North Korean Economy Watch

According to Yonhap:

One of South Korea’s small and mid-sized manufacturing companies (SME) at the inter-Korean industrial complex has applied for business closure due to falling sales, officials said Thursday.

…

An unidentified small manufacturer for watch and mobile phones cases on Wednesday submitted an application for dissolution to the committee handling affairs at the joint park, according to officials from Seoul’s unification ministry.

It marked the second case since June 2009 that South Korean firms operating at the Kaesong Complex have closed their businesses. It also marked the first time since the operation of the park had been halted briefly last year.

The company, which had employed about 100 North Korean workers, has been suffering from business setbacks since 2012 as its annual sales fell to US$300,000 from its peak of some $700,000.

The Yonhap report does not mention the name of the company that is closing up shop.

The first firm to go bankrupt in the KIC was the Living Art/Sonoko Factory.

Read the full story here:
S. Korean firm at Kaesong park faces biz failure
Yonhap
2014-10-30

According to Yonhap:

The number of North Korean visitors to China fell more than 6 percent on-year in the first nine months of this year, a U.S. news report said Thursday, in an apparent sign of chilled relations between the two ideological neighbors.

Some 139,800 North Koreans traveled to China between January and September this year, down 6.5 percent from the same period last year, Radio Free Asia reported, citing China’s National Tourism Administration.

It marked the first decline in three years, possibly due to frayed ties between the two countries.

The figure rose 18.6 percent in 2012 and continued to grow 14.4 percent last year.

Employment was the most common reason to travel to China this year with 47 percent, followed by conferences and business with 19 percent. Less than 1 percent went there for tourism.

The vast majority, or 113,000, of them were men, compared with just 26,800 women, according to the report.

Read the full story here:
N. Korean visitors to China drop 6.5 pct in 2014
Yonhap
2014-10-30

I received a strange email from an anonymous source (so of course I opened it) containing the following information:

This is a piece of exciting news that has been leaked from an anonymous source in North Korea and it might be of your interest: some images from the storyboard of the latest film production by the Korean Feature Film Studio, based in the capital of the country, Pyongyang.

…

The images that we have received show a scene of what appears to be the North Korean version of a Marvel superhero story. He is less muscled than his American counterparts; his clothes are not so tight or shiny but recall the military apparel. He carries a hammer, a sickle and a brush, representing the Korean workers and uses a torch as a weapon. And he is not alone: he has a winged horse as his sidekick.

Apparently, the objective of this superhero is to destroy the capitalist system. In the images we can see him attacking Fort Knox, which holds the largest US official gold reserves, and then flying away with the money and throwing it into the ocean.

…

I have no idea if this is “real” or where it came from, but it is certainly interesting and entertaining. The people who sent this to me do not seem to know much about North Korea, or they would have easily recognized the Chollima Horse –if not the more obscure “Ranam Torch.” So given how little they appear to know about the DPRK, how would they have access to this information? It is also worth noting that the drawing of the bullion depository at Fort Knox is a very accurate representation of the actual building, but so far no Fort Knox set can be seen at Pyongyang Film Studio.

The story line is not too original–it is the plot of Goldfinger (or Die Hard 3), except of course “Goldfinger” has been replaced by a North Korean Superman, and he is the protagonist. For what it is worth, Kim Jong-il was also rumored to be a big fan of James Bond films.

Of course the US (and everyone else) went off what was left of the international gold standard (Bretton Woods) on August 15, 1971, so the economic implications of the plot are negligible nowadays (Fort Knox gold is an insignificant part of the US economy–it’s actually a drain on the US Treasury until the gold is sold off). Additionally, Fort Knox did not play a role in international gold clearing. That was done by the Federal Reserve. I doubt that these crucial bits of information will make it past the North Korean producers (if there are any).

Most of Russia’s current investment in the DPRK has been limited to Rason: Rason Port, Rason-Russia Railway. But there has been movement in bilateral relations this year.

In March of 2014, the North Koreans and the Russians announced bilateral trade would be conducted in Rubles and they discussed additional economic opportunities: Inter-Korean transportation, gas pipeline, and the Kaesong Industrial Complex.

On October 20, 2014, ITAR TASS reported the following:

Russian construction compnay NPO Mostovik has developed a plan of designing and upgrading railways and ore enriching plants, as well as developing and processing natural resources in North Korea, CEO Vladimir Shishov told PRIME on Monday.

“These are two interconnected and quite complex processes. But the NPO has lots of experience in designing, and we will promote our experience and technologies in this region,” Shishov said.

About 7,000 kilometers of North Korean railways require modernization, and 3,500 kilometers of them must be modernized urgently.

North Korea “has a large industrial and economic potential, the realization of which requires solving infrastructural problems.” Without the development of railways and roads and electrification, “it is impossible to solve the whole range of tasks, connected with the development of North Korea’s economy,” he said.

KCNA followed up on October 23:

Talks Held between DPRK Minister of External Economic Relations and Minister of Development of Far East of Russia

Pyongyang, October 23 (KCNA) — Talks between Minister of External Economic Relations Ri Ryong Nam who doubles as chairman of the DPRK side to the Inter-Governmental Committee for Cooperation in Trade, Economy, Science and Technology between the DPRK and Russia and Minister of Development of Far East of Russia Alexandr Galushka who doubles as chairman of the Russian side to the committee were held here on Thursday.

Present there from the DPRK side were Ju Jae Dok, vice-minister of Railways, and officials concerned and from the opposite side were the party of the minister of Development of Far East, Alexandr Timonin, Russian ambassador to the DPRK, and a staff member of his embassy.

Discussed at the talks were the issues of boosting the economic and trade cooperation between the two countries.

And on October 26:

Delegation of Ministry of Railways Back Home

Pyongyang, October 26 (KCNA) — The delegation of the Ministry of Railways led by Minister Jon Kil Su returned home Sunday after taking part in an international seminar held in Sochi, Russia.

However, while North Korea’s foreign minister and railway minister were in Russia, the North Koreans and Russians held a ground-breaking ceremony to announce the rebuilding of the Jaedong-Kangdong-Nampho railway line. According to KCNA:

A ground-breaking ceremony of rebuilding the section of Jaedong-Kangdong-Nampho railway stations took place at East Pyongyang Railway Station Tuesday.

Present there were Minister of External Economic Relations Ri Ryong Nam who doubles as chairman of the DPRK side to the Inter-Governmental Committee for Cooperation in Trade, Economy, Science and Technology between the DPRK and Russia, officials concerned and working people in the city.

Also on hand were Minister of Development of Far East of Russia Alexandr Galushka who doubles as chairman of the Russian side to the Inter-Governmental Committee for Cooperation in Trade, Economy, Science and Technology between the DPRK and Russia, and his party, Alexandr Timonin, Russian ambassador to the DPRK, staff members of his embassy and foreign diplomatic envoys here.

Oleg Shishov, director general of the Russian Bridzh Group, and Won Phil Jong, senior vice-minister of Railways of the DPRK, made speeches at the ceremony.

They said that they were pleased that the ceremony of weighty significance in economic development between the two countries was being held in Pyongyang this year marking the 66th anniversary of the establishment of diplomatic relations between the DPRK and Russia.

The project for remodeling railways, the first stage of realizing the large-scale cooperation project which is in line with the common development and interests of the peoples of the two countries, marked an important occasion in developing economic cooperation between the two countries, they noted.

Alexandr Galushka and Ri Ryong Nam made congratulatory speeches.

They said that Marshal Kim Jong Un is paying deep attention to boosting the bilateral friendly relations.

The relations of economic cooperation between the two countries are growing stronger with each passing day, they said, hoping for bigger successes in the work to develop the bilateral cooperative relations in the future, too.

A reception was given that day.

According to supplementary information in Yonhap:

A Russian broadcaster earlier reported that Pyongyang and Moscow signed a US$25 billion deal to modernize a combined 3,500-kilometer stretch of railways in North Korea. If confirmed, it would cover 60-70 percent of the North’s railways.

Russia Beyond the Headlines reports the following information:

The implementation of the Russian-North Korean project Pobeda (Victory) will make it possible for North Korea to start exporting metallurgical coal in 2015, one of the participants in the project, LLC NPO Mostovik CEO Oleg Shishov believes.

“We’re already discussing this with the North Korean government, that everything will go to [third countries], and they agree. The volume is tens of millions of tonnes at the initial stage, and then we’ll see. Let’s take the first step,” Shishov told reporters.

He said the North Korea stands out by its almost complete absence of sulfur. “This is a very important indicator for metallurgical production, particularly for production of high quality steels,” Shishov said.

“Mining is already underway there, only with such methods that little is being mined. the methods are very inefficient, unproductive. Modern mining equipment will be delivered there and this will increase production manifold. The reserves there are huge,” Shishov said.

He did not specify who would be investing in the development of North Korean coal fields or the countries that would be importing the coal.

Russia and North Korea are now beginning to implement the Pobeda project, which calls for the development of mineral resources and comprehensive reconstruction of North Korea’s railway network. A number of Russian companies are participating in the project, including Mostovik. The other participants have not been named.

Here is a Google Earth image of the proposed train route:

The total length of this route is approximately 175km.

Here is the proposed route relative to other railway lines in the area:

The obvious interpretation of the image is that the railway renovations will be used to facilitate coal exports. Jaenam Station exclusively serves the Sinchang Youth Coal Mine under the Sunchon Area Youth Coal Mine Complex Enterprise. Additoinally, the area surrounding Jaenam Station is doimated by coal mines. The Kangdong Station is not in the town of Kangdong, but just to the east where it services the Kangdong Area Coal Mine Complex Enterprise. Coal in these areas will supposedly be carried more efficiently to the port of Nampho where a coal terminal already exists.

If indeed this is the primary purpose of the project, then the obvious loser will be China (on multiple fronts). Currently Chinese state-owned mining companies are the only serious investors in North Korea’s extraction industries. Because of their unique relationship with and proximity to the DPRK, they are able to purchase coal and other resources at a bargain price (monopsony). North Korea can only strengthen its bargaining position with these companies by finding other buyers of its produce. Russia’s investment could help them accomplish this goal.

However there are two domestically-related uses that renovation of this railway route could facilitate.

The first is domestic steel production. Russian sources highlight the importance of sulfur-free coal for the production of steel, and this railway line passes directly by the Chollima Steel Mill, one of the largest smelters in the country. Increased steel production has long been a goal of North Korea’s economic policymakers going back to the “heavy-industry” days of the 1950s. With a renovated railway track that connects the correct kind of coal with Chollima Steel Mill, the DPRK may be able to produce more steel for both domestic use or for export.

A second potential domestic use could be the increase in energy supply to Pyongyang. As I highlighted in 38 North, the DPRK is constructing a new coal power plant in Kangdong. This new power plant, as well as the Pyongyang and East Pyongyang Thermal Power Plants lie along the Jaenam-Nampho line. Increased coal supplies to these mills could have significant impact on power supply in Pyongyang.

Are there any other potential uses? Maybe, but these are more difficult to see right now and may only become evident at a later date. After examining the composition of facilities along the track between Pyongyang and Jaenam, I cannot identify any other specific industries that may benefit, other than potential military factories that lie along the route. These, of course, are worth of examination, but I am not the most qualified to carry that out.

On November 6, 38 North Published this article on DPRK-Russia relations.

What better way to commemorate the birthday of leader Kim Jong-il:

UPDATE 1 (2015-1-26): The Milyong Revolutionary site has not appeared on the evening news (to the best of my knowledge) since the fire was reported.

ORIGINAL POST (2014-1023): According to the Daily NK:

A raging wildfire that broke out on October 21st in North Korea’s Samjiyon County, Yangkang Province is said to have burned down former leader Kim Jong Il’s home on Mount Baekdu near Milyong, the alleged birthplace of the late leader, the Daily NK has learned.

“The fire in Samjiyon County has spread to Baekam County putting the country in a state of emergency,” a source in Yangkang Province told the Daily NK on Tuesday. “The Baekdu Milyong home and most of the historic revolutionary landmarks have gone up in flames.”

“The 10th Corps [a military body charged with maintain order and security] in Yangkang Province, the State Security Department, and provincial units of the People’s Safety Ministry are all on high alert,” the source elaborated. “To determine the cause of the fire, cadres from the Central Party have also been dispatched.”

…

North Korea appears to be trying to wipe out the fire by mobilizing residents in the area. “They started broadcasts from the 20th in downtown Hyesan, and even on the Third Broadcast [fixed cable system to which only North Korean residents are exposed], they’ve been saying that everyone actively must lend a hand to get the fire under control,” the source said. It is not only in Hyesan City, but residents in Bochon [Pochon], Unheung [Unhung], Baekam [Paekam], and Shinpa [Sinpha] Counties that have also been mobilized to combat the wildfire.

“The autumn air is dry and so are the leaves. On top of that the winds are strong, so they haven’t been able to effectively fight the fire,” she went on. “Despite days having passed since the fire broke out, they haven’t been able to tame the flames.”

“Already people are saying, whether the fire was deliberate or an accident, anyone tied to it will probably be executed,” she said, speculating, “If it’s arson, it will be a huge problem, since it will be seen as treason. Even if that’s not the case, they will be held accountable for not managing a key historic site of the country.”

“Some security officials have said that this incident will not end with simply one or two people being held responsible,” the source alleged. “Even provincial Party members have been staying onsite, eating and sleeping there, to try to put out the fire.”

North Korean state media outlets have yet to report on the fire, but attention is on how or if it will provide coverage of the incident.

I am unable to obtain a recent satellite image of the area, but this one was published in the Donga Ilbo:

This satellite image is fairly low quality, but it does not appear to me that there is a fire at the Milyong Revolutionary site.

Read the full stories here:
Fire Swallows Kim Jong Il’s Landmark Home
Daily NK
Kang Mi Jin
2014-10-23

Institute for Far Eastern studies (IFES)

On October 15, 2014 Chinese media reported that smuggling along the China-North Korea border, which responds sensitively to North Korea’s situation, is still prevalent and that no particular changes have been detected internally within North Korea.

According to Huanqiu, the website of the Chinese nationalistic tabloid The Global Times, smuggling along the borders of the Liaoning and Dandong provinces has continued to persist in spite of recent flurry of rumors over Kim Jong Un’s whereabouts.

A source familiar with the smuggling situation on the border was quoted as saying, “If tensions were truly rising within North Korea, the very first thing to react would be the border guards, quickly followed by the suspension of smuggling activities.” The source continued, “However, smuggling has so far been unaffected.”

The newspaper captures the scene of a smuggling operation which took place on the night of the 13th near Wollyang Island, a small island on the Yalu (Amnok) River between Dandong and the North Korean city of Sinuiju. North Korean residents send signals to the Chinese on the other side of the river with a red light, to which the Chinese fishing boat responds with a green light. After exchanging signals back and forth, the two parties meet and the deal is finished quickly.

Smuggling along the China-North Korea border has been occurring for quite some time. Besides the smuggling of drugs, which the Chinese government punishes severely, trade products such as food and other daily necessities dear to the North Korean lifestyle have been overlooked for the most part.

Previously, commonly smuggled goods consisted of cooking oil, rice, clothes, and used electronics. However, according to the Huanqiu news, products such as cellphones, PCs, washing machines and refrigerators are also being traded for.

Local sources explained that high ranking “level 1” officials at the provincial and county levels are mainly responsible for ordering these types of products, and that many of the tablet PCs used by high level executives in Pyongyang have been smuggled in through China.

Huanqiu news also introduced another source, who was quoted as saying, “Pyongyang officials are involved in all large scale trade operations along the border. We have connections to high officials in North Korea’s State Security Department, but without them, we cannot do anything.”

Despite the fact that smuggling has been occurring for quite some time, there was a brief slowdown after border security was strengthened immediately following the execution of Jang Song Thaek, former vice chairman of the National Defense Commission in late 2013.

Meanwhile, Huanqiu news also reported that the Third Annual North Korea-China Economic, Trade, Culture and Tourism Expo opened as planned from October 16 – 20 in China’s Dandong province. It was also reported that both legal trade between the two nations and Chinese tourism to North Korea are progressing normally, regardless of recent speculations.

The AP reports that Jeffrey Fowle has been released from the DPRK.

Here is coverage in Reuters, Daily NK, The Guardian.

Secretary of State Kerry says no quid-pro-quo.

Previous stories on the case here.

UPDATE 10 (2014-10-30): Satellite imagery on Google Earth confirms that the new building was nearly completed by September 21. So the basic frame of the new building was completed in just a few months! How safe do you think it is!

UPDATE 9 (2014-10-20): Satellite imagery confirms the North Koreans are rebuilding on the site of last summer’s building collapse:

This image was taken on 2014-7-3, so it could be completed by now.

More at Radio Free Asia (in Korean)

UPDATE 8 (2014-7-7): NK News reports that the DPRK requested assistance in relationship to the collapsed building.

“The Korea Rescue Association got a request from the ‘General Bureau of Red Star Construction’ for assistance related to the Pyongyang apartment collapse, [and] on July 6th they submitted a request to visit North Korea,” a Daily NK translation of the statement said.

The statement added that the Korea Rescue Association requested entry into North Korea on June 26 to further investigate the situation, but were still awaiting a decision.

Unusually, the request for South Korean assistance appears to have come nearly four weeks after the May 13 accident occurred, on June 9.

UPDATE 7 (2014-7-3): NK News provides independent corroboration to North Korean claims that a Pyongyang apartment block collapsed on May 13, confirming the subsequent search, rescue and clean-up operation was completed in under just four days.

UPDATE 6 (2014-6-12): The Daily NK reports that  rumors are circulating in Pyongyang that the building collapse was the fault of Jang Song-thaek.

UPDATE 5 (2014-6-3): NK News has an exclusive report done with All Source Analysis on the building collapse. Includes great information and the first satellite images of the site after the collapse.

UPDATE 4 (2014-5-24): The Daily NK offers information purported to come from Pyongyang.

UPDATE 3 (2014-5-22): Everyone seems to agree that the decision to go public was made only after there was “nothing more to see here”. The motivation for going public with this story is unknown–even today accidents resulting in loss of life are rarely reported in the DPRK media. There are two (at least) theories. One theory is that foreign reporters were tipped off and began calling North Korean embassies asking questions. A second theory is that North Koreans were spreading news of the collapse via cell phone so the government needed to take public action. These theories are not mutually exclusive. We still do not know when exactly the building collapsed or how many were injured or killed. None of the injured victims have appeared in the DPRK media.

The speed with which the rubble was removed from the site is also remarkable. Where was it taken? Maybe one day a satellite image will appear that reveals the answer. However, judging from the official photos, it appears to me that some rubble was not removed, it was simply covered over with dirt.

UPDATE 2 (2014-5-21): Kim Jong-un followed up the building collapse with a visit to the Taesongsan General Hospital where he met with injured soldiers (construction workers?) and orphans. If there were any survivors from the collapsed building at the hospital, the media reports did not mention them. Next he visited new apartment housing for instructors at Kim Chaek University of Technology. Let’s hope these apartment buildings don’t collapse.

UPDATE 1 (2014-5-19): This was picked up by the following media: The Diplomat, 노컷뉴스, Radio Free Asia, 국제신문, Reuters. The Choson Ilbo used the information from this report but did not cite the source.

ORIGINAL POST (2014-5-18):

KCNA has announced the tragic collapse of a high-rise apartment building in Phyongchon District:

Pyongyang, May 18, 2014 00:00 KST (KCNA) — It is the consistent stand of the Workers’ Party of Korea and the state to prioritize the interests and conveniences of the people and hold them absolute and protect their lives and properties.

But there occurred a serious accident in the construction site in Phyongchon District, Pyongyang on May 13 as the construction of an apartment house was not done properly and officials supervised and controlled it in an irresponsible manner. The accident claimed casualties.

Right after the accident the state emergency mechanism was put into action to conduct an intensive campaign to rescue survivors, treat the wounded and arrange the scene of the accident.

The rescue operation came to an end on May 17.

Minister of People’s Security Choe Pu Il, General Officer of the Korean People’s Internal Security Forces Sonu Hyong Chol, Chairman of the Pyongyang City People’s Committee Cha Hui Rim, Chief Secretary of Phyongchon District Committee of the WPK Ri Yong Sik and other officials concerned met the bereaved families, citizens in the district and other Pyongyangites to express deep consolation and apology.

Choe Pu Il said the responsibility for the accident rests with him as he failed to uphold well the WPK’s policy of love for the people. He repented of himself, saying that he failed to find out factors that can put at risk the lives and properties of the people and to take thorough-going measures, thereby causing an unimaginable accident.

With nothing can he atone for the crime he committed against the people and he can never be pardoned, he said, repeatedly expressing deep apology to the bereaved families and other Pyongyang citizens.

He made a firm pledge to make sure that the Ministry of People’s Security becomes a genuine security organ which always protects the interests, lives and properties of the people, true to the party’s noble intention of putting the popular masses above all.

Sonu Hyong Chol said that he was chiefly to blame for the accident as he was in charge of the construction. He expressed heart-felt consolation and sympathy to the victims and the bereaved families and said he was making an apology, his head bent, to other Pyongyang citizens who were greatly shocked by the recent accident.

The party has always stressed the importance of raising the quality of structure, but he did the construction in a slipshod manner as he did not have the proper stand of serving the people, thus causing such a serious accident, he said, making a solemn determination to do utmost to eradicate the aftermath of the accident and bring the living of the bereaved families to normal as early as possible.

Cha Hui Rim said that the party has always called on the officials to become genuine and faithful servants of the people but he failed to have the proper control over the construction of the apartment houses as a man responsible for the living of the citizens of the capital city, thereby causing such a serious accident. He has no face to stand before the bereaved families and other Pyongyang citizens and feels deep compunction for them, he said, pledging to make sure that the officials of the Pyongyang City People’s Committee do their utmost to alleviate even a little the pain of the victims and the bereaved families and bring their living to normal at the earliest possible date and to prevent the recurrence of similar accident.

Ri Yong Sik said that seeing for himself the victims in the scene of the accident, he felt as if his heart were falling apart and was too shocked to cry. He added that he could not raise his head for his guilty conscience as he failed to protect the precious lives of the people so much valued and loved by the party.

He made an apology to the bereaved families and to the citizens in the district again, vowing to come to senses, though belatedly, and motivate the officials in the district to bring the living of the bereaved families to normal, take good care of them, find out every possible cause of accidents and take preventive measures and thus fully guarantee the lives and security of the people.

Kim Su Gil, chief secretary of the Pyongyang City Committee of the WPK, said that the recent unexpected accident caused damage but there is loving care of our mother party which takes care of all people of the country and relieves their pain, adding that Marshal Kim Jong Un sat up all night, feeling painful after being told about the accident, instructed leading officials of the party, state and the army to rush to the scene, putting aside all other affairs, and command the rescue operation to recover from the damage as early as possible.

All Pyongyang citizens are sharing sorrow with the bereaved families and victims, he said, adding that the party and the state are taking effective emergency steps to bring the living of the families of victims to normal and provide them with new houses. He called on all to overcome sorrow with courage.

Based on information in KCNA, I can offer a satellite image of the collapsed building (pre-collapse):

The building was approximately 23 stories tall and approximately 15m x 23m per floor. Construction on the building began between May and September 2011 (image below)

It is rather remarkable that the entire site could be cleared of debris in just four days. Additionally, I cannot see any serious damage to the surrounding buildings, though coverage is scarce. The neighborhood in which the collapsed building is located contains no less than 17  high-rises that are either under construction or recently completed. If I was living in one of these buildings I would not be feeling very confident right now.

These buildings were part of the DPRK’s speed housing construction campaign to celebrate Kim Il-sung’s 100th birthday. Here is coverage in the New York Times. Here is coverage in Yonhap. Here is coverage in NK News. Here is coverage in the Wall Street Journal. Here is coverage by Choson Exchange. Here is coverage in the Washington Post. Here is coverage in the Daily NK.

According to the Daily NK:

Neungna 88 [Rungra 88],  Trading Company, located in Suncheon, South Pyongan Province, has been a popular workplace for women, offering jobs in clothes manufacturing. It is one of the companies tasked with earning foreign currency for the North, but recently, with the wages standing at a mere 10th of individually employed workers, more people are leaving their posts, the Daily NK has learned.

“Workers employed by breweries or bakeries receive roughly 200,000 KPW a month,” a source in South Pyongan Province reported to Daily NK on Tuesday. “But at Neungna 88, workers on the clothing line only make 20,000 KPW even though they work in unsatisfactory environments.”

The trade company falls under the Chosun Workers’ Party’s Finance and Accounting Department and exports to China everything from coal and iron ore to medicine, alcohol, clothing, and health supplements, earning back foreign currency. The profits are offered up to the Department or are used to procure holiday gifts for Party cadres under Kim Jong Eun’s name.

Neungna 88 in Suncheon is a branch of the headquarters in Pyongyang, and focuses on exporting clothes in collaboration with China, meaning the company brings in the yarn, fabric, and designs from China, and then exports the final products back. It also runs a restaurant serving pizza to procure additional funds. Increasing foreign food availability is the latest method employed by these foreign-currency organizations to encourage resident spending, encouraged by the increased demand. For foreign currency-earning enterprises to extend their activities domestically is indicative of the increasing purchasing power of the middle-class.

“If you get to Daedong River in Sunchon, you’ll see a big sign on a three-story building that reads Neungna 88 Trading Company,” the source explained. “The first floor is a pizza place, and on the second and third stories, there are some 150 women making clothes.”

Their monthly wages are 20,000 KPW [2.3 USD], which is almost seven times higher than other state-run companies, but the lowest among trading companies.There are no standards as to how much these trading companies have to pay their employees, and each company decides based on the profits and amount of work allocated.

Unlike men, it is very rare for women in their teens or 20s to work for a trading company. Despite this fact, some women work on garment manufacturing lines because of the regular food rations and extra benefits offered on national holidays, regardless of the low wages.

However, recently more people have been quitting their jobs, as those who are hired by private businesses are able to receive up to a ten-fold increase in wages and work in a more pleasant environment, the source explained. This portends a growing number of women who are seeking more than a low wage with rations and instead looking for better employment opportunities.

With this trend, the company has been trying to hire more women with experience at state-run apparel factories, but not many are willing to due to the low salary. “Because of this, unless Neungna 88 raises its wages it will create obstacles for exports, not only due to technical difficulties, but also low morale,” she concluded.

Read the full story here:
Women Leaving Low Paying Trade Co. Jobs
Daily NK
Seol Song Ah
2014-10-16