Archive for January, 2012

Lankov on the DPRK’s political calculations

Sunday, January 15th, 2012

Lankov writes in the Korea Times:

This year, President Lee Myung-bak’s New Year address paid much attention to North Korea issues. The South Korean President warned the North against fresh provocations but the general tone of his speech was conciliatory.

Lee said that now is the time to put aside past problems and start to rebuild relations anew. Tellingly, he did not repeat that Seoul expects Pyongyang to apologize for the two military incidents of 2010 ― the sinking of the Cheonan and the shelling of Yeongpyeong Island.

Are there chances that Pyongyang will react to this charm offensive and rush to resume talks with Seoul? Don’t hold your breath ― such chances are very remote. Pyongyang decision makers understand perfectly well that an immediate detente is not in their long-term interests.

Pyongyang’s foreign policy goals are surprisingly easy to describe: They are regime security and obtaining unconditional aid (the former is an absolute priority with the latter a rather distant but still significant second). In other words, North Korea’s foreign policy makers want to squeeze as much aid as possible from the outside world but only so long as this aid comes without too many conditions which might have impact on regime security.

Since 2008, the North Korean state has found itself in a rather unpleasant situation: U.S. aid stopped almost completely while the amount coming from South Korea has dramatically decreased. In this new situation, North Korea has been left with just one aid provider ― that is, China. This is not a situation that Pyongyang’s elite is happy about.

Since the 1960s, North Korean diplomats have worked hard to ensure that their country would always have at last two overseas sponsors. It was preferable if the two sponsors had uneasy, if not hostile, relations, so that their rivalry could be used to ensure that only limited concessions would be given in exchange for aid.

For the early 1960s until the late 1980s, China and the Soviet Union were the sponsors. From the early 1990s, the Chinese continued and the Soviet Union was replaced by South Korea and the United States.

In order to decrease their dangerously high dependence on China, North Korean diplomats now want South Korea to resume large-scale aid ― in other words, to re-implement a version of the “Sunshine Policy,” the North Korean-directed policy of Kim Dae-jung and Roh Moo-hyun when they were president in 1998-2007.

North Korean leaders are careful observers of the ever-changing South Korean political scene. They have to be, since milking the South has long since become their major source of revenue. They hope that the coming parliamentary and presidential elections will be won by the Korean nationalist left.

This is understandable, since left-leaning politicians in South Korea have always been more willing to provide the North with aid, without asking too many awkward questions. In recent years, it seems that the left has lost part of its earlier enthusiasm for such a policy, but one should still reasonably expect that a left-leaning (or as it would proudly style itself, “progressive”) administration will indeed be more receptive to Pyongyang’s demands.

So what should North Korea do to increase the chances of the South Korean left-leaning parties? Pretty much the only thing they can do is to “not” help the right, and this is exactly the reason why the recent conciliatory remarks by President Lee are likely to fall on deaf ears.

While the North Korea issue is marginal in South Korean politics, the left-leaning opposition can blame the Lee administration for its real (or alleged) mishandling of the North and the resulting instability on the Korean Peninsula (admittedly, this type of electoral rhetoric has a kernel of truth to it). Therefore, if the North agrees to play according to Lee’s rules, it will help the South Korean “conservatives” in presenting themselves as people who, at the end of the day, know how to maintain stability on the Korean Peninsula.

Of course North Korea would be rewarded if it were to talk right now. But from Pyongyang’s point of view it makes a great deal of sense to wait another year, in anticipation of the electoral success of the South Korean left. If the left is not successful in the end, then they can still easily make a deal with the next right-leaning administration. It is telling that in recent months the presidential contenders of the right have also indicated that they would be softer in their approach towards the North.

Therefore we should not expect a dramatic diplomatic breakthrough anytime soon. Fortunately though, we also do not have to be that afraid of fresh North Korean provocations. Consideration of South Korean electoral politics will probably mean that the North will try to avoid clashes with the South.

Read the full story here:
N. Korea’s political calculations
Korea Times
Andrei Lankov
2012-1-15

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Kim Jong-il’s funeral procession

Friday, January 13th, 2012

I thought I would post a few satellite images to correct the Yonahp account of Kim Jong-il’s funeral procession (it is a tad incorrect).

First, here is the map that Yonhap published:

Click the image above to see a larger version

Here is the actual funeral procession route which I mapped out on Google Earth while watching this two-hour documentary on the event (it is amazing what you will watch when jet lagged!):

Here is some clarification on specific parts of the route:

1. It started and ended at Kumsusan Memorial Palace.

2. The motorcade turned at Jonsung Square across the street from the Fatherland Liberation War Museum:

3. The procession passed by the Monument to the Party Founding:

4. The procession entered Kim Il-sung square from the North, circled it, then continued south for appx four more blocks before turning around and again passing Kim Il-sung square on its way to the Arch of Triumph:

Have a good weekend!

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DPRK emigration stats

Thursday, January 12th, 2012

According to the Daily NK:

The number of defectors entering South Korea increased 15% year-on-year between 2010 and 2011, reaching a total of 2,737 people last year [2011], according to recently published Ministry of Unification statistics.

The highest number of defectors entering the country was recorded in 2009, when 2,927 defectors made their way into South Korea, but there was a sharp drop-off in 2010.

The annual number of defectors first broke through the 1,000 person barrier in 2001, before exceeding 2,000 for the first time in 2006. The total number of defectors living in South Korea stood at 23,100 in December last year.

The percentage of women defectors passed through the 70% barrier for the first time in 2006, a trend which has perpetuated. At its peak, the percentage of women reached 78% in 2007 and 2008 before dropping back to 69% last year. 15,929 of those now residing in South Korea are female, compared to 7,171 males.

It is asserted that the reason why the percentage of women is so high is because women, the main breadwinners in North Korea society, often decide to go to China to earn money with the intention of returning, but many later make the decision to defect instead.

As of last June, the demographic breakdown of the approximately 23,000 defectors by age was 32% in their thirties, 27% in their twenties, 15% in their forties and 12% teenagers.

A large majority (70%) had only finished middle or high school, while 9% had been to vocational colleges and 8% had graduated from university.

Half of all defectors were unemployed before coming to South Korea, while 38% were laborers, 4% volunteers and 3% from the military. 29% now reside in Seoul, while other areas with substantial populations are neighboring Gyeonggi Province with 27% and nearby Incheon with 9%.

The Wall Street Journal also published the numbers.

Read the full story here:
Defector Numbers Back on the Rise
Daily NK
Kim Yong-hun
2012-1-12

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DPRK markets return to normal

Thursday, January 12th, 2012

According to the Daily NK:

The jangmadang, having been temporarily suspended while the country was in mourning for Kim Jong Il, returned to normal operations on or around January 6th, sources report.

A Shinuiji source told Daily NK yesterday, “The people’s lives were thrown into turmoil by the non-operation of markets during the mourning period. The people are coming out into the market saying ‘now we must keep trading even if they give us hell’.”

The final normalization of market operations follows a December 25th decision to allow some ad hoc grasshopper trading in areas outside the formal markets and on main thoroughfares. This was reportedly done to highlight the caring nature of new leader Kim Jong Eun.

However, the move did not make life much easier for ordinary people, since they were mobilized for daily mourning events, limiting their capacity to trade, while keeping a constant eye on when things might be about to change.

In addition, immediately after the mourning period the people were unable to go back to the markets because of criticism sessions related to the mourning period and Joint New Year’s Editorial study meetings.

The source said, “The authorities allowed the markets again, but even as of the beginning of last week things were not going smoothly as we didn’t know how to mark the prices or if the markets would be operating normally or whether we would get in trouble for selling used or foreign items.”

“The people who had been around after Kim Il Sung’s death were uncomfortable because of the mourning period self-criticism sessions and did not go to the market, instead buying things like rice and daily necessities through individual sellers they already knew. However the market is back to normal now, just as it was in the past.”

Recently, there have been rumors going around that on Kim Jong Il’s birthday (February 16th) there will be food distribution and this is driving down the price of rice, sources say. Currency exchange rates are also falling because the authorities are cracking down on people who trade in or exchange U.S. Dollars and Yuan.

On December 10th, 2011 the Yuan exchange rate was 800-1,000 North Korean Won, while rice was 4,500-5,000 North Korean Won/kg. Now the Yuan is trading for 600 Won and rice is hovering around 4,000 Won.

Read the full story here:
Jangmadang Back to Normal
Daily NK
Park Jun Hyeong and Lee Seok Young
2012-1-12

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Ruediger Frank on sources of legitimacy in the DPRK

Thursday, January 12th, 2012

Reudiger frank has written a couple of related articles on political legitimacy in the DPRK.  Here are links to both of them:

1. North Korea after Kim Jong Il: The Risks of Improvisation (38 North)

2. North Korea after Kim Jong Il: The Kim Jong Un era and its challenges (Japan Focus)

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North Korea enacted its first “corporate law”

Thursday, January 12th, 2012

Institute for Far Eastern Studies (IFES)
2012-1-12

The adoption of Act No. 1194 by the Supreme People’s Assembly of the DPRK was recently confirmed. “The Democratic People’s Republic of Korea’s Corporate Law” or the “Corporate Law” was reported to have passed more than a year ago in November 11, 2010.

The “Corporate Law” is evaluated as an important indication of the direction of the economic policy of North Korea since Kim Jong-un was appointed as the next successor at the Third Party Conference held on September 28, 2010.

The law consists of five chapters: 1) Basic Principles of the Corporation; 2) Organization of the Corporation; 3) Management Organization of the Corporation; 4) Business Management Activities of the Corporation; and 5) Projects of the Corporation.

The first article of this act “The Mission of the Corporate Law” states that the law was enacted to, “contribute to the development of the people’s economy and to secure the management system of the socialist corporations by establishing the system and order for the organization and management activities.”

The second article, “The Definition of Corporation” defines a corporation as an “economic unit that operates as an organization that directly handles the labor, facilities, equipment, materials, and finances for the production or volunteer activities.”

Article 9, “The Legal Rights and the Legal Protection Principles,” indicates that the “legal rights and interests of the corporations are protected by the government.” Article 10, however, specifically states that this particular law does not apply to the special trade zones and the foreign investment companies.

Article 18, “The Organization of the Corporation,” has a clause that states “the managing organization has the jurisdiction to close down corporations for unreasonable or lack of prospects that does not meet the standards and the demands of the national policy and reality.”

Article 21 depicts a manager as a “person representing the corporation and responsible for the entire business.” The manager, chief engineer, and assistant manager’s specific responsibilities were also explicated. The hierarchy was clearly indicated where the assistant manager was to report to the chief engineer and the manager while the chief engineer has to report to the manager.

Article 29 affirms that a business is to be managed based on established business and corporate strategies in which every year a draft of the people’s economy plan must be submitted to the appropriate authorities. The written economic plan must be followed on a daily, monthly, quarterly, and by index basis (Article 30).

Articles 31 to 37 include specifics on the improvements of production technology while Articles 38 to 43 include regulations to enhance the management system.

In particular, Article 42 stipulates that the corporation must promote sales based on supply plans and contracts. Those sales that do not follow the plan and the contract cannot be sold.”

Article 44 states, “The appropriate amount of labor is scientifically determined and managed based on the socialist distribution principles and a precise socialist wage system must be implemented.”

In other words, socialist principles will be applied to both the sales of merchandise and wage system. While the corporation will receive autonomy in many areas, clear regulations are provided for sales in addition to evaluation and incentive system for labor.

In recent years, North Korea has continuously passed economic laws for economic construction and enhancing the lives of the North Korean people. Such laws include the following: The Agricultural Law passed on November 3, 2009; Real Estate Management Law on November 11, 2009; the Country of Origin for Export Law on November 25, 2009; and Comprehensive Equipment Import Law on November 11, 2009.

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DPRK cell phone imports rise in 2010

Wednesday, January 11th, 2012

According to the Korea Herald:

North Korea imported six times more mobile phones in 2010 than in 2009, a media report said Wednesday, indicating growing mobile penetration in the reclusive country.

North Korea bought 430,000 mobile phones from China in 2010, up from 68,000 phones the previous year, according to Washington-based Radio Free Asia (RFA). In 2010, the country spent US$35 million on importing mobile phones, seven times more than the $5 million outlay in 2009, the report said, citing recent data from the United Nations.

The number of mobile phone users in the communist country has grown rapidly in recent years, from about 90,000 at the end of 2009 to 430,000 a year later and more than 800,000 in the third quarter of last year, the report added, referring to data from Egypt’s Orascom Telecom.

Read the full story here:
N. Korean imports of mobile phones jumped 6 times from 2009-2010: RFA
Korea Herald
2012-1-11

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Chinese tourists in the DPRK

Wednesday, January 11th, 2012

According to ABC’s “The Drum“:

The Dandong Jinhua International Travel Service is just one of a handful of small companies organising tours out of Dandong, Liaoning Province, in the north-east of China.

Dandong, a city of almost 800,000 sits on the Chinese side of the historic Yalu River bridge – which was bombed by the United States at the start of the Korean War. By night, tourists stand on the foreshore taking snaps of the renovated brightly lit bridge that connects the two countries – and the total blackout that exists on the other side.

Staff at the travel company say usually they operate tours of about 60 people per day, or 30,000 per year. But during the Chinese National Holidays, which run for 10 days in October, almost 600 tourists returned in one day alone. The mass number of China travellers highlights how North Korea – known in the West as a reclusive nuclear-armed communist country – is still an attractive tourist destination for their neighbouring comrades.

Once in the reclusive country, there are heavy restrictions on what travellers can see and do.

Photos are limited to official tourist sites and the North Korean guides constantly put the hard word on anyone caught sneaking snaps out the bus or train windows. One the way out of North Korea at Sinuiju city, one Chinese tourist had ‘unsuitable’ photos deleted by the guards.

Tourists are also prohibited from straying too far from the group. On top of that the itinerary is tightly managed, meaning tourists only get to see a glimpse of what Pyongyang and a few other national hotspots have on offer.

Tours have also been met with some unexpected hiccups.

“On one winter trip the train had to stay overnight at the Sinuiju stop, with all the passengers on board. Everyone was so unhappy the North Korean guides gave them a Kim Il Sung pin”, says one tour organiser, adding that the national pins worn by all North Koreans are almost impossible for tourists to purchase.

Now trips are closed from November to January because there’s not enough electricity to run the trains.

Other travel groups also operate out of Dandong offering even more favourable prices than the Dandong Jinhua International Travel Service. Their four-day tour is 2,400 yuan ($370) and an additional 800 yuan to see the Mass Games – an enormous synchronised performing arts act, staged every summer in Pyongyang. It’s 4,800 yuan ($739) for foreigners, excluding Americans.

Read the full story here:
A North Korean holiday
ABC “The Drum”
Kitty Hamilton
2012-1-11

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Kim Jong-un’s succession secured with key job placements

Wednesday, January 11th, 2012

According to the Daily NK:

Since Kim Jong Eun arrived in public life, North Korea has been handing out preferential promotions to the children of high cadres in the Party and military to secure the loyalty of the elite to Kim Jong Eun by creating a shared sense of destiny.

According to a well-informed source in Seoul, the children of former senior cadres continue to emerge into top leadership positions while the children of current cadres arrive at the core of Party affairs.

Many of the most recently appointed Party secretaries and departmental vice directors are the sons and son-in-laws of former or current high officials.

For example, International Secretary Kim Young Il and Tae Jong Su, the General Affairs Secretary in the Department of Administration, are sons-in-law to former State Inspection Committee Chairman Jeon Moon Seob and former Deputy Prime Minister Jeong Il Ryong respectively. Also, Oh Il Jung, who was made Vice Director of the Chosun Workers’ Party at just 50 or so years of age, is the son of former Ministry of the People’s Armed Forces Vice Director Oh Jin Woo.

Elsewhere, Choi Yong Hae, the son of former Vice Director of the Ministry of the People’s Armed Forces Choi Hyun, as well as being a Party secretary has also been made a military general and elevated to the Party Central Military Commission.

In the cabinet, Baek Yong Chun, who presides over Chosun Central Bank, is the son of former Foreign Minister Baek Nam Sun, and Trade Minister Lee Yong Nam is the nephew of People’s Safety Agency Vice Director Lee Myung Soo. Both have advanced to the Party Central Committee under the watchful eye of Kim Jong Eun. The brother of Kim Ok, Kim Jong Il’s fourth and final partner, has also been elevated on the younger Kim’s watch.

There are many more examples, the source said, going on, “The reason behind these high-speed promotions is that their parents or father-in-laws are in high positions,” before noting one more good example, “Lee Yong Ho’s father Lee Myung Jae was a close confidante of Kim Jong Il, having served as Vice Director of the Party’s Propaganda and Agitation and Guidance Departments, and in Kim’s secretarial office.”

◆ Current high speed promotions for relatives a dangerous game

However, while the close relationship between family history and promotion will serve these young leaders well, it could turn into a double-edged sword.

The source pointed out, “The special treatment these children get is not because their performance or skills are better than anyone else but because their high official parents have or had special relationships with Kim Il Sung and Kim Jong Il. In recent years, this tendency to ‘pass down’ has expanded due to Kim Jong Eun’s succession using it as a way to ensure loyalty by tying them together as a ‘group sharing a common destiny’.”

However, he commented, “Forming these special privilege groups will increase the complaints from the people and of course from other officials, and in the end weaken the cohesiveness of the entire system.”

The Korea Times also reports some similar information:

North Korea has handed out decent jobs to children of former and current North Korean elite in what could be an attempt to help ensure the dynastic power succession goes smoothly, a source familiar with the isolated country said Tuesday.

Jang Yong-chol, a nephew of Jang Song-thaek, became North Korea’s ambassador to Malaysia in 2010 before fully serving out his term as Pyongyang’s top envoy to Nepal, the source said.

Jang Song-thaek, a four-star general and brother-in-law of late leader Kim Jong-il, has long been considered a key official in helping Kim’s son, Kim Jong-un, consolidate power.

Kim Jong-un has recently become the supreme commander of the country’s 1.1 million-strong military as part of his moves to strengthen his power base following his father’s sudden death last month.

Top North Korean officials repeatedly swore their loyalty to the young leader, calling him “the brilliant commander” and “another peerless patriot.”

Children of Workers’ Party secretary Kim Yong-il and Vice Premier Kang Sok-ju, a veteran negotiator and key foreign policy advisor to the late leader, have been dispatched to North Korea’s overseas diplomatic missions, the source said.

Meanwhile, Ri Son-il, son of Ri Yong-ho, chief of the General Staff of the Korean People’s Army, and Cha Dong-sup, son-in-law of the People’s Armed Forces Minister Kim Yong-chun, are engaged in works to either earn foreign currency or attract foreign investment, the source said.

The nepotism appears to be the North’s attempt to secure the loyalty of the elite to make sure the third-generation power transition goes smoothly, the source said.

The late leader also assumed power in 1994 when his father, the North’s founding leader Kim Il-sung, died of heart failure at the age of 82. (Yonhap)

Read the full stories here:
Nepotism Running Riot in Kim’s NK
Daily NK
Kim Yong-hun
2012-1-11

Children of NK officials receive job favors
Korea Times 
2012-1-11

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RoK sets aside 2012 DPRK emergency assistance funds

Wednesday, January 11th, 2012

According to Yonhap:

South Korea has set aside more than 540 billion won (US$465 million) for humanitarian aid for North Korea this year, the Unification Ministry said Wednesday.

Most of the budget is earmarked for the South Korean government’s possible rice and fertilizer aid to its impoverished northern neighbor. It is also designed to provide aid to the North in case of natural disasters, according to the ministry, which handled inter-Korean affairs.

Read the full story here:
S. Korea sets aside more than 540 bln won for humanitarian aid for N. Korea
Yonhap
2012-1-11

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