North Korean Economy Watch

According to Yonhap:

Trade volume between North Korea and the European Union (EU) more than halved last year from a year earlier after the North sharply cut exports of mineral resources, a news report said Friday.

The trade volume between the two sides came to 69 million euros (US$90.2 million) in 2012, only 43.4 percent of the 159 million euros recorded the previous year, the Washington-based Voice of America (VOA) reported, citing EU data.

The dive came as the North’s total exports to the EU shrank to 24 million euros last year from 117 million euros the previous year, according to the VOA report.

The communist country exported only 3 million euros worth of mineral resources, the main export item, to EU countries in 2012, compared with 71 million in 2011, it said.

North Korea’s imports from EU countries, meanwhile, rose 7.1 percent on-year to 45 million euros last year, led by brisk imports of machinery and electronics goods, according to the report.

Read the full story here:
N. Korea’s trade with EU halves in 2012
Yonhap
2013-5-3

According to the BBC Monitoring Service:

Text of report by “Comrade Pak Pong Ju, member of the Political Bureau of the Workers Party of Korea Central Committee and premier of the DPRK Cabinet” at a central report meeting held at Hwanghae Iron and Steel Complex on 1 May to mark the 123rd May Day, carried by North Korean radio Korean Central Broadcasting Station on 1 May

Today, we are meaningfully commemorating the 123rd anniversary of May Day, an international holiday of the working people throughout the world, at an exciting time when the entire party, the entire army, and all the people have turned out like mountains in the struggle to implement the line of simultaneously pushing forward economic construction and the building of nuclear armed force presented by respected and beloved Marshal Kim Jong-un at the historic March 2013 plenary meeting of the Central Committee [CC] of the Workers Party of Korea [WPK].

May Day is a meaningful holiday for vigorously demonstrating all over the world the revolutionary mettle and militant might of workers, farmers, intellectuals and other working people of military-first Korea who are struggling devotedly for the fatherland’s wealth and prosperity in single-hearted unity around the party, and also for strengthening international solidarity with the working people the world over who are struggling for democratic freedom and rights and independent life by breaking the iron chains of capital. [applause]

On the occasion of May Day, our working people, who are enjoying the most dignified and worthwhile life on account of upholding an extraordinary heaven-sent brilliant commander, are extending militant greetings and firm solidarity to the working people all over the world who are fighting to build a just and peaceful new world under the banner of independence against imperialism.

Our working class and all other working people are now looking back, with deep emotion, on the proud course of victory and glory in which they have advanced with the matchless great men of Mt Paektu held in high esteem at the head of the revolution, and they are overflowing with a blazing resolve to complete the cause of the chuch’e revolution to the end under the wise leadership of respected and beloved Marshal Kim Jong-un, inscribing deep on their heart! s the luck of being blessed with the leader and the general, generation after generation. [applause]

Comrades!

The Korean revolution was unprecedentedly arduous and rough, but our working people were able to excellently carry out their noble historic mission and duty in the struggle to achieve the cause of the chuch’e revolution and the cause of socialism, thanks to upholding the great leader and the great leader.

The great leader Comrade Kim Il Sung put forward a broad range of workers, farmers, intellectuals, and other working people as masters of their destiny early on under the banner of chuch’e idea from the first days of setting out on the road of the revolution, and ushered in a new historic era, the chuch’e era, of achieving independence of the popular masses by activating their inexhaustible strength. [applause]

The great leader, who always paid deep attention to the position and role occupied and played by the working class and other working masses in implementing the popular ma! sses’ cause of independence, further heightened the revolutionary zeal of the masses by having them meaningfully commemorate May Day even amid the arduous struggle of the great anti-Japanese war, and vigorously encouraged our working people to the struggle to build a new fatherland by personally attending a Pyongyang mass rally held to commemorate May Day in the first year after national liberation.

During that difficult period after the war, the great leader visited the working class of Kangso’n and kindled the flames of the Ch’o’llima [mythological winged horse] movement, and warmly led our working people by hand to perform feats in socialist construction with his unsurpassed and tested leadership during every period and at every stage of the revolution and construction.

Forever will shine for ages, along with eternal prosperity of military-first Korea, the immortal revolutionary achievements of the great leader Comrade Kim Il Sung who stayed a! mong the working people all his life and raised workers, farmers, and intellectuals into the most revolutionary working people upholding the party and the leader with faith and obligation and into the reliable persons in charge of building a wealthy and powerful fatherland, and built a socialist powerful state of independence, self-support, and self-defence on the land of the fatherland by arousing the boundless spiritual strength and united strength of the working popular masses. [applause]

The great leader Comrade Kim Jong-il cherished the completion of the cause of the chuch’e revolution pioneered by the fatherly leader as his lifelong mission and stood at the head of the revolution to firmly rally the working class and a broad range of the working masses around the party with his politics of love and trust and benevolent politics, and wisely led the popular masses’ cause of independence and the cause of socialism along a single path of victory with the might of single-hearted unity. [applause]

With enormous love and trust toward the workers, farmers, and intellectuals who loyally upheld the party and the leader while always sharing their destiny with the party both in days of glory and hardship, the great general had May Day commemorated as an international holiday of the working people all over the world from a chuch’e-oriented viewpoint, thereby reinforcing the single-hearted unity of our revolutionary ranks in every way and enabling a broad range of the working people to excellently discharge their responsibility and duty based on the awareness that they are the masters of the country and revolution.

The great general energetically led our working people to strongly arm themselves with the chuch’e idea and military-first idea; create the Kanggye spirit by following and learning from the revolutionary soldier spirit and fighting traits of the people’s army; kindle the torches of the grand march of great upswing one after another; and embroider chronicles of the vic! tory of socialism and a heroic epic of powerful state construction.

Thanks to the energetic leadership of the great general, who unfolded a new history of the great revolutionary upswing in the whole country and had millions of soldiers and people boldly charge ahead toward the world while breaking through the ultra-cutting edge with their spiritual strength in the course of carrying on an ultra-intense forced march day and night until the last moments of his great revolutionary life, the flames of Hamnam [South Hamgyo’ng Province], the flames of the industrial revolution in the new century, blazed up fiercely; marvellous events took place in multiple stages on all fronts of improving the people’s living standards and building an economically powerful state; and our fatherland came to demonstrate its dignity and majestic might as the great Mt Paektu state, the socialist power with nuclear weapons and satellites. [applause]

The sacred history of the great general’s leadership over the military-first revolution, in wh! ich he led the revolution and construction to victory by relying on the boundless creative ability and united strength of the working class and other working popular masses, is continuing vigorously through respected and beloved Marshal Kim Jong-un. [applause]

Respected and beloved Marshal Kim Jong-un is wisely leading the van of the anti-US war of confrontation and the struggle to build a powerful state with his extraordinary sagacity, unsurpassed art of command, and matchless courage and gusts while ceaselessly carrying on the road of the military-first long march, with the supreme command established on the foremost front of defending the fatherland.

The respected and beloved marshal is energetically leading our working people to struggle vigorously for the final victory, while clearly illuminating the course of powerful state construction and trusting and putting forward the working class and other working people as his revolutionary comrades! and comrades-in-arms.

By wisely discerning the natural-law governed demands of the grave situation prevailing before our revolution and the developing revolution, respected and beloved Marshal Kim Jong-un presented a new strategic line on simultaneously pushing forward economic construction and the building of nuclear armed force at the historic March 2013 plenary meeting of the party CC. This is a great event in the history of the nation firmly guaranteeing the ultimate victory of the cause of the chuch’e revolution, which achieving the final victory in the anti-US all-out war of confrontation and the construction of a powerful state. [applause]

Our army and people came to be able to fight more powerfully with overflowing conviction of sure victory and optimism, thanks to the presentation of the new simultaneous line, which is a crystallization of the unshakable faith and will of our party to finally settle all accounts in the anti-US war of confrontation and build the world’s most powerful country and a paradise ! of the people on this land as soon as possible.

Our country is highly displaying the mettle of the great Mt Paektu state by firmly attaining the status of a space power and a nuclear power; an unprecedented great heyday of thriving prosperity is unfolding in all fields of the revolution and construction; and the party’s far-sighted plans to enable our people to enjoy wealth and honour under socialism to their hearts’ content are being realized one by one. This proud reality is a clear manifestation of respected and beloved Comrade Kim Jong-un’s extraordinary leadership ability. [applause]

Preciously etched in every chronicle of the Korean revolution embroidered with victory and glory are the creative passion and heroic feats of our working class and other working people, who have struggled devotedly for the fatherland and revolution with hammers, sickles, and writing brushes, remaining true to the leadership of the party and the leader.

The invincible majestic might of a socialist power possessed of nuclear weapons and satellites that no one dares to provoke; our-style CNC [computer numerical control] technology that broke through the world’s ultra-cutting edge; the majestic and splendid great monumental creations striking the world’s people with admiration and chuch’e-based production systems demonstrating the might of self-supporting economy; the modern production bases and marvellous socialist fairylands that sprang up everywhere; and other proud achievements demonstrating the high ideal and civilization of our people vividly show the indomitable spiritual strength and creative ability of our working people who are endlessly loyal to the party and the leader. [applause]

There are many countries in the world and each country has many working people, but there are no working people like our working people of military-first Korea who devote themselves to the cause of patriotism with their creative labours, while displaying their independent dignity as human! beings and enjoying a worthwhile and proud life in the arms of the extraordinary heaven-sent great men.

Truly, it is the supreme fortune and enormous honour and happiness of our working people to fight resolutely for a bright future of the new century, flying high the sun’s flag of great Comrade Kim Il Sung and Comrade Kim Jong-il highly praised by the entire world as the sun of mankind and holding respected and beloved Marshal Kim Jong-un, the military-first brilliant commander of Paektu, in high esteem at the head of the revolution. [applause]

On this meaningful occasion of commemorating the 123rd anniversary of May Day, the international holiday of the working people all over the world, by reflecting the blazing loyalty of the working people throughout the country, I pay the loftiest respect to great Comrade Kim Il Sung and Comrade Kim Jong-il who made forever immortal achievements in implementing the popular masses’ cause of independence, an! d extend the greatest honour and the most fervent gratitude to respected and beloved Marshal Kim Jong-un, the supreme leader of our party and people who is leading the anti-US war of confrontation and powerful state construction to victory with his leadership over the military-first revolution and bringing every happiness to our working people. [applause]

Arising before us today is an honourable yet heavy task to thoroughly implement the new strategic line on simultaneously pushing forward economic construction and the building of nuclear armed force, holding high the spirit of the historic March 2013 plenary meeting of the WPK CC, and thus defend the dignity and sovereignty of the nation, and build the world’s most powerful country and a paradise of the people on this land under respected and beloved Marshal Kim Jong-un’s leadership.

Respected and beloved Comrade Kim Jong-un has said that we will win without fail, as long as great Comrade Kim Il Sung and Comrade Kim Jong-il, who live forever in the hearts of all of! ficers and men of the people’s army and the people across the country, bless our bright future and we have the unrivalled powerful revolutionary army of Mt Paektu, the invincible great army-people unity, and the loyal people who uphold the party’s cause with conscience and obligation.

Cherishing an absolutely immutable faith that great Comrade Kim Il Sung and Comrade Kim Jong-il are with us forever, we should hold the fatherly leader and the great general in high esteem for all ages and add lustre to the glorious revolutionary lives and immortal achievements of the leader and the general through all generations. [applause]

We should spruce up the Ku’msusan Palace of the Sun all the better as a great monument to the immortality of the leaders, a symbol of the dignity of the Korean nation, and an eternal sacred place of the sun, and death-defying preserve it at the risk of our lives.

Holding fast to great Comrade Kim Jong-il’s behest as a programmatic guiding principle, all working people should implement it to the end unconditionally without an inch of deviation or the slightest concession and do all work of the revolution and construction in accordance with the general’s ideas and intentions and in the general’s style.

Respected and beloved Marshal Kim Jong-un, who is an extraordinary statesman and a distinguished military-first brilliant commander, is the destiny and future of Kim Il Sung and Kim Jong-il Korea and the banner of all victories and glories. [applause]

Following the tradition of death-defying defence of the leader, we should uphold respected and beloved Marshal Kim Jong-un with pure loyalty, lofty moral obligation, and single-minded devotion, turn ourselves into fortresses and shields in innumerable layers to death-defying defend him, and firmly continue the Paektu road of march by uniting, uniting, and again uniting around the marshal.

All working people should hold high the spirit of the March 2013 plenary meeting of the party CC and thoroughly implement the line of simultaneously pushing forward economic construction and the building of nuclear armed force, thereby holding fast to and glorifying our idea, cause, and socialist system to the end.

We should vigorously turn out in the anti-US all-out war of confrontation and the great war of justice for the fatherland’s reunification to cope with the grave situation in which the aggression manoeuvres of the US imperialists and the puppet warmongers have reached the extreme, and maintain full combat and mobilization readiness to wipe out the aggressors without a trace and achieve the final victory.

All working people should actively assist the people’s army, which is a reliable scout party and a firm supporting point of the military-first revolution, ceaselessly bolster self-defensive national defence capabilities with the nuclear armed force as the backbone, and consolidate the great army-people unity like s! teel.

All working people should strongly arm themselves with the spirit of defending the fatherland displayed in the 1950s, and while always maintaining a strained and mobilized posture, should turn out like mountains in the sacred retaliatory war of justice once the respected and beloved comrade supreme commander gives the order, and by giving full vent to their long pent-up grudge and rage, they should mercilessly smash the US imperialists – the sworn enemies – and the puppet groups of traitors in an instant and accomplish by all means the historic cause of the fatherland’s reunification, the greatest long-cherished desire of our nation. [applause]

This year is a meaningful year marking the 65th founding anniversary of the Republic and the 60th anniversary of war victory.

With the faith of sure victory and exceptional resolve, we should fiercely stoke up the flames of miracle and innovation in all sectors of the people’s economy through a bold attack and an all-people life-and-death battle.

The working class of the leading sectors of the people’s economy and the basic industrial sectors should open up a breakthrough for victory in today’s march of great upswing with the same fighting spirit and the same vigour as displayed in implementing the party’s simultaneous line in the 1960s, as befitting the scout and forerunner of building an economically powerful state.

The working people of agricultural and light industrial sectors should fill up the country’s rice bin by doing the farming well in accordance with the demands of the chuch’e-oriented farming method, and improve the people’s living standards within the shortest span of time by increasing the production of quality people’s consumer goods based on a strong sense of responsibility that they are in charge of the main front of building an economically powerful state.

Holding high the torch of the industrial revolution in the new century by thoroughly embodying Kim Jong-il pat! riotism, the working people of all sectors and units of the people’s economy should boldly wage the battle of breaking through the ultra-cutting edge and more fiercely raise a hot wind for changing the country’s economy to a knowledge economy.

Scientists and technicians should ceaselessly develop our self-supporting nuclear power industry and space science and technology and thus continue to vigorously demonstrate the national power of the great Mt Paektu state with the same spirit they displayed in dealing a hard blow to the US imperialists and their following forces by developing space and succeeding in the third underground nuclear test.

The fatherland’s reunification is the most pressing task of the nation that cannot be put off any longer and the lifelong desire and behest of the great generalissimos.

Grave obstacles are standing in the way of the fatherland’s reunification and an ultra-tense situation in which a war may break out at any moment is prevailing in this land due to the vicious anti-Re! public hostile policy and frenzied nuclear war manoeuvres of the US imperialists, the sworn enemies of our people, and their following forces.

More firmly taking hold of the nuclear treasured sword of independence as the enemies’ manoeuvres grow more vicious, we will mercilessly punish the United States and all sorts of other hostile forces and realize the historic cause of the fatherland’s reunification without fail through final victory in the anti-US all-out war of confrontation. [applause]

Our working people will further boost their solidarity with the entire world’s working people who love justice and peace, and discharge their historic mission in defending peace and stability of the region and accelerating mankind’s cause of independence under the idea of independence, peace, and friendship.

Only victory and glory will be in store on the road ahead of our people, who are advancing dynamically along the road of independence, th! e military-first road, and the road of socialism under respected and beloved Marshal Kim Jong-un’s wise leadership with blessings of the great generalissimos. [applause]

Let us all single-heartedly unite around respected and beloved Marshal Kim Jong-un and firmly take hold of the party’s new simultaneous line to fight vigorously for the construction of a socialist powerful state and the fatherland’s reunification, and for the ultimate victory of the cause of the chuch’e revolution with overflowing conviction of sure victory and optimism. [applause]

Long live great Kimilsungism-Kimjongilism! [applause and participants shouting hurrahs three times]

Long live the glorious WPK, the organizer and guide of all victories of our people! [applause and participants shouting hurrahs three times]

Long live May Day, the international holiday of the working people all over the world! [applause and participants shouting hurrahs three times]

Source: Korean Central Broadcasting Station, Pyongyang, in Korean 0800 gmt 01 May 13

According to Reuters:

Bilateral trade dropped more than 7 percent to $1.3 billion in January-March, with China’s imports from North Korea rising 2.5 percent to $590 million but exports down 13.8 percent to $720 million – excluding fuel, food or other Chinese aid. Annual trade is worth some $6 billion, a fraction of China’s trade with South Korea which last year topped $230 billion.

…

China also supplies virtually all of North Korea’s external energy needs – crude oil, diesel and jet fuel – much of it in the form of off-the-books aid.

While Chinese data showed no exports of crude oil to North Korea in February, deliveries resumed in March, with customs figures showing 106,000 metric tons of supply. China officially supplied 523,041 metric tons of crude oil last year.

The Ministry of Commerce appears to be delaying or possibly cancelling an internal tender to supply North Korea with diesel fuel, two oil trading sources said, while a person close to state-owned Sinochem Group said jet fuel flows were normal. China supplied North Korea with 42,251 metric tons of jet fuel last year, according to customs data, and 31,050 metric tons of diesel.

Another trading source said coal imports from North Korea – typically entering China through Dandong’s Donggang Port after coming down the Yalu River or up the coast – were not affected.

Many Chinese companies are also involved in mining in North Korea. A source at Wanxiang Resources, which has a copper mine in Hyesan in North Korea’s Ryanggang province, said there had been no orders from China to withdraw their workers, although North Korean staff had been asked to attend more political activities, which was hurting production.

Read more in the Wall Street Journal.

Read the full story here:
China steps up customs checks, but North Korea trade robust
Reuters
2013-4-30

According to the AFP (Gulf Times):

The UN Children’s Fund (Unicef), World Food Programme (WFP), World Health Organization (WHO) and the Food and Agriculture Organization (FAO) and UN Population Fund (UNFPA) said they were feeling fallout from North Korea’s isolation.

“Even though the imposed sanctions clearly exclude humanitarian assistance, a negative impact on the levels of humanitarian funding has been experienced,” the agencies said in a statement.

The agencies said they had received just over a quarter of the $147mn they needed for operations in the North this year.

“As a result of the persisting deficit, agencies are unable to respond effectively to the humanitarian needs out of which the most critical and life-saving ones urgently require $29.4mn,” they added.

“The dire funding situation leaves the UN agencies and other humanitarian actors concerned about the continuation of their programmes” in isolated North Korea.

The agencies said there had been “a slight improvement” in the humanitarian situation in the past year. But Unicef said it was running short of cash for basic vaccines and medicines for child killers such as pneumonia and diarrhoea.

The UN estimates that about one-third of North Korean children under five are chronically malnourished.

More analysis in the Washington Post.

Read the full story here:
Aid to North Korea hit by sanctions
AFP
2013-4-29

…More signs of “forward to the past”?

Last week the Daily NK reported that the DPRK had been distributing enough rice to lower the price. It is still unclear if this practice will continue.  This week the Daily NK reports that the DPRK has stepped up travel restrictions along the Chinese border:

The North Korean authorities are operating enhanced controls on transit through the region of the country closest to China, including close checks on the documentation of travellers passing through in the direction of the Sino-North Korean border.

Part of the process means it has become more difficult to obtain travel permits. Although the issuance of such permits was recently resumed following months of combat mobilization and other activities that limited movement, the process of traveling through the border is making life difficulties.

A North Hamkyung Province source told Daily NK on the 26th, “The issuance of travel permits resumed on the 21st of last month, but the procedure when moving in the border region has gotten more demanding than ever. Travel permits need to be approved with not just the signature but also the seal of a person’s local PSM (Ministry of People’s Safety), relevant security agency and workplace, and if the trip is for a traditional ceremonial occasion such as a funeral then they must get a further confirmation letter saying so.”

“In the past, they did not ask for the confirmation letter, or the seal of the local security forces and NSA (National Security Agency, the state security organ) for that matter. But now they are asking for this and that certificate; it’s as if travellers are criminals,” the source said, recalling, “We used to be able to easily get travel permits by bribing people or having close associates in certain positions.”

Even for those with a permit there are still multiple layers of security and checks on the way to the border.

“Even after you get a travel permit by paying bribes, there are still the PSM agents on the trains and railway staff doing hourly checks,” the source said. “People say it is worse than the customs checks on the border.”

“Stations are being locked down by soldiers and then intensive body and baggage checks are taking place at Gomusan (the station before Musan and Hoiryeong on the Musan Line (train 9-10) and Sariwon-Rajin Line (train 113-114)) and at Huchang (the station before Rajin on the Pyongyang-Tumen River Line (train 7-8)),” the source noted. “They even have magnetic detectors for the body checks.”

Travellers ensnared by the checks are supposed to be detained locally until a security agent from his or her area of residence arrives to deal with the case. However, payments of 50,000 to 100,000 Won are apparently sufficient to attain release for those who simply don’t have the right transit permits. The only ones whose release cannot be obtained so easily are those caught with South Korean materials in their baggage; they face re-education or labor camp sentences, sources say.

Read the full story here:
Strain on the Border Trains
Daily NK
Choi Song Min
2013-4-29

According to Martyn Williams in PC World:

North Korea’s sole 3G network operator has managed to double its subscriber base in a little over a year and is about to hit 2 million users.

Koryolink launched service in the final days of 2008 and has become one of the most visible foreign partnership success stories in the country.

The network operator is jointly owned by Egypt’s Orascom Telecom Media and Technology Holding (OTMT) and North Korea’s Ministry of Posts and Telecommunications. Orascom holds a 75 percent majority stake with the remainder in the hands of the government.

Before Koryolink’s service began, mobile phones were an unusual sight in Pyongyang, but that has changed in recent years. Visitors speak of seeing scores of citizens talking and texting from mobile handsets.

2 million subscribers is approximately 8.3% of the North Korean population.  The majority of subscribers are likely to be in Pyongyang but we do not have any data on the internal distribution of subscriptions. All subscribers are paying in hard currency, though none of it has been repatriated from the DPRK.

More information available at North Korea Tech.

Institute for Far Eastern Studies (IFES)
2013-4-25

After North Korea’s currency revaluation in 2009, North Korean currency is still unstable and North Korean markets near the DPRK-China border are reportedly filled with Chinese merchandise, with transactions being conducted mainly in Chinese yuan.

An online newspaper, the Daily NK, reported that markets in the city of Hyesan (Ryanggang Province) and surrounding areas are using Chinese yuan as the primary currency for transactions rather than local North Korean won.  Rice prices are standard indicators of inflation in North Korea and even rice was reported to be exchanged in yuan.  As the monetary value of domestic currency continues to fall, North Korea is experiencing hyperinflation and North Koreans are showing a preference for the more stable Chinese yuan over won.

With an exception of rice, vegetables, and seafood, manufactured goods including confectioneries, the daily necessities for sale in these markets are mostly from China.  As well, some South Korean items such as instant noodles, Choco Pies, and butane gas are sold openly in the markets.

Border areas have a higher rate of Chinese yuan usage than inland areas, as for years traders have been buying Chinese goods with Chinese yuan to sell in the domestic markets.  However, with the unstable domestic currency, more and more North Koreans have been using Chinese yuan over the last three years.  Some report goods bought with North Korean won must be converted to the CNY exchange rate.

As of mid-April, the exchange rate of 100 CNY to KPW was 130,000. However, Pyongsong and Pyongyang cities used mainly US dollars and local won in equal rates.

A video recording obtained by the Daily NK unveiled the landscape of the marketplace and nearby alley markets of  Hyesan and surrounding areas.  Items for sale include jackets, mufflers, gloves, coats and other winter clothing as well as cosmetics, perfumes, toothpaste, toothbrushes and other daily goods. Transactions were being made in Chinese yuan.

North Korean authorities are waging a crackdown against the use of the yuan in the markets but merchants continue to use yuan in secret.

The high number of Chinese goods in North Korean markets can be attributed to the failed production system of the people’s economy of North Korea, which began to tumble in the late 1990s. As the regime began to invest excessively in its military sector, production in the manufacturing sector declined.

Although North Korean products appear in the markets, most people prefer Chinese goods due to their better quality.

A recent article in the official state economics journal of North Korea, Kyongje Yongu (Journal of Economic Research), criticized the “trade companies for focusing on only one or two countries,” expressing concerns that, “the whole nation may experience political and economic pressure from trade companies that restrict foreign trade to only one country.”

Kim Jong Un has also expressed official disapproval against “import syndrome” of the people and regarded it as an obstacle hindering the development of North Korea’s light industry.

Although no specific country was named, it is believed that China makes up over 80 percent of North Korea’s total foreign trade. North Korea continues to show vigilance against its rising dependence on China.

Pictured Above (2012-12-13): Tanchon Port

UPDATE 2 (2013-4-25): Yonhap reports on the DPRK’s plans for the Tanchon Port:

North Korea is scurrying to develop the resources-rich city of Tanchon on the east coast as part of the country’s efforts to make it a source of foreign currency income, recent news reports from the North showed.

Tanchon will become a key transit point in shipping goods to and from Russia’s Siberia, the northeastern part of China and Mongolia, said the Wednesday issue of the Choson Sinbo, a Korean language newspaper published by North Korean nationals in Japan.

The newspaper, a mouthpiece of North Korea, said the port city of Tanchon should become the source of finance for the country’s broader policy line of pursuing both economic development and nuclear capacities.
In a bid to boost exports, the country completed the construction of a port in May last year in the city with rich reserves of magnesite, zinc and other mineral resources, which sits about in the middle of the country’s east coast line. the Choson Sinbo said the city has about 5.4 billion tons of magnesite deposit, possibly the third biggest reserve in the world.

The news outlet also highlighted the country’s planned ways to increase earnings in the resources-rich city from which the country used to export mineral resources to China for meager profits.

“North Korea will move to manufacture processed magnesite goods in order to make high-value added goods,” the Choson Sinbo noted. “To that end, many plants will be built in the Tanchon region and the areas will become a new industrial zone.”

North Korean leader Kim Jong-un has also underlined the country’s plan to boost profits from the Tanchon development, saying in a national meeting of light industrial workers last month that profits from Tanchon development should be exclusively used to prop up the livelihood of North Korean people.

UPDATE 1 (2012-5-3): KCNA announces the completion of  the Tanchon Port:

A modern trading port made its appearance in the area of Tanchon in South Hamgyong Province on the occasion of the 100th anniversary of President Kim Il Sung’s birth.

The construction of the port with a cargo traffic capacity of millions of tons provides a guarantee for greatly contributing to developing the nation’s foreign trade and improving the people’s living standard.

A ceremony for the completion of the construction was held on the spot Thursday.

Present there were Choe Yong Rim, Kwak Pom Gi, Ro Tu Chol and other officials concerned, officials of the Ministry of Land and Marine Transport, builders and working people of industrial establishments in Tanchon City.

Read out there was a joint congratulatory message sent by the Central Committee of the Workers’ Party of Korea and the Cabinet of the DPRK to the officials and members of shock brigades who performed labor feats in the construction of the port.

The message highly praised them for successfully building another giant structure in the era of Songun greatly conducive to building an economic power true to the life-time desires and last instructions of President Kim Il Sung and leader Kim Jong Il.

It expressed belief that they would perform greater feats in the efforts for the country’s prosperity united close around the WPK Central Committee headed by the dear respected Kim Jong Un.

Minister of Land and Marine Transport Kang Jong Gwan, in his speech made for the occasion, said the construction of the port was a brilliant fruition of the wise leadership of Kim Jong Il who initiated the construction of the port and worked heart and soul to translate the desire of the President into a reality till the last moments of his revolutionary life and the clear-sighted guidance and meticulous care of Kim Jong Un.

Speakers at the ceremony pledged themselves to carry out their tasks including dredging in a short span of time in the same spirit as displayed in the construction of the port.

At the end of the ceremony the participants looked round different places of the port.

You can see video of the port inauguration here. (KCNA)

Just a few days ago, the Choson Sinbo reported the following (via Yonhap):

The North is estimated to have 15 billion tons of anthracite coal, a key mineral Pyongyang uses to produce steel, the Choson Sinbo newspaper said.

The North also has an estimated 5.4 billion tons of magnesite in Tanchon, a home to mines in South Hamgyong province, and other areas, according to the newspaper.

North Korea is set to open Tanchon as a modern trade port, the newspaper said, without giving any specific time frame for the opening.

ORIGINAL POST (2010-12-9): On December 2, KCNA announced that Kim Jong-il visited the port in Tanchon County, South Hamgyong County (40.412522°, 128.917731°) where he gave guidance on the port’s reconstruction.

Judging by the satellite imagery of the area on Google Earth, it appears that the project had already begun by May 13, 2009, where we can see concrete blocks ready to be used to extend the jettys (breakwaters).  I have outlined the proposed port project on Google Earth imagery below and provided a picture of the completed project from KCTV:

After the jettys are extended, the major construction work and dredging can begin.  Below are images of the port’s main construction site as it appears on Google Earth and a prediction of the project’s conclusion from KCNA:

It appears from the picture that the port will be connected to the railway system—likely via the nearby Tanchon Smeltery and Magnesia Plant (both recently renovated) whose products will probably be exported from the port.

Tanchon is also home to the DPRK’s Komdok and Taehung Youth Hero Mines (among others).  As is well known to readers, raw materials exports are the DPRK’s most significant (legal and transparent) source of hard currency.  According to Yonhap’s North Korea Handbook 2002:

Geomdeok [Komdok] Mine is a special company in Bonsan-dong, Dancheon, South Hamgyeon Province, and is very famous for about 300 million tons of deposited leads and zincs. This mine annually produces 52,000 tons of lead, 124,000 tons of zinc, both of which account for 47% of total production in North Korea, and more than twice as much as the production of Eunpa Mine, North Korea’s second largest mine, in Eunpa-gun North Hwanghae Province. Concentrates of lead and zinc produced from Geomdeok Mine are processed into electric zinc at Dancheon refinery. Opened in 1932, this mine produces 14,200 tons of raw ore annually with three ore dressing plants. Annual production capacity can reach up to 11 million tons. The first dressing plant was completed in July 1953, near the end of the Korean War. It now processes a million tons of ore a year. The second dressing plant was opened with a production capacity of 3,200 tons of ore. The third one constructed in September 1983 can process 10 million tons of ore.

According to Yonhap:

China’s exports of crude oil to North Korea rose 8.2 percent last month from a year earlier, a report said Wednesday.

China shipped 106,000 tons of crude oil to the North in March, the Washington-based Voice of America (VOA) said, citing data by China’s customs.

The total volume of crude oil export from China to North Korea during the first three months of this year reached 159,000 tons, up 6.7 percent from a year earlier, the report said.

The news outlet confirmed previous media reports that China did not export crude oil to the North in February, which was attributed to the superpower’s tightened implementation of economic sanctions on the communist country for its third nuclear test on Feb. 12.

VOA said, however, that China, the North’s closest ally, had no records of crude oil exports to the North in February in 2012 and 2011.

According to China’s customs, the country shipped a total of 523,000 tons of crude oil to the North in 2012, 526,000 tons in 2011 and 528,000 tons in 2010.

Besides official trade, China is believed to have ship an additional 500,000 tons every year in crude oil assistance to the North.

There are also media reports that Iran is planning on selling oil to the DPRK. According to RT News:

Tehran and Pyongyang are in talks about possible exports of Iranian oil to North Korea, Iran’s oil ministry said on Saturday.

“We have had, and continue to have, negotiations with the North Koreans who have requested to buy Iranian oil. We are discussing the procedure and we don’t have any problem selling them oil,” Iranian Oil Minister Rostam Qasemi told a briefing at an International oil and gas exhibition in Tehran.

The minister admitted that Iran was feeling the strain of sanctions imposed on the country by foreign governments, but said it would not get in the way of the transportation of its oil to “any country, in any part of the world,” AP cites.

A delegation from North Korea is among the participants of the expo in the Iranian capital. A Tehran-Pyongyang oil deal would further develop ties increase between the two states – which are both at odds with the US and the West over their respective nuclear programs and have both been sanctioned over the issue.

Read the full stories here:
China’s crude oil exports to N. Korea up 8.2 pct in March
Yonhap
2013-4-24

Iran plans oil exports to North Korea
RT
2013-4-20

According to the Wall Street Journal:

At a courtesy call on the Mongolian president last week, Pyongyang’s new ambassador made a request for food aid, according to the official website for the head of state.

“North Korea may face (a) severe food shortage,” Ambassador Hong Gyu told President Elbegdorj, according to the account. Mr. Hong then asked for Mongolia to consider the possibility of delivering food aid to North Korea, the account said.

North Korea’s toughest part of the year for food begins in April and runs through September, when the annual corn harvest begins. Kwon Tae-jin, a scholar on North Korean agriculture in Seoul said that last year’s yield was moderate, but not sufficient to tide the country over.

“We’ve learned that while rations are being delivered, it varies region by region,” said Dr. Kwon, a director at the Korea Rural Economic Institute in Seoul. “But it isn’t sufficient to go around for everyone.”

Here is some information from the web site of the president of Mongolia:

Today, the Ambassador Extraordinary and Plenipotentiary from the Democratic People’s Republic of Korea to Mongolia Hong Gyu presented a letter of Credence to the President of Mongolia Ts.Elbegdorj. The ceremony of presentation of credentials was followed by brief reception organized in honor of new envoy. At the meeting President Elbegdorj said that this year is the 65th year anniversary of diplomatic relations between Mongolia and North Korea and noted that the bilateral relationship between the two countries will further strengthen. Mr. Hong Gyu conveyed the greetings of the Supreme Leader of North Korea, Kim Jong-un and mentioned of his invitation to visit North Korea. Also, Mr. Hong Gyu noted that North Korea is committed to intensify economic reform. In response, President Elbegdorj expressed Mongolia’s interest to share its experience of economic reform.

At the meeting, both sides exchanged opinion on enhancing partnership in sport and cultural sector and discussed possibilities to bring North Korean basketball, football team and judokas to Mongolia to prepare for the international competitions.

Mr. Hong Gyu said “North Korea may face severe food shortage. Therefore, we ask Mongolia to learn possibilities of delivering food aid to North Korea”.

Read the full story here:
North Korea Asks Mongolia for Food Aid
Wall Street Journal
Jeyup S Kwaak
2013-4-22