North Korean Economy Watch

Incredible! 

Burger Chain ‘Rebuffed N.Korean Overtures’
Choson Ilbo
7/10/2008
 
Influential North Koreans tried to bring McDonalds into the country, but the fast-food chain declined citing lack of profitability, Radio Free Asia reported Wednesday. RFA quoted Nancy Mazeska at MacDonald’s International Franchise Division as saying the person who contacted the chain probably had “political connections” and a “history of success in North Korea.” But due to the poor infrastructure and distribution network and probable lack of demand, McDonalds decided to take a rain check.

McDonalds at one point thought about letting its franchise in South Korea handle North Korean operations, she said. She did not comment further on who the businessman was and when he contacted the company. According to North Korean press, mass-produced hamburgers were distributed in universities in Pyongyang in September 2000 at the orders of North Korean leader Kim Jong-il.

Many thoughts are running through my head:

1.  Can you imagine?  The “golden arches” right next to the Arch of Triumph in Pyongyang.  Of course the North Koreans would make sure that their “golden arches” were the largest in the world—3 meters taller than the ones in America.

2. Rumor has it that no two countries with a McDonald’s in them have ever attacked each other…with one recent exception: the bombing of Serbia in the 1990s.  Despite the fact that McDonald’s is frequently targeted by anti-American activists, the opening of a franchise in Pyongyang would in fact be a great symbol of hope.

I remember visiting the first McDonald’s in the Soviet Union just after it opened in Moscow.  I stood in line for hours to eat food that tasted exactly like it did in America (of course I was living in England at the time and their food didn’t taste much better than the Soviets’).  The reason I stood in line for so long is because so many Russians wanted to try it as well, and it was finally considered politically acceptable.  The same would probably be true of Pyongyang residents, and the line out the door would be telling.

3.  The hamburger is not entirely unknown to North Koreans.  All outbound flights on Air Koryo serve a hamburger (or at least it is some kind of meat patty in a much larger bun with a piece of lettuce).  In business class, you get it on a plate.  I don’t think it is that great, but it is made in the DPRK.  Here is a bad photo I took of the alleged burger.

UPDATE: 4. ROK Drop wonders if they would have used US beef! 

The most authoritative map of North Korea on Google Earth
Download it here

This map covers North Korea’s agriculture, aviation, cultural locations, markets, manufacturing facilities, railroad, energy infrastructure, politics, sports venues, military establishments, religious facilities, leisure destinations, and national parks. It is continually expanding and undergoing revisions. This is the tenth version.

This version includes: Expansion of infrastructure (railroads, electricity grid, elite areas, political monuments, burial mounds, dams, military facilities, and factories) in Hamhung, Chongjin, Sariwon, Raijin-Songbon (Rason) and other cities. Updates in Pyongyang: Pothonggang Exhibition Hall, Ssuk Island, Patriotic Martyrs Cemetary, Ostrich Farm, Kang Pan Sok Revolutionary School, Kumsong School, Manyongdae 1,000 Seat Restaurant. Specific manufacturing facilities and companies: Wonsan Rolling Stock Factory (RR manufacturer), Songnim-Hwanghae Iron and Steel Complex, Bukchang Thermal Power Plant, Sunchon Cement Factory, Namhung Youth Chemical Complex, Feb 8 Vinalon Complex, Hamhung Wood Carving Factory, Chongjin Chemical Fiber Complex, Unjong-ri Cooperative Farm, Sariwon Chicken Farm, Kanggye Chicken and Duck Farm, Hungju Youth Power Station, Korea Rason Taehung Trading Corporation. Updated Cultural Locations: Paeksang Pavilion (Anju), site of the DPRK’s first cricket game (2008), Sariwon Folk Village, Sinpha Revolutionary Site, International Friendship Exhibition, Paeksang Pavilion, Lake Sijung. Other locations: air force test bombing range, Kyo hwa so 1: Kaechon (overlay). Additinoally, most canals were eliminated from this version except the major projects on the west coast.

Disclaimer: I cannot vouch for the authenticity of many locations since I have not seen or been to them, but great efforts have been made to check for authenticity. These efforts include pouring over books, maps, conducting interviews, and keeping up with other peoples’ discoveries. In many cases, I have posted sources, though not for all. This is a thorough compilation of lots of material, but I will leave it up to the reader to make up their own minds as to what they see. I cannot catch everything and I welcome contributions.

A recent traveler with Koryo Tours sent this photo of Air Koryo’s new Tupolev parked at Pyongyang’s Sunan Airport.  According to a woman at the airport, it starts flying May 1, 2008 (May Day).

Click on the image for larger view

This morning the International Herald Tribune published an interesting AP story on Air Koryo, North Korea’s state airline.

As has been mentioned before, Air Koryo recently began upgrading its fleet–but guess who will seemingly be on the first flight? 

The airline also has taken delivery of its first new jet in years. South Korea’s Yonhap news agency, quoting diplomatic sources in China, reported Thursday that North Korea’s reclusive leader Kim Jong Il was likely to fly to Vietnam and China on the new plane next week.

Kim is widely believed to shun air travel. His previous trips abroad by luxurious special train were shrouded in secrecy and reports speculating on his destinations beforehand were not always accurate.

And although the economy at large is not doing so well, Air Koryo business is brisk. 

“The golden days are now[.]  They’re busier than ever,” says Nick Bonner of Koryo Tours. (paragraph edited)

In 1998, his Koryo Tours — which despite being similarly named for an ancient Korean dynasty is unrelated to the airline — escorted just 98 tourists to North Korea. The number doubled to 200 in 2006 and last year jumped to a still minuscule 1,100. Some of his customers also get into the country by train, a much longer trip.

Bonner said a roundtrip ticket on Air Koryo between Beijing and Pyongyang costs 2,550 Chinese yuan (US$365; €230) for economy and 4,340 yuan (US$621; €390) for business class.

What are Air Koryo’s most recent routes:

Air Koryo now has just three regularly scheduled international routes. Domestic service is said to be virtually nonexistent.

It flies roundtrip three times a week between Pyongyang and Beijing and twice a week to the northeastern Chinese city of Shenyang, an important source of trade for North Korea.

The other is return service once a week to Vladivostok. A flight to Khabarovsk, another city in the Russian Far East, stopped in 2005. The airline also had flew to Bangkok and Macau in recent years.

About the fleet upgrade: 

Perhaps illustrative of Air Koryo’s improving fortunes, in December it acquired a twin-engine Tu-204-300 jet manufactured by Russia’s OAO Tupolev, adding to its fleet of other Tupolev, Antonov and Ilyushin jets and turboprops.

Tupolev mentions the deal on its Web site, though did not disclose financial terms when asked.

A non-North Korean with intimate knowledge of the airline, who refused to be identified, confirmed the deal, adding North Korean pilots were receiving training in Russia with the craft set to begin operations at the end of April.

Although the article insinuates that economics are largely behind the fleet upgrade, a little nudging by China certainly did not hurt.  China gave Air Koryo a deadline to meet Beijing safety standards.  But despite China’s concern for air safety, Air Koryo still has one of the best records in the business:

Though concerns about safety have been raised — Air Koryo is banned from flying in the European Union — the carrier has apparently had just one major accident, a crash in West Africa in 1983 when the airline was known under a different name.

The plane, an Ilyushin 62 carrying 23 people, was en route to Conakry, the capital of Guinea, on an “international non-scheduled passenger” flight, when it went down in the Fouta Djall mountains, according to the Aviation Safety Network Web site. All aboard perished.

Air Koryo made its first flight to South Korea in August of 2000 to ferry 100 separated family members for temporary reunions with long-lost relatives in the South. The airline has made occasional flights to South Korea for special purposes as relations have warmed in recent years.

The article does not mention the other (minor) mishap in 2006:

On August 15, 2006 aircraft from Air Koryo (Tupolev 154B-2) on an international scheduled passenger flight from Beijing, China (Beijing Capital Airport) to Pyongyang, North Korea (Sunan International Airport) experienced a runway mishap (exited runway) during landing rollout after landing in bad weather at Sunan International Airport. No injuries were reported and damage to plane was minor. (Wikipedia)

Read the full article here:
North Korea’s quirky Air Koryo survives and, increasingly, appears to thrive
International Herald Tribune (AP)
4/18/2008

(UPDATE: 5 days after NKeconWatch posts the press release)

From the Japan Times (h/t OneFreeKorea)

Asked in a telephone conversation whether the hijackers called for help from the European Parliament, Ford said, “The only help they seemed to want was to publicize their offer.”

Ford said the meeting was set up by his North Korean hosts when discussing barriers to the removal of North Korea from the U.S. list of state sponsors of terrorism.

He said he has informed the Japanese government of his meeting with the hijackers.

“This is an opportunity that I hope the Japanese government will take to move closer to normalize relations between Tokyo and Pyongyang,” Ford said.

Of the nine hijackers who sought asylum in the North, three have died and two who later returned to Japan were convicted.

Read the full article here:
EU lawmaker meets North fugitives
Japan Times
4/15/2008

Press Release:

Monday 7 April 2008

Glyn Ford (Labour MEP for South West England), met in Pyongyang with Moriaki Wakabayashi and Takahiro Konishi two of the four remaining Japanese hijackers in North Korea. Moriaki Wakabayashi and Takahiro Konishi, who hijacked Japan Airlines Yodo Flight 351 from Tokyo to Fukuoka in 1970 declared that they are willing to return to Japan to face trial. 

Following the meeting with the hijackers, Glyn Ford MEP, said: “All four hijackers are now willing to return to Japan.  This offer is only conditional on the dropping of arrest warrants against three of them for possible complicity in the abductions of Japanese citizens to North Korea in the 1980s. Their return would mean that the last remaining obstacle to the US removing its terrorist state designation of North Korea would have been removed consequently allowing progress to be made towards a final settlement of the current nuclear crisis on the Korean Peninsula.”

He continued “This is an opportunity that I hope the Japanese government will take to move closer to normalise relations between Tokyo and Pyongyang. If US Army deserter and defector Robert Jenkins can return to Japan after only serving a token 30 days in jail I see no reason why the Japanese government should refuse to accept an offer that might well lead to the four remaining hijackers, all now in their late 50s and 60s, facing up to 12 years in prison.”

In January Glyn’s book North Korea on the Brink: Struggle for Survival was published by Pluto Press. It will be published in Tokyo in June by Daiichihoki and in Korea by Humanitas.

According to Reuters, Air China on Monday launched service to North Korea, making it the world’s only foreign airline to fly regularly to Pyongyang.

The Beijing-Pyongyang flight route was postponed by three months after Air China said preparatory work took longer than expected.

Air China will fly the return trip three times per week, making Pyongyang a Star Alliance destination, the airline grouping led by Singapore Airlines, Lufthansa and United Airlines.

Air China said previously that it saw the financial potential in the route, primarily from the Chinese tourist business.

I predicted that Air China would primarily service Chinese customers, with Westerners sticking with Air Koryo, the North Korean airline. In separate conversations with Koryo Tours and Walter Keats both tour operators expressed a preference for Air Koryo because of its flexibility and unique atmosphere, neither of which Air China can easily match. 

The time-warp effect travelers feel when boarding an Air Koryo flight, however, might be soon diminished.  Largely at the insistence of Beijing, Air Koryo has recently updated its fleet to meet international safety standards.  Although the stewardesses appearance and speaker announcement welcoming arrivals to the land of “juche paradise” will likely remain the same, the 1950’s era deco interior will certainly take on a more conventional feel. 

Source material here:
Air China launches flights to North Korea
Reuters
Simon Rabinovitch
3/31/2008

TU-204-300 touches down at a North Korean airport
(Hat tip to Mateusz)
12/28/2007

A TU-204-300 has touched down at a North Korean airport in what became Russia’s first successful deal to supply its most advanced long-range jet abroad. With its 500-8500 flying range, the plane is capable of swiftly transforming its fuselage on the ground. The plane has already been making shuttle non-stop flights inside and outside Russia. North Korean flag Carrier Air Koryo has ordered the TU-204-300.

TU-204-300 with PS-90A engines is a mid-range passenger a/c is intended to carry passengers, luggage and cargo on domestic and international trunk routes of 500 to 8500 km distance . The airliner was built on the basis of TU-204-100 a/c and represents the continuation of TU-204/214 a/c family. TU-204-300 a/c performed its maiden flight 18 August, 2003. The aircraft is produced in series at “:Aviastar-SP” Closed Stock Company in Ulianovsk. Opposite to TU-204-100 the TU-204-300 a/c has a shortened fuselage (by 6 m) and increased fuel reserve. Set of equipment was updated. Improved comfort level of the cabin helps the passengers to withstand long flights. Maximal payload is cut down to 18000 kg at increased flight range.

Click here to get specs on all the planes in Air Koryo’s fleet (h/t DPRK Studies)

UPDATE: Surprise–it has been delayed:

Air China delays Pyongyang route for three months
Reuters
1/2/08

Air China has postponed Wednesday’s opening of a new route to the North Korean capital, Pyongyang, until March, citing operational reasons, but denied the decision was linked to politics.

Hat tip Michael Rank

Original Story:

Air China to Fly to Pyongyang
CARNOC.com (hat tip to Werner in Vienna, Aus.)
Simon Li   
11/06/2007

On Nov. 5, Air China announced that the airline will launch Beijing-Pyongyang route on Jan. 2, 2008. This new service means that the airline’s international operations (including Hong Kong SAR and Macau SAR) will be increased to 72 routes.

Full flight schedule of Beijing-Pyongyang service as below:

Flight No.:  CA121
Route:  Beijing - Pyongyang
Days of Operation: Wed, Fri, Sun
Aircraft Type:  B737
Dep. Time: 14:00
Arr. Time:  17:00

Flight No.: CA122
Route:   Pyongyang - Beijing
Days of Operation: Wed, Fri, Sun
Aircraft Type:  B737
Dep. Time:  18:00
Arr. Time:   19:00

(NKeconwatch: Notice how this does not conflict with air Koryo’s Tuesday/Saturday schedule.  I predict that if this goes through, we will see greater volumes of Chinese tourists take the Air China flights, and western tourists will still demand the “unique atmosphere” of air Koryo–they might even pay more for it!)

Yonhap
12/16/2007

North Korea’s state-run airline is likely to be used to ferry South Korean tourists to the North’s Mount Paektu, a government official said Sunday.

The official, who declined to be identified, said Air Koryo planes may be used to carry tourists, owing to concerns about safety related to Samjiyeon Airport, about 30 kilometers southeast of the mountain.

He did not elaborate on the nature of safety concerns, but said it may be inappropriate for South Korean flag carriers like Korean Air and Asiana to use the airport.

Tours to the 2,744-meter-high mountain, held sacred by many Koreans, are the result of the summit meeting between South Korean President Roh Moo-hyun and North Korean leader Kim Jong-il in early October.

He added that flights would probably use Seoul’s Gimpo International Airport, fly over Gangwon Province, head out into the East Sea before turning north toward Mount Paektu, on the North Korea-Chinese border.

The official said Gimpo has been selected as it can easily handle greater numbers of people than provincial air terminals, and the high level of airport security that can be maintained.

Hyundai Asan, which is responsible for organizing tours to North Korea, said direct flights linking Gimpo and Mount Paektu should begin in May, 2008.

The company currently organizes tours to Mount Geumgang on the east coast, and the historic city of Kaesong just north of the demilitarized zone separating the two Koreas on the west coast.

The most authoritative map of North Korea on Google Earth
North Korea Uncovered v.7
Download it here

This map covers North Korea’s agriculture, aviation, cultural locations, manufacturing facilities, railroad, energy infrastructure, politics, sports venues, military establishments, religious facilities, leisure destinations, and national parks. It is continually expanding and undergoing revisions. This is the sixth version.

Additions to the latest version of “North Korea Uncovered” include: A Korean War folder featuring overlays of US attacks on the Sui Ho Dam, Yalu Bridge, and Nakwon Munitians Plant (before/after), plus other locations such as the Hoeryong Revolutionary Site, Ponghwa Revolutionary Site, Taechon reactor (overlay), Pyongyang Railway Museum, Kwangmyong Salt Works, Woljong Temple, Sansong Revolutionary Site, Jongbansan Fort and park, Jangsan Cape, Yongbyon House of Culture, Chongsokjong, Lake Yonpung, Nortern Limit Line (NLL), Sinuiju Old Fort Walls, Pyongyang open air market, and confirmed Pyongyang Intranet nodes.

Disclaimer: I cannot vouch for the authenticity of many locations since I have not seen or been to them, but great efforts have been made to check for authenticity. These efforts include pouring over books, maps, conducting interviews, and keeping up with other peoples’ discoveries. In many cases, I have posted sources, though not for all. This is a thorough compilation of lots of material, but I will leave it up to the reader to make up their own minds as to what they see. I cannot catch everything and I welcome contributions.