North Korean Economy Watch

Forgotten People:  The Koreans of the Sakhalin Island in 1945-1991
Download here (PDF)
Andrei Lankov
December 2010

North Korea: Migration Patterns and Prospects
Download here (PDF)
Courtland Robinson, Center for Refugee and Disaster Response, Bloomberg School of Public Health, Johns Hopkins University
August, 2010

North Korea’s 2009 Nuclear Test: Containment, Monitoring, Implications
Download here (PDF)
Jonathan Medalia, Congressional Research Service
November 24, 2010

North Korea: US Relations, Nuclear Diplomacy, and Internal Situation
Download here (PDF)
Emma Chanlett-Avery, Congressional Research Service
Mi Ae-Taylor, Congressional Research Service
November 10, 2010

‘Mostly Propaganda in Nature:’ Kim Il Sung, the Juche Ideology, and the Second Korean War
Download here (PDF)
Wilson Center NKIDP
Mitchell Lerner

Drug Trafficking from North Korea: Implications for Chinese Policy
Read here at the Brookings Institution web page
Yong-an Zhang, Visiting Fellow, Foreign Policy, Center for Northeast Asian Policy Studies
December 3, 2010

Additional DPRK-focused CRS reports can be found here.

The Wilson Center’s previous NKIDP Working Papers found here.

I also have many papers and publications on my DPRK Economic Statistics Page.

UPDATE (1/3/2011): According to the Choson Ilbo:

North Korea has shut down a restaurant in Kathmandu and recalled all of its staff after the manager absconded with the takings in late November.

South Koreans in Kathmandu said the 13 to 15 North Korean staff of the Kumgangsan restaurant were recalled to the North right after the manager fled.

But the Kathmandu branch of the Pyongyang Okryugwan restaurant chain, which had been misidentified as the one where the manager worked, is still in business in a back alley about 1 km across the street from Kumgangsan.

Most South Korean tourists and about 400 expats in Kathmandu have stopped going to the restaurant since the South Korean Embassy in Nepal wrote to expats and tour operators asking them to refrain from visiting North Korean restaurants after the North’s torpedo attack on the Navy corvette Cheonan in March last year.

“Please refrain from visiting North Korean restaurants that are becoming sources of funds for the Kim Jong-il regime. Anyone who has visited such restaurants will be subject to investigation on charges of violating the Inter-Korean Exchange and Cooperation Law and the National Security Law upon returning home,” the embassy warned in an email.

A South Korean resident said the Kumgangsan and Okryugwan restaurants had depended largely on South Korean customers, so their sales must have dwindled.

The Kumgangsan manager, identified as Yang, reportedly came to South Korea via India. Nepalese police released two South Koreans who were arrested after North Korea accused them of kidnapping him and were deported on charges of violating immigration law.

UPDATE (12/23/2010): According to the AFP, the Nepalese have released the two South Koreans who allegedly assisted the North Korean to defect.

Nepal has released two South Koreans held for their alleged involvement in the case of a missing North Korean, the South’s foreign ministry said Thursday.

The two men, who live in Nepal, were ordered to leave the country within 15 days after being freed, the ministry said.

Yonhap news agency said the pair were accused of helping a North Korean surnamed Yang flee the Himalayan nation across the border into India, after which he defected to the South.

A local media report in the Himalayan country had said they were arrested following pressure from Pyongyang’s embassy in Kathmandu, which wanted them charged with kidnapping Yang.

South Korean newspapers have said Yang was the manager of the local franchise of an overseas restaurant chain operated by the North.

The franchises are an important source of scarce foreign currency for the cash-strapped regime.

Some 20,000 North Koreans have fled their homeland and arrived in South Korea since the end of the 1950-53 war, almost always through a third country.

UPDATE (12/15/2010): According to the Choson Ilbo the defector left with some substantial funds from the DPRK restaurant in which he worked.

ORIGINAL POST (12/14/2010): According to the Choson Ilbo:

A North Korean who went missing in Nepal recently had been the manager of a North Korean restaurant there, it emerged on Monday.

A diplomatic source said the man, identified as Yang, managed the Kathmandu branch of the Pyongyang Okryugwan restaurant chain and had been there for about a year. It seems he defected and is believed to be in New Delhi, India now.

Overseas branches of Okryugwan are a main source of hard currency for North Korea, and the regime carefully selects managers. The North is apparently very sensitive about Yang’s defection, according to South Korean intelligence, because he made off with a stash of dollars that were supposed to be sent to the North.

The North Korean Embassy has asked the Nepali authorities to investigate two South Koreans identified as Choi and Sun who it says had friendly ties with Yang and kidnapped him. Choi and Sun have been arrested, and South Korean Embassy officials are negotiating for their release.

Read the full story here:
N.Korean Restaurant Manager Absconds from Nepal
Choson Ilbo
12/14/2010

According to Yonhap:

North Korean leader Kim Jong-il paid more visits to factories and other economy-related sites than to military units and other locations this year in a sign that the autocratic leader is trying to improve internal unity, Seoul’s Unification Ministry said Monday.

Kim has made a total of 148 “field guidance” trips across the country this year, with 58 of them, or 40 percent, made to economic sites and 33 visits to military units, ministry spokesman Chun Hae-sung told reporters.

In particular, Kim made 16 public appearances in November, and only one of them was a visit to the military while seven were to economic sites, a ministry official said on condition of anonymity.

“This is seen as an attempt to promote internal unity or to demonstrate he is in charge,” the official said.

Kim’s sister, Kim Kyong-hui, and his brother-in-law, Jang Song-thaek, accompanied Kim on most of the field trips in November, the official said.

Since the North’s deadly shelling of South Korea’s Yeonpyeong Island on Nov. 23, Kim has made a dozen public appearances, with seven of them to economic sites.

Kim’s heir-apparent and youngest son, Kim Jong-un, accompanied his father on 28 of the 148 field trips this year, according to the ministry.

Read the full story here:
Kim Jong-il focuses on economic sites for ‘field guidance’ trips this year
Yonhap
12/6/2010

According to the Choson Ilbo:

The demographic graph of a normal country has a pyramid or bell shape. But that of North Korea reportedly has an abnormal gourd-shaped curve. The narrow part in the middle of the curve accounts for the key age group between 20 and 34 of the economically active population in the North. It is believed that is because many of those born in the 1990s in the midst of economic difficulties and food shortages died of malnutrition or diseases when they grow up.

This was revealed on Monday by Hwang Na-mi, a researcher at the Korea Institute for Health and Social Affairs, in the outcome of her analysis of a 2008 census report the North’s Central Statistics Bureau submitted to the UN Population Fund (UNFPA). The North’s demographic graph shows that the “population between 20 and 34 years of age remarkably dwindled compared to teens or those in their 40s,” she said.

Lee Ae-ran, a professor of food, nutrition and cuisine at Kyungin Women’s College, said, “As economic problems worsened in the 1990s, many young North Koreans avoided marriage and childbirth and illegal abortions were rampant. Especially in the late 90s, many children and youths starved to death in urban areas, as well as in rural regions.” She is the first female North Korean defector to obtain a doctoral degree in the South.

The North’s 2008 census was conducted according to international standards with the help of the UNFPA, and thus it is regarded as reliable statistics on the status of North Korean population.

The North conducted its first-ever census in December 1993. But the categories did not conform to international standards, nor were the results consistent.

The North’s infant mortality rate, which is considered a yardstick for gauging a country’s socio-economic level and health, was 19.3 per 1,000 infants younger than 1 year, up 5.2 from 14.1 in 1993. However, some experts speculate that such a rate in the North is not as serious as it has been known so far.

According to the “2010 World Population Report” published by the UNFPA last month, the North’s infant mortality rate is 47 per 1,000, pushing the country to 51st place among 181 countries.

The North’s maternal mortality rate, the rate of mothers who die during pregnancy or childbirth, was 77.2 per 100,000, far up from 54 in 1993. The Stalinist country’s average life expectancy was 69.3 years in 2008, down from 72.7 years in 1993.

Past stories about the DPRK’s 2008 census can be found here, here, here, and here.

The officially published data can be found here.  Summaries can be found here.

Read the full story here:
N.Korea’s Youth Population Dwindles Due to Food Shortage
Choson Ilbo
12/6/2010

Institute for Far Eastern Studies (IFES)
NK Brief No.10-12-3-2
12/3/2010

North Korean trade with China has jumped 26.7 percent during the first eight months of the year, with the bulk of its imports made up of crude oil, and its largest export being coal. Despite the increasingly severe food shortages in the North, food imports from China were actually down 7.5 percent, while on the other hand, fertilizer imports shot up by 162 percent.

The Korea Trade-Investment Promotion Agency (KOTRA) looked into the Chinese government’s import and export figures and determined that North Korean exports to China during the first eight months of the year were worth 650,000 USD, 20.6% more than during the same period last year, while DPRK imported 1.345 billion USD-worth of goods (30% increase), for trade worth a total of 1.995 billion USD, 26.7 percent more than 2009.

“Mineral fuel and mineral oil” topped the list of North Korean imports (321,000 USD), with crude oil (229,000 USD) and oil (63,000 USD) making up 90.7 percent of imported goods. However, while crude imports were 53 percent more expensive, the amount of oil imported only rose by 2.3 percent; the sharp increase in expenditure was due to climbing international oil prices. The second- and third-largest imports were listed as “nuclear reactor, boiler, and machinery” (127,000 USD) and “electromagnetic machinery, sound and video equipment” (106,000 USD). Other imports included cars and car parts, steel and steel goods, plastic and plastic goods, artificial filament, fertilizer, and grain. A KOTRA official stated that while “nuclear reactor” was listed among the goods imported by the North, there is no way to verify the Chinese statistics.

North Korea’s grain import expenditures increased by five percent, to 34,000 USD, but overall grain imports fell 7.5 percent, to 102,000 tons, due to increased costs. More specifically, rice import expenditures were up 8.4 percent to 16.6 million USD, but the amount of rice imported fell by six percent, to 38,400 tons. Corn expenditures dropped by one percent to 16.3 million USD while the amount imported fell by ten percent, to 62,000 tons. The cost of barley imports grew 190 percent, to 353,000 USD, with the amount of barley brought into the country up 89 percent to 1,011 tons. 277,000 tons of fertilizer were imported, 162 percent more than last year, at a cost of 40 million USD, 85 percent more than 2009. Almost all of the fertilizer was nitrogenous.

North Korea’s exports to China were made up largely of mining and fisheries. Coal topped the list (191,000 USD), although the amount sent across the border was 31 percent less than last year. Iron ore was second, and was not only down by 34 percent, it brought in 134 percent less than 2009, as it was worth only 111 million USD. Textiles and accessories worth 81 million USD, steel worth 64 million USD, and mollusks worth 32 million USD were also sent to China.

As the focal point of DPRK-PRC trade, Dandong has seen phenomenal growth in the last 5 years.

Here is just one area in southern Dandong:

Here is a separate area in northern Dandong where Yalu River high-rise development is underway:

And here is another island in the Yalu River:

Dandong has been the focus of increasing media attention over the last 10 years because it has economically benefitted from increased trade (and expected future trade) between the PRC and DPRK.  

Today it is probably the easiest place to collect “survey data” on the DPRK’s business environment. According to a recent article in the Associated Press (via San Francisco Examiner), the DPRK still has a long way to go before foreign investors will see a climate ripe for investment:

Just across the Yalu River from North Korea, this sleepy border town in China’s Rust Belt is booming.

Towering apartment blocks are going up on the city’s western edge near the new Friendship Road Bridge, which will soon be the second bridge connecting Dandong to the North Korean city of Sinuiju.

Offices for trade and export-import companies dot the main road along the riverfront. A new airport is being built. Shops sell North Korean liquor, blueberry wine, ginseng, stamps and music CDs. And North Korean restaurants offer popular Korean dishes such as stewed dog leg and spicy deep-fried dog.

Dandong – like other parts of northeastern China along the 870-mile border – aims to profit from China and North Korea’s growing cross-border trade, now close to $3 billion a year. At a time when the United States and its allies are looking to isolate the Pyongyang regime for its nuclear program and erratic behavior, including this week’s artillery attack on a South Korean island, this hardscrabble part of China is finding that being North Korea’s back door to the world can be a lucrative business.

China already provides an estimated 90 percent of North Korea’s energy needs and most of its food and weapons. And the most recent gauge of trade between the two countries, from 2008, showed an increase of more than 40 percent from the previous year, according to the Council on Foreign Relations.

But even as officials map out grand plans for more cooperation, merchants and small-scale traders say doing business with North Korea remains problematic at best.

The government is unpredictable, they say, and rules change without warning. They tell horror stories about Chinese traders who have lost millions of dollars in goods or equipment that is expropriated or stolen outright. Many now insist on cash-up-front transactions and mostly conduct business on the Chinese side of the border, where they say they have more protections.

Moreover, while North Korean leaders have visited this part of China and professed admiration for China’s economic boom, local Chinese traders and businessmen in close contact with North Koreans say they don’t expect the country to shift to a market economy anytime soon.

“I haven’t seen any sign the North Korean government wants to open up,” said Cui Weitao, 47, who has been trading fruit, clothing, plastic bowls and chopsticks to North Korea for the past decade. “If they really wanted, they could learn from China and Russia. If they wanted, they could let people go back and forth and trade freely. . . . If they opened the border, their whole country would benefit.”

His friend, Wang Tiansheng, 47, another small-scale trader, agreed. “The thought of economic reform has been there for years but never happens. Not while the father is alive,” he said, referring to the country’s leader, Kim Jong Il. “Maybe when the son takes office.”

China and North Korea have been close allies since Chinese troops crossed the Yalu River to help North Korea fight American and South Korean troops during the Korean War, which is referred to here as the “War to Resist U.S. Aggression and Aid Korea.”

Yet Chinese leaders themselves consider North Korea’s leader an often-troublesome ally because of his brinkmanship with the United States over his country’s nuclear capability and incidents such as this week’s artillery barrage of Yeonpyeong Island, which killed two South Korean marines and two civilians, and the sinking of a South Korean warship in March.

Chinese leaders are reported to be concerned about North Korea’s economic crisis, and they encouraged Kim to embrace market-based economic reforms when he visited China in May and August this year and met with Chinese President Hu Jintao, according to some Hong Kong and South Korean media reports of the visits.

In a bow to reforms, North Korea sent a dozen mayors and provincial chiefs to northeastern China in October to visit factories and chemical plants. Earlier this month, North Korean Premier Choe Yong Rim visited Harbin, in Heilongjiang province, to discuss joint economic projects.

North Korea agreed to lease two Yalu River islands to China to develop into “free trade zones.” Chinese high-tech companies were encouraged to signed agreements to hire North Korean computer experts. In September, after Kim’s second visit, China established a new 100,000-square-foot marketplace in Tumen – across from Namyang in North Korea – for North Koreans to come on one-day passes to sell or trade their goods.

But the Tumen market in many ways illustrates the difficulties of coaxing North Korea to open up. The vast market is now mostly empty because the North Korean government changed its mind about allowing its citizens to come to China to trade freely, Tumen residents said.

One of the few Chinese vendors in the market during a recent visit, who was selling North Korean crab, shrimp and frozen fish, said he lost a lot of money because his North Korean supplier increased prices without warning.

“It’s been really hard and risky to do business with North Korea, firstly because of the complicated procedures of going there,” the seafood vendor said, speaking on the condition of anonymity. He said Chinese traders need an invitation from a state-owned company and three stamps from three departments.

Once inside North Korea, he said, officials “are very greedy. They asked us for digital cameras or DVD players or even computers. We have to buy them dinner, and booze is a must for every time we meet.”

Even the new Friendship Road Bridge being constructed – to augment the existing single-lane bridge – has been difficult to negotiate. China agreed to foot the bill for building the bridge, more than $200 million. But then North Korea demanded China also build a five-star hotel and other infrastructure on the North Korean side, local businessmen said.

Economists said the experience of the local traders confirms their own research: that while North Korean officials publicly claim to want to pursue economic reform, and may speak of emulating China’s success, North Korea’s ruling elite remains deeply ambivalent about anything that might dilute its grip.

“The state has never been comfortable with the market,” said Marcus Noland, senior researcher with the Peterson Institute for International Economics in Washington, who surveyed 300 Chinese companies operating in North Korea. “They see the market potentially as an alternative path to wealth and prestige, and perhaps political power.”

While trying to “deepen their economic integration with China” at the official level, Noland said, North Korean leaders at the same time take steps “to eradicate this kind of normal trading activity at the border” by denying visas and constantly changing the regulations.

“The Chinese do not trust the North Koreans at all,” Noland said.

According to a recent story in the Wall Street Journal, the second DPRK-PRC bridge in Dandong is still tentative:

Construction of the new bridge was originally slated to start in August. Zhao Liansheng, Dandong’s mayor, said in March that building would start in October, and be finished within three years.

“The new bridge is still waiting for the approval of central government,” said an official from the Dandong Transportation Department. “As far as I know, this project is not definite yet.”

I am not sure of the exact location of the new bridge.  If any readers are aware, please let me know.

Read the full stories here:
In Chinese Border Town, Trade With North Korea Can Be Lucrative but Problematic (Dandong, China).
Associated Press (via San Francisco Examiner)
Keith B. Richburg
11/26/2010

Border Bridge Reflects Dilemma
Wall Street Journal
Jeremy Page
11/28/2010

According to Yonhap:

North Koreans are expected to live 11 years less than the average South Korean due mainly to malnutrition that adversely affects births and causes more people to die earlier than normal, a government report showed Monday.

The Statistics Korea report, based on data released by the United Nations and Pyongyang, showed the life expectancy for an average North Korean at 69 years, lower than numbers reached in the communist country in the early 1990s before it was hit by devastating famine.

The life expectancy for men reached 64.9 while that for women was 71.7 years. This is 11.3 years and 11.2 years less than this year’s life expectancy of South Korean men and women, respectively.

“Generally, the population has not fully recovered from the famine and hardship, although conditions have improved in the past few years,” a statistics official said.

He said estimates revealed that there may have been a “population loss” of around 610,000 for a decade after the mid-1990s, caused by a higher number of deaths and people shying away from having babies.

The official said up to 480,000 more people may have died compared to what was normal during the 1994-2005 “slow-motion famine” period when the country could not properly feed its people.

Newborn baby numbers fell by an estimated 130,000 vis-a-vis natural increase rates in the 1995-2004 time frame, as fewer people married and couples put off giving birth during hard times, he said.

The latest statistical report, however, said that despite chronic food shortages, North Korea’s population managed to post steady growth in the last two decades.

As of this year, the population is estimated to be 24.19 million, up 0.5 percent from a year earlier. Before 1997, the population grew more than 1 percent on-year, but gains have become stagnant since 1998, staying under the 1 percent mark.

This year’s numbers make North Korea the 49th most populous country in the world, compared with 26th-ranked South Korea, whose population reached 48.88 million.

The statistical report, meanwhile, showed the number of economically active people in the North between the ages of 15 and 64 reaching 16.58 million this year, with the number of men being smaller than women.

The median age of the population stood at 30.1 years for men and 33.7 for women, five or six years younger than numbers for South Korea. The country effectively became an “aging society” in 2003 with the number of people over 65 hitting 7.2 percent of the total population and should be an “aged society” in 2033 with 14.5 percent of the population over 65 years old.

The report predicted that North Korea’s population will peak at 26.54 million in 2037, compared to South Korea’s peak population that is expected to be reached in 2018, when there may be some 49.34 million people living in the country.

If both South and North Korean populations are combined, the number would hit its peak in 2027 with 75.06 million people living on the peninsula, the report said.

Read the full story here:
N. Koreans expected to live 11 years less than S. Koreans: report
Yonhap
11/22/2010

Lankov writes in the Korea Times:

One of the most important peculiarities of North Korean life is the degree of isolation of North Koreans from entire world. The government does not want them to be aware of some facts which contradict the officially approved picture of the world and their own country. To make sure that propaganda has no competition, the North Korean authorities eliminate all possible sources of alternative information.

Few if any Communist countries were as efficient as North Korea in cutting their population off from the unwanted and unauthorized knowledge about the world beyond the nation’s boundaries.

Few North Koreans are ever allowed to leave their country. The only statistically large but non-privileged group of people with overseas experience was the Siberian loggers who were sent to the wilderness of Southern Siberia from the late 1960s onwards. However, that part of the world is not famous for a high density population, so their contact with the locals was kept at a bare minimum (and North Korean authorities saw to this).

All other groups of North Koreans who were allowed to travel overseas formed the upper crust of society and by definition were carefully chosen for their supposed political reliability. These privileged few were diplomats, crews of the North Korean ships and planes as well as a handful of the people who were allowed to participate in international exchanges, largely of academic nature. These people had a lot to lose, and they also knew that their families would pay a high price for any wrongdoing they committed, thus they seldom caused trouble. They are least likely to talk much about overseas life.

There were students, of course, but their numbers were very small ― perhaps, less than 10,000 North Koreans ever graduated from foreign universities (just for comparison: some 240,000 South Koreans are studying overseas right now).

The North Koreans cannot buy or read books published overseas ― no exception is made even for books from other Communist countries. All non-technical foreign publications are kept in special departments of libraries and one needs a security clearance to access them. In these departments the subversive material could be read only by the trustworthy people who obtained special permission from security police.

Of course, radio was the major source of worries for the Pyongyang leaders. So, North Korea is the only country which outlaws the use of the radio sets with free tuning. All radio sets are permanently fixed on the wavelength of the official Pyongyang broadcast, and police conduct random house checks to ensure that technically savvy owners have not re-modeled their sets.

In a clearly Orwellian twist, the government does its best to keep the populace cut off from the past as well. All periodicals and most books more than ten years old are to be sent to the same special departments with access being limited to the people with proper security clearance. Even speeches of the Great Leader are edited (rewritten) from time to time to meet the demands of the ever changing political situation.

Why did they do it? The answer seems to be obvious: the governments know that they have to hide the huge difference in economic performance between North Korean and its neighbors, and above all ― between North and South Korea. Currently, the ratio of per capita income between two Korean states is estimated to be at 1:15 at best and 1:50 at worst. This is the largest gap which exists worldwide between two countries which share a land border, and this gap is powerful proof of North Korea’s economic inefficiency. The government understands that once the populace learns about the gap, the situation might get out of control. To prevent it, they work hard to keep people ignorant about the outside world.

Until 2000 or so, they have been generally successful, even though some snippets of dangerous information found their way to North Korea. Things began to change in the late 1990s when North Koreans began to move across the porous border with China. Most of the refugees did not stay in China, but eventually returned to North Korea. They brought back stories of Chinese prosperity, DVDs with South Korean TV shows and small, easy-to-hide transistor radios with free tuning.

Since then, things began to change, and the information self-isolation system began to fall apart. However, it might be premature to believe that it has been damaged beyond repair. Yes, people in the borderland area are aware that they live in a poor and underdeveloped society. Many people in Pyongyang also came to realize this. But it seems that in more remote parts of the country the isolation still works reasonably well.

Sometimes I wonder how shocked North Koreans will be when exposed to the outside world for the very first time. We can be sure that their surprise will be huge ― and perhaps, their disappointment about their country’s past will be huge, too.

Read the full story here:
Crack in Orwellian paradise
Korea Times
Andrei Lankov
11/21/2010

According to the AP:

The number of North Koreans defecting to South Korea has surged in recent years because of economic suffering in the North, with more than 10,000 defections over the past three years, South Korea’s Unification Ministry said Monday.

About as many North Koreans have defected to the South since the end of 2007 as the number who had fled over the entire previous period since the 1950-53 Korean War ended with an armistice, the ministry said in a statement. The overall total stands now at 20,050.

Ministry official Han Dong-ki said the rise in defections reflects North Korea’s worsening economy.

North Korea has relied on outside food aid since natural disasters and mismanagement wrecked its economy in the mid-1990s, when an estimated 2 million people died of famine. The North’s economic troubles are thought to have worsened following a botched attempt at currency reform last year.

Most defectors reach South Korea after crossing over a shared border with China, where activists say tens of thousands of North Koreans are hiding. About 2,500 defectors arrived in the South in 2007, and the number has risen each year since. More than 2,900 defected last year, the ministry statement said.

Many North Korean defectors have trouble adjusting to their new lives in the South, which is one of Asia’s richest countries. They report job discrimination and difficulty finding work, and say they aren’t being paid fairly or getting promotions.

South Korea runs resettlement centers where North Korean asylum-seekers take a three-month course that teaches them computer skills and such everyday lessons as how to use ATMs and shop in supermarkets. South Korean intelligence officials typically question defectors for about three months before they are sent to the centers.

The two Koreas share a common language, but there are often differences in word meanings after more than a half-century of division following the war. The South is also awash in Western influences compared to the isolated North.

The Unification Ministry said it is working to help defectors resettle in the South more smoothly, offering greater tax reduction and medical benefits.

Defectors are a point of friction between North and South Korea. Two North Korean army majors were sentenced to prison in South Korea earlier this year for plotting to assassinate a high-profile defector. The defector later died of heart failure, and police said there was no connection between his death and the plot.

North Korea denies involvement, accusing South Korea of staging the arrests to stoke public anger against the North.

The defector, Hwang Jang-yop, was one of the North’s most powerful officials when he fled in 1997. He was chief architect of North Korea’s guiding “juche” philosophy of self-reliance and had tutored North Korea’s supreme leader, Kim Jong Il, on the ideology.

UPDATE 1: The New York Times also published a story on this trend.

UPDATE 2: The Economist offers coverage.

Read the full story here:
Number of NKorean defectors to SKorea tops 20,000
AP (via Washington Post)
Kim Hyung-Jin
11/15/2010

According to TradingMarkets.com:

Top South Korean steelmaker POSCO pledged Thursday to provide more jobs to North Korean defectors struggling to settle in their newfound capitalist homeland.

Under a memorandum of understanding (MOU) signed with the Unification Ministry, POSCO promised to hire more defectors at its “social enterprise” subsidiaries set up in part to help the underprivileged.

POSCO’s Songdo SE, one such firm, now employees 105 people from the needy classes of society, including 35 defectors from North Korea, and plans to increase the number of defector employees to 50 by next year.

The firm is in charge of building maintenance for POSCO Engineering & Construction’s new headquarters and POSCO Global R&D Center located in Songdo Free Economic Zone in the western port city of Incheon.

“What is most important for North Korean defectors is to help them to stand on their own economically,” Unification Minister Hyun In-taek said in a speech at the MOU signing ceremony attended by some 200 people, including the 35 defectors employed at Songdo SE and POSCO CEO Chung Joon-yang.

Chung said that Songdo SE will put priority on hiring North Korean defectors living in Incheon.

Since the 1950-53 Korean War, nearly 20,000 North Koreans have defected to the South to escape from hunger and political suppression in their communist homeland. But many of them have a hard time getting decent jobs due to their lack of South Korean-style education and social discrimination.

Read the full story here:
POSCO pledges to provide more jobs to North Korean defectors
TradingMarkets.com
11/9/2010