North Korean Economy Watch

Institute for Far Eastern Studies (IFES)
2013-10-16

The first chairman of the National Defence Commission of North Korea, Kim Jong Un, took office two years ago. Since then, construction of sports and entertainment facilities are reported to have increased considerably. According to the South Korean Ministry of Unification, North Korea’s Pyongyang Folk Park (September 2012), Taesongsan General Hospital (March 2013), and Haedanghwa Service Complex (April 2013) were recently completed. Since the launch of the Kim Jong Un regime, the Masik Pass Ski Resort and other similar sports facilities have been undertaken and are nearing completion.

In addition, the People’s Theatre (April 2012), Rungna People’s Pleasure Ground (opened in July 2012), Sunrise Restaurant (September 2012), and Unification Street Center (September 2012) have been recently renovated. In addition, the Mirim Riding Club, Pyongyang Gymnasium, Munsu Wading Pool, Aprok (Yalu) River Amusement park, Karma Hotel, and New Day Hotel and other hotels around Pyongyang are currently under renovation and repair. Entertainment and sports facilities around other major cities are being constructed as well. Furthermore, after the successful launch of Kwangmyongsong 3-2 last December, North Korea has begun to construct major residential complexes for scientists, granting them preferential housing in Unha scientist residence, Kim Il Sung University educator residence, and Pyongsong residence. Other large-scale housing projects are also reported to be under development.

In the wake of major celebrations in North Korea — such as the 100th anniversary of the birth of Kim Il Sung and 60-year anniversary of the “Victory in the Fatherland Liberation War” — a large memorial was erected and existing facilities were repaired. Specifically, the Korean People’s Army Exhibition of Arms and Equipment, Kumsusan Memorial Palace, War Victory Monument, and the Cemetery of the Fallen Fighters of the KPA were refurbished.

Unlike the large-scale construction of sports and entertainment facilities, new constructions of harbors, roads, power plants and other social overhead capital (SOC) is reported to be in decline.

Last August, North Korea’s trade with China has shown an 8 percent increase in exports and 6 percent decrease in imports, following a similar trend from last year. According to the South Korean Ministry of Unification, North Korea’s current trade volume with China is reported to be 4 billion USD (1.89 billion USD in exports and 2.2 billion USD in imports).

North Korea’s most popular export items are mineral resources such anthracite, coal, and iron ore. In the case of clothing products — which are mostly consigned processing — there has been an increase of 42 percent (200 million USD) against the previous year. Major categories of imports from China are crude oil, food, and fertilizers. Compared to the previous year, food imports have declined 57 percent (17.4 million tons), and fertilizer and crude oil imports are also showing gradual reduction at 27 percent (18.3 million tons) and 6 percent (34.6 million tons), respectively.

According to Yonhap:

According to Rep. Yoon Sang-hyun of the ruling Saenuri Party, imports of luxury goods reached US$645.8 million last year, up sharply from an annual import average of around $300 million tallied under the current leader’s father Kim Jong-il.

…

Citing data provided by the government ahead of the parliamentary audit on the Ministry of Unification, the lawmaker said the isolationist country imported such non-essential goods as pets, feed for such animals, and various European and U.S.-made bath, sauna and maternity products.

The report also showed a noticeable rise in imports of expensive musical instruments, cosmetic goods, handbags, leather products, watches, and mid-sized sedans made in Japan and China.

“The products were given as gifts to key figures in North Korean society to ensure their loyalty to the regime,” Yoon said. He claimed that handing out such gifts contrasted with the hardships felt by ordinary people.

The United Nations Food and Agriculture Organization said earlier in the month that North Korea remains one of the 34 countries in the world that require external assistance to properly feed their people.

It estimated that some 2.8 million “vulnerable” people in the communist country needed outside assistance at least until this year’s fall harvest.

The Saenuri lawmaker said that imports of wine, liquor, consumer electronics, fur products and expensive watches led the growth last year.

Imports of alcoholic beverages surpassed the $30 million mark, with electronics and watches reaching $37 million and $8.2 million, respectively, for the whole of last year, he said.

Read the full story here:
N. Korea’s luxury goods imports surge under Kim Jong-un leadership
Yonhap
2013-10-14

UPDATE 1 (2013-10-15): Yonhap reports on the activities carried out at the expo:

North Korean companies participating in an annual trade fair with China signed a total of 93 preliminary deals worth US$1.6 billion at the event, China’s state media reported Tuesday.

North Korea and its economic lifeline, China, wrapped up the trade expo, the second of its kind, on Monday in the Chinese border city of Dandong with some 130 North Korean firms attending the five-day exhibition.

The North Korea-China Economic, Trade, Culture and Tourism Expo came as China has been deepening its economic ties with the North even though Beijing appears to have become increasingly frustrated with Pyongyang’s nuclear weapons program.

During the trade fair, preliminary investment deals worth $510 million and export deals worth $1.09 billion were signed, the official China News Service reported.

North Korea and China held the inaugural trade fair last year, with $1.26 billion worth of preliminary deals signed.

In the first eight months of this year, two-way trade between North Korea and China stood at $4.09 billion, compared with $4.1 billion for the same period last year, South Korean government data showed.

ORIGINAL POST (2013-10-10): According to Yonhap:

An annual trade fair between North Korea and China kicked off in the Chinese border city of Dandong on Thursday, with some 130 North Korean firms attending the five-day exhibition, organizers said.

The North Korea-China Economic, Trade, Culture and Tourism Expo, the second of its kind, comes as China is deepening its economic ties with the North even though Beijing appears to have become increasingly frustrated with Pyongyang’s nuclear weapons program.

About 500 North Koreans, including a 115-member propaganda troupe, joined the exhibition that features 700 booths for products ranging from foods and garments to mining and machinery equipment, according to the China Council for the Promotion of International Trade (CCPIT), which organized the event.

Of the booths, about 200 were allocated to buyers from Pakistan, Malaysia, India, Russia, Hong Kong and Taiwan, a Dandong branch of the CCPIT said.

North Korea and China held the inaugural trade fair last year, with US$1.26 billion worth of preliminary deals signed.

According to Xinhua:

The second China-DPRK economic, trade, culture and tourism expo has opened in the border city of Dandong in Northeast China’s Liaoning province.

The DPRK’s National Folk Art Troupe performed its ethnic dances at the opening ceremony on Thursday. A 500-member delegation from the DPRK is attending the expo which lasts from Thursday to Monday.

The expo is by far the largest foreign economic and trade event for the DPRK. And more than 90 percent of the country’s foreign trade companies have sent their representatives. Meanwhile there are over 10,000 traders from China.

The expo also attracts companies from Malaysia and Thailand. There are 16 events including promotion of China-DPRK commodities, and DPRK tourism. The DPRK’s investment policies are also to be introduced to attract investors.

The first such expo was held in 2012 with 72 agreements of cooperation signed. They have a combined value of over 1 billion US dollars.

According to KCNA:

The 2nd DPRK-China Economic, Trade, Cultural and Tourism EXPO opened on Thursday with due ceremony in Dandong, China.

Colorful events are to be held during the EXPO including trade fair, fine art exhibition, exhibition of photos on tourism and art performance.

Present at the ceremony were officials of the party and government of Liaoning Province and the city and those in the field of culture, economy and trade including Bing Zhigang, vice-governor of the province, citizens in Dandong, Liu Hongcai, Chinese ambassador to the DPRK, and his embassy members and diplomatic envoys of different countries to the DPRK.

Also present there were members of the delegation of the 2nd DPRK-China Economic, Trade, Cultural and Tourism EXPO led by Hong Kil Nam, vice-chairman of North Phyongan Provincial People’s Committee, Kim Kwang Hun, DPRK consul general to Shenyang, and Choe Un Bok, chairperson of the General Association of Koreans in China.

An opening speech was made there, which was followed by congratulatory speeches.

The speakers said that the EXPO will be a good opportunity to swap the successes and experience gained in various fields and boost the cooperation between the two countries.

They expressed the conviction that it will contribute to deepening the mutual understanding and trust and promoting the friendly and cooperative relations between the peoples of the two countries.

An art performance was given by the National Folk Art Troupe on the same day.

Prior to this, a reception was given for the participants of the Expo.

Xinhua also published this helpful advice for North Korean policy makers:

China-DPRK economic cooperation is important for maintaining peace and stability in Northeast Asia. China has a long history of investment in the DPRK, and is the country’s biggest trade partner. So what’s it like to do business in the DPRK?

Economic cooperation between China and the DPRK has strengthened as tons of goods are coming in and out the border each day. And the scale of their trade and investment has expanded over the past few decades. But the rapidly developing China-DPRK economic relations have certain problems that need to be solved. Many concerns have been raised in regards to the risk factor when investing in the country.

Today, China’s investment in the DPRK is mainly concentrated on minerals and other strategic resources. And many investors claimed that the main difficulties when they set up businesses in the DPRK is to cope with the country’s frequent policy changes.

Many Chinese companies and manufacturers have come to the exhibition hall for trade talks with the DPRK, and to have a better understanding of the country in which they have invested or intend to invest. The best way to find out the business environment there is to speak with someone who has been there long enough.

“You need to have certain knowledge about the rules and regulations in the DPRK before conducting investments there. A thorough business plan is a good start, and it’s crucial to have a business partner from the DPRK with a strong background,” said Ma Pengxiu, general manager of Dandong Hantong Trading company.

Some Chinese companies that have invested in the DPRK reportedly suffered losses, for which they blame the investment environment in that country. It’s true that enterprises cannot be certain of making profits, no matter which country they invest in they need to cope with local laws and regulations to avoid risks. But it’s also true that the DPRK has to improve its investment environment and make its policies more stable.

“There were companies and individuals who have experienced failures in the investments in the DPRK, so investors in these days are more concerned about the relevant protections from the DPRK side; my advise is to protect your business with a written wontract always,” said Ma.

Needless to say the DPRK delegation at the EXPO this year was well prepared and ambitious in seeking cooperation opportunities with the outside world. The country is keen on drawing investments to beef up its industries. In the meantime the DPRK still needs to take measures to ensure a stable business environment to make it easier for investors to thrive in the country.

Here is a link to the inaugural trade fair post.

Read the full stories here:
N. Korea, China kick off annual trade fair
Yonhap
2013-10-10

2nd China-DPRK Expo opens in Dandong
Xinhua
2013-10-11

According to the South China Morning Post:

In 2012, Hong Kong became North Korea’s No 2 trading partner with two-way trade reaching US$111 million (HK$861 million), rising 457 per cent from the year before, according to data from a South Korean trade organisation.

Last year alone, the Stalinist country exported US$58 million (HK$450m) worth of goods to Hong Kong and imported items worth nearly US$53 million (HK$411m) from the city, according to a recent report by South Korea’s government-run Korea Trade-Investment Promotion Agency.

The upward trend in two-way trade might be explained as a one-time jump, but experts suggest that Hong Kong may be part of the mainland China’s broader agenda for its relations with North Korea.

“Hong Kong is a tool for Sino-Korean relations because it can play certain functions in pushing forward the relationship between Beijing and North Korea,” explained Steve Chung, a professor of international relations at the Chinese University of Hong Kong.

The rise in trade between North Korea and Hong Kong in recent years coincides with the establishment of a joint industrial zone to be operated by Beijing and Pyongyang.

Read the full story here:
How did Hong Kong become North Korea’s No 2 trading partner?
South China Morning Post
Audrey Yoo
2013-10-9

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

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

From 2001 until 2013.

Here is the source.

UPDATE 9 (2013-8-16): ROK Red Cross to provide $100,000 flood relief to DPRK. According to Yonhap:

The Korean Red Cross plans to provide North Korea with an emergency fund of US$100,000 to help flood victims in the communist country, an official from the organization said Friday.

“The International Federation of Red Cross and Red Crescent Societies (IFRC) has asked for our participation in supporting the flood-hit North Korea,” the official said.

“In accordance, we’ve decided in humanitarian terms to send $100,000 to the IFRC to provide the victims there with relief goods.” he added.

The money, which comes from the Korean Red Cross’ own funds reserved for inter-Korean exchanges, is expected to be transferred to an IFRC bank account next week, according to the official.

The IFRC data showed that torrential rains since early July have caused extensive flooding and landslides across the impoverished communist country, killing 33 people and injuring 2 others with 18 still missing. An estimated 4,000 families have lost their homes and 50,000 have been displaced.

The international agency said earlier this month that it has allocated 299,744 Swiss franc to help the North Korean victims, with their relief operation to continue until the end of October.

Last year, the Korean Red Cross provided Pyongyang with $100,000 to help those who suffered from heavy precipitations.

UPDATE 8 (2013-8-6): The UN and South Koreans are contributing to flood relief. According to Yonhap:

The World Food Program (WFP) spokeswoman Nanna Skau said corn is being provided to households that have been hit hard by recent flooding caused by torrential rain, Radio Free Asia reported. She added that assistance is being offered because flooding has caused extensive damage to farmlands and irrigation systems.

The radio broadcast monitored in Seoul said distribution of the grain will continue for the next 30 days, with each recipient being allocated 400 grams per day.

The WFP also said support will be provided to 38,067 people in 10 cities and counties in Pyongan, Hwanghae and Hamgyong provinces.

The International Federation of Red Cross and Red Crescent Societies and the U.N. Office for the Coordination of Humanitarian Affairs said torrential rains that caused flooding and landslides left 33 North Koreans dead and displaced roughly 50,000 people from their homes. In places such as Anju in South Pyongan Province, some 80 percent of the city was flooded, resulting in extensive damage to homes and buildings.

Related to the international food effort underway, Korean Sharing Movement, a South Korean non-governmental organization, said it wanted to send emergency food aid to the North and requested permission from Seoul’s Ministry of Unification, which oversees inter-Korean affairs.

The civic groups pointed out that emergency aid shipments have always been permitted in the past regardless of the state of inter-Korean relations.

Cross-border ties have been strained following the North’s detonation of its third nuclear device in February and subsequent tightening of international sanctions. The shutting down of the joint factory park in Kaesong further strained relations.

Seoul has officially maintained that it will allow shipments of humanitarian aid to the North, but made clear it needs to first verify the extent of the flood damage. Officials have cited urgency and ability to make certain that relief will reach those in greatest need as conditions that must be met for aid to be provided. Last week, South Korea approved aid shipments by five local civic organizations.

Reflecting the country’s humanitarian aid policy, the South and North Exchange and Cooperation Promotion Council, which is chaired by the unification minister, approved sending more than US$6.03 million for relief programs organized by the U.N. Children’s Fund (UNICEF).

The money will be used to provide medicine and vaccines as well as improve the level of nutrition provided to small children, pregnant women and the socially disadvantaged. An additional 15.92 million won (US$14,288) will be sent to UNICEF to help manage the aid programs in North Korea.

UPDATE 7 (2013-8-2): From the United Nations:

Exceptionally heavy seasonal rain in mid-July resulted in flooding in many parts of DPRK Korea. Particularly severely affected are the provinces of North and South Pyongan. Many places had over twice the average rainfall for July in three days. There are a reported 33 deaths with 18 people still missing.

The Government has reported that there has been extensive damage to buildings and infrastructure with a current total of 48,688 people made homeless across the country, mostly in the two provinces of North and South Pyonang. Farmland was inundated with 11,567 hectares affected with around 1,125 hectares of farmland washed away or otherwise destroyed.

UN agencies carried out assessment missions on 24 July to two counties in North Pyongang – Pakchon and Taechon and in those two areas confirmed the scale of the flood damage. Further assessment missions will take place this week.

Damage to water systems is widespread and there is already an increased incidence of diarrhoea in some areas. Anju city, which was 80% flooded will only have its pumping stations fully operational again in about two weeks. 30 other communities have had their drinking water systems damaged.

Damage to agricultural land is extensive though estimates of crop damage vary and further assessment missions in the next week should give a more accurate number once the flood waters have fully receded. Apart from the farmland that was physically swept away or buried, damage to the standing crops may not be as extensive as first reports suggested as many fields were flooded by heavy rain rather than by flash flooding and, unless there is further heavy rain, seem likely to largely recover.

Transport infrastructure has suffered with at least 20 bridges and 11km of embankments and 143 areas where roads have been eroded, washed away or blocked by landslides. Government surveys show that 27 schools were completely destroyed in four provinces, with a further 10 being badly damaged. Many others have suffered more minor damage, though currently it is the summer break, so at present schooling is not being disrupted. Medical facilities such as hospitals, clinics and nursing homes also were affected with 3 being destroyed and 14 badly damaged.

UPDATE 6 (2013-8-4): The North Koreans have cut short military exercises to focus on flood relief. According to the AFP:

The communist state has staged summer military drills that partially coincided with the annual Ulchi Freedom Guardian exercise conducted by its rival South Korea and the United States, that usually takes place in August.

“But this year’s summer drill in the North will be scaled back considerably because it needs to focus on repairing floods damages,” the source was quoted as saying.

Floods caused by heavy rains that pummelled the North since early July have destroyed some 6,000 houses, displaced more than 23,000 people and washed away a large swathes of farmlands, the North’s state media said late last month.

The death toll has reached 33 across the nation and some 13,300 hectares of farmlands have been damaged, the International Federation of the Red Cross and Red Crescent Societies (IFRC) said last week, warning of “longer-term impact” on the country’s food security.

Decades of deforestation and decrepit infrastructure have left the impoverished North vulnerable to floods, which led to some 170 deaths last summer.

UPDATE 5 (2013-8-2): The international Red Cross has said it will provide North Korea with an emergency fund of US$320,000 to help flood victims. According to Yonhap:

The international Red Cross has said it will provide North Korea with an emergency fund of US$320,000 to help flood victims in the communist country.

In a report posted on its website Thursday, the International Federation of Red Cross and Red Crescent Societies (IFRC) said it has allocated 299,744 Swiss franc from its disaster relief emergency fund “to help the DPRK Red Cross Society in delivering immediate assistance to 5,000 families or 20,000 beneficiaries.”

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

Torrential rains since early July have caused extensive flooding and landslides across the impoverished communist country, killing 33 people and injuring 2 others with 18 still missing, according to the IFRC data. An estimated 4,000 families have lost their homes and 50,000 have been displaced.

In response, the agency plans to spend $120,000 to set up a shelter for 5,000 families in the most affected areas of North and South Pyongan and North Hwanghae Provinces, another $100,000 for utensils, and $40,700 for water, sanitation and hygiene works.

“The operation targets to support affected families with essential items … It also supports the operational cost of the two water treatment units and hygiene promotion activities,” the IFRC said in the report.

The relief operation will continue over the next three months until the end of October, it added.

In the wake of the tragedy in the North, the IFRC dispatched an eight-member group of experts to the affected areas and has conducted damage assessment and led relief work.

The fund is a source of un-earmarked money created by the Federation in 1985 to ensure that immediate financial support is available for its emergency response, according to the agency’s website.

UPDATE 4 (2013-7-31): ROK NGOs start shipping humanitarian aid to DPRK. According to Yonhap:

South Korean non-governmental organizations (NGOs) started shipping out humanitarian aid to North Korea on Wednesday to help alleviate the plight of children and sick people in the impoverished country.

The move comes after Seoul’s unification ministry approved the shipment of goods earlier in the week as a sign that South Korea is open to offering urgent humanitarian assistance to the North in spite of sanctions on the North for its nuclear device detonation in February.

The Korea Association of People Sharing Love, one of five NGOs to gain permission to ship goods, said it has ordered the shipment of bread in China for delivery to child-care centers and orphanages in Sinuiju, a North Korean border city with China.

It said other shipments of food will be made in the coming weeks. The organization was allowed to send US$46,000 worth of bread, baby formulas and nutritional supplements.

Medical Aid for Children, another charity group, said it has held a ceremony in Incheon, west of Seoul, to mark the start of its deliveries of antibiotics and anti-inflammatory drugs.

The group said medical supplies worth 223 million won ($199,700) will be made to a children’s hospital in the North.

Other groups like Green Tree Korea, Okedongmu Children and Stop Hunger said the first of their aid shipments will reach the North next month.

These organization plan to send more than 1.2 billion won worth of warm clothing, blankets, flour, powdered milk to the North in the coming weeks.

The shipments mark the first time in four months that Seoul has approved humanitarian aid to the communist country. The last shipment included tuberculosis medicine sent by the Eugene Bell foundation.

Seoul has imposed a blanket ban on shipments of goods after accusing the North of sinking one of its naval vessels near the South-North sea demarcation line in March 2010.

UPDATE 3 (2013-7-28): South Korea offers flood assistance. According to the New York Times:

South Korea announced $7.3 million worth of humanitarian aid for North Korea on Sunday, a conciliatory gesture that coincided with a call by the South for “one last round” of talks on restarting a jointly operated industrial complex.

The majority of the aid — $6 million — will be provided by the South Korean government and shipped through Unicef, the United Nations children’s agency, which provides vaccines, medicine and nutritional supplements for malnourished children and pregnant women in the impoverished North. Five private humanitarian aid groups from South Korea will provide the remainder; they will also send medicine and food for young children.

The South Korean minister in charge of policy toward the North, Ryoo Kihl-jae, said the aid shipments were not linked to political issues. But the announcement was contained in a statement in which Mr. Ryoo also called for a final round of talks with the North to settle disputes over the Kaesong industrial complex, which has been closed since early April.

There was no immediate response from the North Korean government.

UPDATE 2 (2013-7-25): Christian Friends of Korea (CFK) to provide flood relief. According to Yonhap:

Christian Friends of Korea (CFK), which is already engaged in providing humanitarian assistance to people living in the Hwanghae region, will offer clean drinking water, food and medicine to flood victims, Radio Free Asia reported.

…

The United Nations said that as of Monday, 24 people have been killed because of flooding while many others have been injured. It said a fact-finding mission has been sent to the isolationist country to assess the full extent of the damage so assistance can be provided.

UPDATE 1 (2013-7-23): According to KCNA (2013-7-23):

Flood Damage Grows in DPRK

Pyongyang, July 23 (KCNA) — Flood damage by consecutive downpour and heavy rainfalls is growing in the Democratic People’s Republic of Korea.

According to a survey made between 18:00 July 20 and 18:00 July 22, the flooding left eight people dead throughout the country.

More than 4,500 houses were destroyed or submerged, leaving 17,700 people homeless.

At least 1,000 houses were damaged totally or partially in North Phyongan Province, with 2,300 houses submerged in Unsan County alone.

6,550 hectares of cropland were damaged in North and South Phyongan provinces.

Meanwhile, the torrential rain has brought damage to some 30 school and 15 hospital buildings throughout the country as of July 23, after the start of the rainy season.

ORIGINAL POST (2013-7-23): According to the Daily NK:

The city of Anju in South Pyongan Province, which suffered substantive flood damage in the summer of 2012, has again been hit hard by the rainy season. Francis Markus of the International Federation of the Red Cross (IFRC) released the news via Twitter on the 22nd, asserting that 80% of the city is now under water.

Markus tweeted, “10,000+ ppl displaced, need shelter & clean water in Anju city, w. #DPRK as river bursts banks #RedCross deploys water units,” later adding, “80% of Anju City, #DPRK reported under 2 m of water. #RedCross sending tarps, jerry cans, water purif tabs, hygiene kits etc 4 survivors.”

The city, which lies northwest of Pyongsung, has a population of more than 200,000.

Meanwhile, according to a North Korean meteorological statistics released by Chosun Central News Agency (KCNA) yesterday, close to double the average amount of July rainfall has fallen during the 20 days since the start of the rainy season.

“On July 20, the highest precipitation was recorded in Tongsin, Songwon, Ryongrim and Thaechon counties,” the article noted, going on, “From 21:00 July 19th to 15:00 July 21st, 413mm rainfall was recorded in Tongsin County, 383mm in Songwon County, 380mm in Thaechon County, 322mm in Huichon City, 312mm in Hyangsan County, 304mm in Tongchang County and over 200mm in Kusong City, Sonchon and Nyongbyon counties and Tokchon City.”

On the 19th, IFRC announced that it has dispatched an on-site inspection team to assess conditions on the ground in North Korea. An international relief effort in August 2012 saw the Red Cross deliver water and other essential goods to the people of the flood-damaged city.

Read the full story here:
Pyongan Suffering in Heavy Rains
Daily NK
Kim Tae Hong
2013-7-23