Archive for July, 2006

ROK aid to DPRK tops $1 billion since 1995

Sunday, July 16th, 2006

From the Korea Times:

South Korea’s economic assistance to North Korea in the first half of this year topped 141 billion won ($148 million), while the total government aid to the impoverished state since 1995 exceeded 1 trillion won ($1 billion).

According to government statistics on Sunday, the Unification Ministry gave assistance worth 141 billion won to the North in the first half of the year, the highest ever on a yearly basis. Last year’s assistance reached around 123 billion won, including rice aid.

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US evangelist to speak in DPRK

Sunday, July 16th, 2006

Update: from the Daily Comet (Its in Louisiana)

An Orange County pastor who wrote the best-selling book “The Purpose Driven Life” has delayed a planned visit to North Korea amid heightened tension with the U.S. over the country’s recent missile launches.

Rick Warren, pastor of Saddleback Valley Community Church, had planned to meet with North Korean officials Monday to arrange a future preaching trip, Warren’s spokesman A. Larry Ross said.

The trip has now been delayed, but may be rescheduled within the week, a statement from the church said.

The statement did not say whether the delay was due to the increased tensions between the U.S. and North Korea, which have flared since North Korea test fired seven missiles on July 4.

Warren was in Seoul, South Korea Sunday for meetings with church and government leaders and U.S. troops.

The proposed March 2007 preaching trip to North Korea would be to commemorate the 100th anniversary of a Christian revival in Pyongyang, now the country’s capital, and was to include a rally at a 15,000-seat stadium.

A 2002 U.S. State Department report estimated the country of 23 million has some 10,000 Protestants and 4,000 Catholics.

The U.S. does not maintain diplomatic relations with North Korea, though it has participated in negotiations over ending the country’s nuclear program.

Original Post: 7/8/2006

This is too bizarre to be fiction.  From World Net Daily (Which I do not read, BTW):

‘Purpose-Driven’ pastor to preach in N. Korea
Warren planning 1st evangelical stadium crusade in 60 years inside communist

Rick Warren may be put to a tough test next year when the Southern California preacher holds the first evangelical stadium crusade in 60 years in North Korea.

Warren, who is on a 40-day, 13-nation tour, will visit Kaesong on July 17 to plan for the March 2007 crusade after being invited by a group of North Korean businessmen who visited him at his Saddleback Church’s Lake Forest office last month.

“I will be the first preacher in 60 years to speak publicly in North Korea,” Warren told the Orange County Register. “I’m honored.”

He said the North Korean government would allow him to preach in a stadium seating 15,000 but a larger venue would be provided if he could fill the seats.

Because there are no diplomatic relations between the two countries, the businessmen, who say they met with Warren and extended the invitation to preach with approval of the North Korean government, are facilitating his visit next week.

“We are ready to go on our end. We’re just waiting for information back on approval and access,” Anne Krumm, a spokeswoman for the church, said.

North Korea’s missile tests have cast uncertainty on whether Warren, who is presently in Indonesia, can enter North Korea as planned.

“They’re trying to figure out how they can get in and how to do that,” she said.

Warren compares his opportunity to preach in the communist state to Rev. Billy Graham’s visit to the then-Soviet Union, saying he hopes to be able to promote religious freedom where it has been severely restricted since 1945.

“When you go in they have to loosen up on religious freedoms,” Warren said. “They have to just by your presence. It’s like Mandela going into a country. Automatically people start loosening up.”

Suzanne Scholte, chairman of the North Korea Freedom Coalition isn’t so sure.

“To go in there and believe that you could actually preach freely is an illusion. It won’t do anything to help the church. It will only put the true church at risk, and it will be used as a propaganda piece by the Kim Jong Il regime.”

Warren said he is aware that some might misinterpret his visit as an endorsement of the North Korean regime.

“When Billy Graham went to the Soviet Union, there was a lot of criticism of: ‘Well, they’re using you.’ And he said: ‘Well, yeah, they’re using me, but I’m using them too.’,” Warren said.

Graham was criticized following his 1982 visit to Moscow for letting himself be used by the communists when he said he had seen no evidence of religious persecution by the Soviet government and observed that religious freedom was somewhat greater among the people than he had anticipated.

When preaching at the Yelohovski Russian Orthodox Cathedral, Graham exhorted his audience to be better members of the communist state: “God can make you love people you normally would not love. He gives you the power to be a better worker, a more loyal citizen because in Romans 13 we are told to obey the authorities.”

Since 2001, North Korea has been designated a “country of particular concern” for violations of religious freedom. Its citizens may not belong to unauthorized religious groups, and believers who proselytize or have ties to evangelical groups in China are arrested, tortured or executed, a 2005 State Department report said.

Given North Korea’s history of persecution, Scholte’s fear is that the government will use the crusade to identify Christian believers who will be “rounded up and sent to a political prison camp” once Warren leaves the country.

Addendum from the Korea Times:

According to Warren’s own account posted on his Web site, a delegation of South Korean businessmen visited him at Saddleback Church in late June and invited him to speak at the public outdoor Christian service to be held in the North Korean capital in March next year marking the 100th anniversary of the Pyongyang Revival in 1907. The South Koreans had obtained permission for the service, which will be the first of its kind in 60 years as the dictatorial North Korean regime virtually bans any religious activities in public.

“My hope is that these visits will promote religious freedom in a country where the practice of individual faith has been tightly controlled and virtually prohibited since 1945,” he wrote.

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DPRK at the World Choir Games

Saturday, July 15th, 2006

Youtube has the video.

This is the most “traditional” sounding I have ever heard North Korean music.  Not one single accordian! shocking…

The 4th World Choir Games were held in Xiamen China from the 15th to the 26th of July, 2006.

I don’t know who won. 

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DPRK IP Law on Software

Friday, July 14th, 2006

KoryoPAT-Rainbow Patent and Trademark Agency:

Chapter 1. Fundamentals 
Article 1.  The Law of the DPRK on the Protection of Computer Software shall contribute to the protection of the right of copyright holders and the development of software technology by establishing strict system and order in the registration and use of software.
Article 2. Registration of software is the prime process in the protection of software. The state sees to it that the objects to be protected be decided properly and scientific accuracy, objectivity, timeliness be ensured in its registration.

Article 3.  The state sees to it that the development of software is encouraged and the moral and economic rights of software copyright holders are protected.

Article 4.  The copyright of a software that has been developed by a foreign legal person or an individual and registered first in the DPRK shall be protected by this law.

Article 5.  The state shall direct a deep attention to the work of software protection and increase its investment in the sector of software protection.

Article 6.  The treaties concluded by the DPRK for software protection shall have the same effect as this law.

Article 7.  The state shall develop exchange and cooperation with international organizations and other countries in the field of software protection.
Chapter 2. Registration of Computer Software 
Article 8.  It is an important requirement for software protection to have softwares registered in a proper way. Softwares shall be registered by the software registration organ.

Article 9.  The institutions, enterprises, organizations or citizens that want to have their software protected shall submit to the software registration organ a written application for registration. The written application for registration shall elucidate the name of the software, the name, nationality and address of the applicant, the date of application and be attached to by the medium containing the software, its outline and specification, etc.

Article 10.  The software registration organ shall deliberate and approve or reject the registration of the software within three months from the date of its acceptance of the application. In this case the software shall be debugged.

Article 11.  The deliberation of software registration shall be done in the way of ascertaining the software developer and confirming whether there is anything identical or similar to the software already registered. The deliberation of an adapted software for registration shall be done by means of inquring whether the right of the original author has not been infringed upon.

Article 12.  The software registration organ may require the data needed for deliberation from the relevant institution, enterprise, organization or citizen. The institutions, enterprises, organizations and citizens should offer in time the data required by the software registration organ.

Article 13.  The software registration organ shall issue a copyright certificate in case it approves the registration. In case softwarte registration is rejected, a notice clarifying the reason of rejection shall be sent to the applicant.

Article 14.  A registered software shall be made public through the official bulletin. A registered software may not be made public subject to the request of the state or the copyright holder.

Article 15.  The institution, enterprise, organization or citizen that has any opinion against software registration may lodge it with the software registration organ within six months from the date when the registration is made public. The software registration organ shall settle the opinion within two months from the date when the opinion is received.

Article 16.  The software registration organ shall store in a designated storage the medium containing the software as well as the written application for registration of software. The storage should be equipped with the facilities needed for preventing damages and destruction of software.

Article 17.  The institutions, enterprises, organizations and citizens should register the software they have brought in from abroad in the software registration organ. A software from a foreign country may not be used if it is not registered.

Article 18.  The institutions, enterprises, organizations and citizens may inspect the software registry at the software registration organ. In this case they shall pay designated charges.

Chapter 3. Copyright of Computer Software 
Article 19.  The institution, enterprise, organization or citizen that has developed a software shall be entitled to be a software copyright holder. The institution, enterprise, organization or citizen that has been transferred a software copyright may also be a copyright holder.

Article 20.  The moral rights of a software copyright holder shall include;  The right to make public a software, The right to attach the name of the developer to the software,
The right to forbid any alteration of the name of the developer or the name, content, etc. of the software.
 
Article 21.  The moral rights of a software copyright holder shall be possessed by the software developer. The moral rights of a copyright holder may not be transferred.

Article 22. The economic rights of a software copyright holder shall include;  The right to copy, exhibit and circulate the software, The right to adapt the software, The right to permit the use of the software and to receive relevant charges, The right to transfer a part or the whole of the software economic rights, The right to claim indemnity for the damage caused by infringement upon the software copyright.
 
Article 23.  The transferred economic right of a software under a contract should be registered in the software registration organ. The registration should be done within seven days from the date of transferrence.

Article 24.  The copyright of a software developed in the name of an institution, enterprise or organization shall be granted to the institution, enterprise or organization concerned. The copyright of a software devoloped in the name of an individual shall be granted to the individual concerned. The copyright of a software developed by a group of people shall be owned jointly. In this case the exercise of the right shall be subject to the agreement of the developers.

Article 25.  The copyright of a software developed on consignment shall be owned according to the contract concluded among the parties. The written contract shall accurately clarify the ownership and exercise of the copyright.

Article 26.  A software copyright may be owned by a minor as well. The copyright of a minor shall be exercised through the parents or guardian.

Article 27.  If a software copyright holder has no heir or is dead without leaving a will to present his copyright to anyone else or if there is no institution, enterprise or organization to inherit the copyright, the economic rights of the software concerned shall be owned by the state.

Chapter 4. Protection of Computer Software Copyright 
Article 28.  It is incumbent upon institutions, enterprises, organizations and citizens to protect software copyrights. Institutions, enterprises, organizations and citizens should not infringe upon software copyrights.

Article 29. The term of protecting the moral rights of software copyright holder shall be indefinite and the term of protecting the economic rights shall be 30 years. In case of need, the term of protecting the economic rights may be prolonged for up to 20 years.

Article 30.  The term of protecting the economic rights of a software copyright holder shall be until December 31 of the 30th year from the day when the software is registered. The term of protecting the economic rights of a transferred software copyright shall be the remaining period from the day when the transfer is registered.

Article 31.  Institutions, enterprises, organizations and citizens may use a registered software subject to the permission of the copyright holder. The use of a software shall be within the range of permission.

Article 32.  The institutions, enterprises, organizations and citizens that use a software should pay the designated charges. Charges shall be designated by the price assessment organ.

Article 33.  Institutions, enterprises, organizations and citizens may use the patented literary and artistic works for developing or adapting a software. In this case they should get the permission of the copyright holder.

Article 34.  Without the permission of the copyright holder, one may not do the following;  The acts of using, copying, exhibiting, distributing, adapting, translating, selling or telecasting a software, The acts of altering the name of a software developer or a software, The acts of exporting or importing a software, The acts of destroying or removing protection devices of software technology and offering such technology.
 
Article 35.  One may copy and use a software without the permission of the copyright holder in the following cases;  When a software is used for educational purpose in educational institutions, When a software is used for investigation of a case by a law enforcement organ, When the software has been distributed free of charge.
 
Chapter 5. Guidance and Control of Computer Software Protection 
Article 36.  It is the basic guarantee for the correct implementation of the State policy of software protection to strengthen the guidance and control of the work for software protection. The State shall intensify the guidance and control of the work for software protection.

Article 37.  Guidance of software protection shall be undertaken by the central software industrial guidance organ. The central software industrial guidance organ shall establish a proper system for software protection and regularly grasp and guide the work of registering, storing and protecting software.

Article 38.  The central software industrial guidance organ may set up its agencies in the fields necessary for registering and protecting software. The agency should consist of qualified personnel.

Article 39.  Supervision and control over software protection shall be undertaken by the central software industrial guidance organ and the supervisory and control organs concerned. The central software industrial guidance organ and the supervisory and control organs concerned should strictly supervise and control such acts as infringement upon copyrights, production, copy and circulation of computer virus as well as a software containing the content counter to the good national manners and customs, destruction or illegal inspection of a software through computer networks.

Article 40.  In case of any infringement upon software copyright, the damage shall be compensated and the money illegally gained and the software used confiscated.

Article 41.  An official of an institution, enterprise or organization, or an individual citizen who is responsible for serious consequences related with software protection by his/her violation of this law shall be liable to administrative or criminal penalty according to gravity.

Article 42.  A dispute arising in relation to software protection shall be settled by negotiation. In case it is not settled by negotiation, the dispute may be brought to arbitration or to a court for settlement.

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DPRK and intellectual property primer

Friday, July 14th, 2006

The DPRK is a signatory to these  IP accords

  • WIPO, since August 17, 1974
  • Paris Convention (IP Protection), since June 10, 1980
  • Patent Cooperation Treaty, since July 8, 1980
  • Madrid Agreement (International Registration of Marks), since Jan. 15, 1980
  • Madrid Protocol (International Registration of Marks), since Oct. 3, 1996
  • Hague Agreement (International Deposit of Industrial Designs), since May 27, 1992
  • Nice Agreement (International Classification of Goods & Services), since June 6, 1997
  • Strasbourg Agreement Concerning the International Patent Classification, since November 21, 2002 (source)
  • Locarno Agreement (Int’l Classification for Industrial Designs), since June 6, 1997
  • Budapest Treaty on the International Recognition of the Deposit of Microorganisms for the Purposes of Patent Procedure, since February 21, 2002 (source)

Here are the related agencies for registering a patent, trademerk (industrial design), and copyright:

For Patent and Inventions:
Invention Office of DPR Korea
Address: Kinmaul 1Dong, Bipa Street, Moranbong Dist.,
Pyongyang, DPR Korea
Tel: (850-2) 381 18111. Ext:8544
Fax: (850-2) 381 4410
E-mail:[email protected]
Head of office: Kim Il Hyok, Director General, DPRK Invention Office

For Trademark and Industrial Design:
State Administration for Quality Management
Address: Songyo 2 Dong, Songyo Dist., Pyongyang, DPR Korea
Tel: (850-2) 381 18111. ext:8989
Fax: (850-2) 381 4480
E-mail: [email protected]
Head of office: Kim Hyon Chol, President, DPRK State Administration for Quality Management

For Copyright
DPRK Copyright Office
Address: Donghung-Dong, Central Dist., Pyongyang, DPR Korea
Tel: (850-2) 18111.ext:8883
Head of Office: Jang Chol Sun , Director Fax: (850-2) 381 4410
E-mail:[email protected]

There are two law firms based in the DPRK that liase with these agencies on behalf of foreign interests.  These agencies are:

KoryoPAT- Rainbow Patent & Trademark Agency
P.O. Box: 19, Ryonhwa-dong 1, Central District,
Pyongyang, DPR Korea
Tel : +850-2-18777/888, ext: 8048
Fax : +850-2-3814644
E-mail : [email protected]

The KoryoPAT-Rainbow (Patent and Trademark Agency) was founded on August 15, 1986 and restructured on Oct. 15, 2003 to meet the requirements of the 21st century in its IP international transactions.

KoryoPAT-Rainbow is full service business law firm.  With affiliation in Government advisory bodies, industrial and commercial sectors, lawyers, organizations and international associations, the KoryoPAT-Rainbow provides the clients with a most efficient and affordable legal services.

The KoryoPAT-Rainbow holds it as its lifeline to serve their clients efficiently, qualitatively, speedily and creditably.

In the KoryoPAT-Rainbow there are over 50 staffers with 20 attorneys and agents who, as university or college graduates, are well versed in chemistry and biology, metallurgy, mechanics, electric & electronic engineering, computer software & hardware, and other fields of science and technology. They have been specially trained in IP transactions in an efficient way. 

RyongSong Patent and Trade Office
Mr. Yong-Sik Ro, Patent Attorney
P.O.Box: 75, Sangsin-dong, Sosong District,
Pyongyang, D.P.R.K.

Ms. Jong-Suk Jin, Trademark Attorney
RyongSong Patent Office (Main Office),
P.O.Box: 75, Sangsin-dong, Sosong District,
Pyongyang, D.P.R.K.

In Europe:
Ms. Un-Ae Che, European Representative
RyongSong Patent Office (Branch),
Schweglerstr. 21/3, A-1150, Vienna, AUSTRIA
Tel.:     +43-1-982-2082
Fax:     +43-1-982-2084
e-mail:  [email protected]

The RyonSong Patent Office of the Democratic People’s Republic of Korea provides services to foreign and local companies and individuals for protecting intellectual properties including patents, trademarks, industrial design and copyright, in the Democratic People’s Republic of Korea. 

The RyongSong Patent Office was established in July of 1998, and has since then been working in close partnership with numerous agencies and patent attorneys in over 60 countries throughout the World.  Fully appreciated for its high sense of responsibility, the RyongSong Patent Office provides prompt services in drawing up and filing of applications, counseling, litigation, licensing, technology transfers, and many more.

The RyongSong Patent Office is conveniently situated very close to the Invention Office of the D.P.R.K., and is staffed with highly specialized patent and trademark attorneys with university degrees in engineering, electronics, biology, chemistry, physics, biochemistry, medicine, software engineering, and others.  All attorneys have had at least 10 years of experience in the fields of science and technology research.  Furthermore, all attorneys are fluent in conversational and written English as well as Chinese.  Applications in English, German, French, Spanish, Russian, Chinese or Japanese will be translated into Korean.

Here are their procedures for registering patents, trademarks, and industrial designs.

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American TV show broadcasts from Kaesong

Thursday, July 13th, 2006

From Google Video:

This is America’s host Dennis Wholey does a great job filming from the Kaesong Industrial complex.

Check it out.

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ROK halts DPRK humanitarian aid

Thursday, July 13th, 2006

The 2005 winners of the Nobel Prize in Economics were selected for “having enhanced our understanding of conflict and cooperation through game-theory analysis”.  I would check out thier work in order to make sense of the current DPRK/ROK diplomatic posturing.

From the Washington Post:

South Korea on Thursday suspended humanitarian aid to North Korea until it agrees to return to international nuclear disarmament talks.

The action infuriated visiting North Korean officials, who immediately cut off high-level talks in South Korea and stormed back home.

The decision to postpone consideration of a North Korean request for 500,000 tons of rice marked the South’s first punitive action against its impoverished communist neighbor since it defied the international community and test fired seven missiles, including a long-range Taepodong-2, on July 4.

The move came as the administration of South Korean President Roh Moo Hyun has come under sharp public criticism at home for what many there viewed as a weak response by Seoul to the North’s missile tests.

South Korea on Thursday reiterated its deep opposition to a push by Japan and the United States to impose broader sanctions on North Korea through a draft resolution at the United Nation’s Security Council. Seoul has also vowed to maintain its “sunshine policy” of engagement, which has fostered the warmest ties between the Stalinist North and capitalist South since the Korean War divided them in two more than half a century ago.

But the decision to follow through with a previous threat to suspend food aid if North Korea tested missiles — a threat many experts doubted the South Koreans would stick to — displayed a new willingness by the South to use its significant economic clout to apply pressure on the North.

The North Koreans — for whom economic assistance by South Korea is topped only by China — appeared jolted by the decision. At talks being held in the South Korean city of Pusan that were originally scheduled to end Friday, Pyongyang’s delegation abruptly departed Thursday afternoon.

South Korea’s Yonhap news service reported that the North Korean officials left after circulating a statement calling the rupture the result of “reckless” attempts by South Korea to raise “irrelevant issues.” Those issues, South Korean officials said, were the recent missile tests and the North’s refusal to return to six-party talks on its nuclear programs.

The North bitterly condemned Seoul’s decision to suspend food aid, saying “the South side will pay a price before the nation for causing the collapse of the ministerial talks and bringing a collapse of North-South relations.”

South Korean officials, who in recent years have rolled out the red carpet for their visiting North Korean kin, this time offered them a simple meal and welcome bereft of customary sightseeing excursions and photo opportunities. When the North’s representatives understood they would not be returning with promises for more food aid, they simply left.

“The North Korean side expressed their position that additional negotiations would be unnecessary under the circumstance that additional humanitarian aid they need would be impossible,” Lee Kwan Se, a South Korean Unification Ministry official, told reporters.

For the United States and Japan, both pushing for a strong draft resolution at the United Nations that would ban international trade of North Korean missile and other military technology, the South Korean action was a rare diplomatic bright spot.

Christopher Hill, Washington’s top envoy on North Korea, left Beijing for Washington on Thursday after it became clear that Chinese efforts to persuade the Pyongyang government to come back to the six-party talks had apparently failed.

Before leaving, Hill said there was no indication that the North Koreans had changed their position to boycott the talks, which have been stalled since last November.

Japan, which has been deeply rattled by the North’s missile tests, vowed to continue pushing for a tough resolution that would impose sanctions on the North Koreas. But China and Russia back their alterative U.N. resolution unveiled on Wednesday. That draft would censure North Korea for its missile tests, but would endorse only voluntary measures aimed at restraining Pyongyang’s ballistic missile and nuclear weapons programs.

“The Chinese are as baffled as we are,” Hill told reporters in Beijing before departing. “China has done so much for that country and that country seems intent on taking all of China’s generosity and then giving nothing back.”

By Anthony Faiola
Washington Post Foreign Service

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DPRK cancels, but Kumgang hotel opens

Wednesday, July 12th, 2006

From the Joong Ang Daily:

An abrupt notification by the North that it would not attend caused the postponement of a celebration by the two Koreas of the launch of the Oegeumgang Hotel at Mount Kumgang in North Korea, which had been set to take place yesterday.

The 11-story, 179-room Oegeumgang Hotel still launched operations yesterday, as did Baekseju village, designed to promote rice liquor and a rest stop called Hwajinpo near Mount Kumgang.

The hotel will be open to foreign tourists who come on a Hyundai Asan package deal to visit the mountain.

Hyundai Asan Corp., the arm of Hyundai Group that spearheads inter-Korean business, said yesterday the North told them on Monday afternoon that it would not attend.

North Korea did not say why, but Hyundai said it may have been due to the international tension caused by its missile launches last week.

A Hyundai Asan spokesman said, “the absence is not likely to affect future business with North Korea.”

He added that the opening celebration date will be reset soon after discussions with the North.

Hyundai Asan also plans an event on Mount Kumgang with the North Aug. 4-6 to commemorate the late Hyundai Group founder Chung Ju-yung, who was born in North Korea. The North has not said if it will participate.

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Half-Million Bucks Go to Kaesong Every Month

Wednesday, July 12th, 2006

Korea Times
Kim Yon-se
Staff Reporter

S-N Economic Cooperation Showpiece Under Double Threat

Nowadays the Kaesong Industrial Complex, the flagship of inter-Korean economic cooperation, is stuck between a rock and a hard place.
The United States has rejected a South Korean request to include it in their bilateral trade talks, taking away one of the few incentives for companies to set up shop there.

The Kaesong complex is a collaborative industrial park developed by South and North Korea located in North Korea close to the Korean Demilitarized Zone with direct road and rail access to South Korea.

The Kaesong complex is also bearing the fallout from Pyongyang’s missile tests that raised an uproar in the international community, giving Washington an excuse to push hard for its ongoing effort to choke the North’s cash flow.

“Kaesong is a lifeline that keeps alive inter-Korean business cooperation,’’ said an official who is involved in the project. “It is at a fragile stage so if anything happens that changes the current status of the Kaesong complex, there would be no turning back.’’

He said that the government is expected to keep the project going at all costs.

In the Kaesong complex, about 7,700 North Koreans work for Hyundai Asan, the project manager and scores of South Korean companies there. A North Korean worker there earns $64 in wages and allowances a month, making for half a million dollars in the monthly total payment. Most of the money is paid on the 10th of the month. This month, it was paid as scheduled.

“It is unthinkable that the wages would be withheld,’’ the official said, when asked what would happen if economic sanctions were slapped on the communist country. “I don’t think that the government would do that.’’

Some U.S. officials have said South Korea’s continuation of pushing Kaesong goods as an item for the FTA talks may be a big hurdle for signing the final pact.

“The agreement should only cover products of the U.S. and the Republic of Korea. That is our position,’’ Assistant U.S. Trade Representative Wendy Cutler told reporters.

Aside from the negative stance toward products created by North Korean employees from the North’s raw materials, the U.S. has strategies not to allow made-in-South Korea products, especially clothes, made from imported materials from China or Taiwan, according to sources.

If the U.S. allows the Kaesong products as an FTA item, it has no choice but to accept the products made from non-Korean textiles.

The U.S. clothing market has already been flooded with cheap products from China and Southeast Asian countries that are labeled as premium brands, such as Polo and Burberry.

Korean civic protestors argue the Korean government is unprepared for the talks and has few negotiation strategies. In fact, the government is falling short in making Kaesong products acknowledged as an FTA item.

According to the Chosun Ilbo, an ultra-conservative vernacular daily, a government official said Korea will ultimately drop the issue in the future talks though it will not scrap the issue on the official negotiation table.

Citing the officials’ remarks, the newspaper said it is impossible for Korea to receive concessions from the U.S. on Kaesong products and the government will use the issue as leverage for other issues.

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South’s Korea Telecom hires DPRK firm for software development

Wednesday, July 12th, 2006

From the Korea Times:

KT to Sign Deal With NK Firm

By Kim Tae-gyu
Staff Reporter

South Korea’s leading fixed-line telecom carrier, KT, Thursday plans to sign a 360 million won ($380,000) outsourcing contract in Pyongyang with a North Korean institute to develop six sophisticated software programs.

A Ministry of Unification official said Wednesday two KT executives went via Shenyang, China, to the North Korean capital to sign the deal with the North’s Samcholli General Corp.

However, when contacted, KT refused to confirm the contract.

Nonetheless, the ministry official, who declined to be named, said: “Samcholli will develop six computer programs in such fields as next-generation networks and voice recognition for 360 million won by the end of this December.”

“Plus, they are to agree to launch a pilot run of valued-added processing this year with a pair of telecom products _ polyvinyl chloride (PVC) coffins and splitters,” he said.

Under the envisioned agreement on the valued-added processing, KT will provide raw materials to Samcholli, which will manufacture the products in return for some commissions.

The official said the range of valued-added products will be substantially expanded next year should this year’s trials proved successful.

Asked whether the step will be an issue given the North’s soured relationship with Seoul over the recent test-firing of seven missiles, the unnamed official flatly rebuffed such concerns.

“Basically, we think this kind of Inter-Korean cooperation between private entities should continue regardless of political landscapes,” he said.

“In addition, this is a commercial contract, not one aimed at helping the North. If Samcholli fails to meet requirements of KT, the latter can refuse to pay the promised money,” he added.

Indeed, KT struck a similar deal with Samcholli last year and the former state monopoly paid 164,000 euros (nearly 200 million won) only after Samcholli finished developing the telecom software as scheduled.

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