North Korean Economy Watch

According ot the DailyNK:

The North Korean authorities are conducting an extensive investigation into the actions of soldiers attached to border guard units, based on the presumption that such guards are frequently guilty of aiding and abetting defection. Those found to have done so are being arrested and severely punished.

A source from Yangkang Province explained the news yesterday, “For the third time they are conducting an investigation along the border in Kim Jong Eun’s name, but this time it is focused on the soldiers.”

“The decree says to arrest and severely punish soldiers who have aided and abetted in defection, to pull out the roots; so the investigation has been harsh from the very beginning.”

The two previous investigations into defection from the border region, both said to have been launched in the name of the successor, happened in February and April this year, as reported by The Daily NK. However, this is the first time that attention has turned away from defectors themselves and towards those soldiers who help facilitate a lot of the escapes.

“There are two members of an investigation team from Defense Security Command going to every guard post, and they are questioning the soldiers one by one,” the source said.

It is well known both within and without North Korea that border guards are commonly bribed to turn a blind eye to defection. Through very serious questioning and the threat of severe punishment, the authorities are presumably hoping to kill two birds with one stone; both hindering further defections and re-instilling military discipline.

However, the new investigation has already inspired at least two guards from one post to desert instead of face censure, according to the source.

“Two men from a guard post in the Hyesin-dong area of Hyesan took their weapons and deserted, so now they are in the middle of a house-to-house investigation,” the source explained, adding, however, “People are saying, ‘They’ve already fled to China, why the hell would they still be in the country?’”

Although nobody knows why the two men chose to desert, the source said he had heard that they were indeed involved in defections, and feared punishment.

Across the Tumen River in Changbai, China, meanwhile, there is also an unusually intense investigation going on, according to sources there. It is suspected that the two events are related.

A source explained, “Public security officers and soldiers are stopping and investigating cars one by one. I heard that soldiers from North Korea deserted with their guns, so maybe it is because of that.”

Of course, the investigation is hurting small traders, too.

“Big-time smugglers are not having problems,” the Yangkang Province source explained. “But day-to-day small scale smugglers are complaining about the investigation. Border guards are telling them to put up with it just a little more.”

Read the full story here:
Border Investigators Turned on Soldiers
Daily NK
Lee Seok-young
2011-6-3

DPRK Public Trial Video

There is a video on YouTube (via South Korean television) that purportedly shows a public trial that took place last April in Sinuiju (RFA). The trial took place in the Sinuiju central Square:

There is an (increasingly hard to find) older video of a public trial in Hamju County (함주군) which clearly matches the satellite imagery. You can see the video here.  The stadium where it was filmed is here.

Kim Jong-il’s Only Televised Speech in the DPRK

In an earlier “Friday Fun” post, I linked to a parody of Kim Jong Il’s only televised speech in the DPRK.  Here is his actual and only speech!

Kimchi Dog

For the dog lovers: I thought this clip of a North Korean dog carrying a kimchi bucket near Kim Il-sung square in Pyongyang was cute.

DPRK No 2 Happiest Country?

A Chinese blog post, picked up by the Shanghaiist, went viral this week.  The story:

China is the happiest place on earth(!!) according to a new global happiness index released by North Korea’s Chosun Central Television. China earned 100 out of 100 points, followed closely by North Korea (98 points), then Cuba, Iran, and Venezuela. Coming in at 203rd place is America (or rather “the American Empire”, 美帝国), with only 3 happiness points. South Korea got a measly 18 points for 152nd place.

Frankly, I don’t think most North Koreans would believe this story if they saw it on television.

I tried to learn more, but the source material is proving difficult to locate. There is no mention of the “study” in KCNA.  I have also gone through my archives of recent North Korean television footage and I am unable to locate the broadcast.  Does anyone know when the original video clip was aired?

For what it is worth, Freedom House just ranked the DPRK as the country with the world’s worst human rights record (again).

Did the DPRK Get a New Yacht?

While scouring new imagery of Wonsan on Google Earth, I noticed that a port, holding what many believe are ships for elite use, seemed to be +1 yacht.  Both are about 48m long.  The two pictures above are dated 2002-11-11(left) and 2009-10-3 (right). It is possible that the second yacht was moved from another location.  In 2009 the sale of two yachts to the DPRK was detected and halted.

New Google Earth Imagery of the Kumgang Resort

We can now see all the properties that the DPRK has “seized” from Hyundai-Asan: Family Reunion Center,  Kumgangsan Hotel, Mokranwon Restaurant, Kumgang Golf Course and more!

Pictured above (Google Maps): No. 91 Office

According to the Daily NK:

No. 91 Office, as it is known, is allegedly run under the auspices of the General Bureau of Reconnaissance.

A defector with substantial experience of conditions there offered information on the situation as far back as 2006 at the NKnet-organized “2011 North Korean Cyber Terror Seminar.”

The defector was unable to attend the seminar in person due to fears for his safety, but via pre-produced materials he explained how No. 91 Office is located in a set of two two-storey buildings in the Dangsang-dong of Mankyungdae-district, and how he entered the buildings on a number of occasions thanks to his relations with traders and cadres affiliated to it.

Additionally, satellite images were used to show the location of the office, just 300m from Ansan Bridge across the Botong River.

The defector also detailed the staff of No. 91 Office; the head, in 2006 a PhD-holding colonel in his 40s, a Party secretary ranked lieutenant-colonel, a similarly-ranked National Security Agency agent and around 80 staff, all in their 20s and 30s.

The 80 staff, all excellent minds selected from Kim Il Sung University, Chosun Computer University, Kim Chaek University of Technology and other elite schools, often spoke of ‘business trips’ to Shenyang and Dandong in China, the source explained.

The No. 91 Office-affiliated trade arm had five workers at the time, and is known as the ‘May 18th Trading Company, he added. Through it, the No. 91 Office allegedly obtains the equipment to do its work and provides hackers and other staff with daily necessities.

The unit has a 35-seater bus and two cars with number plates starting with ‘33’ or ‘34’, officially denoting vehicles belonging to the Mining Industry Department of the Cabinet.

Here and here are previous post on the Reconnaissance Bureau.

Here is a post on similar cyber warfare units in the DPRK: Mirim College and Moranbong University

Read the full story here:
No. 91 ‘Hackers HQ’ Revealed
Daily NK
Kim So Yeol
2011-6-1

Below are links to some recent publications on particular aspects of the DPRK:

Engaging North Korea: The Role of Economic Statecraft
East-West Center
Stephan Haggard, Marcus Noland
Policy Studies, No. 59

KPA Journal, Vol. 2, No. 4 – April 2011
Joseph Bermudez
Topics: MiG-29 in KPAF Service, Organizaiton changes following SPA (Madden), Addendums

Exodus to North Korea Revisited: Japan, North Korea, and the ICRC in the “Repatriation” of Ethnic Koreans from Japan
Japan Focus
Tessa Morris-Suzuki

The Pyongyang Times reports that Oxfam Hong Kong is providing farming assistance to the DPRK:

Oxfam Hong Kong is increasing aid to the DPRK’s agricultural sector.

The Hong Kong charity founded in 1976 is dedicated to helping victims of famine and natural disasters and is engaged in rendering humanitarian aid and education.

It has been giving aid to the DPRK since 1997.

In recent years it has supplied farming materials and food on several occasions via the Korean Committee for Promotion of International Trade to the Ryonghyon Cooperative Farm in Suan County, North Hwanghae Province and other farms.

The farms and the KCPIT are very grateful to the Hong Kong charity for their kind-hearted aid and hope for a wider range of relief activities.

The Oxfam Hong Kong webpage is here. I cannot find any information on their projects in the DPRK.

Institute for Far Eastern Studies (IFES)
2011.05.26

On May 23, the DPRK released the “Outline of DPRK-China Joint Development Plan for Rason and Hwanggumpyong Economic and Trade Zone” consisting of detailed blueprint of two countries’ recent bilateral joint development deal.

According to Yonhap News, China and North Korea are planning to turn the Rason and Hwanggumpyong areas into a comprehensive industrial complex of tourism and manufacturing producing automobiles, mobile phones, agricultural and chemical products.

In addition, the Law on Rason Economic and Trade Zone and the Special Law on Hwanggumpyong Zone will adopt market economy principles which will permit foreign bank investments and independent contracts between corporations and workers. Although the development plans are not definite yet, it is significant since it hints at North Korea’s shifting position on opening up and economic development.

The bilateral development plan between Pyongyang and Beijing will stretch from Rajin, Sonbong, Ungsang, to Gulpo areas.

In the Rajin area, four major industrial complexes will be constructed consisting of storage, logistics and distribution centers, state of the art technology, and equipment, clothing and food manufacturing. In the Ungsang area, comprehensive a wood processing complex will be built while in the Gulpo area, a high-efficiency agriculture zone will be constructed. In the Sonbong area, truck manufacturing factories will be built along with other metal producing factories. In Rajin, docks will be built for ship building and maintenance.

There are also plans of developing the Rason area into an international tourism zone. There are immediate plans to build basic tourism infrastructure such as hotels, resorts, and roads for sightseeing. The long-term goal is to build a grand Northeast Asia tour course, which will include Yanbian of China; Rason, Chongjin, Mount Chilbo and Mount Kumgang of North Korea; Vladivostok and Sakhalin of Russia; Sapporo and Nakata of Japan; and Sokcho and Busan of South Korea.

As for the Hwanggumpyong area, four major industrial complexes will be established: one each for information, tourism and culture, modern protected agriculture, and food processing. More specifically, Hwanggumpyong will connect information between Hwanggumpyong and the border city of Dandong in China. In addition, culture and tourism will be developed through promotion of Arirang and other cultural performances and exhibitions.

As for the high-efficiency agriculture zone, a modern agriculture technology research center will be established and China-DPRK joint markets will be set up to serve as a central commerce center.

To assist with the industrial development in the area, land and sea routes will be developed where roads and railroads will be built and Rajin will be upgraded to a comprehensive and multi-purpose port.

There are additional plans of constructing a coal power station to replace the current thermoelectric power plant in Sonbong. There is also discussion of possibly developing other alternative energy plants, such as wind and solar. There are also plans of building basic facilities of mobile telecommunication to promote international communication.

Hwanggumpyong is an island on the Yalu River and the new developments in building ports and roads along with distribution network, Internet, and mobile telecommunication will become a link connecting North Korea with China.

Pyongyang is pursuing development through multiple cooperation channels. It has plans of establishing three-tiered cooperative system with joint management committee, joint development management committee and investment development corporation with Beijing. These committees will be responsible for amending and negotiating any issues that may arise during the process of development and supervise various areas of investments, enterprises, and environment and as well as inspect land and commerce development and basic facility operations.

Both Pyongyang and Beijing will attract foreign investments through market-based tax and financial policies in the Rason and Hwanggumpyong zones. Specifically, tax refund policy will be implemented and tariffs will be lifted from any imported equipment and materials necessary for production. The foreign investment companies will be allowed to choose their own banks or even establish financial institutions to assist in their business management.

In addition, workers and companies will be permitted to sign their own labor contracts. The companies will be granted autonomy in hiring and firing, pricing, bankruptcy, liquidation and other business practices based on market principles.

As for investment protection policy, foreign investors will be permitted to transfer or inherit profits and assets and foreign investor’s investments and assets will not be collected as national property by North Korea.

According to Yonhap:

At least a decade has passed since North Korea’s official media began urging its people to quit smoking ahead of 2012, the year it aims to become a “great, prosperous and powerful nation,” but recent reports suggest the smoking rate among North Koreans remains high.

In a report marking World No Tobacco Day, which falls on May 31, Pyongyang’s official Korean Central Television reported Tuesday on the government’s anti-smoking campaign without mentioning its stated aim of lowering the smoking rate to 30 percent by 2010.

According to earlier North Korean media reports, 54.7 percent of the population smoked in 2008.

The North Korean regime, however, has been persistent in its efforts to reach its goal, enacting a law in 2005 to restrict smoking and banning advertisements in public places that relate to smoking.

These actions came after Korean Central Television made a broadcast in June 2000 that called on the North Korean people to give up smoking and contribute with their healthy bodies to building a “great, prosperous and powerful nation.” The year 2012 marks the centenary of the birth of North Korea’s late founder, Kim Il-sung.

Here is the previous KCNA coverage of “World No Tobacco Day”: 2003, 2004, 2005, 2006-A, 2006-B, 2007, 2008, 2009-A, 2009-B,  2010, 2011-A, 2011-B.

The DPRK has a tobacco factory in Pyongyang, Hoeryong and commissioned a tobacco JV company in 2008.

In a May 28th article, the Choson Ilbo reported the DPRK’s National Defense Commission (NDC) is trying to make it harder for women to defect by more stringently enforcing domestic travel restrictions.  According to the article:

The North Korean regime has reportedly ordered border guards to stop all women from traveling on railways and roads to the North Korea-China border. The order, which targets all girls and women between 10 and 60, came recently from the powerful National Defense Commission.

Whether the story is true or not remains to be seen, but the article does highlight the significant gender imbalance among North Korean defectors:

More than 400 defectors arrive in South Korea every month, and about 80 percent of them are women.

There are several reasons given for this lopsided sex ratio.  I have supplemented the list of those items and classified them below:

On the supply side (push factors):

1. Women, as the primary bread-winners in the DPRK’s markets (the place to go for unsanctioned rumors), are exposed to more information about the outside world.

2. The DPRK’s efforts to reign in market activity have made many women despondent.

3. Women, who in many cases do not need to appear at an official job every morning, face lower monitoring costs, and thus have an easier time disappearing.

Demand side (pull factors):

1. Since there is a market for North Korean women in China, smugglers have an economic interest in facilitating defections.

2. It is easier for North Korean women to marry South Korean men than for North Korean men to marry South Korean women.

Of course Haggard and Noland have done systematic surveys of North Korean defectors.  You can learn more here.

UPDATE 13 (2011-6-1): KCNA has posted video of Ambassador Robert King leaving the DPRK with Mr. Jun.  You can see it at the new KCNA web page in an article titled, “Delegation of U.S. State Department Leaves” (May 28, 2011).   There are also pictures here, here, here, here, and here.

UPDATE 12 (2011-5-27): The DPRK has announced that they released Mr. Jun.  According to KCNA:

American Young-su Jun Released

Pyongyang, May 27 (KCNA) — As already reported, American Young-su Jun has been under investigation by a relevant institution after he was arrested in Nov. 2010 on charges of anti-DPRK crime.

The investigation proved that Jun committed serious crime against the DPRK which he frankly admitted himself.

Robert King, special envoy for Human Rights and Humanitarian Issues, U.S. State Department on a visit to the DPRK, expressed regret at the incident on behalf of the U.S. government and assured that it would make all its efforts to prevent the recurrence of similar incident. Earlier, former U.S. President Jimmy Carter and Reverend Franklin Graham visited the DPRK and repeatedly asked it to leniently pardon him. Taking all this into account, the DPRK government decided to set him free from the humanitarian stand.

During his detention, the DPRK allowed him to make regular contacts with the consul of the Swedish embassy representing the U.S. interests in the DPRK as well as correspondence and phone call with his family. It also gave him hospital treatment for his health reason.

You can read more in the Wall Street Journal and the Los Angeles Times.

UPDATE 11 (2011-5-18): The Daily NK asserts that Jun has been beaten and was supporting a network of underground churches n the DPRK.

UPDATE 10 (2011-5-11): The AP (via Washington Post) reports Eddie Jun has been visited by Swedish diplomats six times since March.

The U.S. government says that an American detained by North Korea since November is being well cared for and has been permitted to speak to his family by phone.

State Department spokesman Mark Toner said Wednesday Swedish diplomats have visited Eddie Jun six times since March and were continuing at U.S. request to ask for regular consular access.

Read the rest of this entry »

According to the Daily NK, motorcycles, computers, and “big dogs” have replaced the rice cooker and wristwatch as the cutting edge status symbols among North Koreans.

According to the article:

In today’s North Korea, where wealth inequality is growing more and more extreme, what is a symbol of upper class income status? Just a few years ago, the answer was a branded South Korean rice cooker, the ‘Cuckoo’. So much so, indeed, that the brand name has totally usurped the dictionary description, ‘pressurized electric rice cooker’, altogether.

However, according to a new interview with a cadre from an enterprise in Chongjin published in the new, June edition of NK Vision, the most potent recent symbols of a wealthy family are motorcycles, notebook computers and military dogs!

“Nowadays in Chongjin, transport agents are being stationed here and there because of motorcycle accidents. There are usually around three motorcycle accidents per day, and people are losing their lives,” the cadre explained.

The majority of the motorcycles ridden in North Korea are Chinese brands such as Jangbaeksan costing around 2,000-3,000 Yuan (with 1 Yuan worth 400 North Korean won). Meanwhile, even second-hand versions of Japanese brands including Yamaha and Honda cost considerably more than 5,000 Yuan.

The cadre continued, “The bicycle is still the basic means of transport, as it has been until now. But the bicycle is now just a really ordinary means of transport; it is no longer a symbol of wealth.”

A notebook computer is another symbol of economic good health. Among other reasons, this is because in random inspections by the North Korean authorities they check computers, and since notebook computers can be hidden easily, they are enjoying great popularity.

The source explained, “On average, computer checks crop up once every two or three months, and since this happens without warning, we cannot get rid of things like foreign movies or Korean songs. Seeing these checks getting more serious, nowadays notebook computers are the most popular thing.”

Big dogs are, similarly, growing in popularity, even though one dog can cost as much as 100,000 North Korean won, or more than 50kg of rice. According to the cadre, there is sound logic to this, too.

“Affluent households need dogs to deter thieves, and a military dog can be raised for around seven years then it leaves meat to the house,” he explained.

Yesterday, Martyn Williams informed us about the DPRK’s juche laptop!

Read thee full story here:
Motorcycles and Notebook Computers
Daily NK
Kim So-yeol
2011-5-26