North Korean Economy Watch

According to the Joong Ang Daily:

The United States has received 101 North Korean refugees in the past few years under legislation to help improve human rights conditions in the reclusive state, statistics showed Saturday.

The total breaks down to nine for 2006, 22 for 2007, 37 for 2008, 25 for 2009 and eight for 2010, according to figures released Saturday by the Office of Immigration Statistics at the Department of Homeland Security.

Hundreds of thousands of North Korean refugees are also believed to be in China.

Most North Korean refugees, fleeing poverty, aim to make their way to South Korea via neighboring China.

South Korea has received more than 20,000 North Korean defectors since the 1950-1953 Korean War.

China has come under criticism for repatriating North Korean refugees under a secret agreement with North Korea, categorizing defectors as economic immigrants rather than refugees, despite the danger of them being persecuted back home.

The North Korean refugees were admitted into the U.S. under the North Korean Human Rights Act of 2004, which calls for the provision of financial aid to help improve North Korea’s human rights and accept North Korean defectors into the U.S.

In 2008, Congress approved the North Korean Human Rights Reauthorization Act for another four years, calling for “activities to support human rights and democracy and freedom of information in North Korea,” as well as “assistance to North Koreans who are outside North Korea,” and 12-hour daily broadcasting to North Korea.

The 201 Office of Immigration Statistics Annual Flow Report also showed that 73,293 people were admitted to the U.S. as refugees in 2010.

The leading countries of nationality were Iraq (18,016), Burma (16,693) and Bhutan (12,363).


Read the full story here:
U.S. takes 101 North Korean refugees
Joong Ang Daily
2011-5-9

According to Yonhap:

A daily average of more than 600 South Korean workers are currently staying at the Kaesong Industrial Complex in North Korea, up from the 500-level in the past several months, according to a Seoul ministry Sunday.

The increase reflects a reduction in military tensions between the two Koreas, officials at the Unification Ministry that handles inter-Korean affairs said.

The ministry’s data showed that around 650 South Koreans stay at the industrial park, located just north of the inter-Korean border, per day starting last month.

“With regard to the number of production-related manpower, we are granting permission to stay (there) with more flexibility starting in the middle of April,” a ministry official said, requesting anonymity. “The number is expected to gradually increase down the road as well.”

He said the ministry’s flexible stance is attributable to petitions from companies in the Kaesong complex and the alleviation of security concerns of South Korean workers as inter-Korean tensions have eased a bit.

Read the full story here:
Number of S. Koreans at Kaesong rebounds amid letup in tension
Yonhap
2011-5-8

Pictured above: Locations of Koryolink (Orascom) moblie phone towers I have identified in the DPRK.  Supposedly 300 exist in total.

The German Financial Times published a story on Orascom.  Much of it was familiar material, but it did contain one interestign nugget I had not seen before:

Etwa 20 Ägypter und mehr als 200 Nordkoreaner arbeiten für Koryolink – die meisten der Expats im Management, ein Großteil der Nordkoreaner als Techniker und im Service. Für die Kundenbetreuung wurde ein modernes Callcenter eingerichtet. Das Netz deckt die Großstädte, die Autobahnen und die Schienenwege ab, insgesamt etwa 15 Prozent der Staatsfläche. In dem Gebiet leben 91 Prozent der Bevölkerung.

And putting this through Google Translate we get:

Throughout the country, told Heikal, meanwhile, more than 300 transmitters spread. Some 20 Egyptians and more than 200 North Koreans work for Koryolink – most of the expatriates in management, the majority of North Koreans as a technician and service. For customer support a call center was established. The network covers the major cities, highways and rail lines, totaling about 15 percent of state land. In the field 91 percent of the population live.

The service has grown to over 500,000 users but still remains out of the hands of the vast majority of the population:

Auch wenn jetzt theoretisch jeder ein Handy haben darf, sind die Tarife für die meisten Nordkoreaner unbezahlbar. 200 Freiminuten und 20 SMS kosten im Monat 800 nordkoreanische Won, nach offiziellem Wechselkurs sind das rund 5,50 Euro. Dazu kommen die Freischaltgebühr und die SIM-Karte für 50 Euro – zahlbar in Devisen. Wer sich nichts in der wuchernden Schattenökonomie dazuverdient, kann sich das nicht leisten.

And again, via Google Translate:

Even though now may theoretically have a cell phone each, the rates for most North Koreans are priceless. 200 free minutes and SMS cost 20,800 North Korean won per month, according to the official exchange rate is around 5.50 €. Then there are the activation fee and the SIM card for € 50 – payable in foreign currency. Anyone who does nothing, earned in the sprawling shadow economy can not afford that.

And on the human resources front…

Auch bei seinen nordkoreanischen Mitarbeitern bemerkt er Veränderungen. “Vom technischen Können her sind sie sehr gut, die Herausforderungen lagen eher im kaufmännischen Bereich und im Marketing”, sagt Heikal. “Aber wir bilden sie im Unternehmen aus, und wir organisieren für sie Trainings im Ausland, vor allem in China. Ich spüre, dass sich ihre Mentalität über die vergangenen drei Jahre gewandelt hat. Sie beginnen, das Geschäft zu kapieren.”

Bisher sind nordkoreanische Angestellte noch nicht ins oberste Management vorgestoßen, aber mittelfristig sollen sie die ägyptischen Expats ablösen. Natürlich wünscht sich das Regime, dass die eigenen Leute dort die Verantwortung übernehmen – und hegt trotzdem, wie so oft, schwere Bedenken dagegen. “Auf der Managementebene muss man mit der Außenwelt kommunizieren”, gibt Heikal zu bedenken. “Wir diskutieren das mit den Behörden. Sie verstehen das Problem, aber ich denke, das wird noch etwas dauern.” Er lächelt. “Im Rückblick erkennt man enorme Verbesserungen und Veränderungen, aber wir haben noch viel vor uns. Eine ganze Reihe von Dingen wird noch eine Menge Geduld brauchen.”

via Google Translate:

Even with his North Korean employees, he noticed changes. “From her technical ability, they are very good, the challenges were more in the commercial sector and in marketing,” says Heikal. “But we are training in the company, and we’ll arrange for her training abroad, especially in China. I feel that their mentality has changed over the past three years. You begin to understand the business.”

So far North Korea’s workers are not pushed into top management, but the medium they are to replace the Egyptian expatriates. Of course, the regime hopes that their own people over there take the responsibility – and still cherishes, as so often, serious concerns about it. “At the management level needs to communicate with the outside world is,” says Heikal pointed out. “We discuss with the authorities. You understand the problem, but I think it will take some time.” He smiles. “In retrospect, there are vast improvements and changes, but we still have a lot to us. A whole series of things still need a lot of patience.”

Read the full story here:
Die Pyramidenbauer von Pjöngjang
German Financial Times
2011-5-8

According to Yonhap:

North Korea’s exports of mineral resources jumped 17-fold in a decade with its outbound shipment of coals and iron ores leading the growth, a U.S. report showed on Saturday.
According to Radio Free Asia (RFA), the communist state’s exports of mineral resources reached US$860 million last year, compared with some $50 million in 2002.

Citing data compiled by the Korea Trade-Investment Promotion Agency [KOTRA], the RFA said exports of such minerals as coal and iron ore accounted for 63 percent of its total exports to its strongest ally China.

In the first quarter of the year, the North earned around $154 million by exporting coal to the neighboring country, compared with $9.68 million seen a year earlier.

North Korea’s mineral reserves are believed to be among the largest in the world, worth some 7,000 trillion won, based on 2008 prices, according to an earlier report by the Unification Ministry.

I am unable to locate either the RFA story or the KOTRA report so I don’t have much to say on this.  If you have a link please send it to me.

Read the full story here:
N. Korea’s exports of mineral resources top US$860 mln last year
Yonhap
2011-5-7

Pictured above (Google Earth): Komsan Station in Hyesan

According to Open Radio:

A source in Yanggang province reported May 4th, “A Hyesan – Pyongyang train derailed on May 2nd somewhere in the region of Geomsan station in Hyesan killing at least ten passengers and injuring many others.” The injured are being treated at a nearby hospital but the dead have not been formally identified and are yet to be transferred home.

“The North Korean police and security agencies are both investigating the case,” said the source. “So far they have been unable to establish the incident’s cause.” They are said to be investigating the possibility that a track sleeper became unhinged.

The possibility, however, that this is not merely an accidental occurrence is raised by the fact that the Pyongyang – Hyesan line is known by the population not just to be a route used by citizens travelling between the cities but is also one of national significance.

There are both a security agency detention center and a munitions factory in the Geomsan area of Hyesan. Before he died Kim Il-sung travelled only via station number 1 at Geomsan.

Five of twelve passenger carriages were overturned when they became disconnected from a connecting link. Subsequent repair operations have caused much disruption to regular line service. Stranded passengers are staying in the station’s vicinity as locals take advantage of the situation, catering to them with impromptu vending operations.

Read the full story here:

Ten Die in Pyongyang – Hyesan Rail Incident
Open Radio
2011-5-6

According to Yonhap:

The number of Chinese visitors to North Korea’s border town of Sinuiju has reached 100,000 over the past year after Beijing lifted a four-year ban on Chinese group tours from the Chinese border city of Dandong, a news report said Friday.

Dandong, which borders Sinuiju, is a major trade route between North Korea and China.

The Chinese government resumed the group tours to Sinuiju from Dandong in April last year, a Dandong newspaper said, adding the number of Chinese tourists to Sinuiju is likely to go up in the coming months.

The one-day group tour program allows the Chinese to visit Sinuiju without visas.

China is the North’s last remaining ally and benefactor.

Read the full story here:
Chinese visitors to N. Korean border city top 100,000 in one year
Yonhap
2011-5-6

According to the Bangkok Post:

Thai authorities have rejected South Korea’s proposal to build a coordination centre to deal with North Koreans illegally entering the country over concerns that it might encourage more inflows of migrants from the communist nation.

South Korea reportedly asked the government early this year to build the centre in Chiang Rai province, a popular entry point for illegal North Korean immigrants into Thailand.

Most of the immigrants have escaped economic hardship in North Korea and travelled to Thailand for temporary refuge in the hope of being able to resettle in third countries, usually South Korea, a source at the Internal Security Operations Command (Isoc) said.

From October last year until April this year, 899 North Koreans were arrested for illegal entry, said Isoc spokesman Maj Gen Dithaporn Sasamit. The source said South Korea had offered to pay to take care of the illegal migrants. However, the government had turned down the proposal because it had no policy to open a new refugee centre.

The South Korean government has played an important role in helping North Koreans by allowing them to resettle in its country.

Pol Maj Gen Phansak Kasemasanta, deputy chief of the Immigration Bureau, said that North Koreans illegally entering Thailand would be arrested.

After being tried in court, the immigrants would be detained at the Immigration Bureau while awaiting deportation.

The immigrants normally protest at being sent back to North Korea, allowing South Korean officials to step in and help, Pol Maj Gen Phansak said.

He added that instead of building a new centre for the North Korean migrants, South Korea could help improve the present detention centre at the Immigration Bureau.

North Koreans could stay there along with other illegal immigrants from other nations, he said.

According to the Isoc and the Immigration Bureau, North Koreans are normally helped by human trafficking gangs to travel to China.

They are then put on board Chinese cargo boats to Laos before boarding smaller boats or travelling on foot to Chiang Rai’s Chiang Saen and Chiang Khong districts.

“The trips are arranged by gangs made up of North Korean, Chinese and Thai nationals,” said Maj Gen Thawip Bunma, a senior Isoc official.

The Isoc and the Immigration Bureau have been tracking down people involved in the human trafficking gangs.

However, Pol Maj Gen Phansak said police still have no evidence to confirm that Thais were involved.North Korean migrants who have been arrested have told officials that they had to pay at least 100,000 baht to the gangs to help arrange their trips to Thailand.

Most of the migrants were willing to turn themselves in to Thai authorities, seeing it as the first step for them to travel on to the third countries they ultimately wish to settle in.

Read the full story here:
Illegal North Korean migrants on rise
Bangkok Post
2011-5-6

According to Yonhap:

North Korea has not filed a single international patent application with the global patent governing body since last September, a media report said.

The U.S.-based Radio Free Asia (RFA), citing an official at the World Intellectual Property Organization (WIPO), reported on April 28 that North Korea has applied for 22 international patents since 1993 but new applications have dried up since September 2010.

North Korea’s previous patent filings included those on finger print-recognition technology and fuel-efficient engines and others. The country joined the United Nations patent body in 1974.

South Korea, meanwhile, has applied for 2,800 patents with WIPO in September last year, averaging about 700 per month.

Ham Yoon-seok, a Korean patent attorney working in the United States, said that North Korean law does not properly recognize the intellectual property rights of inventions and patents, attributing the notion to the weak patent applications.

Read the full story here:
N. Korea’s Int’l Patent Applications Dry up Since Late 2010: WIPO
Yonhap
2011-5-5

UPDATE (2011-5-19): Martyn Williams writes in PC World:

Control of North Korea’s top-level Internet domain has been formally assigned to a government-backed venture after the previous operator, a German company, let the national domain disappear from the Internet for several months.

The dot-kp domain was officially transferred at the beginning of May to Star Joint Venture, a North Korean-Thai company that has been chartered with providing “modern Internet services” to the insular country. Star JV has been in de-facto control of the domain name since December last year.

Dot-kp was first assigned in 2007 to the Korea Computer Center, one of the country’s top computer science establishments. KCC had agreed to let a German businessman, Jan Holtermann, set up a satellite Internet connection to North Korea and run the dot-kp domain through a German company, KCC Europe.

The company ran the domain and a handful of North Korean websites from servers in Berlin until mid 2010 when they suddenly disappeared from the Internet.

“In 2010, the authoritative name servers for the .KP became completely lame, effectively stopping the top-level domain from operating,” said the Internet Assigned Numbers Authority (IANA), the body that coordinates basic addressing functions of the Internet, in a report published this week.

“Korea Computer Center reached out to KCC Europe, its Germany-based technical registry provider, to have service reinstated. After several months without response, Korea Computer Center terminated KCCE’s agreement to operate the .KP domain,” the report said.

At around the same time, Star JV was beginning to bring Internet connectivity to Pyongyang via China. The company had already taken control of IP (Internet Protocol) addresses long reserved for North Korea but never used, and it brought the country’s first website onto the global Internet around October 2010.

The site, for the domestic news agency, was initially only accessible via its IP address since the dot-kp DNS (Domain Name Service) was still under the control of KCC Europe.

But that changed in December “in light of the continuing lack of operation of the dot-kp,” said the IANA report.

The Korea Computer Center supported giving Star JV interim control of the dot-kp domain and the first websites began using North Korean domain names in January this year.

The change was made official in May when the IANA database was updated to show Star JV as the coordinator of the domain.

Several attempts to contact Jan Holtermann, the German businessman that ran KCC Europe, both for this story and previous stories have proved unsuccessful. German company records show KCC Europe was dissolved on Jan. 31 this year.

ORIGINAL POST (2011-5-5): According to Martyn Williams:

Control of North Korea’s dot-KP Internet top-level domain has been assigned to Star JV, the North Korean-Thai joint venture that’s behind the recent wiring of Pyongyang to the global Internet.

The Internet Assigned Numbers Authority (IANA), which administers country code domains, updated its database on Monday, May 2, to assign the KP domain to “Star Joint Venture Company.”

This means control for the KP domain now rests with Star JV. Star took control of North Korea’s Internet address space last year and has been building up the North Korean Internet.

Switch of control to Star doesn’t come as a surprise as the company started issuing dot-kp domains in January this year. It’s a further sign that the joint venture between the North Korean government and Thailand’s Loxley Pacific is now responsible for the DPRK’s Internet links with the rest of the world.

The administrative and technical contact details are now listed as:

President
Star Joint Venture Company
Potonggang2-dong, Potonggang District
Pyongyang
Democratic People’s Republic of Korea
Email: mptird@star-co.net.kp
Voice: +8502 381 3180
Fax: +8502 381 4418

That’s the address and contact details of the international relations department of North Korea’s Ministry of Posts and Telecommunications.

The website for domain name registration is listed as www.star.co.kp. This website came online in the last few weeks, but it’s still being built.

Administrative control of the domain name was previously held by the Korea Computer Center with technical control in the hands of Jan Holtermann, the German businessman who previously ran a satellite-Internet connection to the country.

Martyn has been keeping an eye on the Star JV co for some time.  See here, here, and here.

Previous posts on the Korea Computer Center are here.

By Michael Rank

The remains of a British pilot who was killed in the Korean war have been handed over to British officials at Panmunjom, after being buried for several years near Pyongyang.

The North Korean news agency KCNA said the body of Desmond Hinton had been disinterred at the request of his family, who in March “asked for bringing his remains back home.”

“Authorized by the DPRK government, the Panmunjom Mission of the Korean People’s Army conducted a series of survey which led to accurately unearthing and ascertaining the remains of Hinton and relics left by him and buried them on the spot with care as requested by his bereaved family and provided the family members with facility so that they might visit his grave,” it added.

Several years ago Desmond Hinton’s brother David, relying on reports of how Desmond was shot down over Pyongyang on January 2, 1952, managed to track down his remains and, with the help of the North Korean army and the British embassy, arranged for them to be buried near where his aircraft came down. He visited the site in 2004 and told me he was content for his brother’s remains to lie buried in North Korea.  I reported on this remarkable story in some detail here.

But the family have apparently had a change of heart recently about leaving Desmond’s remains in North Korea, although none of them was immediately available for comment.

Although Desmond was a flight lieutenant in the Royal Air Force he was one of 41 RAF pilots flying for the United States Air Force when he died.

A British Ministry of Defence spokesman said it could not be confirmed that the remains were those of Desmond Hinton, and that they would be subject to DNA testing.

“We can confirm that the Democratic People’s Republic of Korea has passed remains to the British authorities. We are unable to confirm the nationality or identity of the remains at this time. A detailed forensic analysis will now take place. We are very pleased with the cooperation we have received from the authorities of the Democratic People’s Republic of Korea,” he said in a statement.

The spokesman said that as far as he was aware no family members were present at the handing over of the remains at Panmunjom. He added that it would be usual for the remains to be buried in the United Nations Memorial Cemetery in Busan, South Korea, but it was up to the family to make the final decision once identity had been confirmed. Some 885 British troops lie buried at Busan, more than any other nation.

KCNA said this was the second set of British remains to be sent across the DMZ. It said that “The remains of J. Edmuns, a second class private of the British Army, were handed to the British side on October 30, 1995” but gave no details. The British Defence Ministry spokesman said he also had no details of this, although a British diplomat said he was aware of such an event in the 1990s.

KCNA said in an unusually conciliatory report, “Expressing deep gratitude to the government of the DPRK for having made every sincere effort for this humanitarian undertaking, the British side predicted that such cooperation would mark a good occasion in developing the relations between the two countries.

“The Panmunjom Mission of the KPA clarified the stand to render positive cooperation in the future, too in unearthing and sending back remains, the humanitarian work for healing the wounds caused by the past Korean War. ”

Additional information:
This story was covered in The Guardian, Daily Mail, and Yonhap.

Mr. Hinton’s remains were buried in Kuso-ri near the Sunan Airport. You can see a satellite image of the village here: 39°14’26.55″N, 125°42’58.17″E