Archive for August, 2012

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Kaesong “wages” rise by 5% (2012)

Monday, August 6th, 2012

According to the Daily NK:

An agreement has been reached that sees the minimum monthly wage for North Korean workers in the Kaesong Industrial Complex rise by 5% to a little over $67.

According to information released by the Ministry of Unification today, the wage increase was negotiated by the Kaesong Industrial Complex Management Committee and the North Korean ‘Central Special Economic Zone Development Bureau’.

In accordance with the agreement, which will remain in force until the end of July next year, the wages of workers will rise from $63.80 to $67.05 per month.

Kaesong Industrial Complex regulations stipulate that wages may not rise by more than 5% per annum, and since 2007 they have risen by exactly that amount year-on-year.

At the end of May this year, there were 123 South Korean companies operating in the zone, employing a total of 51,452 North Korean staff.

According to the Ministry of Unification, when all payments and bonuses are taken into account, the average wage per North Korean worker in the complex was $110 per month in 2011, a figure that has risen to $130 in the first half of this year.

There has long been controversy over the fact that the North Korean authorities take a percentage of the wages of Kaesong Industrial Complex workers in taxes. However, even taking this into account, such workers are known to be better off than the vast majority of average North Koreans.

The only edit I would make to this story is to change the phrase “percentage of the wages of Kaesong Industrial Complex workers in taxes” in the above paragraph to “nearly all of the workers’  monetary income in taxes”.

See Yonhap coverage here.

Read the full story here:
Kaesong Monthly Wages Rise by 5%
Daily NK
Park Seong Guk
2012-8-6

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Posted in Economic reform, Foreign direct investment, Kaesong Industrial Complex (KIC), Labor conditions/wages, Special Economic Zones (Established before 2013) | Comments Closed

DPRK: WFP Sends Food To Flood-Hit Regions

Sunday, August 5th, 2012

Pictured above: UN World Food Program map of affected areas.

According to the World Food Program web page:

WFP is sending a first batch of emergency food aid to flood-hit areas in the south of Democratic People’s Republic of Korea (DPRK) where torrential rains have left 88 people dead and over 60,000 people homeless.

The emergency food assistance will provide the flood victims with an initial ration of 400g of maize per day for 14 days.

Storms and heavy rain across the country between 18 and 29 July have caused widespread flooding, and in some places severe damage to homes, infrastructure and farmland. The most affected counties are Anju City and Songchon in South Pyongan Province, and Chonnae in Kangwon province.

A UN mission recently which recently travelled to flood-affected regions found considerable damage to maize, soybean and rice-fields damage (Read report). WFP continues to monitor the situation.

A comprehensive assessment of the food situation and of prospects for food production is scheduled for September.

The New York Times also reported on this story.

UPDATE 1 (2012-8-6): Vietnam is donating food to the DPRK.

UPDATE 2 (2012-8-7): The Red Cross is distributing aid in the DPRK.

UPDATE 3 (2012-8-8): The UN has created a portal through which all of the UN agencies are posting information. See it here. See here information on “Who is doing what”.

UPDATE 4 (2012-8-10): China donates US$1 in assistance to the DPRK.

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Posted in 2012 food shortage, Agriculture statistics, Food, Foreign aid statistics, Statistics, UN World Food Program | Comments Closed

Friday Fun: Juche Strong

Friday, August 3rd, 2012

Juche Strong tells the story of the 2010 North Korean World Cup team. That summer was the country’s first Cup campaign in over forty years. And last time North Korea participated they beat perennial powerhouse Italy, in what is generally considered one of the greatest upsets in soccer history. Juche Strong lays out the many twists and turns of the 2010 outing, including a historic 7-0 throttling at the hands of Portugal, at least parts of which were broadcast live in North Korea. The film interlaces that story with a broader analysis of the DPRK’s propaganda apparatus — and posits that it’s much more powerful and well-designed than the average observer gives it credit for. The narrative crafted by the regime — of a morally pure Korean people struggling mightily against imperialist powers — effectively taps into deeply rooted Korean cultural norms and human psychological instincts.

The director, Rob Montz, visited and shot footage in North Korea this summer. The film also includes interviews with many North Korea scholars, including Bruce Cummings, David Kang, Stephan Haggard, Marcus Noland, and Suk-Young Kim, as well as a North Korea refugee now living in the States.

The film’s trailer is here and the official web page is here.

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Kaesong Industrial Complex: Accumulative production output exceeds US$ 1.7 b

Friday, August 3rd, 2012

Institute for Far Eastern Studies (IFES)
2012-8-2

Kaesong Industrial Complex (KIC) has recorded 1.7 billion USD in accumulative production output as of May this year. The first phase construction of KIC consisting of some 3.3 square meters was completed in July 2006.

According to a report submitted to the National Assembly on July 25, the Ministry of Unification (MOU) specified that, out of the 123 companies in KIC, there were 51,452 North Korean employees (as of May 2012) and the accumulative export reached 1.21 billion USD out of the accumulative production output.

Despite the severed inter-Korean ties from the May 24 sanctions of 2010, the KIC continued to operate while most economic cooperation, social and cultural exchanges and humanitarian aid were halted.

The report also included MOU’s pledge to continue to support for stable development of KIC consisting of building fire stations and emergency medical facility and road repairs, among other measures.

Currently, there are water purification and supply plant (30,000 ton/day), waste water treatment plant (15,000 ton/day), waste landfill (60,000 ㎥), and waste incineration plants (12,000 ton/day) in operation and health and safety facilities such as police and fire stations, Green Doctors Hospitals are in the vicinity. Power is provided by South Korea with 100,000 kilowatts capacity power supply system.

In addition, MOU announced that it will continue to coordinate with North Korea to improve transportation, communication and customs system at the next meeting, and engage in negotiation to solve other issues including improvement of personal safety and labor shortages.

MOU also claimed it is making efforts to obtain the “Made in (South) Korea” labels for the products made in KIC for FTAs (Free Trade Agreement) with the EU, United States, and China. MOU officials are also a part of the South Korean FTA negotiation team.

Currently, the top agenda for the KIC is housing for North Korean employees. Unification Minister Ryu Woo-ik stated, “While I understand the positions of both North and the South, in which South Korean companies are in need of more labor and North Korea wants for more employment opportunities, dormitory construction for employees is a large-scale project similar to building a new town. Therefore, it must be coordinated carefully with North Korea to find the best solution.”

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Posted in Kaesong Industrial Complex (KIC), Manufacturing, RoK Ministry of Unification, Special Economic Zones (Established before 2013) | Comments Closed

DPRK arrivals in the ROK down in 2012

Friday, August 3rd, 2012

UPDATE (2012-8-3): Although just a month has passed since we received information on the number of North Koreans entering the ROK. According to the Choson Ilbo:

The number of North Korean defectors arriving in South Korea in the first half of this year dropped to half that of the same period last year. According to the Unification Ministry on Thursday, 751 defectors arrived from January to June, down 45.4 percent from 1,375 on-year.

The number of defectors arriving here mostly rose every year since 2001, when it first exceeded 1,000. The figure only dropped in 2005, by 27 percent, and in 2010, by 19 percent. But this is the first time that the number has fallen so drastically

ORIGINAL POST (2012-7-1): According to a report in Yonhap:

The number of North Korean defectors to South Korea tumbled 43 percent in the first five months of 2012 from a year earlier due to increased security along the North Korea-China border, the Seoul government said Sunday.

A total of 610 North Korean defectors arrived in South Korea in the January-May period, down 42.6 percent from the same period last year, according to data from the Unification Ministry, which handles inter-Korean affairs.

The number of arrivals in the January-May period last year reached 1,062, with the full-year total rising to 2,706.

January recorded the largest number of arrivals this year at 160, while February recorded the smallest number at 90, the ministry said. Last year, the number of monthly arrivals surpassed 200 in nine out of 12 months.

There are now more than 23,500 individuals of North Korean origin in the ROK.

Question to ponder: Does a decrease in emigration from the DPRK promote stability or instability for the North Korean system?

Previous posts on this topic here.

Read the full story here:
N. Korean defector arrivals drop 43 pct this year
Yonhap
2012-7-1

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Posted in 2012 emigration statistics, Emigration | Comments Closed

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