North Korean Economy Watch

Daily NK
Kim Song A
4/6/2007

Aid for North Korea to prevent further spread of outbreak

The spread of foot and mouth disease that took over the province of Sangwon, Pyongyang has been brought under control announced the U.N. Food and Agricultural Organization (FAO) on the 4th, further adding that future endemics were improbable.

The FAO and the World Organization for Animal Health (OIE) conducted tests over a period of one week inspecting the infected areas of North Korea.

The FAO Newsroom site reported Chief Veterinary Officer, Joseph Domenech who said, “Based on the mission’s visit to the infected area and discussions with North Korean veterinary authorities we concluded that there is a limited risk that new outbreaks could occur.” Nonetheless, North Korea is yet to remain on the alert list he said.

In relation, the DailyNK made similar reports in February on the rise of foot and mouth disease in the border regions of North Hamkyung province and control measures taken by North Korean authorities to block further contamination.

The disease was identified in cows of Hoiryeong city in early January. Consequently, North Korean authorities secluded the region for 40 days until Feb 24th, even terminating all transportation to the North Korea-China border.

The FAO is preparing a proposal to prevent further epidemics by assisting North Korea with vaccines, an emergency plan as well as laboratory infrastructure and training.

In future, North Korea will need to strengthen its system where animals are registered and identifiable as well as improving quarantine and controlled supervision of animals during transportation.

This epidemic was the first to occur in North Korea since 1960. So far, 400 infected cattle and 2,600 pigs have been rounded up and are undergoing the standard regulatory procedures.

Previously on March 28th, the South Korean government sent 280 mn won worth of medicine, antiseptic and instruments to North Korea to prevent further outbreak. Additionally, extra supplies requested by the North including sterilization are being prepared to be sent.

Hankyoreh
4/6/2007

At first reclusive, North’s workers are smiling, eating together with Southern counterparts

Two years after the Gaeseong (Kaesong) Industrial Complex began operations, the attitude of North Korean workers toward their South Korean employers has significantly changed for the better, according to heads of South Korean plants located in the joint Korean industrial park.

Ra Sang-jin, 66, the plant chief of Daehwa Fuel Pump, which started operations at Gaeseong in June 2005, said North Korean workers’ attitude toward their South Korean employers has changed. When Ra came to Gaeseong, North Koreans disliked South Korean employees coming to restaurants for the Northern workers, for at Gaeseong, the restaurants are divided along the lines of ’North’ and ’South,’ as the North Korean workers were at first reluctant to dine with Southerners. Currently, however, Ra frequently visits North Korean restaurants and is asked by North Korean workers to join in a a meal.

“It seemed to take seven to eight months to remove the wall,” Ra said. North Korean workers are also adapting to the lifestyle at Gaeseong at a faster pace than before. “Recently, some North Korean workers are smiling after only three or four months,” Ra said.

North Korean workers’ reclusive habits – having not met any South Koreans before – have changed, as well. Hwang U-seung, 46, the plant chief of Shinwon, said, “When I meet a North Korean worker on the street and ask which company she is working for, she answers me. That was impossible in the early days [of the Gaeseong complex],” Hwang said. Baek Yeong-ho, 59, the plant chief of Pyeonghwa Shoes, “In early days, the North Korean workers didn’t go to the bathroom alone,” like some sort of old-fashioned social habit. “But they do now. They also don’t step aside when South Koreans are passing.”

Some Korean cowerkers are picking and choosing from the language of the other country, as the language in the North and South has been rendered different after more than 50 years of separation. For example, some South Korean workers call a toilet ‘wisaengsil,’ the North Korean term, and Some North Korean workers call the toilet ‘hwajangsil,’ the South Korean term.

Meanwhile, at first only North Koreans used their common phrase, “Ileopseupnida,” which to them means “no problem” but has a slightly rude meaning in South Korea, akin to “I don’t care.” Now, Northerners and Southerners alike use the phrase. A South Korean who has been working alongside North Koreans at Gaeseong said that “my family in South Korea sometimes tells me my accent has become a little strange.”

Yonhap
4/6/2007

South Korea sent $400,000 in cash to North Korea Friday via the country’s Red Cross officials to help the North purchase computers and other supplies for video-link reunions of families between the two Koreas, officials said.

This is the first time for the Seoul government to send cash aid to the communist North, though bilateral trade exceeded $1 billion for the second consecutive year last year.

“Officials from the National Red Cross left for North Korea Thursday on a boat, carrying funds for the North’s video reunion center,” an official from the Ministry of Unification told reporters on condition of anonymity.

The boat carrying the South Korean officials, as well as 50 construction trucks promised to the impoverished North as aid for its flood damages last year, left Incheon on Friday.

The boat arrived at the North’s Nampo Port earlier Friday, according to ministry officials.

The money is to be used to purchase computers and TV monitors needed for the special kind of reunions between separated families via video conferencing.

North and South Korea have held more than a dozen rounds of face-to-face reunions since the historic inter-Korean summit in 2000, involving over 10,000 people from both sides.

However, over 90,000 South Koreans remain separated from their loved ones in the North since the end of the Korean War in 1953.

“We had no choice (but to give cash) because we could not provide actual goods,” most of which are prohibited from entering the communist nation under the U.S. law on the control of strategic goods, an official said.

Yonhap
4/6/2007

Labor union members of the two Koreas will get together in the South Korean industrial city of Changwon for Labor Day on May 1, organizers said Friday.

This is the first time that the labor unions of the two Koreas, separated by the heavily fortified Demilitarized Zone, have organized such a rally in South Korea, although they have held similar events at the North’s scenic Mount Geumgang along the east coast and in Pyongyang.

The agreement on the rally was reached at a meeting of labor union representatives in the North Korean border town of Kaesong Thursday. They agreed to hold the joint May Day festival in Changwon, 398 kilometers southeast of Seoul, on April 29-May 2.

The festival will feature a friendly soccer match, a tour of historic sites and meetings of labor union leaders.

“It would be the first inter-Korean May Day festival ever to be held in South Korea,” said Kim Myeong-ho, a chief planning official of the Korean Confederation of Trade Unions, one of the South’s two umbrella labor unions co-hosting the event.

The North Korean co-host is the Pyongyang-based General Federation of Trade Unions.

It is one of the achievements of rapprochement between the divided Koreas following the historic inter-Korean summit of June 2000, in which the leaders of the two Koreas signed an agreement on cross-border peace and reconciliation.

Korea Times
4/6/2007

The U.S. Justice Department on Thursday overturned a Los Angeles court’s decision and ruled North Korean refugees who previously settled in South Korea are not eligible for asylum in the United States, according to the Yonhap News Agency.

Under the ruling, two such refugees were ordered to return to South Korea. The decision is also likely to affect other similar appeals filed by the former North Koreans.

A decision made Wednesday by the Board of Immigration Appeals (BIA), a department agency, said the North Korean Human Rights Act of 2004 “does not apply to North Koreans who have availed themselves of the right to citizenship in South Korea.’’

The two people who have requested asylum in the U.S. are thus “precluded from establishing eligibility for asylum as to North Korea on the basis of their firm resettlement in South Korea,’’ Yonhap quoted the BIA as saying.

The two, one male and one female, crossed into the U.S. two years ago from the Mexican border. They filed an appeal when they were ordered to leave.

Yonhap, South Korea’s semi-official news service, said the BIA decision overturns earlier actions by the Los Angeles Immigration Court which granted asylum to a number of North Korean defectors who had legally been living in South Korea before seeking resettlement in the U.S.

The North Korean Human Rights Act states that the U.S. should facilitate the acceptance of refugees from the communist country, but there are varying interpretations on whether it applies to those who received asylum in South Korea.

The State Department had expressed alarm at the earlier decision by the L.A. immigration court, arguing that the act only applies to those who did not obtain legal status in another country.

The BIA said that in reaching the decision, it has “considered that each respondent has significant ties with South Korea, i.e. citizenship and children who live there.’’

“We also note that while living in South Korea, the respondents were employed, moved freely around the country, made public speeches, raised a family, and easily arranged travel to Mexico,’’ it said.

Daily NK
Han Young Jin
4/5/2007

On the 30th, Huanqiushibao, an international affiliated magazine of the Chinese People’s Daily, noted the above statement on Russia’s recent movement to invest in North Korea.

The paper said, “The Russian natural fuel gas business has already completed the preparation for providing energy support and is planning to manufacture petroleum in North Korea.”

“Russia has pioneered the Chungjin-Siberia railroad for a long time” and “if they retain the Eurasia continental rail, then they will gain an annual economic profit of four hundred million dollars,” the paper commented.

Further, the paper said that “Russia is finishing its preparation of surplus concentration in the Wondong (Far Eastern region) to export to North Korea.” As a provision of support to invest in North Korea, Russia is also driving the construction of the Kraskino-Chungjin 50,000 kv railway line for exporting Korea remodeling business and concentration of energy in Wondong to three thermal generating plants in the North.

The paper relays a Russian economic expert’s voice to expand investment in North Korea

Prekofts, Russia’s Wondong Economic Research Institute Chair, said, while emphasizing the importance of investment expansion, “We cannot limit items to invest in North Korea to resource and energy areas. China has already built a glass factory in North Korea. Why can’t we do what China is doing?”

Russia Considers Cancellation of 80 percent of North Korean debt

The paper said, “According to the numbers of the Russian government authorities, the 2006 trade figure with North Korea amounted to 210 million dollars and has been reduced by 13 percent compared to the previous year.” In the midst of such a situation, Russia has sufficiently considered the development potential of the North Korean market and is establishing a plan to encroach on the market according to the forecast that “it will be advantageous for the pre-acquiring party.”

According to the paper, President Putin commented, “The economic power with the world’s fastest rate of financial progress is overwhelmingly the Asia-Pacific region.”

The paper also said that because Russia considers of importance the strategic position of North Korea for connecting Europe and Asia-Pacific countries, it has considered the forward-looking way of remitting 80 percent (64 hundred million dollars) of North Korea’s 80 hundred million dollar debt.

The current system of exchange between North Korea and Russia is the former exporting labor power and agricultural goods and latter exporting energy, oil, and raw materials.

The paper reported that there has been opposing public opinion regarding Russia’s investment in North Korea. Because North Korea is not economically well-off, short-term recovery of investment gains is difficult.

The paper pointed out that a Russian merchant Merikonoft, who engages in international trade, said the following, “I do not have immediate plans to invest in North Korea. North Korea does not have laws for protecting foreign capital, so doing business is a type of exploration.”

Joong Ang Daily
Lee Young-jong and Ser Myo-ja
4/5/2007

As relations between the two Koreas warm, North Korea filled a key post that had been empty since August with a veteran diplomat, intelligence sources in Seoul said yesterday.

Kim Yang-gon is now director of the unification front of the Worker’s Party, a position roughly equivalent to South Korea’s unification minister.

“Kim was appointed to the post last month, shortly after inter-Korean relations were restored [in February],” a senior intelligence official said. “We assessed that North Korea was realigning its South Korea policy makers.”

Kim, 69, had been the councilor of the National Defense Commission, headed by Kim Jong-il. The Workers’ Party had left the unification front director post empty since Rim Tong-ok died in August of last year.

Since the 1980s, Kim Yang-gon has served in various key foreign affairs posts, including vice director and director of the international department of the party. Sources said Kim Jong-il wanted someone with international affairs ability because inter-Korean relations depend upon the six-nation nuclear talks and U.S.-North Korea relations.

Kim Yang-gon is also one of Kim Jong-il’s closest aides. After Workers’ Party Secretary Hwang Jang-yop defected to the South in 1997, Hyon Jun-guk was fired as the party’s international department director. Kim Jong-il appointed Kim, and he has accompanied the North Korean leader on many important meetings with foreign visitors. Kim also accompanied Kim Jong-il during rare trips to China and Russia. “We will look forward to appointments to other empty posts, such as the secretary of the Unification Front for the party and the chairman of the Democratic Front for the Reunification of the Fatherland,” the intelligence source said.

The two posts to be filled were left vacant after Kim Yong-sun died in a 2003 traffic accident. They are both key North Korea organs that make policy with regard to South Korea.

Yonhap
4/5/2007

Commercial trade between South and North Korea rose 40 percent to US$187.08 million year-on-year in the first quarter, a top unification official said Thursday.

The increase was mainly attributed to an influx of zinc bullion, sand, fishery items, shoes, clothing and watches into a joint industrial complex in the North Korean border city of Kaesong.

“But noncommercial trade between the two sides rose a mere 6.7 percent to $278.11 million in the first quarter because of the halt in government and civic aid to the North,” Vice Unification Minister Shin Un-sang said in a press briefing.

Last week, South Korea sent the first batch of its promised 300,000 tons of fertilizer aid as well as flood relief supplies to the North.

Shortly after the North conducted missile tests in July, the South suspended food and fertilizer aid along with its emergency aid to the impoverished North. In retaliation, the communist nation suspended inter-Korean talks, family reunions and the construction of a family reunion center.

In March, the two Koreas agreed to resume humanitarian aid and family reunion events just days after North Korea promised to take steps to shut down its main nuclear reactor and eventually disable it in return for energy aid from South Korea, the United States, China, Russia and Japan.

Yonhap
4/5/2007

The head of the world taekwondo body led by North Korea will come to Seoul on Friday to discuss details of merging the two world governing bodies of the traditional Korean martial art, officials here said Thursday.

Chang Ung, the head of the International Taekwondo Federation (ITF), is due to arrive in Seoul Friday morning via a direct flight from Pyongyang, leading a 47-member delegation including 30 North Korean taekwondo athletes, an official of the ITF Korea Corp. said.

London Times (Hat tip DPRK Studies)
Kim jong Il ate my rabbits for his birthday
David Crossland
4/5/2007

Karl Szmolinsky sold the rabbits to Pyongyang so that they could be used to set up a breeding programme to boost meat production in the Hermit Kingdom.

The 68-year-old breeder had been due to travel to North Korea after Easter to provide advice on setting up a rabbit farm. A North Korean official rang him last week to say that the trip had been cancelled. Mr Szmolinsky said he suspected that his rabbits, which grow to the size of dogs and can weigh over 10kg (22lb), were eaten at a birthday banquet for Kim Jong Il, the North Korean leader, although he emphasised that he had no evidence of this.

Original story below…

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