North Korean Economy Watch

Click image to see the Chinese, Russian, and North Korean piers

UPDATE 5: No more intra-Chinese coal shipments  through Rason have been reported following this 2011 experiment.

UPDATE 4 (2011-6-4): KCNA reports some additional details on the coal being shipped from Hunchun to Shanghai via Rason. According to the article:

It was against this backdrop that China was in the process of transporting 20,000 tons of coal to Rason Port via Hunchun from May 14 and then transporting it to Shanghai by a cargo ship.

Yanbian Ribao, conveying this news on May 18, reported that the Shanghai branches of the Hunchun Mining Group and the Chungjiang Group would transport 500,000 tons of coal to Shanghai by this method this year. This would be tantamount to more than 14,000 truck loads. An official concerned of the Mining Group said that transport of loads to various provinces of Southern China by this method would help sharply cut down the time and transport charges, etc. as compared with the inland transport.

So apparently the 20,000 tonne pilot project what supposed to pave the way for a 500,000 tonne project that never materialized.

UPDATE 3 (2011-1-25): China ships coal from North Korean port for first time. According to Michael Rank:

China has for the first time shipped coal from the North Korean port of Rajin following a deal by a Chinese company to renovate the port, a Chinese website reports.

The 20,000 tonnes of coal, mined in Hunchun, about 80 km north of Rajin, was shipped to Shanghai last month. After going through customs inspection at Hunchun, it was transported by road via the Wonjeongri border post near Dumangang, the report said.

It noted how shipping the coal from Rajin saved the cost of transporting it to the nearest suitable Chinese port of Yingkou or further afield by train and how the deal to renovate and expand Rajin’s no 1 dock would help to boost trade from northeast China more generally.

It said the Dalian-based Chuangli Group reached a deal to lease the dock in 2008 and the following year agreed to renovate it and expand its capacity to one million tonnes a year, although news was not announced until last spring.

But when this reporter visited Rajin last September there was no sign of the port being renovated and expanded, and although a couple of small North Korean vessels were moored at the port, there was little sign of any activity and the area was largely deserted.

China does have ambitious hopes for Rajin, however, and last month a Chinese company, Shangdi Guanquan Investment Co, was reported to have signed a letter of intent to invest $2 billion in an industrial zone in the region.

The Wall Street Journal quoted an assistant to the managing director to Shangdi Guangqun as saying the plan was to develop infrastructure, including docks, a power plant and roads over the next two to three years, followed by various industrial projects, including an oil refinery, over the next five to 10 years. He said the company was waiting for a response from the Pyongyang government before applying for approval from China’s Ministry of Commerce.

“It’s all pending at this stage, and it’s really up to the Korean side to make the decision,” the assistant, named only as Han, said, according to the WSJ. He added that the $2 billion figure was what the North Korean side had hoped for, not necessarily what his company could deliver.

North Korea has implausible dreams of turning the city into an international freight brokerage, export processing and finance hub, and has even made a computerised promotional video about its plans to build glitzy skyscrapers along the seafront.

Photo of Rajin port here.

UPDATE 2 (2011-1-14): According to Every China:

As the first cross-border cargo ship for domestic trade in China, 10,000 tonner “Jinbo”, loaded with 21,000 tons of coal, arrived safely at Shanghai and docked steadily at the pier of Waigaoqiao Terminal at 4 p.m. on January 14. This marked the success of the maiden sail for cross-border domestic trade in our nation.

It is introduced that this 10,000 tonner Jinbo is a freight ship serving for Hunchun Chuangli Shipping Logistics Co., Ltd. of Jilin Province. There was totally 20,000 tons of coal in this cross-border transport produced by Hunchun Mining Group, departing from Hunchun Quanhe Port on December 7, 2010 to Rajin Port of North Korea and cargo concentration in port was accomplished there after one month. Special purpose vessel Jinbo ship docked at No.1 pier of Rajin Port of North Korea at 15 o clock on January 6 this year. The shipment began on 7th and the ship departed from Rajin Port at local time 10:30 on January 11 and arrived safely at the pier of Waigaoqiao Terminal, Shanghai after over 3 days voyage. Currently, related procedures for customs and inspections are in process.

Successive notices on pilot cross-border domestic trade transport in Jilin Province have been issued by General Administration of Customs, Ministry of Transport and General Administration of Quality Supervision, Inspection and Quarantine of the People s Republic of China since last year. Now, the successful arrival of the first cargo ship at the destination is an important achievement gained by Hunchun City or even Yanbian Autonomous Prefecture from implementing the forerunning policy of The Planning Outline of Cooperation in the Exploitation of Tumen River Zone, China. It is also a significant breakthrough in new international land-sea joint transport passage of Hunchun City or even Jilin Province, marking a crucial progress in the Launching out to sea through borrowed port strategy of Jilin Province.

Not only the coal resource of Hunchun City, but also that of Heilongjiang Province, closely adjacent to Yanbian area, can be transported to South China after Rajin Port exit is available. Because of the relatively low transport cost compared with that of other ports at home, this sea passage may become the Golden Passage for transporting coal from the north to the south until then.

UPDATE 1 (2011-2-22): According to the China Daily:

A city in Northeast China is aiming to import coal from the Democratic People’s Republic of Korea (DPRK) as part of its effort to establish an international coal production base in the border area.

Hunchun, a city wedged between the DPRK and Russia, has coal reserves of 1.2 billion tons, and supplies the fuel to Jilin, Liaoning, Jiangsu and Shangdong provinces. It currently produces about 6 million tons of coal annually.

“We plan to raise our production to more than 10 million tons a year by importing and exploiting coal both from the DPRK and Russia,” said a senior Hunchun city official, who declined to be named.

In January, coal was shipped for the first time from Hunchun to Shanghai via the DPRK port of Rajin, following a deal made by a Chinese company to renovate that port.

The 20,000 tons of coal mined in Hunchun reached Shanghai in three days in the transportation trial. Normally, it takes more than 10 days to transport that amount of coal by train from Hunchun to Shanghai.

“We will try to deliver coal by this new shipping route in the future, because it saved a lot of money in transportation costs,” the government officer said.

The city government also intends to transmit the electricity power generated by its coal-fired power plant to the DPRK.

China has been striving to establish an international sea route through the two countries to boost bilateral trade.

Dalian-based Chuangli Group invested 30 million yuan ($4.6 million) in improvements to Rajin last year, according to officials.

The Dalian group expanded the port’s annual shipping capacity to 1 million tons last year, after reaching a deal to lease and reconstruct it in 2009.

Hunchun officials said the city’s foreign trade volume has quadrupled in the past three years, thanks to improved international shipping.

By taking advantage of cross-border energy production and transportation, Huchun expects its coal production to rise by 22 percent during the 12th Five-Year Plan (2011-2015).

The Seoul-based Yonhap News Agency reported earlier that the DPRK plans to cooperate with Chinese enterprises on exploiting mineral resources in Hamgyeongbuk-do in the DPRK, which has about 200 million tons in coal reserves.

ORIGINAL POST (2011-1-4): Rason is being used to transport coal from Hunchun to Shanghai. According to the Choson Ilbo:

In official confirmation that closer China-North Korea business ties have come to fruition, the state-run Xinhua news agency and local media in Jilin on Monday said China has transported 20,000 tons of coal from a mine in Jilin to Shanghai and Ningbo through North Korea’s Rajin-Sonbong Port since Dec. 7.

The coal produced in Hunchun was carried by some 570 35-ton trucks across the Duman (or Tumen) River and transported to the port along a 60 km unpaved road between Hunchun and Rajin-Sonbong.

A source in Hunchun said, “Since a month ago, dozens of trucks a day have been going to the North” through Quanhe Customs Office.

The abundant coal deposits in the northeastern China are mainly used for heating homes in southern China in winter, but with no access to the East Sea, China had to transport it overland to Yingkou Port in the Bohai Bay, some 800 km to the west, incurring logistical costs.

China has long tried to get the right to use Rajin-Sonbong and Chongjin ports in North Hamgyong Province in North Korea in a bid to secure an East Sea route.

In 2009, Chuangli Group, an environmental facilities manufacturer in Dalian, obtained the right to use a pier in the Rajin-Songbong port for 10 years in collaboration with a North Korean trading company. Another Chinese firm in Tumen is also reportedly seeking the right to use Chongjin Port.

Prof. Yoon Seung-hyun of Yanbian University said Chongjin Port, has better facilities than Rajin-Sonbong. “The North is more open and aggressive” because it is groaning under international sanctions and aid from South Korea has dried up, he added.

Recent posts on Rajin (Rason) can be found here.

Read the full story here:
Chinese Shipping Through N.Korean Port in Full Swing
Choson Ilbo
2011-1-4

Andrei Lankov writes in the Korea Times:

The North Korea of the old Stalinist days is gradually dying. In some regards the North is still a Stalinist society, but it is changing even if these changes do not necessarily attract much outside attention. One of the most dramatic transformations of the last year is a great relaxation of the control over movement inside North Korea.

Let’s start from how the system used to work in the past. For decades, no North Korean was allowed to leave his or her native county without special travel permit, to be issued by local authorities. The only exception was that a North Korean could visit counties which had a common border with the county where he or she had official household registration. If found outside his or her native county without a proper permit, a North Korean was arrested and then ‘extradited’ back to their native county for appropriate punishment.

There had to be valid reasons for issuing a travel permit, unless the person went somewhere on official business. In most cases one had to produce an invitation from relatives for a wedding or funeral or other sufficiently important event. Then the paperwork could begin. In most cases the application was first authorized by the party secretary in one’s work unit, then it was sent to police and, finally, to the so-called “second department” of a local government (these departments were staffed with police officers).

There were various types of travel permits. For example, a trip to some special areas, like Pyongyang or districts near the DMZ, required a special travel permit which had to be confirmed by Pyongyang. There were also special types of permits for the military and some very special types for big wigs.

A trip overseas was virtually impossible. North Koreans could go abroad only on official missions and, in a very limited number of cases, they were permitted to visit relatives in China.

The system crumbled in the mid-1990s. The Great Famine made it unsustainable. Around 1996 the public distribution system collapsed, and millions of North Koreans began to move all over the country looking for food. The government turned a blind eye to their activities, and soon the restrictions ceased to be enforced.

It is not clear to what extent the travel control system was officially relaxed, and to what extent the changes resulted from benign neglect. For all practical purposes, from around 1997-98 the North Koreans enjoyed some freedom to travel without permits, with Pyongyang and some sensitive areas being an exception. This sudden relaxation (even collapse) of the domestic controls was a necessary preliminary condition for the explosive growth of private economic activities in the country. People could trade only because they could travel.

North Koreans also began to cross the border and travel to China where they looked for food and jobs. Crossing the border was illegal, but it was impossible for a country with a crumbling economy to enforce border control. Thus, once again, authorities turned a blind eye on everything which was happening in those areas.

In 2001 the system changed again. The Great Famine was over, largely due to the efforts of international relief agencies and the new policies of Seoul busily feeding its “brother/enemy.” Thus, the system of travel permits was re-introduced, but its new version, in operation from 2002, is less restrictive than earlier regulations – and still largely ignored.

Nowadays, the authorities issue travel permits for trips lasting a week or two. Often they can be bribed to speed up the process, and in such a case the permits are produced almost immediately. The amount of bribe varies, depending on the destination: from some $10 for Pyongyang to merely $2 to $3 for a humble countryside destination. Money seems to be paid usually in exchange for speed.

There is something even more remarkable: In recent years North Korean authorities began to issue certificates which allow its bearer to travel to China, crossing the border legally. The procedure is time-consuming, taking about six months. As usual, it requires special security checks by the authorities. However, the outcome of such procedures is not pre-ordained, so generous payments are helpful to steer officials in the right direction. In this case, the bribes are much larger, up to $100 (as opposed to the usual $50). For the average Korean this is a large amount of money, but a majority of the applicants are engaged in the cross-border shuttle activity, and for them $100 is not an exorbitant sum. They are quite happy to get permits. Even if they pay bribes they still feel themselves more secure and more law-abiding. Being Koreans, they obviously prefer to go about business legitimately.

So, the old system is dying, even though the authorities would much prefer to keep it in place. Nonetheless, it might take many years before these changes have meaningful political consequences.

Read the full story here:
Travel permits in N. Korea
Korea Times
Andrei Lankov
1/2/2010

According to Yonhap:

Two sailors were killed and 15 remain missing after a North Korean-registered cargo ship sank in the Yellow Sea off China, according to a news report Saturday.

The North Korean ship Kang Bong sank on Friday morning “amid strong gales” off Lianyungang Port in the eastern Chinese province of Jiangsu, China’s Xinhua News Agency reported.

Three sailors had been rescued, and rescuers recovered the bodies of two deceased sailors, the report said, citing the Rescue and Salvage Center under the Ministry of Transport.

Two helicopters and a rescue ship were searching for the missing sailors, but strong winds and high waves were hampering the search, the report said.

Read full story here:
Two dead, 15 missing as N. Korean cargo ship sinks: report
Yonhap
1/1/2010

The Choson Ilbo begins this story with “Rumor has it”….

Rumor has it that China is getting directly involved in the development of North Korea’s Rajin-Sonbong Port, once the center of the UN Development Programme’s Duman (or Tumen) River project in 1991. A source in Beijing said Wednesday, “As far as I’m aware, North Korea and China’s Commerce Ministry recently signed a memorandum of understanding outlining Beijing’s investment of US$3.5 billion over five years beginning next year” in the special economic zone there. The source said China is investing in roads, ports and gas facilities in the region.

The Rajin-Sonbong area, at the mouth of the Duman River, is a strategic point of economic cooperation between the two countries, but neither bank is Chinese territory. One side is in North Korea and the other in Russia, so to get to the East Sea China had to borrow a port from either side. China did nothing about the UNDP initiative in the 1990s, but since the mid-2000s, it has set its eyes on the area.

North Korea for some reason rented out the best equipped dock there to Russia in 2008 but since last year it has been seeking investment from China to overcome dried-up aid from South Korea amid international sanctions. North Korean leader Kim Jong-il urged Chinese President Hu Jintao when he visited China in May this year to invest in the region.

But the rumor of direct investment from the Chinese government has not been confirmed. One diplomatic source in Beijing said, “I’ve heard nothing about the Chinese Commerce Ministry’s direct involvement in negotiations. It’s just one of many rumors since North Korea became active in developing the Rajin-Sonbong area.”

UPDATE from the Choson Ilbo:

Chinese officials with close ties with North Korea say the North has used to demand hard cash for business deals but is now taking a more flexible approach. The Global Times, a sister publication of the People’s Daily, published a series of reports Saturday about the Rajin-Sonbong special economic zone of North Korea.

It said street lights and neon signs powered by windmills have appeared in the region, which had earlier been pitch dark at night, while the previously ubiquitous soldiers have vanished.

North Korea allowed 4,000 Chinese residents in the area to rent commercial property and agreed to designate an area in the Rajin-Sonbong special economic zone to be jointly administered by the two countries.

North Korea had offered China to develop one or two islands in the estuary of the Apnok River on a 50-year lease, but when China demurred it apparently offered a 100-year lease and even allowed construction of golf courses and other recreational facilities.

…

Many private Chinese companies are reticent about investing in North Korea. Not only is there a lack of business laws to protect their investment, there are also too many political uncertainties. As a result, the Chinese government is not playing a very active role. In the case of the bridge across the Apnok River, North Korea apparently wanted Chinese state-run companies to take part in construction, but Beijing declined.

One source in Beijing said some Chinese companies are showing great interest in developing the Rajin-Sonbong area, but most are biding their time. “Chinese businesses still don’t seem to trust the sincerity of North Korea’s desire to open up its economy,” the source added.

Additional Information:
1. The Chinese and Russians currently lease docks at Rajin. You can see a satellite image of them here.

2. Here is more information on China’s 10-year lease of Rajin.

3. Here is information on the Yalu Islands China is reportedly leasing.

4. The Russians are also building Russian gauge railway line from the Russian border to the port in Rajin.

5. Here are all previous Rajin (Rason)posts

Read the full stories here:
Beijing ‘Pouring Money into N.Korea’s Special Economic Zone’
Choson Ilbo
12/30/2010

N.Korea’s Cross-Border Business with China Picking Up
Choson Ilbo
12/30/2010

Koryo Tours plans to launch the first ever bicycle tour of the the DPRK in September 2011.

According to the Wall Street Journal’s Korea Real Time:

North Korea may not be at the top of most vacation destination planning lists, but it’s relatively easy to visit and safe. A number of tour companies run trips through much of the year, including for the Mass Games during late summer. There are no limitations on US citizens joining tours inside the country.

One of the tour operators, Koryo Tours, has lined up something a little different for 2011: a cycling trip through the country in September.

According to Koryo, this will be the first ever cycling tour around the communist nation. Participants on the trip will be in the saddle for around 4-8 hours a day over the course of a week, pedaling to Nampo on the west coast, through the ancient capital of Kaesong and with an option to head up into the mountains around Mt. Paekdu.

The company is planning to bring in mountain bikes from Beijing for the trip and will carry spare parts in a support vehicle, where the saddle-sore can take a break. All the cycling will be on tarmac roads.

As with all trips to North Korea, the group will be chaperoned by local guides. Hannah Barraclough at Koryo says the guides have been in training for the trip and have been cutting back on smoking in preparation. While there will be limitations on where photographs can be taken, regular stops for picture-taking are planned.

Ms. Barraclough says Koryo is planning to take around 20 people on the trip and initial interest has been good.

At the end of the trip, the company plans to donate the bikes to the local people.

The Koryo Tours web page is here.

Read the full story here:
Tour De Corée du Nord
Wall Street Journal Korea Real Time
Alastair Gale
12/3/2010

According to the Daily NK:

A source has reported that the North Korean authorities are allowing ordinary people to visit China again, while claiming it as an example of “Kim Jong Eun’s consideration” for the people.

A lengthy ban on cross border visits was imposed in late August to cover the anniversary of the regime founding on September 9th, Party Delegates’ Conference on September 28th and anniversary of the Workers’ Party founding on October 10th. This has now been lifted.

The source said, “Visiting relatives in China has been allowed since the 5th.“ According to his explanation, the propaganda department of provincial committees of the Party held a lecture on the 5th targeting those requesting permits to visit China so as to educate them on things to keep in mind. During which, a cadre in one lecture reportedly claimed, “Thanks to the consideration of Comrade Youth Captain, private tours to China are to be allowed, and in future will progress in the form of state business.”

The National Security Agency is responsible for preparatory lectures for would-be North Korean tourists; the NSA makes them sign an oath not to reveal any national secrets, not to have any connection with South Koreans or Chinese religious organizations in China, and to submit items that they cannot bring back into North Korea.

However, the source sought to emphasize, “The propaganda department of the Party has carried this out this time in an attempt to let the North Korean tourists know that it is part of “Kim Jong Eun’s consideration.”

Additionally, the source said that the lecturing cadres were keen to encourage tourists to “receive actively and willingly help from Chinese relatives” and told them “there is no limit, so bring as many products and as much money as you want.” However, there was one limitation, “You should not meet South Chosun people or bring South Chosun products.”

The source added also, “The department demanded that would-be tourists offer donations,” saying, “Since the Comrade Youth Captain has done you a special favor, it is reasonable for you to prepare the necessary goods for local kindergartens, schools or other social facilities.”

Interestingly, the process of issuing passports, visas and permits has apparently been significantly quickened.

Normally, when a North Korean who has relatives in China submits an application form to a municipal or provincial office of the National Security Agency, the application goes to Pyongyang NSA via the foreign affairs section in each city or province. The NSA confirms that the applicant has relatives in China through the Chinese authorities, and then the authorities issue permits and visas.

Going through the whole process generally takes between three and six months. Of course, bribes are needed to keep an application moving along, and the process can be expedited depending on the value of the bribe.

However, this time the process, from submitting the application form to receiving the permit, is only 15 to 20 days.

Looking at the situation, the source added wryly, “Since the authorities are encouraging people to take trips to China and therefore tourist numbers will increase, cadres in foreign affairs sections of the local NSA will be in a favorable situation.”

Read the full article here:
North Korean Tourists Back in China
Daily NK
Im Jeong Jin
11/10/2010

According to the Choson Ilbo:

North Korea is pushing the implausible dream of turning the city of Rajin-Sonbong in North Hamgyong Province into an international freight brokerage, export processing and finance hub. A 3D video elaborating on a blueprint for the development of the city was made right after leader Kim Jong-il visited China in May.

The video, obtained by the Chosun Ilbo from a North Korean source in China, says the North worked out a plan in June to develop the city by giving distinctive roles to each of its six districts. “The video was made as material for reporting to Kim Jong-il,” the source said. “Discussion on the blueprint started right after Kim’s visit to the city in December last year and it was then hastily completed when people were talking about possible Chinese aid to the North after Kim’s visit to China in May.”

In December, Kim reportedly reprimanded senior officials there for making no progress in two decades since it was designated a development zone.

The regime upgraded Rajin-Sonbong to a special city in January. Rumor has it that Kim’s brother-in-law Jang Song-taek, the influential director of the Workers Party’s Administration Department, is pushing for development there.

The narrator in the video says, “In the future, Rajin-Sonbong will turn into a world-class economic and trade zone based on international freight brokerage, export processing and finance business and into a beautiful cultural port city in the era of the Songun (military-first) ideology.”

The narrator quotes regime founder Kim Il-sung as saying, “Rajin-Sonbong must become a better city than Singapore when you establish an economic and trade zone there.” Kim Jong-il is quoted as saying, “To build Rajin-Sonbong well, we must carry out the construction project according to an urban development plan.”

The video says the regime made a detailed plan to develop the city. A Kim Il-sung statue and public buildings such as an exhibition hall will be built in the Jungsim District. Changpyong District, which lies close to Rajin-Sonbong Port, will become a residential area. Anju District will become a finance center with hotels, banks and a department store will be built. High-risers including a 40-story office building will be built in Sosan and Dongmyong, and light industry will be built on both sides of Rajin Railway Station in Yokjon District.

Six design research centers in Pyongyang and Rajin-Sonbong were tasked with producing the blueprints.

But experts say chances that the project will come to fruition are near zero. “If Rajin-Sonbong is to be developed according to the blueprint in the video, the North would have to reform and open up. It can’t become an international trade and finance center without huge investment from South Korea, the U.S. and Japan,” a South Korean government official said.

So far, only a road linking the Chinese city of Hunchun with Rajin-Sonbong Port is being built in accordance with Chinese plans to ship goods from there.

Cho Bong-hyun, a researcher at the Industrial Bank of Korea’s economic research center, said an estimated 5 million tons a year of grain, coal and timber from northeastern China are being transported to southern China, and China can save up to US$10 per ton or $50 million a year in transport costs if it uses Rajin-Sonbong Port instead of railways.

The port could also be of help to China for exports. There are also rumors of a joint industrial complex in the area where North Korea would provide the labor for Chinese firms.

But a Chinese businessman operating in the North said the North and China have different ideas about the development plan, so nobody knows if and when development will get under way.

The video can be seen at the Choson Ilbo web page below.

Read the full story here:
N.Korea Pursues Dream of Int’l Business Hub
Choson Ilbo
11/5/2010

UPDATE: Martyn Williams writes in PC World (11/5/2010):

A new PDA (personal digital assistant) has hit stores in North Korea, according to a student who writes a blog from the secretive state.

The device, which doesn’t appear to carry any branding, has a color touchscreen display that occupies its entire front, according to photos published on the “Pyongyang Show and Tell” blog. The Russian-language blog is maintained by a Russian student who is studying in the country.

Installed software includes a Korean dictionary and translation dictionaries pairing Korean to and from Russian, English, Chinese and German, the blog report said. There are several basic utility programs and an electronic map of the country although the PDA does not feature GPS (global positioning system).

There is also no wireless networking so data transfer has to take place via a USB connection to a Windows or Linux computer. Data can also be transferred via MicroSD card, which is the same as used in domestic cell phones.

“Comparing it to modern things like, let’s say, the iPad, it’s nothing,” the blog’s author, who didn’t wish his name to be used, told IDG News Service via email. “It’s still good as a dictionary, except I don’t see any other advantages.”

It’s not the first PDA in North Korea.

In 2003 the country’s media said “Hana 21,” a PDA developed by the Samilpo Information Center, had been put on sale. The device included English-Korean and Korean-English dictionaries as its main function and also had several games and a basic word processor. Input was by pen and touchscreen.

According to published images of the Hana 21, the two devices are different.

At the time the Hana 21 was said to cost around 200 euros (US$182 at the exchange rate of the time).

The new PDA that hit stores recently costs around US$140.

“It’s still hard to buy for a Korean, but there are many people who keep their money for years and can afford it,” the student said via email.

PDAs have long been out of fashion in many countries after their features and functions were duplicated by smartphones. North Korea has a 3G cellular network, but most cell phones have only basic features.

ORIGINAL POST: Show and Tell Pyongyang introduced the world to the DPRK’s version of Linux: Red Star.  Now he has introduced us to the DPRK’s new Personal Digital Assistant (PDA).

Here are pictures from the Russian web page:

According to the Russian-language web page (via Google Translate):

A few weeks ago in North Korea has started selling the first PDA. In all the computer shops you can see the advertising of the new items. [I] offer a small review of this device.

On sale are a few options. The difference between them – is the amount of internal memory and a built-in slot for the stylus. The most feature-rich [costs] $ 140 and has 8 gigs of internal memory and a slot for the stylus, so you do not accidentally lose it.

In addition, there is a slot for MicroSD memory cards – the same as in the local mobile phones.

The main function of which is worth noting (and more generally for which there is a fly sabzh), an electronic dictionary Samhyn (삼흥) with the Russian language. It is no secret that South Korea produced electronic translators, but, according to eyewitnesses, the Russian language is absent in them as fact. And in this case, Russian-Korean and Korean-Russian dictionaries most voluminous in the number of vocabulary words. Besides, there are English, Chinese and German. Also has a large Korean Wiki Grand Korean Dictionary.

So for me personally, the main value of the PDA – is an electronic dictionary, which can carry with them always and everywhere. And the rest is not so important.

So what else is there? There is a map of Korea’s system of teaching foreign languages (English, Chinese). By the way, about a month ago there was an opportunity to put maps on your mobile phone. Application free of charge and requires activation. Put it on a large computer center of the city. []

Device has access to TV, headphones and a USB-slot. Possible to connect devices to both Windows, and Linux (in this case, Red Star)

On the whole – everything is simple and works quite well. At the moment, the firmware needs some work, not all features fully implemented, but the Korean comrades promise to update and refine.

If anyone else has more information, please let me know.

Institute for Far Eastern Studies (IFES)
NK Brief No. 10-11-01-1
11/1/2010

The North Korean Ministry of People’s Security (MPS) recently issued an order restricting the use of automobiles and warning that any car or truck used to earn private income would be confiscated by the State. There were a few cases of authorities cracking down on the use of private buses in the mid-2000s, but this is the first time there has been a widespread crackdown on the private use of all vehicles.

According to a report from the Daily NK, a source from North Hamgyeong Province has revealed that “on an order from the MPS, a crackdown on privately-owned cars, buses, and 1.5-2 ton small trucks began last month,” and, “all traffic police were mobilized and are checking all registrations, car-use permits, and driving licenses.” According to the source, each regional transportation authority is filing comprehensive situation reports, which show that with the exception of cars used by the elite, all illegally-used cars are being confiscated. Even cars used by military-run foreign capital organizations are subject to inspection by police.

In North Korea, the lack of electricity has led, since the mid~2000s, to the sharp drop in the use of trains and a rise in reliance on the so-called ‘service car’ as the primary method of moving people and goods around the country. This crackdown on service cars will be carried out in two phases: Phase 1 will run until the end of the year, then Phase 2 will be carried out until April 2011. The ownership and use of cars by organizations and businesses will also be investigated, while other cars will be inspected one at a time as they travel the roads. If any illegal use is discovered, the car will be impounded.

This kind of measure appears to be one aspect of North Korean authorities’ on-going battle against “anti-socialism.” Cars and other government property being put to private use is problematic, but a crackdown of this size indicates that organizations and government workers are abusing the rules on such a scale that the government can no longer tolerate their corruption. In order for these service cars to exist, authorities must break laws, forge documents, and pay bribes to get a car registered, purchase gas, and handle profits.

However, a crackdown on these cars is expected to have many side-effects. Service cars began replacing trains in 2004, but the people’s reliance on them grew so quickly that they are now the primary means of transportation throughout North Korea.

Ultimately, the North can not avoid significant aftershocks of the measure; without service cars, not only will businesses suffer production problems, those people who make their living through wholesale and retail markets will suffer, and the standard of living for people across the country will take a hit.

Previous posts on this topic cna be found here and here.

According to the Daily NK:

With North Korea’s domestic security forces having been engaged in inspecting and confiscating vehicles being used for private gain since October 18th, the question of whether the so-called “servi-cha” industry will stay the course has become a central issue for many. This is because the presence or absence of the “servi-cha” can make or break the North Korean domestic economy, much like last year’s currency reform.

What is a “servi-cha”?

There are two types of “servi-cha”. The first are vehicles, mainly buses and trucks, owned by state organs and enterprises, which transport people and supplies in exchange for money. Enterprises use the money earned from the service to provide rations for the workers, cover transportation costs or obtain further raw materials for production.

The second type of “servi-cha” is those owned by individuals but registered as being owned by an enterprise; they are used for private gain. Collusion among three parties; the owner of the vehicle, the driver and the enterprise under whose name the vehicle is registered, is necessary in such cases. The owner of the vehicle acquires a car from, predominantly, China or Japan, whereupon cadres of a certain enterprise or local unit register the vehicle under the name of the enterprise or unit. A driver is hired thereafter, who then gets a drivers’ license from the cadre and sets about earn a profit by providing public transportation to residents or moving supplies. A portion of the money earned is given to the cadre, who will usually take a fraction for personal gain and register the remainder as company profit.

In general, two people man a “servi-cha”; the driver and his assistant. Alongside them, the owner of the freight being transported is present, and thereafter empty seats are taken by other passengers. If the car meets an inspection on the way to its destination, there is no problem; on paper, the vehicle is legitimate; it belongs to a unit, and the owner of the freight carries a transportation permit that he/she has received from the car owner. With a bit of alcohol and tobacco on hand to bribe the inspector, even the people occupying the empty seats are free to pass.

A North Korean license plate contains information on the institution the vehicle belongs to. As most people do not have a travel permit, they tend to prefer “servi-cha” that display the license number of a powerful institution. Transportation fees differ according to the type of license plate on the “servi-cha”. “Servi-cha” with plates from powerful groups charge higher fees than those with plates from food factories and agricultural offices, for example.

Vehicles are assigned numbers based on certain rules; license plates that reflect an auspicious date are deemed best; either 216 (February 16th; Kim Jong Il’s birthday) or 727 (July 27th; Victory Day). The license plate of a car given as a gift by Kim Jong Il to someone on the Central Committee might be assigned a number such as 216-11-101.

Furthermore, each department of the Party uses its own license plate number in order to distinguish ownership of vehicles. For example, the Party’s Finance and Accounting Department uses the number 02; 11 and 12 is reserved for Party offices; 12 to 14 for administrative units; 15 to 17 for the People’s Safety Agency; 18 to 20 for the National Security Agency; 21 for judicial branches; 22 for a unit under Party Department No. 39, 90 for the Central Party liaison office, and 46 for passenger transport services.

Inspections are stricter for those “servi-cha” with less impressive license plates. Travel permit checks become more thorough, and the inspectors ask more questions about the cargo. Thus, vehicle owners with “weaker” plates tend to have to give more bribes.

Origins of the “Servi-cha”

Public transportation virtually stopped in North Korea during the economic collapse which began in 1995, bringing about shortages of fuel and electricity. The country was incapacitated to the point that the government issued a decree calling on cadres to walk.

The first people to break the logjam were from foreign-currency earning units. They were able to use imported fuel to transport freight for other companies, at a price. Many enterprises quickly spotted the rising demand for freight logistics services, and started earning considerable profits by importing Chinese Dongfeng or Japanese second-hand trucks.

Demand for this was not limited to institutions and enterprises. Vendors also wanted to move their supplies around the country. The importing of Chinese products to the Rajin-Sonbong Special Economic Zone beginning in 1997 was followed by a rise in long distance cargo transportation to cities as far as away as Pyongyang, Hyesan, Sinuiju, Kaesong and Haeju.

The Different Types of “Servi-cha”

In general, trucks are a popular choice. This is because they can transport cargo and people at the same time. Buses, which are more readily owned by institutions and enterprises than trucks, are also often utilized for long-distance trips. A regular 45-person bus will often be full to capacity, with the central aisle lined with makeshift seats.

Party and military cadres also use their vehicles as “servi-cha”. It is commonplace for them to order drivers to look out for long-distance travelers as a means of earning extra money when the car is not in use. This also applies to the case of military cadres.

Sometimes, the seats of Japanese second-hand vehicles or Chinese second-hand jeeps are removed in order to take a maximum of eleven passengers.

Earning Money through “Servi-cha”

Use of “servi-cha” has vastly increased the quantity of goods and number of people crossing provinces, with goods smuggled in across the Tumen and Yalu Rivers in the north spotted in locations as far away as South Hwanghae and Kangwon Province, both of which border South Korea. Therefore, it can be said that production and trade between enterprises and vendors owes a great deal to the “servi-cha”.

For example, in 2001 the price of sweet potatoes peaked in the Rajin-Sonbong Zone. Demand for sweet potatoes was high in places north of Hamheung because climate conditions in that northern region are not favorable for cultivating the crop. While sweet potatoes were priced at 7 won per kilogram in South Hwanghae Province, in the Rajin-Songbong Zone the price exceeded 45 won per kilogram.

Vendors from Rajin-Sonbong were therefore able to increase profits 50% by selling Chinese everyday goods in Hwanghae province, and then make seven times more money selling southern sweet potatoes in the north.

It goes without saying that initial expenditure is required to pull this off. The cost of changing tires, of filling up the vehicle with gas, of bribing officials for travel permits and drivers’ permits, all added up to about 70,000 won. However, a round-trip could earn the “servi-cha” crew a net profit of 60,000 to 70,000 won. At the time, it was very good money.

Kim Kyung Hee’s “Servi-cha” Experiment

On her way to Kangkye in Jagang Province, Kim noticed a throng on the street, and approached, concealing her identity. They were people waiting for a “servi-cha”. Leaving her assistant and vehicle behind, Kim quietly stood in line with the other people.

Eventually, a 10-ton “servi-cha” arrived and people began scrambling for seats on the platform normally reserved for cargo. Paying her fare, 50 won, Kim also tried to board, but the driver noted her less than ordinary appearance and gave her the passenger seat.

After a few minutes of travel, a strange voice could be heard;

“Comrade, our time is up.”

The source of the sound was Kim’s watch. It was a message from her assistant, who was following the “servi-cha”. The driver, concerned for any number of reasons, immediately stopped and asked Kim to descend from the cab. In the end, the “servi-cha” left her behind on the road. It has been said that Kim went back to her vehicle and told her assistant that the “servi-cha’s are rather fun”.

Read the full story here:
Servi-Cha: the Lifeblood of the People’s Economy
Daily NK
Im Jeong Jin
10/28/2010