North Korean Economy Watch

Institute for Far Eastern Studies (IFES)
NK Brief No. 10-04-12-1
4/12/2010

As inflation and food worries continue to grow in North Korea, social unrest is palpable. According to the group ‘Good Friends’, North Korean officials slashed prices on all goods to 1/100th of their going rate in an effort to ease the public. Considering the fact that North Korea revalued its currency by the same ratio on November 30, it appears that Pyongyang is effectively acknowledging the reform’s failure.

The Good Friends newsletter reports that the Korean Workers’ Party cabinet had handed down an order to reduce the price of all goods by a factor of 100:1, while the people of North Korea were told during local meetings that currency was revalued at 100 to 1, but not in order to reduce the sale of goods by 100 to 1, as well.

It also stated that at the first cabinet meeting in March, there was discussion on the fact that it was rumored that prices had climbed several times higher than official prices, and would continue to rise. It was decided that, at first, people thought of the currency reform as a 100-fold increase in prices, and that the same was true of management in state-run organizations. Later, at the second meeting of the cabinet, it was decided that a ‘100 to 1 Price Plan’ would be distributed to each city and town.

Now, People’s Committees and security forces in each city and town are enforcing the ‘100 to 1 Price Plan’ while the central Party’s 100:1 commerce committee has distributed a class syllabus in support of the price modifications, which was lectured on throughout the country from March 16-18. This indicates that the government is again controlling all prices throughout the country.

With no goods or aid flowing in from outside, it is likely that the price and exchange rates will continue to climb. On December 9, rice sold for 23 won, but the value of the new currency falls daily, and starvation is striking people in several areas throughout the country. Anger over government policies and general feelings angst are not hard to find in families and labor groups. The government is trying to control the prices of daily necessities, but if it is unable to do so, this situation cannot avoid becoming explosive. The central government has also sent officials out to different areas of the country to enforce a rice price of 25 won/Kg. This is the highest rice sold for in markets prior to the currency reform. Enforcing the same price throughout the country is an attempt to stabilize markets, and is a temporary measure to try to keep residents’ tempers from flaring.

The November currency reform was the first currency revaluation in 17 years, and was part of a set of strong measures to restrict markets, along with market closures and bans on foreign currency. However, since last February, the inflation sparked by the currency revaluation has grown severe and internal unrest has increased, leading authorities to reopen markets and set price caps. Now, the price of rice in North Korean markets appears to have stabilized at 400 won per kilogram, but due to the unrest over the last 100 days, many middle-class residents have fallen into poverty.

By Michael Rank

Chinese tourism to North Korea seems set to boom, with groups from several provinces about to set off and Pyongyang clearly eager to earn much needed extra revenue.

Tourists are warned that they can’t bring in mobile phones and must “respect Korean customs” by avoiding getting into arguments and “not saying or doing anything which is not good for Chinese-Korean friendship”. They are also told not to aim their cameras at “things which may be seen as the dark side of life”, such as litter or people who are not properly dressed.

But demand is strong despite these restrictions, says a report from the booming, export-oriented province of Zhejiang.

The tourists are mainly middle-aged or elderly and include a large proportion of Korean war veterans, says the report, which notes how Pyongyang was devastated in the war and was the victim of 1,400 American bombing raids.

North Korea agreed to welcome Chinese tourists under an agreement signed in September 2008, but implementation was held up by bureaucracy and problems over high costs, and the doors are only opening this month, according to a report from the southern province of Guangdong. It says people are not put off by the fact that tours are quite expensive at about 5,000 yuan ($730) for five days or 6,000 yuan ($880) for six days, and applicants have to fill in plenty of forms and show their work ID and other documents.

The itinerary is much the same as for Western visitors – Pyongyang, the Myohyang mountains and Panmunjom – although in the North Korean capital the Chinese-Korean Friendship Tower is a must-see, featuring a memorial to the “martyrs” of the Chinese People’s Volunteer Army who fell in the Korean war, including Mao Zedong’s son Mao Anqing.

A total of 800 tourists from Wenzhou in Zhejiang are due to leave on April 20, as well as another group from the provincial capital Hangzhou. There are no direct flights at present, so they have to fly via Beijing, while tourists from Guangdong fly to Dalian or Shenyang and then take the train to Pyongyang via Dandong.

One Zhejiang travel agent goes so far as to say there is so much interest in North Korea that “It will become a tourism destination second only to Taiwan.”

Further tours are planned from Nanjing, Fuzhou, Jiangxi, Shandong and other cities and provinces, and border tourism is also booming, as noted in several reports on NKEW recently. According to the latest report, a tourism agreement has just been signed between the border town of Ji’an in Jilin province and Manpo, just across the Yalu river.

UPDATE 1: Here is what KCNA had to say:

SPA of DPRK Meets

Pyongyang, April 9 (KCNA) — The 2nd Session of the 12th Supreme People’s Assembly of the DPRK was held at the Mansudae Assembly Hall Friday.

It was attended by deputies to the SPA.

Officials of Party, armed forces and power organs, public organizations, ministries and national institutions and those in the fields of science, education, culture and arts, public health and media attended it as observers.

The session discussed the following agenda items: “1. On the work of the DPRK Cabinet in Juche 98 (2009) and its tasks for Juche 99 (2010)”, “2. On the results of the implementation of the DPRK state budget for Juche 98 (2009) and its state budget for Juche 99 (2010)”, “3. On the adoption of the ordinance of the DPRK Supreme People’s Assembly ‘On revising some provisions of the DPRK Socialist Constitution'” and “4. Organizational matter”.

Deputy Kim Yong Il, premier of the Cabinet, in a report on the first agenda item said that last year the indomitable mental power of all the people of the country and production potential were fully displayed and, as a result, the gross industrial output value markedly grew as compared with that in 2008. This year the Cabinet will boost the production of consumer goods and grain by leaps and bounds by putting spurs to the development of light industry and agriculture once again and reenergize the overall production by giving definite priority to the production of electricity, coal, iron and steel and railway transport and, at the same time, energetically organize and conduct the campaign for a great surge with main emphasis on stepping up the technological upgrading and modernization of the national economy, he added.

Deputy Pak Su Gil, vice-premier of the Cabinet and minister of Finance, in a report on the second agenda item said that last year’s state budget revenue was overfulfilled 1.7 percent and the state budgetary expenditure was implemented at 99.8 percent.

He noted that the plan for state budgetary revenue for this year is expected to increase 6.3 percent over last year while the plan for state budgetary expenditure is expected to grow 8.3 percent.

Speakers at the session pointed out that the Cabinet’s work last year and the implementation of its state budget were properly reviewed and summed up, this year’s tasks were clearly laid down and its state budget was correctly shaped. They expressed full support and approval of them.

They manifested their resolution to successfully put into practice the Party’s intention and idea of augmenting the country’s political and military potentials in every way and bringing about a dramatic turn in improving the people’s standard of living in this significant year marking the 65th anniversary of the founding of the Worker’s Party of Korea.

The session adopted the decision of the SPA of the DPRK “On approving the report on the work of the DPRK Cabinet and the results of the implementation of the DPRK state budget for Juche 98 (2009)” and the ordinance of the SPA of the DPRK “On the DPRK state budget for Juche 99 (2010).”

Also adopted there was the ordinance of the DPRK Supreme People’s Assembly “On revising some provisions of the DPRK Socialist Constitution”.

Deputy Pyon Yong Rip was elected secretary general of the Presidium of the SPA to fill vacancy and Deputy Jang Pyong Gyu was appointed as director of the Supreme Public Prosecutors Office at the session.

ORIGINAL POST: We still don’t know exactly what happened, but  below is some information from the meeting.

According to the New York Times:

North Korea’s rubber-stamp legislature convened Friday in the capital, Pyongyang, offering few hints of a major policy shift despite a growing desperation for economic recovery.

The country’s ailing leader, Kim Jong-il, did not show up at the Supreme People’s Assembly, igniting speculation about his health and whereabouts. His absence from the assembly, although not unusual, followed some unconfirmed news reports in South Korea in the past week that he might already have embarked on a clandestine trip to China to win needed aid. South Korean officials questioned those reports, though they had earlier predicted that he might soon visit China, the North’s last remaining major ally.

Outside analysts have been closely monitoring Mr. Kim’s absences or appearances in major state affairs since his 2008 stroke fueled speculation on how long he could stay in power. Mr. Kim, 68, is now struggling with North Korea’s deepening economic woes while preparing to hand over power to a son.

On Friday, the legislative session adopted a second constitutional revision in a year, the country’s state-run news agency, KCNA, reported without providing details. The South Korean news agency Yonhap speculated that the amendment might be intended to help the transfer of power from Mr. Kim to his third son, Kim Jong-un, 27.

Others doubted it.

“I think it may have more to do with the economy or a minor readjustment of the Constitution,” said Kim Yong-hyun, a North Korea expert at Dongguk University in Seoul.

The gatherings of legislators in the North provide outside officials and analysts with a rare opportunity to seek clues to North Korean policies and any changes in its leadership hierarchy.

Kim Jong-il, who is also a legislator, has often skipped the sessions. But he used the meeting last year to demonstrate that he was still in charge despite having suffered a stroke in 2008. After months of being out of sight, he entered the parliamentary hall to the thunderous applause of loyal members, though he looked gaunt and limped slightly.

At the time, the assembly approved the first constitutional revision in 11 years to make one of Mr. Kim’s several official titles — chairman of the National Defense Commission — the supreme ruling post in North Korea. The move reconfirmed his already absolute grip on power.

Analysts had said that the session this year was most likely to focus on reviving North Korea’s moribund economy, a goal the nation had set at the start of the year.

On Friday, KCNA reported that the session passed a budget for the year that promised a 10.1 percent increase in spending for consumer goods industries and a 9.4 percent increase for agriculture.

North Korean reports on Friday’s session made no reference to the country’s tricky relations with South Korea and the United States. But the country’s Foreign Ministry reiterated that the North would continue to build and modernize nuclear weapons.

An unidentified spokesman of the ministry told KCNA that North Korea was willing to “denuclearize the Korean Peninsula” — but only if the United States abandoned its “hostile policy” toward the North.

According to AFP (via Asia One):

North Korea’s rubber-stamp parliament at its annual meeting Friday will focus on ways to improve living standards after a bungled currency change sparked widespread public anger, analysts said.

Members of the Supreme People’s Assembly (SPA) are effectively chosen by the ruling communist party, and they endorse the bills it puts forward without serious debate.

But the day-long session indicates the secretive regime’s priorities and any changes to the line-up among the ruling elite.

Yang Moo-Jin of Seoul’s University of North Korean Studies said legislators would approve institutional and personnel changes to bolster leader Kim Jong-Il’s power and prepare for the eventual succession of his third son Jong-Un.

The North is apparently moving to put the national police agency under the direct control of the National Defence Commission headed by Kim, he said.

It was unclear whether the leader would attend the meeting, as he did last year – looking frail and gaunt after a reported stroke.

Since then the regime has been grappling with serious food shortages and tougher UN sanctions imposed to curb its missile and nuclear ambitions.

The currency revaluation last November 30 wa

(h/t Werner) According to a reader the MAK Museum Vienna (Museum of Applied Arts, Museum of Contemporary Arts) will hold from May 9-September 5, 2010 a special exhibition of North Korean paintings, posters, and architecture in collaboration with the National Gallery in Pyongyang (located here-satellite image).

According to the MAK Museum:

FLOWERS FOR KIM IL SUNG
Art and architecture from the Democratic People’s Republic of Korea
19.05.2010 – 05.09.2010

Through large format paintings and contemporary positions in the areas of film, poster art, and architecture, the exhibition offers insight into the art production of the Democratic People’s Republic of Korea. In collaboration with the National Gallery in Pyongyang, MAK has put together a comprehensive show offering the first presentation of the gallery’s original works in a foreign museum.

For several months, visitors to MAK will have the opportunity to gain, in a world premiere, an impression of the culture of the Democratic People‘s Republic of Korea (DPRK). which has been isolated since its founding in 1948. Already in the past, MAK has offered insight into worlds beyond Western art and architecture movements with exhibitions, such as “Art and Revolution. Russian and Soviet Art 1919–1932” (1988), “The Tyranny of the Beautiful: Architecture in the Time of Stalin” (1994), “Architecture Again. The Havana Project” (1997), and “Cine Art. Indian Poster Painters at the MAK” (1999). After years of intense effort, it has been possible to arrange a collaboration with the National Gallery in Pyongyang that aims to present the officially recognized art of the Democratic People’s Republic, in context, and make transparent the development of art within the nation’s political framework. The paintings from the National Gallery, many of which present idealized everyday scenes, are able to offer revealing insight into this country’s largely unknown culture.

A majority of the work is comparable with Soviet Realism. Formally, the artists fall back on stylistic means from Realism and Romanticism: motifs from the working world and the revolutionary struggle are depicted in an academic painterly style, mediating a picture of the ideal world and showing new hero figures: workers, airplane crews and pilots are commonly the protagonists doing the “glorious and good.”

The exhibition will also document with photos, original designs, and models, the special architectural development of Pyongyang, which was entirely destroyed during the Korean War (1950–1953). The model of the Juche Tower, landmark of the city, is hereby attributed special significance. In the Democratic People‘s Republic of Korea, the fine arts developed in a special way under the rule of State founder President Kim Il Sung and his son and successor President Kim Jong Il.

Taking recourse to historical role models, President Kim developed the “Juche” ideology, which postulates the concept of independence as the ideal view of the world. In art, promoted along with portraits and scenes showing heads of state, are primarily motifs displaying the country and life in the Democratic People‘s Republic of Korea in their most positive forms.

Curator Christiane Bauermeister
Consultant curator
Christiane Bauermeister
Project coordination
Dunja Gottweis

A catalogue will be published in conjunction with the exhibition.

Guided tours
Sat, Sun 4.00 p.m.
Continuous information service and short tours: Sat 2.00-4.00 p.m.

Special guided tours by advance booking: Gabriele Fabiankowitsch, phone (+43-1) 711 36-298, e-mail: education@MAK.at

Michael Rank reviews two great books on the DPRK which were recently published.  The first is The Cleanest Race, How North Koreans See Themselves by B. R. Myers in the Asia Times:

North Korea, one of the poorest countries in Asia, is also the best defended with an army of over one million to protect a population of just 23 million. But it does not only depend on its army to fend off the outside world: it also relies on an extraordinary degree of secrecy to baffle its adversaries and throw them off-guard.

Most Western Pyongyang-watchers are forced to rely on the absurdly obfuscatory Korean Central News Agency (KCNA) and on reports of varying reliability in the English-language South Korean media to discern what is going on, which means that unless they know Korean, which they almost certainly don’t, they have almost no first-hand information of what the North Korean government is really up to.

B R Myers is a rare exception among Western North Korea experts: he has a first-rate grasp of Korean and has heroically spent countless hours reading North Korean newspapers, novels and political tracts in the North Korea Resource Center in the Reunification Ministry in Seoul. This has led him to come to some striking conclusions about the nature of the North Korean regime in a highly original book that anyone interested in what is going on above the 38th parallel simply has to read.

He makes a surprising but convincing case for claiming that the Kims, father and son, play the role of mother figures in North Korean ideology, forever clutching children and even soldiers to their ample bosoms, while the North Korean people are portrayed as a uniquely innocent child-race fondly indulged by the “Parent Leader”.

Myers sets out his main conclusions in a gripping preface in which he condemns North Korea-watchers of all persuasions and backgrounds for having

… tended toward interpretations of the country in which ideology plays next to no role. Conservatives generally explain the dictatorship’s behavior in terms of a cynical struggle to maintain power and privilege, while liberals prefer to regard the DPRK [Democratic People’s Republic of Korea] as a “rational actor”, a country behaving much as any tiny country would in the face of a hostile superpower. Such interest as either camp can bring to bear on so-called soft issues exhausts itself in futile attempts to make sense of Juche Thought, a sham doctrine with no bearing on Pyongyang’s policy-making.
Myers asks why “there is more talk of ideological matters in any issue of Arab Studies Journal than in a dozen issues of North Korean Review? The obvious if undiplomatic answer is that most Pyongyang watchers do not understand Korean well enough to read the relevant official texts.”

While he is highly dismissive of the North Korean ideology of juche (self-reliance), which he dismisses as a smokescreen to baffle foreigners – highly successfully, one might add – Myers insists that the personality cult in which the regime envelopes itself should be taken seriously. “The only institution in the country that did not miss a beat during the famine of the mid-1990s was the propaganda apparatus,” he notes.

Myers is scathing about those who regard the regime as essentially Stalinist or Confucian, and summarizes its worldview as follows: “The Korean people are too pure blooded, and therefore too virtuous, to survive in this evil world without a great parental leader.” This would place Pyongyang on the extreme right of the political spectrum rather than the far left, and Myers notes that “the similarity to the worldview of fascist Japan is striking”.

Mount Fuji was transmogrified into Mount Paektu while the cult of Kim Il-sung bears striking similarities to the Japanese emperor cult. “Like Kim,” Myers writes, “Hirohito appeared as the hermaphroditic parent of a child race whose virtues he embodied; was associated with white clothing, white horses, the snow-capped peak of the race’s sacred mountain, and other symbols of racial purity …” He explains this as partly the result of collaboration among the Korean elite during the Japanese occupation, and quotes a South Korean historian as saying these collaborators regarded themselves as “pro-Japanese [Korean] nationalists”.

Despite the deep influence of Japanese ideology on North Korean thinking, the Japanese are depicted as enemies with whom there can be no reconciliation, and much the same goes for Americans. The author notes that North Korean dictionaries and schoolbooks portray Americans in sub-human terms, as having “muzzles”, “snouts” and “paws”, and while the Korean War of the early 1950s occupies a central place in anti-American propaganda, there is little stress on the US Air Force’s extensive bombing campaign as this “is hard to reconcile with the myth of a protective Leader” and the regime focuses instead on village massacres and other more isolated outrages.

Myers argues that fanatical anti-Americanism is what helps to keep the regime in power, and that far from seeking a positive relationship with the US, “It negotiates with Washington not to defuse tension but to manage it, to keep it from tipping into all-out war or an equally perilous all-out peace”.

Myers must be the only non-Korean on Earth who has taken a serious look at North Korean fiction (he wrote a previous book on the subject), and this affords him some fascinating insights. He highlights the sharp contrast with Soviet Stalinist fiction, in which the Communist Party posed as an educating father, while

… the DPRK’s propaganda is notably averse to scenes of intellectual discipline. Because Koreans are born pure and selfless, they can and should heed their instincts. Often they are shown breaking out of intellectual constraints in a mad spree of violence against the foreign or land-owning enemy. Cadres are expected to nurture, not teach, and bookworms are negative characters. In short: where Stalinism put the intellect over the instincts, North Korean culture does the opposite.
This sharply written, beautifully designed book is richly illustrated with North Korean propaganda posters and photographs. I did not agree with everything the author says – I think he underestimates the influence of Confucianism in North Korea and also underplays the cruelty of the Japanese occupation of Korea – but this is a remarkably perceptive study that everyone with an interest in North Korea, and in the practice and theory of authoritarian regimes generally, should read.

The Cleanest Race, How North Koreans See Themselves – And Why It Matters by B R Myers. Melville House, Brooklyn, NY, 2009. ISBN-10: 1933633913. (Buy on Amazon here)

Michael also reviewed Barbara Demick’s Nothing to Envy in the Guardian:

If Stalin’s Russia was, in Churchill’s words, “a riddle wrapped in a mystery inside an enigma”, North Korea is an impenetrable black hole. The government’s main mouthpiece, the Korean Central News Agency, has a firm policy of reporting almost no news. True, tourists can visit the showcase capital, Pyongyang, for a few days and enjoy some pleasant chat with their affable but carefully selected minders, but they will gain few insights into what makes the country tick and they will have no opportunity to speak to anyone who could be remotely regarded as an ordinary North Korean. As the British ambassador put it with devastating frankness last year, “We get no information from the government whatsoever”, and there are few sources of information in Pyongyang to turn to who are not government officials.

So to find out what North Koreans think about their government and society, one has no choice but to talk to defectors who have managed to escape to South Korea. Los Angeles Times journalist Barbara Demick interviewed about 100 defectors, but in this highly readable book she focuses on half a dozen, all from the north-eastern city of Chongjin , which is closed to foreigners. She decided to concentrate on Chongjin because it is likely to be more representative than Pyongyang, where, for all its drabness and endless power shortages, nobody is starving. The overwhelming impression one gains from the book is of a country mired in poverty and repression, but also of resilience and a will to survive.

North Korean children are taught to sing that “We have nothing to envy in the world”, and until recently people seem to have believed this as they had so little access to information about life outside their own country. But the famine of the 1990s, in which more than a million people might have died, inevitably resulted in a deep questioning and cynicism. “Your general [the demigod Kim Jong-il] has turned you all into idiots,” Oak-hee tells her mother after being released from jail for crossing the border into China.

Oak-hee had watched South Korean television, which made it clear that what they were told back home about exploitation and poverty in the capitalist south was all lies. By now, many officials no longer believe in the government propaganda either, and a prison director tells the women held for escaping to China, “Well, if you go to China again, next time don’t get caught.”

But despite such comments, the book does not argue that the regime is about to collapse, as many defectors and western commentators in the 1990s expected that it would.

One of the most poignant stories in the book is that of two young lovers who dare not tell each other that they are thinking of defecting. Mi-ran is from near the bottom of the North Korean social heap, while Jun-sang comes from a comparatively privileged family, with relatives in Japan. Eventually they meet up again in South Korea, but their relationship is over. Mi-ran is happily married to a southerner but is haunted by the fate of her sisters, who are either in a labour camp or dead, while Jun-sang, who attended an elite Pyongyang university, is facing an uncertain future and worries that he will never see his parents again.

Demick says defectors find it hard to settle in South Korea and are overwhelmed by the myriad choices facing them there, which “can be utterly paralysing for people who’ve had decisions made for them by the state their entire lives”. Surprisingly perhaps, “Many if not most, want to return to North Korea,” Demick claims, and are wracked by guilt over leaving family members there.

But defectors are, by definition, not typical: they are likely to be more disaffected, more resourceful and richer than the average citizen, so this book is hardly the definitive account of everyday life in North Korea. Yet the stories it recounts are moving and disturbing, and it surely tells us far more about real North Korean lives than a fleeting tourist visit to the Stalinist-kitsch theme park that is Pyongyang.

Order Nothing to Envy on Amazon here.

Read the full articles here:
Lifting the cloak on North Korean secrecy
Asia Times
Michael Rank
4/10/2010

Nothing to Envy by Barbara Demick
The Guardian
Michael Rank
4/3/2010

UPDATE: According to Yonhap:

North Korea has told four employees at a South Korean-run mountain resort to leave the communist nation within 24 hours as part of measures to freeze Seoul-held assets there, sources here said Tuesday.

The North has also sealed the key holes of entrances to five facilities and has pasted keep-out stickers, they said. The facilities were built and run by the South Korean government and its state tourism agency.

The workers, ethnic Koreans from China, had been overseeing the maintenance of a family reunion center at Mount Kumgang. The other facilities subject to Tuesday’s asset freeze included a duty free shop run by Seoul’s Korea Tourism Organization.

The North’s measures were seen as an attempt to increase pressure on Seoul to resume a joint tourism program to the mountain resort that had been an important source of foreign currency for the impoverished nation.

Officials in Seoul earlier said the freezing of assets will have little actual impact as the facilities have hardly been in use since the cross-border tours to Mount Kumgang were suspended in 2008.

Still, the measure symbolizes Pyongyang’s anger over Seoul’s refusal to resume the lucrative project that had earned the regime millions of dollars a year. It also suggests that stronger steps, such as asset confiscations, could come if the South keeps refusing.

On Tuesday morning, North Korean officials began carrying out the measure, a source said without giving any specifics.

“We will respond after we see what the freezing measure will involve,” an official in Seoul said.

The tours, which began in 1998, had been a prominent symbol of reconciliation between the rival states that are still technically at war after the 1950-53 Korean War ended in a ceasefire, not a peace treaty. Nearly two million South Koreans had visited the scenic mountain.

South Korea suspended the program in 2008 after one of its citizens was shot dead by a North Korean guard after entering a restricted area near the resort. Seoul has demanded a state-to-state guarantee of tourist safety as well as a joint on-site probe into the death before the tours can resume.

North Korea says it did everything to assure tourist safety in a deal that leader Kim Jong-il struck with the head of the tour’s main South Korean organizer, Hyundai Asan, last year.

South Korea has protested the North’s decision to freeze the five facilities which include a family reunion center, a fire station and a duty free shop.

Despite threats from the North, the government of South Korean President Lee Myung-bak has shown no signs of backing down. It also rejected the North’s demand that Seoul officials come to the resort to attend the asset freeze, and warned it would hold the North responsible if it causes any damage to resort facilities.

Since taking office in early 2008, Lee halted unconditional aid to the North, linking its resumption to progress North Korea makes in ending its nuclear weapons programs.

Amid the lack of aid from the South, North Korea’s economic troubles have deepened in the wake of fresh U.N. sanctions imposed after Pyongyang’s nuclear test last year, and the regime’s failed currency reform that worsened inflation and food shortages.

Here are some press releases from the Ministry of Unification: Statement 1, Statement 2.

ORIGINAL POST: According to the Associated Press:

North Korea informed South Korea that it will begin quitting a joint tourism project in the communist country this week, officials said Sunday, in another setback to relations between the countries.

North Korea said Thursday that it would freeze some South Korean assets at scenic Diamond Mountain, expel South Koreans working at the site and restart the stalled project with a new partner.

A day later, the North told the South that it will carry out the plan Tuesday, starting with the freezing of the South Korean government-owned assets that include a reunion center for families separated by the Korean War, according to Seoul’s Unification Ministry.

It was not clear when the North would expel South Korean personnel, according to Hyundai Asan, the resort’s South Korean tour operator that relayed the North’s plan to the South Korean government.

The North said it would freeze assets at the site while South Korean officials were in attendance, but the South has no intention of sending officials to comply with the North’s request, ministry spokeswoman Lee Jong-joo said.

South Korea halted tours to the mountain resort on North Korea’s east coast in July 2008 after a South Korean tourist was fatally shot after allegedly entering a restricted military area next to the resort.

The North had recently expressed its willingness to restart the tours, a legitimate source of hard currency for the impoverished regime. But South Korea said the North must first accept a joint investigation into the shooting death.

North Korea’s decision to quit the tour project “is the inevitable consequence entailed by the moves of the South Korean authorities to escalate the confrontation with fellow countrymen,” the North’s government-run Minju Joson newspaper said in a commentary carried by the official Korean Central News Agency on Sunday.

Relations between the two Koreas have worsened since a conservative Seoul government took office in early 2008 with a pledge to get tough with the North.

But North Korea has tried to reach out to Washington and Seoul since last summer in an about-face that analysts and officials say shows the North feels the pain of U.N. sanctions adopted to punish it for its nuclear test in May.

The DPRK wants South Korean officials present for the occasion, but the South has refused.  According to the the AFP:

Seoul on Sunday rejected Pyongyang’s demand that South Korean officials come to a North Korean resort where the communist regime is about to freeze South Korean assets, worsening bilateral ties.

North Korea wants South Korean officials present on Tuesday when it freezes the assets, Seoul’s unification ministry spokesman Chun Hae-Sung said.

However Seoul will not comply with the summons, he said.

The North last week threatened to freeze assets at the Mount Kumgang resort after pressing Seoul in vain to lift its ban on tours to North Korea, which once earned the impoverished state tens of millions of dollars a year.

The North also declared its cross-border tour business deal with South Korean firm Hyundai Asan void, threatening to find a new partner to replace it and to expel some South Korean personnel.

Seoul suspended the cross-border tours in July 2008 after North Korean soldiers shot dead a South Korean housewife who strayed into a military zone.

South Korea demands firm agreements on the safety of visitors, a joint investigation into the shooting and the North’s apology for the killing.

The North says it has already given safety guarantees.

The latest tit-for-tat reflects the deterioration in relations since the South’s conservative government took office in 2008 and took a tougher line with Pyongyang, linking economic cooperation with the North to progress on its nuclear disarmament.

The North’s official Minju Joson newspaper said Sunday the collapsing tour deal “is the inevitable consequence entailed by the moves of the South Korean authorities to escalate the confrontation with fellow countrymen.”

It accused Seoul of overturning previous agreements on resuming the tours, which began in 1998.

Nearly two million South Koreans had travelled to the North in the past decade, earning it some 487 million dollars.

North Korea is also suffering economically from tougher sanctions imposed by the UN Security Council since Pyongyang’s second nuclear test in 2009.

It says it will freeze five Seoul-owned assets — a family reunion centre, a fire station, a culture centre, a spa and a duty free shop — in the Mount Kumgang resort, but did not specify how, Seoul officials said Sunday.

The South has urged the North to reverse its decision, saying the communist state is breaching business contracts and international norms.

Pyongyang also threatens to re-examine an industrial park with the South at Kaesong just north of the border.

Some 42,000 North Koreans work at 110 South Korean-funded plants at Kaesong, which like Kumgang is a valuable source of scarce hard currency for the North.

Here is a link to previous Kumgang stories.

Read the full story here:
NKorea to start quitting joint tour this week
Associated Press
Kim Hyung-Jin
4/11/2010

According to the Korea Times:

North Korea, the planet’s deepest information void, appears to be dabbling with electronic books (e-books), a South Korean activist claimed Thursday.

It’s questionable how much an ecosystem for e-books would be relevant to readers living in perhaps the most censored country in the world.

But according to Free North Korea Radio’s Kim Seong-min, North Koreans have choices beyond government propaganda books to read on their computers, including translations of Western classics such as Shakespeare’s plays, “The Iliad,” “Don Quixote,” “ Jane Eyre,” “ Les Miserables” and even “Gone With The Wind.”

“North Korea will have less complications surrounding copyright issues compared to the South, and with the government pushing the project directly, the country seems to have acquired a wealth of e-book content over a relatively short period of time,” Kim told Yonhap News.

Kim revealed “Electronic Library Mirae (Future) 2.0,” North Korea’s e-book computer program he claimed to have acquired from one of his foreign sources.

When run on Microsoft Windows, Mirae 2.0 opens a page that resembles a conventional library search site, and provides access to the electronic versions of about 1,500 books and 350,000 kinds of other documents.

The books include a wealth of non-fictions work, mostly on political theories and history, but also a variety of literature, song collections, and educational content such as dictionaries and books of facts.

The e-book collection of literature contains some contemporary North Korean work that hasn’t been previously introduced to the South, Kim said.

Users of Mirae 2.0 can search for e-books by title or content.

They can even use its voice recognition system by clicking the “read” tab at the top of the screen, with the computer responding with a recorded female voice that seems “natural” by North Korean standards, Kim said.

Read the full article here:
North Korea has electronic books
Korea Times
Kim Tong-hyung
2/8/2010

According to the Korea Times:

The remains of a U.S. serviceman who went missing in action during the 1950-53 Korean War were recently returned to his family for burial, almost six years after they were excavated in North Korea, the U.S. Department of Defense said Thursday.

The soldier, Army Cpl. Stanley P. Arendt, was buried on March 29 in Palantine, Ill. with full military honors, the Pentagon said in a statement.

In May 2004, a joint U.S.-North Korean team excavated a mass grave near the town of Unsan after receiving a report that an elderly North Korean national had witnessed the death of U.S. soldiers at the site.

The team recovered remains and other personal artifacts that ultimately lead to the identification of seven soldiers.

Arendt was assigned to the 8th Cavalry Regiment in November 1950. According to the Pentagon, “Arendt’s unit was involved in heavy fighting which devolved into hand-to-hand combat around their command post” near Unsan.

Some 400 men were reported missing in action or killed in action during the battle at Unsan, the statement said.

The United States conducted more than 30 excavation missions in the North from 1996 to 2005, finding the remains of what it believed to be some 230 soldiers. It estimates that the remains of some 8,000 of its soldiers are still there.

The joint excavation project between the two countries was halted in 2005 due to tensions over the North’s nuclear ambitions.

On Monday, the North threatened to abandon its efforts to preserve the remains of U.S. soldiers who went missing during the war, unless the United States agrees to restart the project soon. In response, the U.S. State Department hinted the excavations could begin again after the North returns to the six-party talks on its denuclearization.

The project had been a source of hard currency for the North, which has reportedly been struggling with a worsening food situation and reeling from the effects of its disastrous currency revaluation.

Read the full story here:
Remains of US MIA From Korean War Returned
Korea Times
Kim Young-jin
4/9/2010

UPDATE 16: 10/27/2010 – Robert Park has spoken of long-term psychological problems stemming from his captivity in North Korea.  According to the Choson Ilbo:

The evangelical activist Robert Park, who was detained in North Korea for 43 days after crossing the border from China in December last year, has spoken for the first time on South Korean TV about the ordeal. “They have really thought about this. How can we kill these people, how can we starve these people, how can we enslave these people, how can we control these people,” the Korean American told KBS on Tuesday.

He pledged to devote the rest of his life to fighting for the demise of the North Korean regime and the human rights of North Koreans.

Park recalled how he crossed the Duman (or Tumen) River on Dec. 25 last year, and was immediately arrested and beaten. “The scars and wounds of the things that happened to me in North Korea are too intense,” he said. He added that to prevent him from divulging the details of his detention, the security forces carried out humiliating sexual torture. “As a result of what happened to me in North Korea, I’ve thrown away any kind of personal desire. I will never, you know, be able to have a marriage or any kind of relationship.”

He attempted a suicide immediately after he returned to the United States and had to be treated by a psychiatrist for seven months.

Park insisted that an apology he read on North Korean TV was dictated to him. Asked why he decided to enter the North illegally armed with nothing but a Bible, he said, “I hoped through my sacrifice, that people will come together and they will liberate North Korea.”

UPDATE 15: 8/30/2010 – Doubts raised over whether Gomes attempted suicide. According ot the Choson Ilbo:

The North’s official KCNA news agency on July 9 reported Gomes tried to kill himself “driven by his guilty conscience and by frustration with the U.S. government’s failure to free him.” It said he was being treated in hospital.

After the news, the U.S. administration quickly decided to send Carter to Pyongyang. In mid-August, a U.S. State Department medical team visited the North to check on the prisoner.

But in an interview with the New York Times last Saturday, Gomes’ uncle Michael Farrow denied he attempted suicide but had gone on hunger strike.

“I wouldn’t say that he was anywhere near sick at all,” the daily quoted Farrow as saying. “Naturally he probably had some discomfort of being away from home, but other than that he held up pretty good.” This suggests that Gomes was protesting against his detention.

Gomes arrived at Logan International Airport in Boston on the same plane as Carter on Friday and went home with his family without talking to the press.

UPDATE 14: 8/27/2010- Here is KCNA coverage of Cater’s visit to secure the release of Gomes:

Report on Jimmy Carter’s Visit to DPRK

Pyongyang, August 27 (KCNA) — Jimmy Carter, ex-president of the United States, and his party visited the DPRK from Aug. 25 to 27.

Kim Yong Nam, president of the Presidium of the Supreme People’s Assembly, met and had a talk with them.

He discussed with Carter the pending issues of mutual concern between the DPRK and the U.S.

Kim Yong Nam expressed the will of the DPRK government for the denuclearization of the Korean Peninsula and the resumption of the six-party talks.

In particular, he emphasized that it is the behest of President Kim Il Sung to denuclearize the peninsula.

Jimmy Carter made an apology to Kim Yong Nam for American Gomes’ illegal entry into the DPRK and gave him the assurance that such case will never happen again on behalf of the government and the ex-president of the U.S. He asked Kim Yong Nam to convey to General Secretary Kim Jong Il a message courteously requesting him to grant special pardon to Gomes to leniently forgive him and let him go home.

After receiving a report on the request made by the U.S. government and Carter, Kim Jong Il issued an order of the chairman of the DPRK National Defence Commission on granting amnesty to Gomes, an illegal entrant, pursuant to Article 103 of the Socialist Constitution of the DPRK.

Carter expressed deep thanks for this.

Earlier, the U.S. deputy assistant secretary of State for Consular Affairs and his party visited Pyongyang from August 9 to 11 in connection with the case of Gomes and met officials of the Foreign Ministry and a relevant legal body of the DPRK.

The DPRK side took measures as an exception to ensure that they met Gomes three times and confirmed his condition. The U.S. side offered gratitude for these humanitarian measures.

The measure taken by the DPRK to set free the illegal entrant is a manifestation of its humanitarianism and peace-loving policy.

During the visit Carter and his party met and had an open-hearted discussion with the DPRK’s foreign minister and vice foreign minister for U.S. affairs on the DPRK-U.S. relations, the resumption of the six-party talks, the denuclearization of the Korean Peninsula and other issues of mutual concern.

They also enjoyed a performance given by the State Symphony Orchestra.

The Pyongyang visit paid by Jimmy Carter, ex-president of the U.S., provided a favorable occasion of deepening the understanding and building confidence between the two countries.

UPDATE 13: 8/25/2010 – Jimmy Carter has arrived in Pyongyang for the second time in his life.

UPDATE 12: Jimmy Carter is reportedly gearing up to go and get Mr. Gomes.

UPDATE 11: According to All Headline News:

The United States confirmed on Monday that a four-person team visited Pyongyang recently to meet with 30-year-old Aijalon Gomes, who has been held captive since January.

Asked to comment on the visit, State Department spokesman P.J. Crowley told journalists, “It was a four person team: one consular official, two doctors, and a translator. We requested permission to visit Mr. Gomes. That permission from the North Korean Government was granted. The basis of the trip was simply our ongoing concerns about Mr. Gomes’s health and welfare.”

“They (the team from the State Department, Washington) were in Pyongyang from August 9 through August 11. I believe they returned on August 12,” said Crowley, adding, “They visited him (Gomes) in a hospital.”

Crowley said that although the U.S. and Swedish officials on its behalf, “requested permission to bring Mr. Gomes home,” adding, “Unfortunately, he remains in North Korea.”

“We have had conversations directly with North Korea on this issue. We have encouraged them to release Mr. Gomes on humanitarian grounds and we will continue to have that direct conversation with North Korea as needed,” Crowley noted.

UPDATE 10: US in direct contact with DPRK re: Gomes (Daily NK)

UPDATE 9: (2010-7-19) Robert Park has apparently broken his silence to speak out for Gomes.  According to KOLD News 13 (Tucson, AZ):

For the first time since his release from North Korea, Tucsonan Robert Park is speaking out.

…

He’s speaking out now to send a message about Aijalon Gomes, a U.S. citizen who’s currently being held in North Korea.

“He’s a wonderful man,” Park said. “He’s a very good friend of mine.”

Gomes, a Boston resident, crossed into North Korea one month after Park did. Gomes has been sentenced to eight years in a North Korean labor camp. But North Korea has recently threatened to increase that punishment, by invoking the country’s “wartime law,” citing growing tensions with the U.S.

It’s still not clear exactly why Gomes entered North Korea, but based on limited communications with his friend, Park believes it’s because of him.

“He was very concerned about me,” said Park, who added that crossing into North Korea was uncharacteristic for Gomes. “He was so concerned that (I) was dead, so that’s why he took this risk and he just went in.”

Park says he’s now going on a hunger strike to raise awareness and urgency about Gomes’ situation.

“I’m on the third day of my hunger strike,” he said. “I plan to not consume any food until he is released, even if that means my death.”

Park is also urging Americans to contact lawmakers to intervene.

“If you would please contact your government leaders and plead with them, raise awareness with them concerning Aijalon Gomes’s case, and ask that they make a direct visit.”

UPDATE 8: KCNA reports Gomes attempted suicide:

American Prisoner Attempts Suicide
Pyongyang, July 9 (KCNA) — American Gomes serving a prison term in the DPRK recently attempted to take his own life, according to information available from a relevant organ.

Driven by his strong guilty conscience, disappointment and despair at the U.S. government that has not taken any measure for his freedom, he attempted to commit suicide. He is now given first-aid treatment at a hospital.

The Swedish embassy here representing the U.S. interests acquainted itself with the condition of the patient at the hospital.

According to the New York Times:

In April, North Korea sentenced Mr. Gomes to eight years of hard labor and fined him the equivalent of $700,000 for entering the country illegally and for “hostile acts.”

North Korea recently threatened to increase the punishment for Mr. Gomes under the country’s “wartime law,” saying worsening tensions with the United States had created a warlike situation on the Korean Peninsula.

Mr. Gomes’s motivation for entering North Korea is unclear. He had been teaching English in South Korea before his arrest in the North. In late April, he was allowed to speak to his mother by telephone.

UPDATE 7: DPRK threatens to increase punishment of Gomes over the Cheonan situation.  Apparenlty there is no North Korean word for “Double Jeapordy“.  According to the BBC:

North Korea said it would use “wartime law” against the 30-year-old if the US continued its “hostile approach” over the sinking of a South Korean warship.

….

According to North Korea’s state news agency, US requests to free Gomes will not be accepted while the dispute over the sinking of the warship continues.

Instead the Korean Central News Agency says “there remains only the issue of what harsher punishment will be meted out to him”.

“If the US persists in its hostile approach, the latter will naturally be compelled to consider the issue of applying a wartime law to him,” state media reported.

Analysts say “wartime law” could mean a life sentence or the death penalty.

UPDATE 6: Gomes has phoned home.  According to the AP (4/30/2010):

An American imprisoned in North Korea was allowed to speak to his family by telephone Friday, state media said.

North Korea sentenced Aijalon Mahli Gomes to eight years of hard labor and fined him $700,000 in early April for entering the country illegally in January and for an unspecified “hostile act.”

Gomes, from Boston, was the fourth American detained by North Korea for illegal entry in less than a year. He had been teaching English in South Korea.

The official Korean Central News Agency reported that Gomes spoke with family on Friday. The call was allowed after Gomes asked “for a phone contact with his family for his health and other reasons,” the report said.

The brief dispatch from North Korea’s capital Pyongyang provided no further details on the call.

KCNA also said Gomes had contact in prison with a Swedish Embassy official to whom he handed a “written petition.” The report said that happened before the phone call but wasn’t specific.

The United States and North Korea do not have diplomatic relations, and Sweden handles U.S. interests in the North.

UPDATE 5: Gomes has been sentenced.  According to the BBC:

North Korea has sentenced a US citizen to eight years’ hard labour for illegally entering the country, state news agency KCNA has said.

The man, named as 30-year-old Aijalon Mahli Gomes, from Boston, admitted his wrongdoing in court, KCNA reported.

Gomes had worked as an English teacher in South Korea, and reportedly crossed the border from China on 25 January.

Swedish diplomats were allowed to attend the trial, as the US has no diplomatic presence in North Korea.

Gomes, described by colleagues as a devout Christian, was also fined 70 million won ($700,000; £460,000 at the official exchange rate). It is not clear why he entered North Korea.

Goodwill gesture?
Despite the jail sentence, analysts suggested Gomes could be freed before too long as Pyongyang tries to improve bilateral relations with the US.

“The North is not going to hold him for eight years,” Professor Kim Yong-Hyun of Seoul’s Dongguk University told the AFP news agency.

“It is likely to suspend the implementation of the sentence and expel him as a goodwill gesture toward the United States.”

Gomes was the fourth American citizen to be accused of entering the country in the past year. In February, North Korea freed Robert Park, who had entered the country from China by walking over a frozen river.

He had reportedly wanted to highlight human rights issues in North Korea, but was said before his release to have admitted his “mistake”.

Last year two US journalists, Laura Ling and Euna Lee, were also arrested by North Korea on the border with China.

They were sentenced to 12 years’ hard labour but freed in August after four months in captivity, as part of a diplomatic mission spearheaded by former US President Bill Clinton.

According to KCNA:

Central Court Gives American to 8 Years Hard Labor

Pyongyang, April 7 (KCNA) — A trial of Aijalon Mahli Gomes, male U.S. citizen, was held at a court of justice of the Central Court of the DPRK on Tuesday.

An examination was made of the hostile act committed against the Korean nation and the trespassing on the border of the DPRK against which an indictment was brought in and his guilt was confirmed according to the relevant articles of the criminal code of the DPRK at the trial. On this basis, the court sentenced him to eight years of hard labor and a fine of 70 million won.

The accused admitted all the facts which had been put under accusation.

The presence of representatives of the Swedish embassy here to witness the trial was allowed as an exception at the request of the Swedish side protecting the U.S. interests.

Read the rest of this entry »

By Michael Rank

The Chinese government is planning to increase tourism to North Korea as part of plans to boost tourism in China’s rustbelt northeast, according to a newly published official report (MS Word download here).

The report focuses mainly on domestic tourism, but also mentions plans for increased numbers of Chinese tourists to cross into North Korea. Tours include from Changbai county in Jilin province to the North Korean city of Hyesan, just over the border, and from Yanji and Hunchun to Bangcheon, which is also just over the border. Other tours are to include the east coast North Korean port of Rajin and Vladivostok in Russia well as South Korea and Japan. North Korea-related aspects of the 32-page report are summarised here  (both reports are in Chinese).

Incidentally in researching this article I discovered that various cross-border tours are advertised on the internet, e.g. a one-day tour from Tumen that includes Namyang-gun, the home  village of Kim Il-sung’s first wife, Kim Jeong-suk, mother of Kim Jong-il, and also the spot where China, North Korea and Russia meet. Cost: 140 yuan ($20), but we can assume they are for Chinese citizens only.

The government report says it is planned to increase the number of tourist trips from and around northeast China from 350 million to 800 million a year between now and 2015.

Andrei Lankov adds in the comments: In the borderland areas they sell a number of tours tgo NK (Chinese citizens only), with costs between 180 RMB (one day tour from either Yanji or Dandong) to 2500 RMB (four days to Pyongyang). Koryo Tours people told me that until 2009 in order to apply one had to be not merely a Chinese citizen, but a registered resident of the three north-eastern provinces. According to Koryo tours people, this restriction has been lifted, but few people from outside Dongbei are interested.