North Korean Economy Watch

According to Yonhap :

North Korea has allowed a Chinese company to do business at its scenic mountain resort, a source said Tuesday, in an apparent attempt to revitalize the resort at the center of a dispute with South Korea.

The company plans to organize a cruise tour to Mount Kumgang on the North’s east coast for Chinese tourists from Hong Kong and other eastern Chinese ports, said the source familiar with the issue.

The company, which won permission to run the business until the end of 2026, also plans to run a casino, a duty free shop and a hotel in the resort, the source said.

The move comes just months after North Korea made a trial cruise from its northeastern port city of Rajin to the mountain resort to try to attract Chinese tourists.

North Korea has launched a series of tourism programs for the Chinese in an apparent bid to earn much-needed hard currency.

For a decade, South and North Korea jointly ran the tour program at the resort, a key symbol of reconciliation on the divided Korean Peninsula.

Still, Seoul halted the cross-border tour program following the 2008 shooting death of a tourist by a North Korean soldier near the resort.

Seoul has demanded a formal apology from Pyongyang for the incident, in addition to improved security measures for tourists, before resuming the tour program, a key cash cow for the North.

However, the North has expelled South Korean workers from the resort and disposed of all South Korean assets there after it unsuccessfully tried to pressure Seoul to resume the tour program.

South Korea has asked foreign countries not to invest or engage in tourism activities at the mountain resort as part of its moves to protect its property rights there.

Dear Yonhap: Would it have been too much trouble to give us the name of the Chinese company or tell us anything about it?

Read the full story here:
N. Korea permits foreign company to run business at its scenic resort
Yonhap
2011-12-3

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:

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!

Pictured above (Google Earth): The Pyongyang Friendship Hospital, where the Chinese visitors are being treated.

According to Xinhua (PR China):

Seven Chinese citizens and three nationals from the Democratic People’s Republic of Korea (DPRK) were killed in two traffic accidents near Pyongyang, the Chinese Embassy in the DPRK said Sunday.

On Saturday morning, a bus carrying 27 Chinese tourists overturned about 60 km away from Pyongyang, due to the slippery iced road caused by icy rain. Another bus with a 17-member Chinese business delegation plunged into a ravine from a bridge in the same section minutes later.

Ten wounded Chinese, including three seriously injured, were being treated at the Pyongyang Friendship Hospital, while the others were confirmed unharmed.

A work group sent by relevant Chinese authorities has arrived in Pyongyang. The Chinese Embassy activated an emergency mechanism and dispatched staff to look after the patients in the hospital on a 24-hour duty.

The DPRK government has instructed health, tourism and diplomatic departments to deal with related issues. DPRK officials have also visited the wounded Chinese in the hospital.

UPDATE: Adam Cathcart is also following this story.

Read the full story here:
7 Chinese killed in road accidents near Pyongyang
Xinhua
2011-11-27

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.

According to the State Department web page (November 3):

Travel Warning
U.S. DEPARTMENT OF STATE
Bureau of Consular Affairs
Korea, Democratic People’s Republic of

November 03, 2011

The Department of State continues to warn U.S. citizens about travel to North Korea (Democratic People’s Republic of Korea, or DPRK). The North Korean government will detain, prosecute, and sentence those who enter the DPRK without first having received explicit, official permission and an entry visa from its government. Travel by U.S. citizens to North Korea is not routine, and U.S. citizens crossing into North Korea, even accidently, have been subject to arrest and long-term detention. Since January 2009, four U.S. citizens have been arrested for entering North Korea illegally. In 2010, a fifth U.S. citizen, who had a valid DPRK visa in his U.S. passport, was arrested inside North Korea on unspecified charges.

The Government of North Korea imposes heavy fines and long prison sentences with hard labor on persons who enter the country without a valid passport and a North Korean visa. If you travel unescorted inside North Korea without explicit official authorization, North Korean security personnel may view your actions as espionage.

Security personnel may view any unauthorized attempt you make to talk to a North Korean citizen as espionage. North Korean authorities may fine or arrest you for unauthorized currency transactions or for shopping at stores not designated for foreigners.

It is a criminal act in North Korea to show disrespect to the country’s current and former leaders, Kim Jong Il and Kim Il Sung. North Korean authorities have threatened foreign journalists who questioned the policies or public statements of the DPRK or the actions of the current leadership

North Korean government authorities may also view taking unauthorized pictures as espionage, confiscate cameras and film, and/or detain the photographer. DPRK border officials routinely confiscate visitors’ cell phones upon arrival, returning the phone only upon departure. Foreign visitors to North Korea may be arrested, detained, or expelled for activities that would not be considered criminal outside the DPRK, including involvement in unsanctioned religious and political activities, engaging in unauthorized travel, or interaction with the local population.

The United States and the DPRK do not have diplomatic and consular relations. Since the United States does not maintain diplomatic or consular relations with North Korea, the U.S. government cannot provide normal consular services to its citizens in North Korea. The Swedish Embassy, the U.S. Protecting Power in the DPRK capital of Pyongyang, provides limited consular services to U.S. citizens traveling in North Korea who are ill, injured, arrested, or who have died while there. However, the Protecting Power cannot get U.S. citizens out of jail or pay their criminal fines.

U.S. citizens who plan to travel to North Korea are strongly encouraged to contact the U.S. Embassy in Beijing, China about their trip by enrolling in the State Department’s Smart Traveler Enrollment Program. If you have received official permission and are going to visit North Korea by transiting China, please take the time to tell the U.S. Embassy in Beijing, China, about your trip. If you check in, we can keep you up to date with important safety and security announcements. You will also help your friends and family get in touch with you in an emergency. By enrolling, you make it easier for the U.S. Embassy or Consulate to contact you in case of an emergency. Here is the link to the State Department’s Smart Traveler Enrollment Program.

China residents can contact U.S. Embassy Beijing directly:

U. S. Embassy Beijing: The Embassy is located near the Ladies’ Street (Nuren Jie) and Laitai Flower Market, opposite the Kempinski Hotel and Lufthansa shopping Center.

U.S. Embassy Beijing
American Citizens Services Unit
No. 55 An Jia Lou Road
Chaoyang District

Beijing, China 100600
Telephone: (86-10) 8531-4000
Facsimile: (86-10) 8531-3300
Email: amcitbeijing@state.gov
Emergency after-hours telephone: (86-10) 8531-4000

You may also wish to contact the Embassy of Sweden by telephone or email about your trip:

The Embassy of Sweden Pyongyang (U.S. Protecting Power) in North Korea.
Munsu-Dong District
Pyongyang, DPRK
Telephone: (850-2) 3817 485 (reception)
Telephone: (850-2) 3817 904, (850-2) 3817 907 (First Secretary)
Telephone: (850-2) 3817 908, (850-2) 3817 905 (Ambassador)
Facsimile: (850-2) 3817 663
Email: ambassaden.pyongyang@foreign.ministry.se

U.S. citizens should also consult the Department of State’s Country Specific Information for North Korea, and the current Worldwide Caution, which are located on the Department’s Internet travel website. U.S. citizens can obtain current information on safety and security conditions by calling 1-888-407-4747 toll-free in the United States and Canada or, from outside the United States and Canada, +1-202-501-4444. These numbers are available from 8:00 a.m. to 8:00 p.m. Eastern Time, Monday through Friday (except U.S. federal holidays).

Visits: According to the Daily NK, 116,400 North Koreans have visited China this year:

116,400 North Koreans visited China officially between January and September, 2011, according to new statistics released by the National Tourism Administration of China.

The statistics reveal that 55,000 of them visited to find work; 27,000 for a business trip; 3,000 were tourists; and 100 were visiting relatives. 24,000 did not record the purpose of their visit.

45,000 of them traveled by boat; 24,900 by airplane; 14,300 by train and 3,700 entered on foot.

The largest proportion was between the ages of 45 and 64 (52,000); 47,000 were between 24 and 44. 95,000 were men, and 14,900 were women.

According to the same statistics, the highest number of visitors to China in the same period came from South Korea (3.2 million trips), followed by Japan (2.6 million trips). Overall, North Korea ranks 11th out of the 15 countries in Asia.

Trade: According to the Associated Press:

China’s trade with its close ally North Korea nearly doubled in the first seven months of the year compared with the same period in 2010, state media reported Sunday.

The 87 percent increase to $3.1 billion was announced at the start of a visit to the North by Chinese Vice Premier Li Keqiang that reaffirms strong ties between the communist neighbors.

…

North Korea relies heavily on China for food and fuel aid and many consumer products. Chinese companies are the main investors in North Korean mining, and the sides recently signed agreements on road building and jointly developing an industrial park on an island near the Chinese city of Dandong.

“The economic and trade cooperation between the two countries has shown great potential, with bilateral trade and investment volume reaching new highs,” Xinhua said, citing the Chinese ambassador to Pyongyang, Liu Hongcai.

Bilateral trade between China and North Korea still is dwarfed by economic ties between China and South Korea. China is South Korea’s largest trade partner.

Trade between Beijing and Seoul rose more than 20 percent in the first eight months of the year to $159 billion and is expected to hit about $250 billion for all of 2011.

It should go without saying that officially reported merchandise trade between the PRC and DPRK understates the economic relationship between the two nations.   What goes unreported is illicit border trade, aid, military assistance and other forms of financial support.

Read the full stories here:
China says trade with NKorea has nearly doubled
Associated Press
2011-10-22

According to Yonhap:

North Korea is expanding travel routes between China and its scenic resort in Mount Kumgang, a source familiar with the North said Monday, indicating Pyongyang’s continued efforts to earn much-needed cash from Chinese tourists.

The new routes will include extra flights from Chinese cities to Mount Kumgang on North Korea’s east coast, in addition to trains and expressways linking Beijing to the mountain resort via Pyongyang, the source said on condition of anonymity.

The move comes after North Korea recently ran a trial cruise from its northeastern port city of Rajin to Mount Kumgang.

The source also said more than 100 Chinese tourists traveled to the resort on a five-day itinerary at the end of last month.

By the end of this month, North Korea is planning to launch a tour program to Mount Kumgang from China’s northeastern city of Harbin, although it is not clear whether the flight will land in Pyongyang or at a military airport on the mountain, the source said.

North Korea is reported to be considering converting a military airfield near the resort to a civilian airport to facilitate travel to the area.

“Starting with Harbin, (North Korea) plans to operate flights for Mount Kumgang from 16 cities across China, including Beijing, Shenyang and Guangzhou,” the source said.

“They also plan to attract Chinese visitors by opening a railway and expressway linking Beijing, Pyongyang and Mount Kumgang,” the source added, saying the first train tour on the route will likely be in April.

The move comes amid a dispute over the handling of South Korean assets at the resort. Seoul halted an inter-Korean joint tour program to the resort in 2008 following the shooting death of a South Korean tourist in the area.

In protest, North Korea recently expelled South Korean workers from the resort and vowed to legally dispose of all South Korean assets there. The tour program had served as a cash cow for the impoverished North.

South Korea has asked foreign countries not to invest or engage in tourism activities at the resort in a bid to protect its property rights there.

Previous posts on Kumgang here.

Read the full story here:
N. Korea expands travel routes for Chinese tourists: source
Yonhap
2011-10-3

Pictured above (Google Maps): Pyongyang International Cinema Hall, home of the Pyongyang International Film Festival.

Koryo Tours sent out the following press release today:

Dates announced for the 13th Pyongyang International Film Festival – Pyongyang, DRPK (North Korea), 20th – 27th September 2012.

Koryo Tours has been the official Foreign Representative for the biennial Pyongyang International Film Festival since 2002 when they first submitted their film on the North Korean World Cup football team of 1966 The Game of Their Lives to a packed North Korean audience. “It was the first time that the North Koreans had seen just how their fans were received in 1966 – and the first foreign-made documentary about their country to be shown in their country. Myself and director Dan Gordon were pinched by the girls in the hotel restaurant as they wanted us to help get tickets to the best screenings” said Nicholas Bonner, co-producer of the film. “It will be some time before the festival becomes the Cannes of the East but we hope to get one or two film stars for the experience of a lifetime… probably one of the few places they can avoid being mobbed. The motto of the festival is independence, peace and friendship and is a great way of showing locals what is going on in the world of cinema.”

Perhaps the festival’s biggest achievement was the screening of the British Film Bend It Like Beckham at the festival in 2004 (seen by an audience of 12,000 locals) which cleared the path to make it the first western film to be broadcast nationwide on December 26th 2011. “We spoke to Gurinder Chadha, the Director, who was thrilled her film had been seen by a country who just adore football and of course it was the ideal film to show, full of hope – it has become unbelievably popular in the country and a talking point for everyone.

Koryo Tours director Nicholas Bonner is asking for submissions:

“Ealing Studios, The Goethe Institute and various embassies have all presented films but there is always room for more. Romantic comedy and period dramas are popular and we have managed to show films as diverse as Mr. Bean, the Swedish horror comedy Frostbiten to the South African drama Cry, The Beloved Country and UK’s Elizabeth I: The Golden Age.”

Koryo Tours will run an exclusive tour for tourists during the festival and will include screenings of North Korean films such as the classic Flower Girl (very popular in China during the 1970’s), a visit to the North Korean film studio with mock up streets and meeting various North Korean film celebrities.

For further information and images contact: info@koryogroup.com
Tel: +86 (10) 6416 7544
Website: www.pyongyanginternationalfilmfestival.com

Only weeks after helping launch the DPRK’s first Ultimate Frisbee tournament (see here and here), Koryo Tours launched the first bicycle tour of the DPRK. According to the Telegraph:

Beijing-based Koryo Group took 24 tourists from 10 nations on a 10-day tour of the most isolated nation on Earth.

The cyclists pedalled as far as 30 miles a day, often along dirt tracks in some of the most remote parts of the country, but also journeyed along the 10-lane Youth Hero Highway from Pyongyang to Nampo, on the west coast.

The itinerary is here. The Telegraph has a video of the tour here, and Koryo Tours has posted additional pictures here.

KCNA even gave an “interesting” shout out to the bike tour:

DPRK Directs Effort to Developing Tourism

Pyongyang, September 27 (KCNA) — The DPRK is directing much effort to developing tourism, with an eye to promoting the understanding, harmony, friendship and cooperation among nations and people of the world.

The country joined the United Nations World Tourism Organization (UNWTO) in September Juche 76 (1987) and the Pacific-Asia Tourism Association (PATA) in April 1996.

On September 27, World Tourism Day, Hong In Chol, a department director of the State General Bureau of Tourism, told KCNA:

The number of travel companies and people interested in the DPRK tourism is steadily increasing in Asian and European countries.

In particular, many tourists have visited the DPRK in the period of the grand gymnastic and artistic performance “Arirang” through international air routes and chartered flights from Shanghai, Xi An and Haerbin of China and Kuala Lumpur of Malaysia.

We have travel offices in China, Malaysia and Germany and plan to open such offices in other countries.

The bicycle tourism which took place in the DPRK some time ago under the sponsorship of the “Koryo Tours”, a British tourist agency, was very interesting.

The country’s tourist destinations have taken on a new look under the deep care of the Workers’ Party of Korea and the government, while the project for modernizing the infrastructure of tourism is progressing apace.

We will diversify the tourist program with cultural, sports, bicycle, golf and treatment tourism and improve all services.