Archive for March, 2007

Rapport grows with fertilizer aid

Wednesday, March 7th, 2007

Joong Ang Daily
3/8/2007

North Korea yesterday asked for 300,000 tons of fertilizer in aid, the Unification Ministry said, days after the two Koreas agreed to resume humanitarian projects.

“Chang Chae-on, president of the North’s Red Cross, sent a fax message to his South Korean counterpart Han Wan-sang, requesting 300,000 tons of fertilizer and wanting to know how much and what type,” said Yang Chang-seok, a ministry spokesman.

Mr. Yang said the shipment will be sent to the North in late March or early April, after the details have been worked out.

Mr. Yang estimated the aid will cost 100 billion won. “The government earmarked 108 billion won for that purpose this year.”

The North has also asked for rice and Red Cross officials will discuss the resumption of rice aid during a new round of economic talks to be held in Pyongyang on April 18 to 21.

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Outlook for Inter-Korean Business Bright

Wednesday, March 7th, 2007

Korea Times
Park Hyong-ki
3/7/2007

The outlook for inter-Korean trade this year seems bright, as North Korea agreed to dismantle its nuclear weapons programs at the six-party talks in Beijing last month.

According to a survey conducted by the Korea International Trade Association (KITA), about 45 percent of South Korean companies doing business with North Korea were optimistic that the volume of inter-Korean trade will grow this year. The survey was conducted on 150 firms in February.

Some 35 percent believe that the bilateral trade will remain the same as last year’s, while only 15 percent showed negative responses toward this year’s trade, saying that the volume will “drastically” decrease.

Only two companies said they will pull out of North Korea this year, while five companies were undecided.

Last year, inter-Korean trade amounted to about $1.3 billion, up 28 percent from 2005. Key trading commodities were agricultural, chemical and textile products.

Despite North Korea’s nuclear and missile tests as well as chilly inter-Korean relations last year, South Korean companies operating in the Kaesong Industrial Complex saw their sales grow 69 percent to $298 million.

The Kaesong site is one of the major cross-border projects symbolizing economic ties between the two Koreas, which utilize North Korea’s cheap labor and South Korea’s technological skills.

The Ministry of Unification is hoping to attract about 2,000 manufacturers to Kaesong by 2012. Currently, there are 55 South Korean firms operating in the joint economic zone, which account for 22 percent of overall South-North business, according to the trade association.

The other joint business _ the Mt. Kumgang tour managed by Hyundai Asan _ suffered from the aftermath of North Korea’s nuclear weapon test. The tourism project recorded only $57 million in sales, down 35 percent from the year before.

Specifically, a total of 477 South Korean companies participated in inter-Korean trade last year, down from 523 firms in 2005, due to heightened risks following Pyongyang’s nuclear test.

About 44 percent of those surveyed said that the test had negatively affected their business with the North. The report showed that only 39 percent reaped a “little” profit last year while doing business with North Korea.

Half of firms upbeat for North trade
Joong Ang Daily
3/8/2007

Almost half of South Korean companies doing business with North Korea said they have a bright outlook for inter-Korean trade this year due to expectations for better ties with the North, a poll said yesterday.

According to a survey of 67 companies conducted by the Korea International Trade Association, 45 percent of the respondents said inter-Korean trade will likely increase this year. Thirty-five percent expected trade to remain at the same level as last year while 15 percent said it will likely decline.

The poll also said 75 percent of local companies operating in the industrial park in the North’s border city of Kaesong had an optimistic outlook for trade. The industrial complex, mainly for smaller South Korean firms, is considered a model for reconciliation and cooperation between the two Koreas. Currently, 21 garment and other labor-intensive South Korean plants are operating there, employing about 11,000 low-paid North Korean workers.

The survey said among the firms that forecast inter-Korean trade to rise, 17 percent said their continued trust in North Korean firms was the reason for their upbeat outlook, while 16 percent and 14 percent said it was a rise in new orders and expectations for inter-Korean reconciliation. The survey was conducted before a deal on dismantling North Korea’s nuclear program was reached, reflecting that local firms have maintained a positive view toward inter-Korean trade. The agreement calls for Pyongyang to shut down and disable its main nuclear reactor and dismantle its atomic weapons program.

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Successes Made in Micro-operation

Tuesday, March 6th, 2007

KCNA
3/6/2007

The hospital attached to Pyongyang University of Medicine has proved successful in the micro-operation of completely fractured arms and legs.

Researchers of the microsurgery laboratory under the Clinical Institute have developed a special suture needle, key of microsurgery, by themselves, and ultramicro-surgery technology. They are successfully stitching inner, middle and outer membranes of one-millimeter-thin blood vessels separately through the zoomed view of an operation microscope.

They have also succeeded in linking dozens of neural glands of the hair-like nerve trunk.

They have conducted thousands of micro-operations including one hundred and scores of operations for fractured limbs and skin, neural gland and living bone transplantation operations since they linked the fractured arm of a patient 15 year ago.

The researchers, basing themselves on the already-made successes, are developing cutting-edge fields of surgery from traumatic orthopedic surgery to blood vessel surgery, facial orthopedic surgery and visceral organ transplantation.

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Rice Grown in North Korea Arrives in Incheon

Tuesday, March 6th, 2007

Choson Ilbo
3/6/2007

Two tons of rice cultivated on North Korean soil with help from South Korean agriculture experts has reached the South’s port city of Incheon.

The rice came from a one-hundred-hectare field near Pyongyang planted with a mix of South and North Korean rice last year. The paddy yielded over 50,000 tons of rice and the shipment that arrived in Incheon was of the South Korean variety. It will be donated to a number of welfare groups as well as civilians who were displaced during the Korean War.

The project is one of several agricultural and cultural exchanges run by Gyeonggi Province which signed an agreement to cooperate with North Korea in 2004.

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Rice Price Shows a Downward Tendency in March

Tuesday, March 6th, 2007

Daily NK
Kim Min Se
3/6/2007

Expectations of foreign aid affected the stability of prices

In early March, the rice price in North Korean markets continues to inch downward before the spring lean period.

The research conducted by DailyNK correspondents on rice prices show that they fluctuate between 800 won to 900 won.

The price of 1kg of rice at Chungjin Market was around 900 won early in March, 750 won in Hamheung, and 700 won in Pyongyang and Hwanghae province. In October, 2006, just after the nuclear test, the price of rice was approximately 1,000 won to 1,100 won.

The spring leaning period usually starts in April because the amount of current rice in markets diminishes when rice and cereals reduce and the demand of rice increases.

The rice price declines mainly because the supply of rice traded through China.

After the nuclear test, the North Korean government imported 7423 tons of rice in October, 910 tons in November, and 3928 tons in December from China, according to the Unification Ministry and KOTRA. The Unification Ministry analyzed that the decrease in rice costs is an unprecedented case.

The total expected output of rice is 4.3 million tons according to WFP and Rural Development Administration of South Korea. Some experts analyzed that the supply of food may be enough to meet the demand. They believe this because the rice price is stable and moving downward.

It is expected that the price of rice will remain stable for a while rice price lasts for a while. They believe because people expect the food aid from foreign countries after reaching the 2.13 agreement at the six party talks. On the other hand, there are those that believe that the statistics of rice prices are irrelevant to effect of the real lives of North Korean people.

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Food Rations Distributed on Hoiryeong Farms

Tuesday, March 6th, 2007

Daily NK
Kim Yong Hun
3/5/2007

It has been confirmed that North Korean authorities have distributed food rations to farmers in the border regions. It seems that the farmers were given first priority to the distributions, in an attempt by authorities to prevent further trends of defect that arose in December last year.

An inside source from North Korea informed on the 28th “Last December, Songhak farm, Obong farm, Changhyo farm in Hoiryeong, North Hamkyung delivered 100% of food distributions to the workers in the form of crops. In the past, food was distributed to workers after food subsidiaries for the nation and military had been extracted. This is the first time that 100% of food has been distributed.”

The rations were given in the form of corn 70% and rice 30%. The rice had been distributed in its original form, chaffs and all. Even though the rice was dispersed yet to be threshed, the fact that the distributions amounted to the full 100% greatly amazed the local farmers.

This is the first time since 1990 that North Korean authorities have given priority to the farmers without confiscating part of the distributions for the army.

According to the source, North Korean authorities have been distributing food rations to the farmers in the border regions in equal amounts as across the nation, as an order was made last November for “farmers (to) prevent acts of escape and illegal acts.”

The farmers pointed out “If we exclude the corn cob and outer layers of a corn, the amount of actual corn that is edible is about 60%. As for rice, the amount a person can eat is about 80%” and explained, “In the past, about 40% of farm produce was set aside for the nation. In comparison to the times where food was redistributed to the army, we are in fact receiving 30% more.”

However, though there has been an increase in distributions, it seems that the farm’s managerial secretaries, operation managers and team leaders are intermingling in the rations by taking all the edible rice and corn, while topping up the shortages in the farmer’s distributions with the outer layers of corn and cob and rice chaff.

In comparison to the amount of rations received by the farmers last Dec, the recent 70% corn and 30% rice means that at the maximum 320kg or minimum 250kg of food was distributed per person. Families with dependent children received 70kg of rations if the dependents were in elementary school and 120kg for dependents in middle school. If one’s spouse was able to partake in common labor, they would be exempt from the rations, but in the case that the spouse was disabled or a patient, then the family would receive rations similar to that of middle school students, 120kg.

However, farmers are complaining that the distributions would decrease by July as “Since last September until December, all essential food had already been taken from the farms and consumed. Once this has been depleted, the vicious cycle of food shortage will continue,” say the farmers.

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South Helps North Fight Scarlet Fever

Tuesday, March 6th, 2007

Korea times
Lee Jin-woo
3/6/2007

The Ministry of Unification said Tuesday it has provided some 400 million won ($400,000) to help North Korea stem the spread of scarlet fever, an infectious disease, a ministry official said.

Yang Chang-seok, spokesman for the ministry, said the money has been provided to an association of some 51 local private relief organizations.

As the money was financed by the inter-Korean cooperation fund under a matching fund system, the association promised to provide some 200 million won for the aid program.

Yang said the decision was made at a government meeting on Feb. 12.

The spokesman, however, said the decision was not in opposition to Unification Minister Lee Jae-joung’s earlier remarks not to provide any government-level assistance over the infectious disease in the impoverished North.

During a press briefing in January, the minister stated that the government would not provide medical aid to the North as scarlet fever is not a fatal infectious disease.

“Given the nature of the disease, we believe that North Korea itself will be able to solve the problem,” Lee told reporters on Jan. 11.

The spokesman said Minister Lee was referring to government-level aid through the Korean National Red Cross (KNRC), not financial assistance from private relief organizations.

South Korean humanitarian aid groups have shipped various types of medicine including penicillin and other antibiotics to Pyongyang since last December. Scarlet fever broke out in northern Ryanggang province last October.

Scarlet fever is intrinsically not a serious communicable disease, but if not treated properly it can become serious like cholera or typhoid. The impoverished North lacks medicine.

South Korea suspended its government-level humanitarian aid to North Korea after the North’s missile tests last July. A possible resumption of the aid was blocked due to the North’s nuclear bomb test in October.

During ministerial talks in Pyongyang last week, the two Koreas agreed to hold a series of meetings to restart the aid project. 

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N. Korea, Japan begin preparatory contact for normalization talks

Tuesday, March 6th, 2007

Yonhap
3/6/2007

North Korean and Japanese officials met Tuesday in Hanoi to set the agenda for their two-day discussions scheduled to start here Wednesday to settle pending bilateral issues preventing them from normalizing diplomatic relations.

The Japanese representative to the talks, Koichi Haraguchi, met with his North Korean counterpart, Song Il-ho, Tuesday morning for the preparatory discussions.

The normalization talks are part of last month’s six-nation agreement aimed at dismantling North Korea’s nuclear weapons program. Under the accord, North Korea has 60 days to shut down its plutonium-producing Yongbyon facility in return for 50,000 tons of heavy fuel oil for electricity production. Japan has said it won’t contribute to the aid unless there is progress on the issue of its citizens abducted by the North.

North Korea admitted to kidnapping 13 Japanese in the 1970s and 1980s and allowed five to return in 2002. Japan says 17 people were kidnapped and must be accounted for.

In addition to the abduction issue, the North Korean and Japanese diplomats are expected to focus on the ways for Japan to atone for its 1910-45 occupation of the Korean Peninsula.

Prior to the opening of the talks, meanwhile, Japanese Prime Minister Shinzo Abe made clear in a parliamentary address in Tokyo that Japan will not compromise with North Korea over its abduction of Japanese citizens.

“Solving the nuclear problem was the main theme of the six-nation agreement, but the abduction issue is not one where any concession is possible,” Abe said. “Our stance is that unless they change their attitude, we won’t change.”

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N. Korea revives one-child limit for diplomats abroad: source

Tuesday, March 6th, 2007

Yonhap
3/6/2007

North Korean diplomats have recently been limited to taking only one of their children with them when assigned abroad amid reports of some diplomats seeking asylum out of their impoverished homeland, an informed source said Tuesday.

The measure is a revival of a decades-old regulation, which has been temporarily suspended since 2002, the source said while speaking on condition of anonymity.

“North Korea is said to have ordered its diplomats and officials overseas to send all but one of their children back to Pyongyang,” the source said.

“It appears North Korea believes there is a greater chance of defection by these expatriates as they now have all of their family members overseas,” the source added.

Defections by North Korean diplomats or their families are rarely publicized, but government officials say they are not unprecedented.

South Korea usually maintains a tight lid on defection cases involving ranking North Korean officials out of fear they may provoke the communist nation, thus making future defections by others more difficult.

More than 10,000 North Koreans have defected to South Korea since the end of the 1950-53 Korean War while as many as 300,000 others are believed to be hiding in China or other neighboring countries.
NK Diplomats Ordered to Send Kids Home
Korea Times
Lee Jin-woo
3/6/2007

North Korean diplomats and those who work at overseas branches of state-run trading companies have been ordered to send their children home except for one child by the end of this month, sources said.

The order was issued on Feb. 14, after a one-month-and-a-half notice, the source said, speaking on condition of anonymity.

In the early 1990s, the North ordered its students abroad to return home during the collapse of the Soviet Union and the breakdown of the Berlin Wall.

But this was the first time for Pyongyang to call home the children of diplomats and officials at trading companies.

The measure is a revival of a decades-old regulation, which has been temporarily suspended since 2002. The ban was lifted in 2002 to help more children pick up foreign language skills in a more advanced educational system.

The North has decided to return to its previous policy to prevent possible mass defection of its diplomats and white collar workers abroad with their families in the reconciliatory mood, including the ongoing efforts to normalize the diplomatic ties between Pyongyang and Washington, experts on North Korean affairs said.

Neither primary school students nor college students, however, are allowed to stay overseas.

“Diplomats and workers at state-run trading companies are allowed to keep only one child, who is old enough to attend either junior high or high school, but primary school children and college students are banned from staying overseas,’’ Hong Soon-kyung, a North Korean defector, told The Korea Times.

A former senior North Korean diplomat, Hong serves as chairman of an association of North Korean defectors in Seoul.

Hong said it was because the Stalinist state does not want its young generation to be influenced, or brainwashed, by U.S.-style market economy.

He said North Korean college students are allowed to study only in China, the North’s closest ally.

“Those North Koreans who go overseas for physical labor have not been allowed to bring any child, not even one,’’ he added.

Under the order, some 3,000 North Korean children in some 50 countries will have to return home, sources said.

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Borderline Activities

Monday, March 5th, 2007

Korea Times
Andrei Lankov
3/5/2007

When future historians analyze the history of North Korea in the 1990s and early 2000s, what will they see as the most important events of that era (likely to be remembered as the “demise of Kim Il-sung’s socialism’’)? I do not think that future works of historians will spend too many pages (or megabytes) describing the never-ending soap opera of the “nuclear crisis.’’ Perhaps, some still unknown clashes in the North Korean palaces will deserve attention. But much more important will be the social changes in North Korea and, among other things, the near collapse of border control on the northern frontiers of the country. This collapse has opened the North to foreign influences and international exchanges of all kinds.

It is a bit of an overstatement to say that the North Korean border with China is now “open.’’ It is not open in the same sense as, say, the border between the Canada and U.S., let alone borders between the West European states. But it is porous to the extreme, and this situation is quite new.

For decades, cooperation between the DPRK and Chinese authorities ensured that defectors stood little chance of gaining asylum across the border. Sooner or later a defector would be arrested by the Chinese police and sent back to the North where he or she would be prominently sent to a prison camp forthwith. Everybody, including aspiring defectors, was clear on this point.

But this system collapsed about ten years ago, and the adjacent areas of China were soon flooded with North Korean refugees whose numbers in the late 1990s reached some 200,000 (now the numbers are much lower).

Nowadays crossing the border is not too difficult or dangerous. In the late 1990s, the people who crossed the border every night could be counted in the hundreds. Most of them were refugees fleeing the destitution and hunger of their Korean villages. Others were smugglers, engaged in the somewhat risky but profitable business of moving valuable merchandise across the border. And yet others were engaged in more unusual activities.

There are professional matchmakers, for example. While ethnic Korean girls from the Chinese North-East try, and sometimes succeed, in marrying South Koreans, the girls from the North would not mind having a Chinese husband, normally _ but not always _ of Korean ethnicity. China, with its abundant food supply, appears a veritable dreamland for them.

Such marriages are quite common: according to one study, in 1998 some 52% of all North Korean refugees (overwhelmingly women) were living with their local spouses. In most cases such marriages are arranged via Chinese (Han or ethnic Korean) brokers, and sometimes these brokers contact girls and their families while they are still in North Korea. If the girls are interested in the idea, the matchmaker or his/her agent crosses the border and then escorts the would-be bride to her new place of residence.

Most of the “husbands’’ are people who, for a variety of reasons, have had difficultly in finding a wife by more orthodox methods: widowers with children, habitual drunkards, the handicapped. In many North Eastern villages the mass migration of young women to the booming cities has resulted in a bridal shortage, such that North Korean wives are in high demand.

Of course, being illegal aliens, North Korean wives face a risk of deportation, and there are problems with children born of such unions. Nonetheless, a bit of caution, and a hefty bribe, can often solve some of the problems, ensuring the much-coveted registration for a baby and buying the local constable’s willingness to look elsewhere.

Another business is getting people from the North to China and, ultimately, to South Korea. Nowadays, there is large and growing community of North Korean refugees in Seoul. Many of these people save every cent to get their families in from North Korea. When they have enough money, they pay the brokers who arrange the escape. A few thousand dollars will be enough to ensure that a professional agent will cross into North Korea, locate the person and escort him/her across the border. $10,000 is the payment for getting a resident of Pyongyang, but for closer areas the fees are lower. Then, an additional payment will be necessary to get the person to Seoul (this costs between another $2,000 and $9,000, depending on various factors).

And there are money transfers, both from the North Korean refugees doing well in China, and from South Korea. Money has to be sent in cash, through reliable couriers (and there are many ways to confirm that the transfer has been delivered).

Take, for example, the case of Ms. Lim, a 31 year old refugee, happily married to a Chinese man and engaged in running a small business (the story was recently described by the Daily NK, a South Korean web-based newspaper). Twice a year Ms. Lim sends about $400 to her parents in the North. Being a retired officer of an elite unit, and a devoted supporter of the regime, her father initially refused to accept any money from the “daughter who had betrayed the country,’’ but he changed his mind. Nowadays, these transfers keep the family alive and even prosperous by North Korean standards.

I also assume that some of the people who cross the border have far more important tasks than delivering a few hundred dollars from a loyal daughter. The area is perhaps a hotbed of spying activities of all kinds. But those are other stories, not to be told in full in the next fifty years…

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