation” is also the “Korean Conference of Religion and Peace (KCRP)”

2. Read about South Korea’s aid to the DPRK in 2011 here.

3. CNN also covered the story about South Korean food aid.

Read the full Yonhap article here:
S. Korean group to send first flour aid to N. Korea after Kim’s death
Yonhap
2012-1-20

Tourism: Koryo Tours issued a newsletter this week promoting their tours to the DPRK during the celebrations of Kim Il-sung’s 100th year:

April 15th 2012 marks North Korea’s biggest celebration in decades – the 100th birth anniversary of Kim Il Sung, who, despite his death in 1994 is still the country’s ‘Great Leader’ and ‘Eternal President’.

This historic day will see epic events and the completion of large-scale national programmes, all furthering what North Korean media calls the creation of a ‘strong and prosperous country’ – however flexible that concept may be. We invite you to come with us to experience this once in a lifetime occasion on the ground in Pyongyang

At present, the exact nature of the celebrations and corresponding tourist access is shrouded in the usual mystery – no one knows what visitors can see and do, but as always Koryo Tours will be first in line. Birthday travellers should be ready for sudden changes in itinerary and hotels – all part of the excitement of the country’s biggest holiday period ever!

We have several tours going on over this holiday, including one brand new one we just added to our website; all of them are open for application now.

In brief they are:

Kim Il Sung Birthday Short Tour
- Ideal for anyone wanting to see North Korea’s capital Pyongyang on this massive occasion. We’ll see all the city’s highlights and be there for the nation’s biggest occasion in history.

Kim Il Sung Birthday Long Tour
- In addition to capital sightseeing and anniversary events, this trip goes to the west coast city of Nampo – and for the first time, the surrounding industrial areas which Koryo Tours opened to tourism only this year. Finally, we’ll take in ancient city of Kaesong (buy your famous ginseng here) as well as the notorious DMZ, the concrete barrier that has divided
the peninsula for six decades.

Kim Il Sung Birthday Ultimate Tour
- The Big One! If you’ve ever wanted to (almost) fully explore the world’s most mysterious country in one trip, then sign up today. The tour’s complete version runs two weeks; those on tight schedules can book for first or second halves alone. Week one (Option A) takes us around Pyongyang, Kaesong and the DMZ, Mt. Myohyang and the giant gift halls to North Korea’s leaders, the west coast city of Nampo and much more. Choose week two (Option B), and you’ll see the rarely-visited east coast cities of Wonsan and Hamhung, North Korea’s second largest city, which Koryo Tours opened to tourists in 2010. From there we’ll see the stunning Mt. Kumgang area and the country’s most remote area open to travellers.

In its history, Pujon County has only seen one tour group (run by Koryo Tours); if you’re looking for a unique area of a unique country, you won’t do better than this. Option A is nearly closed so book today; Option B is still open for booking, and ideal for those
who have seen the main sites and want a second trip.

Option A is filling up fast so we do need to ask for early applications for this tour, Option B is still open for booking, and ideal for those who have seen the main sites and want a second trip. There are 15 places left for the Option A or Ultimate Option!

NEW!! – Kim Il Sung Birthday Week Tour
- Due to high demand we have added another week-long tour, so you can take in the country’s most fascinating sites and still catch the Big Event.

Check out our amazing programme and sign up now to be on the ground for the biggest birthday party of 2012!

While all tours are still open, we strongly suggest that you book sooner rather than later due to high holiday demand. Tours may need to be closed early, so don’t miss out; book now! (early bookings also apply to independent tours)

Winter: Today KCNA published photos of Pyongyang’s first winter 2011/12 snowfall :

Stamps: Today Joshua Pollack (armscontrolwonk.com) posted some new stamps from the DPRK:

Click images to see larger version from the source. I have an interesting book of North Korean stamps, but have not posted it. Here are some recent DPRK stamps highlighting Chinese/DPRK friendship. Here are some CNC stamps. Here is a stamp issued to raise awareness of bird flu.

Finally, this week’s issue of the Pyongyang Times, claims that the DPRK stamps below won the “best stamp award” at the 10th China Annual Best Foreign Stamp Poll on November 24:

UPDATE 1: A reader sent me a link to some additional DPRK stamps on the North Korean web page, Naenara.  See them here, here, here, and here!

UPDATE 2: Thanks again to the same reader sending this stamp commemorating the sinking of the General Sherman:

UPDATE 3 (2011-12-6): Accoridng to the Associated Press, six Americans from the Fuller Center are returning to the site to continue construction (just as the winter begins):

A group of Americans is in North Korea to kick off a project to build 50 homes for families working at a tree farm outside Pyongyang.

Six volunteers affiliated with the Fuller Center for Housing arrived Tuesday. Their trip comes at a time of improving relations between the U.S. and North Korea.

The 50-unit project will house the families of workers at a tree nursery in Osan-ri.

Participants with the nonprofit Fuller Center say they’ll be working side by side with North Koreans to build the homes.

They’re aiming to finish three homes this week, and other volunteers are expected to arrive in coming months to help complete the project.

In Americus, Georgia, Fuller Center President David Snell called the project a “true mission of peace.”

The United States and North Korea fought on opposite sides of the Korean War and do not have diplomatic relations. Diplomats from the two countries recently held talks about resuming six-nation nuclear disarmament talks.

Below is the most recent Google Earth image of the Fuller Center’s Osan-ri project dated (2011-5-3):

I have tagged the facility on WikiMapia and you can see it here. The satellite image shows that some progress has been made since the last photo was published in September 2010 (below).

Previous reports of USA-DPRK engagement in 2011 can be found here.

UPDATE 2 (2011-7-13): Google Earth released new imagery of this area today (July 13).  The imagery is dated 2010-9-14, and it shows quite a bit of progress on the Fuller Center’s project:

UPDATE 1 (2010-3-28): Radio Free Asia has reported (in Korean) that the development of the Fuller Center’s housing project in Osan-ri has been delayed.

After running the story through Google Translate it appears that the delay is due to bureaucratic hurdles with getting resources from China into the DPRK (please correct me if I am wrong).

Satellite imagery from March 2010 (Google Earth) shows that the project has been launched, but it has moved from its initial location to the east (just a tad):

A reader named “Bobby” wrote in, however, and told me the following:

The Google Translate version is a little wack but that’s pretty much what happened. The Korean version says that David Snell was originally going to buy the construction materials in China and deliver them directly to North Korea by truck but because there is too much to move they have to ship it by train. The delivery has been delayed because shipping it by train requires a lot of extra paperwork and customs obstacles. The workers can’t get visas until the materials arrive safely so they aren’t even able to enter the country yet.
(Also, I think you accidently blocked my name for commenting before.)

ORIGINAL POST (2009-12-18): The Fuller Center for Housing is a religious organization based in Atlanta, Georgia (USA) which seeks to provide adequate shelter across the globe.  The Fuller Center’s mission statement can be found here.

On November 11, the Fuller Center broke ground on their new project in the DPRK. According to Global Atlanta:

With help from U.S. volunteers, the Americus-based Fuller Center for Housing will work with the North Korean government to construct a 50-unit complex in a small farming community outside the capital city of Pyongyang.

The project will help alleviate a housing shortage caused by a 2006 typhoon that destroyed some 30,000 homes across the country.

North Korea is providing land, labor and heavy equipment for the project, a community of duplexes designed with a variety of measures to boost energy efficiency.

For example, the homes will have a wall of windows on the front. Facing south will allow in the most possible sunlight, reducing the use of electricity to light the homes, said David Snell, the Fuller center’s president.

The Paektusan Academy of Architecture, a government agency responsible for developing much of modern Pyongyang’s cityscape, designed the complex and will manage construction.

The two-bedroom, one-bathroom floor plans include a living room, dining room and an animal shed with multiple stalls on the back of the house. An upper-level attic space is designated as a “greenhouse” on a design posted on the Fuller center Web site.

The center is raising money for the homes from U.S. and European donors. Construction is slated to start in the spring, and the center will begin sending teams of six to eight American volunteers next summer.

Despite many Americans’ negative perceptions of North Korea, the center has started receiving volunteer applications before even officially opening the process, Mr. Snell said.

“The fact that it’s been a forbidden kingdom for all these years adds to the intrigue,” he told GlobalAtlanta.

Mr. Snell, who traveled to North Korea for the third time in the last 18 months to attend the groundbreaking, added that the center’s main mission is to build houses, but it often ends up bridging cultural divides in the conflict-ridden areas where it works.

“Absence of peace seems to be a common thread, so we’re starting to wonder if maybe we have a peacemaking component to our mission,” said Mr. Snell, who stopped in the Philippines and Peru to kick-start projects on his way home from North Korea.

Mr. Snell hopes to have an impact on relations between the U.S. and North Korea at a grassroots level. The nations are currently at odds over a raft of diplomatic issues, most notably North Korea’s evolving nuclear weapons program and belligerent antics on the international stage that befuddle American policy makers.

Such political differences won’t heal until people trust each other, and the housing project will give both countries’ citizens a chance to meet and work together for common good, Mr. Snell said.

“We all demonize our enemies, but I’m finding the Korean people to be just like you and me. We chuckle and laugh and tell stories, and they have the same aspirations for a better life and for peace,” Mr. Snell said. “This notion that we’re bringing peace is shared notion.”

The entire project has so far been an exercise in building trust. The idea came from Don Mosley, who heads Jubilee Partners, a refugee resettlement organization outside of Athens, and Han Park, an international affairs professor at the University of Georgia who has become a trusted unofficial liaison between the two countries.

More information, including YouTube videos of the groundbreaking and a map of the project,  can be found on the Fuller Center‘s web page (HERE).

Pictured above: North Korean pilots in North Vietnam (1968).

According to Yonhap:

North Korea dispatched dozens of pilots to the Vietnam War decades ago, with its communist ally short of specialists to operate MiG-17 and MiG-21 fighter jets in battles against the United States, according to a recently released dossier.

“On 21 September 1966 an official North Korean request to be allowed to send a North Korean Air Force regiment to help defend North Vietnam against U.S air attacks was officially reviewed and approved by the Vietnamese Communist Party’s Central Military Party Committee, chaired by General Vo Nguyen Giap,” read the documents taken from an official People’s Army of Vietnam (PAVN) historical publication.

North Korea’s Chief of the General Staff, Choi Kwang, and his Northern Vietnamese counterpart, Van Tien Dung, held talks three days later to detail Pyongyang’s role in the war.

The Woodrow Wilson International Center for Scholars, a think tank in Washington, studied the dossier and made it public on its Web site as part of North Korea International Documentation Project.

In 2000, 25 years after the end of the Vietnam War, North Korea and Vietnam admitted for the first time that North Korea had provided military support in combat against U.S. aircraft.

North Vietnam sought North Korean pilots’ help in training and combat apparently to take advantage of their experience in shooting down U.S. fighter jets during the 1950-53 Korean War.

The newly unveiled dossier show details of North Korea’s military support.

“In late October or during November 1966 North Korea would send Vietnam enough specialists to man a Vietnamese MiG-17 company (a company consisted of ten aircraft),” the two sides agreed in the Sept. 21 1966 talks, adding North Korea would send more specialists to man a second Vietnamese MiG-17 company in later 1966 or early 1967.

“During 1967, after North Korea finished preparing specialists and after Vietnam was able to prepare sufficient aircraft, North Korea would send to Vietnam sufficient specialists to man one Vietnamese MiG-21 company,” they also agreed.

You learn more and download the entire report (PDF) at the Wilson Center’s North Korea International Documentation Project (NKIDP).

According to the latest Koryo Tours newsletter:

For the past two decades, Koryo Tours has been opening North Korea to tourism, and in 2012 we are once again breaking new ground. After working closely with our Korean partners, we are proud to offer both our group and independent tourists the chance to go where no visitor has ever been, namely factories and similar sites around Nampo, the west coast port city not far from Pyongyang. Here’s a brief introduction to what is on offer:

Chollima Steelworks – A major heavy industry site for the Democratic People’s Republic of Korea (DPRK), this place was built by the Japanese and is known to Koreans as the birthplace of the Chollima movement, which even today drives the country. If you’ve always wanted to witness the making of ‘Juche Steel’ in a giant facility, come to Nampo with us. This is the DPRK’s most famous factory, and as always, Koryo Tours are the first company to be allowed to take tourists inside. But Koryo has its own Chlima connection; we can tell you about the art project we arranged at the steelworks as well as the scenes we shot there for our new feature film!

Tae’an Heavy Machine Tool Complex – This enormous complex boasts a number of hangar-sized buildings; we will see the vast range of machine tools, lathes and so on that the workers use to make shaped steel, turbine components, and other products.

Tae’an Glass Factory – This opened in 2005 with heavy Chinese investment, in fact, the Peoples’ Republic of China President Hu Jintao attended the opening ceremony along with DPRK leader Kim Jong Il. Tae’an produces glass and glass products for the domestic market. Koryo tourists will be the first visitors ever to watch the process from smelting to sheet-cutting, and even try to break a sheet of strengthened glass!

Nampo Taekwondo School – Many of the DPRK’s champion martial artists have been educated at this school, despite looking from the outside like it badly needs some maintenance the demonstration put on by the students here (aged from 6 – 16) is a mind-blowing masterpiece of the indigenous Korean fighting style – it’ll make you think twice about arguing with little girls in future!

Nampo Park – With a scenic view over the mouth of the Taedong River, as well as a fresh-water swimming area ideal for warmer months, this is a great place to relax or have a picnic. A popular wedding photography site, this picturesque park makes a pleasant diversion after the heat and noise of the factories.

As if factories, martial arts schools and rustic settings aren’t enough, we can also take you to a local restaurant in the city centre, an orphanage, and you can cap off the trip by visiting the nearby 8km-long West Sea Barrage and staying overnight at the Ryonggang Hot Spa Guesthouse

Keeping with our tradition of travel innovation, Koryo Tours would love to show you the face of DPRK no visitor has seen before. Come see the world’s most mysterious country with the only DPRK specialists around; contact us on info@koryogroup.com or pop in and see us if you’re in Beijing or Shanghai. For anyone planning a DPRK trip, whether it’s your first visit or you’re coming back for more, Koryo Tours is glad to offer you the chance to do and see more than ever before. We look forward to hearing from you!

We are adding these new attractions to the following tours, so if you’ve ever wanted to see Juche Steel (it’s a real thing!) being made, watch a load of sand turn to glass, see North Koreans operating lathes of all kinds, and see a young child beat up several surly attackers then one of these tours could be perfect for you!

UPDATE 32 (2012-1-27): According to an article in the New York Times, inter-Korean trade and aid declined in 2011:

On Friday, the South’s Unification Ministry said that South Korean aid to the North fell to 19.6 billion won, or $17.5 million, last year [2011], down more than 51 percent from a year earlier [2010].

Inter-Korean trade fell by more than 10 percent [from 2010 to 2011] to about $1.5 million in 2011, the ministry said.

UPDATE 31 (2011-12-10): According to the Korea Times, the potential food aid is not being auctioned off.  It is being sent to South America. According to the article:

Seoul will send baby food originally offered as aid to North Korea to El Salvador following Pyongyang’s refusal to accept delivery, to help the South American country deal with damaging floods, officials said Friday.

The delivery consists of 190,000 packs of baby food that were part of a $4.4 million flood aid package to the North, which the Stalinist regime rejected two months ago amid high tension.

It was slated to depart from the port city of Busan via cargo ship for El Salvador, which has appealed for help to deal with floods that displaced tens of thousands earlier this year.

Seoul offered the aid, which also included biscuits and instant noodles, to help the North deal with torrential summer rains. But Pyongyang demanded cement and equipment instead and eventually shunned the offer altogether.

The rerouting of the items underscores lingering tension despite efforts to warm ties and eventually resume regional dialogue on dismantling the North’s nuclear program. Regional players want the situation on the peninsula to improve before the talks begin.

Pyongyang’s silence over the aid put a damper on the early signs of improvement. President Lee Myung-bak has been exercising a softer line since September, when he tapped close aide Yu Woo-ik as unification minister, including expanding humanitarian activities and cultural exchanges.

But the North, apparently seeking rice and other forms of massive aid, has recently slammed the flexible policy as political pandering to the South Korean public, which is gearing up for elections next year.

Such remarks come even as the unification ministry continues to approve northbound aid, including $5.65 million worth for infants, children and pregnant women through the United Nations Children’s Fund (UNICEF). Consultations are ongoing over how to provide more of the baby food. Seoul has also attempted to auction some of it off through a government website.

The North Korean regime is thought to be doing all it can to secure food and other handouts ahead of next April, when it will celebrate the 100th anniversary of the birth of its founder Kim Il-sung. Watchers say that the North is liable to alternate pressure and peace offensives to secure as much aid as it can through inter-Korean and multilateral channels.

UPDATE 30 (2011-12-6): According to the Korean Herald the first auction of potential food aid (See Update 27 below) did not go so well, so Seoul is trying again:

South Korea plans a second attempt to auction off baby food originally intended for North Korean children, officials said Tuesday.

The move comes after nobody bid for 540,000 packs of baby food on Onbid, an auction Web site run by the state-run Korea Asset Management Corp.

South Korea plans to issue a second public notice and adjust the prices, said an official handling the issue at the Unification Ministry. He did not elaborate on further details.

The baby food is part of 5 billion won ($4.4 million) worth of emergency relief aid South Korea had planned to ship to North Korean flood victims earlier this year.

South Korea dropped that plan in October after differences between the two Koreas on the items to be sent. South Korea had insisted it would deliver baby food, biscuits and instant noodles to the North, instead of the cement and equipment its communist neighbor had requested.

Separately, South Korea has been in talks with local private relief agencies over how to donate another 290,000 packs of baby food to other countries, according to another ministry official.

She declined to give further details, saying consultations are taking place.

UPDATE 29 (2011-12-5): The South Koreans will donate US$5.65 million to the DPRK via UNICEF.  Accoring to Yonhap:

South Korea said Monday it will donate US$5.65 million (about 6.5 billion won) for humanitarian projects in North Korea through the U.N. body responsible for the rights of children.

The donation to the United Nations Children’s Fund, or UNICEF, will benefit about 1.46 million infants, children and pregnant women in North Korea, according to the Unification Ministry, which is in charge of relations with the North.

Seoul’s contribution will be used to provide vaccines and other medical supplies as well as to treat malnourished children next year, said the ministry.

There have been concerns that a third of all North Korean children under five are chronically malnourished and that many more children are at risk of slipping into acute stages of malnutrition unless targeted assistance is sustained.

“The decision is in line with the government’s basic stance of maintaining its pure humanitarian aid projects for vulnerable people regardless of political situation,” Unification Ministry spokesman Choi Boh-seon told reporters.

South Korea has been seeking flexibility in its policies toward the North to try to improve their strained relations over the North’s two deadly attacks on the South last year.

…

South Korea donated $20 million for humanitarian projects in North Korea through the UNICEF between 1996 and 2009.

Last month, the South also resumed some $6.94 million worth of medical aid to the impoverished communist country through the World Health Organization.

..

Separately, South Korea also decided to give 2.7 billion won ($2.3 million) to a foundation to help build emergency medical facilities in an industrial complex in the North Korean border city of Kaesong.

More than 47,000 North Koreans work at about 120 South Korean firms operating in the industrial zone to produce clothes, utensils, watches and other goods. The project serves as a key legitimate cash cow for the impoverished communist country.

UPDATE 28 (2011-12-1): Distribution of private aid monitored in N.Korea. According to the Hankyoreh:

“North Koreans know that the wheat flour aid they received came from South Korea.”

These were the words of Cho Joong-hoon, director of the Unification Ministry’s humanitarian assistance division, during a meeting with reporters Wednesday at the Central Governmental Complex in Seoul upon his return from a recent visit to North Korea to monitor the distribution of aid.

“The name of the South Korean private aid group, the manufacturing company, the date, and the address were all printed on the packages of flour,” Cho said.

Arriving in North Korea on Sunday with Kim Min-ha, co-chairman of the private group Ambassadors for Peace, and three others, Cho visited three sites to observe the distribution of the 300 tons of flour provided in aid. The site were the Namchol Kindergarten, February 16 Refinery Kindergarten, and Tongmun Nursery in Chongju, North Pyongan.

It was the first visit to any part of North Korea besides Kaseong and Mt. Kumkang by a government official in the one year since the Yeonpyeong Island artillery attack on Nov. 23, 2010.

Cho said that the distribution, storage, preparation, and supply of the flour were monitored and that everything was confirmed to be proceeding as planned.

On the situation on the ground, Cho said, “Judging simply from the nursery and two kindergartens, the children’s nutritional condition does not appear to be good.” Cho noted that no heating was being supplied to the facilities despite the cold weather.

Cho said that while North Korean authorities did not official request food aid, a request was made under unofficial circumstances.

Cho also noted that construction efforts were under way on a highway connecting Pyongyang with Sinuiju.

“It is not very far from Pyongyang to Chongju, but I think the trip took about four hours because of the detour around the highway construction,” he said.

Analysts said this appears to be linked to hurried infrastructure building efforts, including highway servicing and construction, amid recent moves by North Korea to rebuild its economy through a stronger economic partnership with China.

UPDATE  27 (2011-11-29): Seoul auctions off “unwanted” DPRK food assistance. According ot the Korea Times:

South Korea has taken steps to auction off some baby food originally intended for North Korean children, an official said Tuesday.

The move comes nearly two months after South Korea dropped a plan to send 5 billion won ($4.3 million) worth of aid to North Korean flood victims, citing no response from the North as the reason for the change of plan.

South Korea had insisted it would deliver baby food, biscuits and instant noodles to the North instead of cement and equipment requested by the North.

South Korea’s Red Cross, which handles relief aid to the North, gave public notice of a bid for 540,000 packs of baby food on Onbid, an auction website run by the state-run Korea Asset Management Corp.

Separately, South Korea has been in talks with local private relief agencies over how to donate the other 290,000 packs of baby food to foreign countries.

Unification Minister Yu Woo-ik has ruled out rice aid to the communist country unless Pyongyang admits to last year’s deadly provocations.

South Korea suspended unconditional aid in 2008 and imposed sanctions on the North last year in retaliation for the sinking of a South Korean warship that was blamed on the North.

The North has denied involvement in the sinking that killed 46 sailors. It also shelled a South Korean border island in November 2010, killing four South Koreans.

Still, South Korea has selectively allowed religious and private aid groups to deliver humanitarian and medical assistance to North Korea.

Also on Tuesday, a Unification Ministry official and four civilians were to return home after a rare trip to the North aimed at ensuring that South Korea’s recent private aid had reached its intended beneficiaries.

UPDATE 26 (2011-11-25): According to Yonhap, ROK officials are traveling to the DPRK to monitor food aid:

A South Korean official and four civilians left for North Korea on Friday on a rare mission to ensure that recent aid from Seoul had reached its intended beneficiaries, an official said.

The trip comes a day after North Korea threatened to turn South Korea’s presidential office into “a sea of fire” in anger over Seoul’s massive military maneuvers near the tense sea border.

…

The Unification Ministry official and four civilians were to arrive in the North’s capital later Friday via Beijing, according to the Unification Ministry, which handles inter-Korean affairs.

It is first time that North Korea has allowed a South Korean official to travel to the isolated country to monitor aid since a conservative government took power in Seoul in 2008.

They are scheduled to visit a day care center and two other child care facilities in the northwestern city of Jongju to monitor how 300 tons of flour were distributed to children and other recipients, according to a civic group.

Ambassadors for Peace Association, a civic group that is partly funded by the Unification Group, donated the flour to Jongju, the birthplace of Unification Church founder Moon Sun-myung.

The civic group said the monitors also plan to discuss details on another 300 tons of flour aid before returning home Tuesday. Some members of the civic group are associated with the controversial Unification Church.

Read previous posts on the ROK’s aid to the DPRK in 2011 below:

(more…)

According to the Daily NK:

North Korean cell phone users are now reportedly able to read the news and views of the Chosun Workers’ Party on the move.

Chosun Shinbo, a publication run from Japan by the General Association of North Korean Residents in Japan (Chongryun), announced the news on Saturday, saying, “Koryolink, Chosun’s 3G cell phone service provider, has begun a service allowing the reading of Rodong Shinmun, one of the major newspapers, on cell phones.”

Chosun Shinbo also announced its own plans to set up a mobile service in the near future.

The Rodong Shinmun cell phone application is just the latest in a long line of interesting developments in the Koryolink story. Last January the company introduced a multimedia messaging service (MMS). Later in the year it also introduced a video call service, which received a positive reaction from younger users.

As expected, Chosun Shinbo claimed that many North Korean citizens are enjoying the new service on the way to work. One Pyongyang man was quoted by the paper as saying, “It’s very convenient being able to read the news every morning on my mobile phone. You can also go back and read all the news from a few months ago, too, which is great.”

Another resident of the North Korean capital reportedly commented that reading the news on their phone is the first and most important thing they do in the morning.

Interestingly, Chosun Central TV ran a program on November 7th including content teaching mobile phone users of the social etiquette they needed to follow, telling them to avoid bothering people nearby by lowering the ringtone or setting the device to vibrate mode, and to avoid speaking too loudly.

The Wall Street Journal also covered this development.

Read the full story here:
Rodong Shinmun on the Move
Daily NK
Cho Jong-ik
2011-11-28

Koryo Tours has been busy. Below are three recent media hits the organization has received:

1. Yonhap recently published a long article on Koryo Tours founder, Nick Bonner.  You can read the full article here. In the article he discusses starting Koryo as well as the numerous other projects he has launched in the DPRK.

2. Bonner’s colleague, Simon Cockerell, recently did a podcast interview with the Korea Economic Institute.  The whole interview is worth listening to here.

3. Koryo Tours just sent out an email newsletter.  You can read it here.