Archive for September, 2007

Inter-Korean trade jumps 36.1 percent in January-August period

Thursday, September 6th, 2007

Yonhap
Sohn Suk-joo
9/6/2007

Inter-Korean trade surged 36.1 percent in the first eight months of this year, compared with the same period of a year earlier, the Unification Ministry said Thursday.

The two-way trade volume increased to US$1.05 billion in the January-August period, up from $775.52 million in 2006, thanks to brisk trade of fishery items and light industry products made at a joint industrial complex in the North Korean border city of Kaesong.

The industrial complex is the crowning achievement of a landmark summit between the leaders of the two Koreas in 2000. South Korean businesses use cheap North Korean labor to produce goods in Kaesong where some 26 South Korean factories employ about 15,000 North Korean workers.

“Inter-Korean commercial trade increased 37.1 percent to $809.71 million, while non-commercial trade rose 32.8 percent to $245.41 million during the same time span,” the ministry said in a statement.

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Middle East mogul visits Pyongyang

Thursday, September 6th, 2007

Korea Herald
Jin Dae-woong
9/6/2007

Mohamed Ali Alabbar, chairman of the biggest real estate company in the Middle East, visited North Korea yesterday, stirring speculation about his interest in a possible development project in the isolated country.

The Unification Ministry said the chairman of the United Arab Emirates’ state-run Emaar Properties PJSC flew to Pyongyang on his way to the Chinese coastal city of Dalian to attend a global business forum.

During the one-day stop-over, Alabbar visited a world peace center at the Pyeongchon district of Pyongyang, the ministry said. Sources said the visit also included a tour of hotels in the city.

Ahead of his trip to Pyongyang, Alabbar stopped in Seoul to receive an honorary doctoral degree in law from Sun Moon University affiliated with the Family Federation for World Peace and Unification. He flew to North Korea over the West Sea.

Alabbar is well known for his key role in transforming Dubai into a world-famous tourist city. He is a senior aide to Dubai’s Ruler Sheikh Mohammed bin Rashid al-Maktoum and leads the Dubai-based Emaar Properties, the Middle East’s biggest developer by market value.

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In Manpo, New Motorcycles Appear

Wednesday, September 5th, 2007

Daily NK
Kwon Jeong Hyun
9/5/2007

At the landslide restoration of Manpo railroads, only by shovels and hoes

The operations of the Hyesan-Manpo Line connecting the border city of Manpo in Jagang, and Hyesan in Yangkang, has ceased due to a landslide accident occurring at the end of July.

The Hyesan-Manpo Line is the line passing through Jaseong, Jagangdo and connecting to Haesan City through Yangkang’s cities, Kim Hyung Jik and Kim Jong Suk.

On the 30th of August, a landslide accident took place being approximately 1.2 km from the Manpo Marine Transportation Office for the Yalu River upper stream direction. Around 20m of rail was covered by the slide.

To clean up the landslide, railroad laborers were urgently enlisted, but the equipment for restorations consisted only of shovels, hoes, and fertilizer bags, so the fixed date of recovery has continuously been delayed.

Manpo faces Jian in Jilin, China. It is a point of strategic importance for rail transportation. Besides the Hyesan-Manpo Line, which is the branch line for the Yalu River, it is the terminal station of the Manpo Line starting from Sooncheon, South Pyongan and an international train operating once a day to Jian, China is also connected to the city.

North Korea and China alternately operate every other year the international line train connected to Jian, China. Starting this year until next year, North Korean trains will be coming and going from China for two years and from 2009, a Chinese rail will frequent Manpo.

One source related to Jian Station explained, “Through the international rail between Manpo and Jian, North Korea’s timber and medicinal herbs entered China and motorcycles, bicycles, and electric home appliances have gone into North Korea.

Additionally, I have captured on camera images of North Korean civilians at the Yalu River. Initially from the outside, I could confirm that the civilians’ health conditions. attires, and accessories have improved much compared to the past. Chinese-made motorcycles could easily be spotted and the number of cars has increased significantly as well.

A Chosun taxi driver whom I met in Jian explains the defector repatriation situation in the graphic epithet, “Collarbone Steel Lines.”

He said that at the time when two defector women were forcibly captured at the public security office in Jian in 2001, the North Korean public security personnel pierced steel through the collarbones of the women and dragged them. Should I believe such a word-of-mouth tale? It is a similar rumor to the story of defectors, forcibly repatriated through the Hoiryeong tax office in 2000, who were taken by steel lines hooked through the nose.

Due to the continuous inspection of the Jian Police and the neglect of Korean-Chinese society, it is not easy to find defectors in Jian nowadays.

Jian is developing as a tourist spot through which South Korean tourists starting from Dalian and Dandong inevitably pass on their way to Baekdu Mountain.

If one turns his or her head while standing in the front of the monument of Gwanggaeto the Great, North Korea’s propaganda slogan, “Let us thoroughly observe the teachings of the Great General and comrade Kim Il Sung” is discovered.

I am curious what kinds of thoughts will form in South Koreans, who seek Jian in order to find the vestiges of past history, regarding the current progress of North Korea’s history and the approaching reunification.

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Charity flight to North

Wednesday, September 5th, 2007

Korea Herald
9/5/2007

A Boeing 747 carrying 75 tons of emergency relief goods worth $8 million arrived in Pyongyang last week by a direct flight from the United States, while denuclearization talks between the two countries were making progress in Geneva.

Officials here say it was the first time that a full planeload of U.S. emergency relief materials were delivered to North Korea since Pyongyang began accepting private U.S. donations in the mid-1990s after severe floods hit the country. The airlift, provided by Samaritan’s Purse, a North Carolina-based Christian charity organization, consisted of medicine, medical supplies, antibiotics, temporary shelter materials and other items needed for the relief of flood victims.

U.S. transport authorities gave their permission for what was known as “the first direct flight from continental U.S. to North Korea since the Korean War.” Airlifted supplies included goods purchased with a $50,000 grant from the U.S. government, according to a press release from Samaritan’s Purse, currently represented by Franklin Graham, son of the late evangelist Billy Graham. A dispatch from the (North) Korean Central News Agency said Pyongyang’s Foreign Minister Pak Ui-chun met the American visitors who delivered the relief materials.

The American charity group’s swift, large-scale delivery of emergency aid was a noteworthy gesture of friendship, shown in response to the disastrous floods last month. After years of extreme antagonism over the North’s nuclear armament, such a people-to-people exchange of goodwill is inspiring.

The Graham family has special relations with North Korea: Billy Graham’s wife, Ruth Bell, attended Pyongyang Foreign School in the 1930s, Billy Graham visited North Korea twice in the 1990s and other family members traveled to the country in recent years. At a time when diplomatic relations are being explored between the two countries, such personal ties can prove valuable in promoting mutual understanding. Many hope “swords into ploughshares” will not remain a biblical prophecy.

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N. Korea-Related Stocks Extend Gains

Tuesday, September 4th, 2007

Korea Times (h/t Tim Beal)
Lee Hyo-sik
9/4/2007

Shares of companies engaging in an array of inter-Korean economic cooperation projects have shot up this week, following the news on Sunday that North Korea agreed to dismantle its nuclear weapons development program by the end of the year.

Most firms, which will take part in sending electricity to the Stalinist country in return for the dismantlement of its nuclear reactors, saw their stocks rise to their daily limit up over the past two trading sessions.

Also, shares of those companies operating in the Gaesong Industrial Complex have rallied on expectations that easing of geo-political tensions associated with North Korea will further boost economic cooperation between the two Koreas.

But analysts cautioned that investors should refrain from purchasing inter-Korean project related stocks at the moment as share prices will likely fall once the North Korean hype subsides.

After two days of negotiations with his Pyongyang counterpart Kim Kye-gwan in Geneva, U.S. Assistant Secretary of State Christopher Hill told reporters Sunday that North Korea had agreed to declare its nuclear stockpile and disable its atomic weapons programs by the end of this year.

Also, North Korea’s Foreign Ministry said Monday that the U.S. had decided to remove Pyongyang from its list of states sponsoring terrorism.

Shares of Ewha Technologies Information, a power equipment maker, hit its daily limit up on Monday, rising nearly 15 percent to 1,965 won from last Friday’s close of 1,710 won. Ewha shares rose 1.78 percent to close at 2,000 won in Tuesday’s trading session.

Romanson, a wrist watch manufacturer, which operates plants in the Gaesong Industrial Complex, saw its share price increase 14.9 percent to 3,400 won on Monday from 2,960 won last Friday.

“North Korea related stocks went up sharply early last month after the announcement of the second inter-Korean summit. And now, the latest development surrounding the reclusive state is providing a further boost to those shares,” said Lee sun-yup, an analyst at Goodmorning Shinhan Securities.

He said a large number of investors are snatching up shares of companies involved in North Korean economic projects when the local stock market has lost its directions amid volatile investor sentiment in the wake of U.S. subprime loan default risks.

He said investors should be picky, as it will take time before these companies’ profits will benefit from the easing of tension between the North and South.

“It’s risky to jump on the bandwagon at the moment as such shares will likely come down soon as in the past when the North Korean hype dies down and the market regains solid upward momentum,” Kim said.

He advised investors to choose North Korea related shares based on their corporate earnings and long-term prospects.

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Drain of Antiques from Chosun Central Historical Museum

Tuesday, September 4th, 2007

Daily NK
Kim Min Se
9/4/2007

Recently, a report was issued that Pyongyang’s Chosun Central Historical Museum made a request to a Japanese broadcaster to buy a rare cultural artifact, a bamboo chest with an engraved drawing for $700,000, causing a shock to the domestic historical world.

On June 10th, Japan’s TBS broadcasted a program called, “Special Report – Why was it sold? North Korea’s Historical Treasure,” but its contents were divulged belatedly, so was reported domestically only recently.

The program contained in detail TBS’ freelancer cameraman Gatanoda’s visit to North Korea and his direct exchange of cultural assets with a person who asserted himself as the “Chosun Central Historical Museum’s Vice-Curator.”

The North Korean government’s officials’ chronic corruption and drain of nationally propagated cultural assets due to careless maintenance of the state is well-known. However, the spread of news of the Central Historical Museum’s Vice-Curator directly stepping forward like this time and attempting sales with a foreigner is at its first.

Due to this event, the shock received by South Korean experts on history has been huge. When this event was reported on the 31st of September, domestic cultural experts said, “If they are going to insist on selling to foreigners, they should make a long-term loan to our National Central Museum and receive rental fees instead.”

“There is the possibility of selling fakes.”

However, criticisms on whether such occurrences are actually possible are not negligible. In particular, most of the “bridgeheads” for the outflow of North Korean cultural assets, businessmen in Dandong, China cannot be trusted. In Dandong, 100~150 curio dealers have formed large-sized businesses and are selling North Korean cultural assets to South Korean dealers.

In Dandong, Chae Jung In (pseudonym), who has been selling North Korean cultural assets for 10 years, in a recent phone conversation with DailyNK, retorted, “Think about this how they dare sell the national assets from the Museum?”

He said, “If North Korea is in a dire situation as in the late 90s, I can understand, but there is no way that it is secretly dealing cultural assets with foreigners. Those who know the North Korean situation well will never believe that, considering people can be put to death for secret sales if the treasures are rare.”

He carefully proposed the possibility that the bamboo chest reported this time is a fake, “In the late 90s, I did hear that there were cases of the North Korean museum out flowing fake cultural assets.”

Also, another curio dealer, Lee Myung Hee, said, “A year ago, the North Korean museum, introduced a Japanese person after receiving the request to sell a saber used by the Japanese Lord of the Heaven, but it was revealed as a fake, so they lost face.”

Mr. Lee hinted the possibility of “frauds,” saying, “The tendency of the North Korean people, when conducting such business, is not to directly deal with South Korean or Japanese people.” The reason for this is that, “They can be mistaken for South Korean spies and can be executed.”

Ms. Lee is a veteran who has been selling North Korean cultural assets since the beginning of the 90s. At one time, she entered Kaesung with Chinese identity in order to acquire highly-treasured antiques, but was arrested under the charge of espionage, stayed in a North Korean prison for a year, and came out as a “living witness of North Korean cultural asset drainage.”

One treasure that the North Korean Central Historical Museum surreptitiously tried to sell is a 3rd-century bamboo chest unearthed in Pyongyang by the North Korean Historical Remains Research Committee in 1931 and Japan’s TBS reported at the time that it was a valuable relic deemed as a “top-class world asset.”

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South Korean Products Popular

Tuesday, September 4th, 2007

Daily NK
Han Young Jin
9/4/2007

Distribution with “Korea” Trademark…”Rice Cookers Popular”

In the North Korean jangmadang (market), South Korean products are drawing huge popularity among citizens and are publicly being sold, relayed an internal source on the 30th.

The source said, “In the Pyongyang, Shinuiju, Hamheung, Chungjin, and other large-scale jangmadangs, South Korean products with the “Made in Korea” label is fairly popular among wealthy people.”

In the past, South Korean products were secretly sold in the North Korean market. When selling South Korean products, we sold them after removing the product label, “Made in Korea.” However, recently, only products with the label are recognized as South Korean products of good quality and sold at a high price.

The source added, “‘Made in Korea’ lends credibility to the people. Without this, people do not believe that the product is a Korean-made good. The label has to be there because Chinese products are disguised as South Korean goods.”

The South Korean product which is most sold in North Korea is the electric rice-cooker (Cuckoo), instantaneous water heaters, cosmetics, aromatics, computers, toothpaste, medical goods and a variety of sweets. Also, North Korean citizens have a lot of confidence in South Korean medicine. South Korean-made medicine or sweets are not discarded even after the expiration date.

He said, “Because Chinese-made products are no good, people who have money usually used Japanese products. In the place where Japanese products became rare, Korean-made products are now occupying that place.”

In Dandong, China, Kim Chi Duk (pseudonym), who is engaging in North Korea-Chinese trade met with the reporter and retorted, “Currently in Chosun (North Korea), Japanese-made products are still counted as number 1. Then there are South Korean-made products, then Chinese-made products. Poor people, even when the quality is lower, use Chinese-made products and those with money use South Korean products or Japanese-made products. What is the issue if one is buying with his or her money?”

He said, “Those with some amount of money use at least one or two South Korean products.”

The source relayed, “Currently in the Shinuiju market, South Korean toothpaste is 5,000 won (USD1.85), 1 set of aromatics (machinery and 2 bottles of gas) is 30,000 won (USD11.1), and one pack of Time cigarettes (tax-exempt) 3,000 won.” However, “Time,” a kind of South Korean cigarettes are counterfeit goods made in China, so is offered at a cheaper price than their domestic price.

Mr. Kim said, “Those who trade in North Korea request for South Korean-made goods, but I do not know whether they plan to export them or to use them. The authorities do not allow American-made goods, but is there anyone who doesn’t like the dollar? If it is not a big issue, they use everything.”

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N. Korea Agrees to Nuclear Deadline

Monday, September 3rd, 2007

Washington Post
John Ward Anderson
9/3/2007; Page A10

Deal Would Disable Programs, U.S. Says

North Korea agreed to disclose all of its nuclear activities and disable its nuclear programs by the end of the year, a senior U.S. official said Sunday after negotiations this weekend in Geneva.

Assistant Secretary of State Christopher R. Hill said details of North Korea’s agreement would be worked out later this month in meetings sponsored by China and involving Russia, Japan and South Korea, in addition to the United States and North Korea.

“One thing that we agreed on is that the DPRK will provide a full declaration of all their nuclear programs and will disable their nuclear programs by the end of this year, 2007,” Hill said, using the initials for North Korea’s formal name, the Democratic People’s Republic of Korea. Hill said it was the first time North Korea had agreed to a timeline to end its nuclear programs.

In separate remarks, the head of the North Korean delegation, Kim Gye Gwan, said his country had agreed to declare and dismantle its nuclear facilities, but he did not mention a deadline.

“We made it clear, we showed clear willingness to declare and dismantle all nuclear facilities,” Kim said, the Associated Press reported. “We are happy with the way the peace talks went.”

Hill, who described the talks as “very good and very substantive,” said the agreement included disclosing and dismantling any uranium enrichment programs, which the United States fears could be used to make nuclear weapons but North Korea previously had not acknowledged having.

The discussions this weekend also focused on North Korean demands to normalize relations with the United States, Hill said. In particular, North Korea wants to be removed from the U.S. list of states that sponsor terrorism, a listing that imposes a ban on arms-related sales to the country and restricts economic aid.

Closer ties with the United States will be built “step by step, with the understanding that we’re not going to have a normalized relationship until we have a denuclearized North Korea,” Hill said Sunday before the talks ended. “To the extent that we can move quickly to denuclearization, we can move quickly to normalization.”

Japan also has refused to forge warmer relations with North Korea until it provides an accounting of what happened to Japanese citizens who were kidnapped by North Korean security services in the 1970s and ’80s.

Negotiations over North Korea’s nuclear programs and normalizing relations with the xenophobic, communist country have been fitful for years.

Last October, while talks were stalled, North Korea announced it had conducted its first underground nuclear test. In February, the United States and North Korea agreed to a sweeping deal to restore diplomatic and economic relations and end the country’s nuclear programs. In July, North Korea closed its main plutonium reactor at Yongbyon after receiving 50,000 tons of heavy fuel oil from South Korea — the first installment of 1 million tons pledged as part of the February agreement.

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Increase in Homeless Families, Escalating Costs in Rice

Sunday, September 2nd, 2007

Daily NK
Yang Jung A
9/2/2007

HRW “irregularities and corruption provoked by governmental officials”

Recently, there has been an increase in kotjebi (homeless) families squandering around the vicinities of jangmadang (markets).

After interviewing 12 North Korean merchants who frequently travel in and out of North Korea as well as defectors, Kay Seok, a North Korea researcher for Human Rights Watch (HRW) revealed in an interview with Radio Free Asia on 29th, “Currently, the cost of food in North Korea is continuing to rise” and commented, “People are selling their homes to obtain food and as a result there has been an increase in kotjebi families.”

Seok said, “According to defectors, the number of street dwellers has increased as of the end of last year and beginning of this year” and explained, “If you compare these times, you can see more people do loitering around the city markets after the spring hardship. However, there are many people who have become kotjebi after selling their homes to buy food.”

Comparing the times of the hunger period in the 90s she said, “At the time, there were many kotjebi children having become orphans after their parents had died and hence, homelessness was directed at children” and asserted, “However, today there is an increase of homeless families who beg around jangmadang or steal goods during the day and then sleep in the same areas at night. These trends indicate that a large number of people are once again experiencing hardship as a result of hunger.”

She revealed, “As of early this year, the cost of food has steadily increased. According to various locations, costs have increased significantly in some areas” and “At present, 1kg of rice costs 1,000~1,200won at jangmadang. About this time last year, rice sold for 700~800won.”

Likewise, in August the DailyNK made reports indicating that the cost of rice had escalated to 1,200~1,300won (USD3.8~4.1) along the border regions and even 1,500won inner land.

Ms. Seok added, “The cost of rice is affected by various factors such as the distance in delivery and farms. Also, the closer you get to the border, the more rice is available from China.”

Regarding the cause in escalating rice costs she said, “Overall, agriculture and production decreased due to the flood last year. The fact that South Korea suspended its rice assistance following North Korea’s nuclear experiment also would have had a significant impact” and “Even this year, floods occurred in the agricultural regions and as a result, it is unlikely that prices will fall despite the harvest period in September and Oct.”

As for the reasons causing North Korea’s incessant food crisis Ms. Seok said, “Causes are the discrepancies in the North Korean government’s policies as well as irregularities and corruption by governmental officials.”

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If Have a Gift for Kim Jong Il, Safe Passage through the North Korean Customs

Saturday, September 1st, 2007

Daily NK
Kim Min Se
9/1/2007

The news of one Chinese trader resolving all issues with the “certification of gifts,” while passing through a high-level North Korean customs’ confiscation of goods and demand of open bribes, has received recent spotlight.

In the latter half of the 90s, a businessman who has been exporting and importing North Korean cultural and daily necessities while coming and going from North Korea met a reporter on the 30th in Dandong and relayed this anecdote, “I have returned to China after having received “honored” treatment from all customs officials under the Shinuiju customs director. That is the first time I received such treatment in the 10 years I have been conducting the trade business.”

The story of the businessman has also apparently become noteworthy news in the Dandong customs office in China.

The businessman is supposed to have earned huge gains by handling North Korean porcelain since the latter half of the 90s. Thus, for long-term gains, he supported the arts and culture projects for the idolization of the Kim father and son in North Korea under his company’s name.

Subsequently, a North Korean writers’ company recently invited him and showed him several sights in North Korea and relayed a gift (edibles) under Kim Jong Il’s name afterwards.

The businessman, after eating the goods he received as gifts in the hotel he was staying in at the time, left with the “certification of gift” in his bag as his souvenir.

He said, “At the time, in Chosun (North Korea), I acquired quite a bit of North Korean silk for gift-giving to close acquaintances, such porcelain and paintings of famous artists. However, the cargo was heavier than expected, almost one carload (2.5 tons trucks). From Pyongyang to Shinuiju, I arrived without much mishap because transportation was provided, but passing through customs was not an easy feat.”

“The North Korean customs unpackaged all goods, so they started going through my stuff as soon as I arrived. Also, they started going through the bag I was carrying and the eyes of the inspector became fixed as the goods were taken out one by one. He had seen the “gift certification” inside a red case.”

Further, he added, “The customs officer verified the name of the certification and my passport and quickly went into an office with the ‘certification.’ Shortly after, the customs director came out and ushered me into a reception area and asked about the context for my receipt of the gift.”

At the time, the customs director had said, “You are a distinguished person who has done a huge work for our country. We did not recognize that. Please let us know if there is anything you are uncomfortable with. Whatever it is, we will help you.”

Then, he is supposed to have ordered the lower level officers, “Using the customs car, make sure that this person’s luggage arrives safely in China without any damage.”

He said that a single piece of Kim Jong Il’s “gift certification” carrying so much weight was beyond the expectations of not only himself but the Chinese customs personnel.

Another related source of the Dandong customs office said, “We were surprised that a single piece of the “gift certification” could wield such power. This event became a famous anecdote within the Dandong customs office.”

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