North Korean Economy Watch

According to  Choson Exchange:

In 2010, the DPRK revised the laws governing Rason Special Economic Zone.

This booklet, scanned into pdf form, sketches out the new laws in both Korean and English (English is in the back half). It was at this time that the authorities removed Rason from provincial administration, giving it more autonomy in some ways, while also giving authorities in Pyongyang a more direct link to planning for the SEZ.

Potentially interesting clauses include:

– Ships regardless of nationality are permitted to port (article 26)

– Business licenses can be revoked if DPRK law is “seriously” violated. (article 15)

– Prices will be set between the buyer and seller, though some basic consumer goods may be fixed by the local government. (article 26)

– Disputes may be resolved by arbitration either in the DPRK or a 3rd country. (article 45)

Additional information:

1. Download a PDF of the full publication here.

2. Previous posts on this topic here.

3. Choson Exchange home page.

Pictured above: (L) The location of the new Haedonghwa Center under construction in Pyongyang (Google Earth), and (R) a representation of the building’s exterior

The Korea Pyongyang Haedanghwa Foodstuff Company (조선평양해당화식품회사는)  has launched a new web page  on the Naenara portal providing content in English, Korean, and Chinese.

This new web site hosts pages of information not just on the company, its subsidiaries, its employees, and its products, but also on Korean food, culture and health. Among the more interesting claims made on the page:

Our service workers come from normal families, and they are not ones grown in the special environment or conditions.

The web page also provides addresses and maps of the subsidiary restaurants and factories in China and the DPRK.

Using information from the web page I was able to locate the position of the Haedanghwa Center (pictured at the top of this post).  It is obviously still under construction.  The lot on which the center is being built has been empty for the last dozen years and lies directly across the Taedong River from the new construction on Mansudae Street.

A valued reader (and North Korea researcher) sent me this latest example of an email attack which tries to install malware onto the users computer:

———- Forwarded message ———-
From: John Burba <john_burba@yahoo.com>
To: [DELETED]
Cc:
Date: Mon, 12 Mar 2012 22:43:07 -0700 (PDT)
Subject: Dear [DELETED]
I send your photos from last meeting.
I know we took pictures several months ago, but I’m deeply sorry that I’m now sending photos.
Please check your photos, and if you have any queries, give me a reply.

You can download photos on the link below.
Download photos

or

view the photos on my blog.
Visit my blog

Thank you, and have a nice day~

The phrases “Download photos” and “visit my blog” link to these URLs:

ttp://dailypersonal.net/ecard/view/downloader.hta

ttp://dailypersonal.net/ecard/view/goBlog.hta

I removed the “h” at the beginning of the URLs to prevent accidental linking.

I have been blogging about these malicious email attacks for a couple of years now.  See information about and examples of past attacks here.

For internet security professionals, I attach the email header below:

Read the rest of this entry »

According to Yonhap:

South Korea has helped vaccinate nearly 4 million North Korean children against hepatitis B over the past two years despite tensions on the Korean Peninsula, a German relief agency official has said.

South Korea has provided vaccines worth US$2.37 million to North Korea from 2010 to February 2012 through Caritas Germany as part of its medical aid to the impoverished country, said Wolfgang Gerstner, a consultant of Caritas Germany.

Here is a little information on Hepatitis B:

Hepatitis B is irritation and swelling (inflammation) of the liver due to infection with the hepatitis B virus (HBV).

Hepatitis B infection can be spread through having contact with the blood, semen, vaginal fluids, and other body fluids of someone who already has a hepatitis B infection.

Infection can be spread through:

1. Blood transfusions (not common in the United States)

2. Direct contact with blood in health care settings

3. Sexual contact with an infected person

4. Tattoo or acupuncture with unclean needles or instruments

5. Shared needles during drug use

6. Shared personal items (such as toothbrushes, razors, and nail clippers) with an infected person

7. The hepatitis B virus can be passed to an infant during childbirth if the mother is infected.

A friend of mine visited the DPRK and returned with a bottle of hand moisturizing lotion (pictured above). In English it is called “Kaesong Koryo Insam Moisture Milk Cream”. The Korean name is “개성고려인삼 물크림”, and it is manufactured by a company called Pomhyanggi (봄향기). According to Kwang On Yoo, the name translates to mean “Spring Fragrance”.

Popmhyanggi is a product line of the Sinuiju Cosmetics Factory (satellite image here). Sales are promoted through a Joint Venture company–the partner(s) are unknown at this time–called the Korea Pomhyanggi Joint Venture Company. The JV apparently operates out of an exhibition hall in Moranbong-guyok, Pyongyang, which was opened in 2007. Here is a link to an additional KCNA story on the cosmetics line.

This weekend the DPRK changed the appearance and style of its evening news broadcast:

You can see the first news broadcast in this style on Youtube here.

Up until 2006 (I believe) the North Korean news broadcasters presented  in front of a plain blue screen:

In 2006 KCTV adopted a news format which placed the anchor persons in front of a background panel which was distinct and consistent for separate news items:

Martyn Williams offers some additional information here.

According to Yonhap:

North Korea has established an investment insurance firm recently in what is believed to be an effort to attract more foreign investment by reducing risks stemming from uncertainties in the communist nation, a source said Sunday.

The North’s firm is expected to purchase reinsurance from an international company, the source said. The system is similar to an insurance measure that South Korea’s government has been operating to compensate its businesspeople for lost investment in the North.

It marks the first time Pyongyang has introduced such an insurance system for foreign investors.

“For foreign investors, this could ease concerns about investment loss risks stemming from uncertainties of North Korea,” said the source familiar with economic affairs in the communist nation. The source said, however, that it is questionable how effective the measure will be in drawing outside investment.

North Korea has long sought to attract foreign investment to revive its broken economy, but with little success because investors stayed away from one of the most closed nations, which is under international sanctions over its pursuit of nuclear and weapons of mass destruction.

The source also said that the word, “reform,” has been used among North Korean bureaucrats, and that this could signal that Pyongyang may announce a set of bold economic reform measures around April’s commemoration of the 100th birthday of late North Korean founder Kim Il-sung.

“Reform” has been considered a taboo word in the North, along with the term, “openness,” because Pyongyang has rejected international calls for it to reform and open up to the outside world as part of a U.S.-led attempt to topple the autocratic regime.

Should Pyongyang take any economic reform measures, they would mark the first such steps since new leader Kim Jong-un took over the isolated nation after his late father Kim Jong-il died of a heart attack in December.

Read the full story here:
N. Korea sets up insurance firm to attract more foreign investment
Yonhap
2012-3-11

Following the US – DPRK nuclear / food deal announced at the end of February, the DPRK has decided to reject humanitarian assistance from private South Korean organizations. According to Yonhap:

North Korea has apparently decided not to accept humanitarian aid by South Korea’s private relief agencies that comes with monitoring, aid officials here said Monday.

North Korea has said it will only accept “pure” humanitarian aid from South Korea, in an apparent rejection of aid with strings attached, an aide official said of his recent contact with his North Korean counterpart.

Another South Korean private aid official also made a similar comment. The two spoke on condition of anonymity, citing policy.

The North’s move came as North Korean and U.S. officials held talks in Beijing last week to work out details of 240,000 tons of U.S. food aid reached in their recent nuclear deal.

South Korea has called for monitoring of its food aid to the North to ensure that the aid reaches its intended beneficiaries in the isolated country.

…

In November, North Korea allowed a South Korean official to travel to the North for a rare monitoring of flour aid by a South Korean private organization.

Last year, South Korean civic groups donated nearly 3,000 tons of flour to North Korea and some of the civic groups sent monitors to the North to try to ensure the transparency of the distribution of their food aid.

Despite the North’s alleged rejection of aid with strings attached, a private aid official said his group plans to send food aid to the North this year.

“We plan to conduct monitoring in an appropriate manner through consultations with North Korea,” the official said. He asked not to be identified, citing policy.

The North has relied on international handouts since the late 1990s when it suffered a massive famine that was estimated to have killed 2 million people.

Read the full story here:
N. Korea said to reject S. Korean food aid with strings attached
Yonhap
2012-3-12

UPDATE (2012-3-15): Ironically, we have coverage of the photo exhibit from the Associated Press:

“Daily life is really what I try to focus on when I’m there. … It’s unscripted, it’s candid,” said AP Chief Asia Photographer David Guttenfelder, who took some of the photographs in the show, and who has made who has made many reporting trips to North Korea since 2010.

“For people to see their own life in other people’s lives, I think it has a lot of power to break down barriers.”

“Windows on North Korea: Photographs From the DPRK,” is a joint exhibition by The Associated Press and the state-run Korean Central News Agency, and features a mix of archival and contemporary images.

The show was timed to open before the 100th anniversary of the birth of the nation’s founder, Kim Il Sung, on April 15, and comes two months after the AP expanded its operations in Pyongyang to include writers and photojournalists. The AP became the first international news organization to have a full-time presence in the secretive communist country when it opened a video bureau in 2006.

The photographs “give us rare views of the Democratic People’s Republic of Korea, a nation of great interest to the world, though little known,” said Kathleen Carroll, executive editor of the AP.

North Korea and the United States have never had formal diplomatic relations, and the two nations have experienced tensions over the years, particularly over Pyongyang’s nuclear ambitions. North Korea has tested two atomic devices in the past six years.

Tensions had recently eased somewhat. Late last month, the United States and North Korea announced an agreement that calls for Pyongyang to freeze its nuclear activities in exchange for food aid. But a surprise announcement by the North Koreans on Friday that they plan to blast a satellite into space on the back of a long-range rocket could jeopardize that agreement.

The exhibit’s organizers said they hoped the show would help foster better understanding between the two countries.

“My expectation is that this will be the first step in some peaceful reconciliation, and in a few years there will be trade, cultural exchange and tourists from each country coming to (the) other,” said Donald Rubin, who co-founded The 8th Floor gallery hosting the exhibit.

Images on display included a 1953 KCNA photograph showing residents helping to rebuild Pyongyang’s central district after the Korean War, AP photos documenting visits by such prominent foreigners as Jimmy Carter, Bill Clinton and Madeleine Albright, as well as everyday scenes ranging from sunbathers at the beach to shoppers inside a modern department store.

“It is our hope that this exhibition would give exhibition-goers visual understanding of the people, customs, culture and history of the DPRK, thereby helping to deepen mutual understanding and improve the bilateral relations,” Kim Chang Gwang, KCNA’s senior vice president, said in an address at the show’s opening.

“In this exhibit, we are offered two perspectives of the DPRK — as viewed by her native daughters and sons from KCNA and by AP journalists visiting to chronicle news and daily life there. We can appreciate the different styles and techniques and points of view,” Carroll said. “These photographs also show us that different people can find common ground.”

The show also includes images taken by KCNA journalists who participated in a joint workshop in October led by AP instructors. It runs from March 15 to April 13 at The 8th Floor gallery, which was established to promote cultural and philanthropic initiatives.

The AP, an independent news cooperative founded in New York and owned by its U.S. newspaper membership, has operations in more than 100 countries and employs nearly 2,500 journalists across the world in 300 locations.

ORIGINAL POST (2012-3-10): According to Yonhap:

A group of North Korean journalists left for the United States Saturday to attend a photo exhibition set to open next week, marking the centenary of the birth of the North’s late founding leader, Kim Il-sung, the country’s media said.

The North’s delegation, led by Kim Chang-gwang, vice director of the Korean Central News Agency, will attend the opening ceremony of the photo exhibition scheduled for March 15, the news agency said in a report.

The photo exhibition, to be jointly organized with The Associated Press, is scheduled to run until April 13, two days before the late leader’s 100th birthday, the American news agency said in its Web site.

…

The photo exhibition is part of joint programs being pushed by the KCNA to promote its nascent relations with the U.S. news agency. The AP opened a bureau in Pyongyang in January, the first international news agency with a full-time presence in the reclusive country to dispatch texts, photos and video.

The KCNA said the New York exhibition will showcase photos archived by two news agencies, including the North’s late founding leader and his deceased son Kim Jong-il who died of heart failure in December last year, as well as people and life in the communist state.

Additional information:

1. Here is the coverage of the KCNA delegation’s departure from Pyongyang reported by KCNA.

2. Here is the web page of the exhibit.

3. Extensive comments and additional information at OFK.

4. Foreign Policy writes about the conditions under which the aP operated in the DPRK.

5. How the AP selected its North Korea reporter

According to the AFP:

North Korea’s main nuclear negotiator on Wednesday held talks with US academics in New York as part of a private visit amid new hopes of disarmament progress after the isolated state agreed to freeze its weapons program.

Ri Yong-Ho, a vice foreign minister and chief envoy to international nuclear talks, held talks with the academics at a New York hotel.

The talks were part of a forum organized by Syracuse University which South Korea’s nuclear envoy Lim Sung-Nam was also to attend. No details on the talks have been given.

It was not immediately known, however, whether Ri would go to Syracuse in New York state or what other meetings he would have. Ri has been the North Korean lead negotiator at six nation talks on North Korea’s nuclear weapons program, which have been suspended since April 2009.

His three-day visit, however, comes after a breakthrough agreement that will provide US food aid to the North in exchange for the suspension of its nuclear program.

North Korea and the United States are discussing the delivery of 240,000 tons of food aid after Pyongyang agreed to freeze nuclear and missile tests and its uranium enrichment program.

The Hankyoreh offers more information.

Read the full story here:
N. Korea nuclear negotiator meets US academics
AFP
2012-3-8