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North Korea’s minister of trade releases information on recent foreign economic cooperation at forum in China

Thursday, September 12th, 2013

Institute for Far Eastern Studies (IFES)
2013-9-12

After North Korea’s launch of a long-range rocket in December 2012 and third nuclear test in February 2013, China endorsed UN sanctions against North Korea. Consequently, North Korea appears to be increasing its economic cooperation with Mongolia and Russia.

On September 6, the 7th annual Northeast Asia joint high-level forum was held in Changchun (Jilin Province), China. Ku Bon Tae of the DPRK Ministry of Trade is reported to have been present and to have delivered a presentation on North Korea’s recent economic cooperation activities.

Ku stated, “Currently, cooperation between North Korea and Mongolia is making positive progress,” and “the international freight transport coordination issue and Mongolian corporate investments, telecommunications and other cooperation issues at the Rason Special Economic Zone are at the final stages of agreement.”

He added, “We hope more Northeast Asian nations will actively take part in the Rason Special Economic Zone.”

In May, a Mongolian oil company HB Oil JSC acquired 20 percent stake in North Korea’s state-run Sungri oil refinery. In July, the two countries signed an agreement on information and communication cooperation and exchanges. In addition, Mongolian experts in the field of livestock are said to be involved in North Korea’s Sepho tableland (Gangwon Province) reclamation project, which seeks to create a large stockbreeding complex.

As for economic cooperation with Russia, the Khassan–Rajin railway — part of an international container rail transport line connecting Russia and North Korea and linking Northeast Asia to Europe — has its opening ceremony scheduled for this month after having received extensive reconstruction. Russia also has a long-term lease on Rajin Port’s pier No. 3. Russia has been renovating the pier, and renovations are expected to be completed by the end of this year.

North Korea and Russia plan to develop Khassan–Rajin rail line and Rajin Port in order to transport cargo from Asia to Europe: as containers arrive at Rajin Port, they are moved to the Khassan-Rajin railway and then transferred to the Trans-Siberian Railway (TSR), headed for Europe.

Ku further added, “After the projects are completely finished friendly cooperation between Russia and North Korea and international transport pathway will be opened connecting Asia to Europe through the development of economic and trade relations between the two countries.”

In Ku’s speech, the public economic cooperation with regards to China was covered briefly, and exclude the recent progress made. He commented only on the establishment of Joint Management Committees in Rason and Hwanggeumpyeong economic zones and that banks of the two countries are in the process of negotiating the usage of Chinese renminbi as the currency of trade.

Ku emphasized, “As with our past, our Republic hopes to promote independence, peace and friendship between Northeast Asian countries in the future, based on our foreign policy and will make every effort to further develop and expand this friendly cooperative relationship.”

The 9th China–Northeast Asia Expo opening ceremony was also held (in Changchun) on the same day as the forum. Political and business leaders from China, South and North Korea, Russia, Japan, and Mongolia were present at the event.

Posted in Agriculture, Ministry of Trade, Mongolia, Railways, Rason Economic and Trade Zone (Rajin-Sonbong), Russia | Comments Closed

DPRK approves ROK flag and anthem for first time

Monday, September 9th, 2013

According to Yonhap:

North Korea has approved for the first time the hoisting of South Korea’s national flag and playing of its anthem on the communist country’s soil, the unification ministry said Friday.

The move comes as the North invited South Korean weightlifters to attend the 2013 Asian Cup and Interclub Weightlifting Championship to be held in the communist country, the Ministry of Unification said.

If realized, it will be the first time in history that South Korea’s national flag, the Taegeukgi will be raised and the national anthem performed in North Korea.

The ministry in charge of all inter-Korean relations said it approved the cross-border trip by the 41-member team made up of South Korean weightlifters and officials who plans to visit Pyongyang next week for a nine-day stay to attend the international sporting competition. The event is set from Sept. 11-17 in the North Korean capital.

Officials here said approval was given because the event is an international gathering organized by the Asia Weightlifting Federation, and Pyongyang vowed to guarantee the safety of the athletes from the South.

Such reconciliatory gestures from both sides are in line with a recent series of signs of thawing relations following a deal to restart the shuttered joint industrial park in the North’s border city of Kaesong and to arrange reunions for families separated by the 1950-53 Korean War.

In 2008 I attended a DPRK-ROK World Cup prelim match in Shanghai. The game was supposed to be held in Pyongyang, but the North Koreans refused to allow the South Korean anthem and flag to be used (as the South Koreans had done).

Read the full story here:
N. Korea allows S. Korean flag hoisting, anthem for first time
Yonhap
2013-9-6

Posted in Football (soccer), South Korea, Sports | Comments Closed

Pyongsu to open new pharmacy in Phyongsong

Sunday, September 8th, 2013

According to Yonhap:

A joint venture between North Korea and Switzerland will open its first chain drugstore in a provincial city in the communist country by the end of this year, according to the company’s website Sunday.

The new store will be situated in Pyongsong, South Pyongan Province, where many of the North’s well-off people who can afford medicine live, the Pyongsu Pharma J-V Co. said.

Launched in 2004 as a joint venture between Parazelsus, a Swiss investment and management company with a focus on healthcare, and Pyongyang Pharmaceutical Factory under the North’s health ministry, Pyongsu Pharma has since opened nine chain stores in Pyongyang to provide North Koreans with essential medicine, such as aspirin and digestive aids.

Pyongsong, located just north of Pyongyang, is the capital of North Pyongan Province. It was developed into a science-research city, housing many research institutes in the 1960s, but now is a hub of logistics for distributing everyday goods all over the country.

Last month, the North Korean authority opened the city to foreign tourists, according to a Chinese tourism agency specializing in tours to the North.

“Since medicine is as precious as rice in North Korea, Pyongsong will be crowded with people coming to buy medicine from other parts of the country if a drug store opens in the city, which has a relatively well-developed traffic network with other cities,” a source well informed on North Korea said.

Read the full story here:
N.K.-Swiss joint venture to open drugstore in N.K. provincial city
Yonhap
2013-9-8

Posted in Foreign direct investment, Health care, Joint Ventures, Pharmaceuticals, PyongSu Pharma, Switzerland | Comments Closed

Rodman makes second trip to DPRK

Sunday, September 8th, 2013

UPDATE 3 (2013-12-1): Macleans has more information on how Rodman arranged his second trip to the DPRK:

Sometime last spring, Dennis Rodman, the unpredictable, flamboyant NBA hall of famer, found he had a problem: How was he going to get back into North Korea?

As it happened, Rodman had a standing invitation from that hermetic country’s supreme leader, Kim Jong Un—a man Rodman has described as “my friend” ever since his first trip to the Democratic People’s Republic of Korea (DPRK) last March. But, the DPRK is not an easy holiday destination, and Kim hadn’t offered to send a personal jet.

Rodman’s first trip had been worry-free—it was arranged by the in-your-face media company Vice, which used Rodman’s allure as a former Chicago Bull (the ruling Kim dynasty has an enduring fascination with the team) to gain entry to the country and shoot an HBO documentary. But the Vice crew’s anti-Kim agenda had left North Korean officials, and Rodman himself, nonplussed. This time, Rodman wanted to go unencumbered by cameras and press people. So what to do?

“They tried to go to a travel agent, I guess, but obviously it doesn’t work that way,” says Joseph Terwilliger, a geneticist at the Columbia University Medical Center, who got involved in Rodman’s quest after successfully bidding on a basketball game with him at a charity auction. The pair shot hoops, but mainly they talked North Korea.

Terwilliger told Rodman he knew exactly who could help: Michael Spavor, a Canadian he’d first met at the bar of the Yanggakdo International Hotel in Pyongyang some years ago, and who has developed a reputation for being one of those rare things—a foreigner whom the North Koreans have come to trust, and who can get things done in that country.

Spavor, 38, is not what you’d expect from an emissary to North Korea. An affable, mild-mannered type who grew up in a Calgary suburb, he first became intrigued by North Korea during a short stay in Seoul in the late 1990s, when, flipping through the Lonely Planet travel guide, he stumbled across the section on the DPRK—“just a little sliver in the back,” he recalls. “It was the most interesting part of the whole book.”

He went on to live in Pyongyang for six months in 2005, working as a teacher at a school affiliated with a Vancouver-based NGO. He’s been in and out of the DPRK ever since, developing key contacts in the regime along the way. Spavor speaks the North Korean dialect—a more formal variant of the southern—so fluently that he fools people on the phone, and he ran a school specializing in DPRK Korean in Yanji, the city in a largely Korean corner of northeast China where he now lives.

Not your typical line of work, and occasionally it raises eyebrows. Passing through the U.S. a few weeks ago, his unusual travel itinerary raised red flags with a customs official. Spavor asked if the officer had heard about Rodman’s trip to North Korea in early September. Sure, he had. “I organized it,” Spavor told him. “It was a blast.”

It was, in some ways, a bro vacation. Rodman’s entourage included; Christopher Volo, a mixed-martial-arts fighter, and Terwilliger, the Columbia prof, who also happens to be a pro tuba player. Terwilliger had become fascinated by the DPRK as a kid listening to shortwave radio from Pyongyang; he’d been on North Korea’s propaganda mailing list for years and found the material he received “interesting.” Together, the men sang, drank, ate and laughed with Marshall Kim, as he likes to be known, at his seaside retreat, a “seven-star” home-away-from-home that Rodman later compared to Ibiza.

“In the media, Marshall Kim Jung Un is portrayed as serious,” Spavor told Maclean’s in an interview. “But we were able to see a more charismatic, friendly side to him. He has a good sense of humour.”

Spavor carries official pictures, taken by a state photographer, of the encounter on his iPhone, and though he’s wary of whom he shows them to—Spavor is fastidiously careful in regards to everything DPRK-related—it’s clear from the shots that this was a casual affair enjoyed by Rodman, his entourage, and by Kim, who is thought to be around 30.

“Dennis and Marshall Kim talked, and Michael and I tried to translate as much as we could,” explains Terwilliger.

Then he corrects himself.

“I mean, Michael translated as much as he could to Korean,” he says. “I was more translating Dennis to English.”

The two Rodman visits to North Korea have received their share of ridicule—North Korea, after all, is a pariah state, with a troubling human rights record and a history of threatening its enemies, including the U.S., with nuclear destruction. But, Spavor, who has led many similar, though lower-profile, cultural-exchange tours there—students and faculty from Cambridge, Harvard and McGill have seen North Korea from the inside, thanks to his ministrations—saw Rodman’s visits as “a chance for international relationship-building, in this case, through the medium of sport.”

Asked if such an endeavour makes him an apologist for what many consider a pretty nasty regime, Spavor won’t be drawn in. “I’m really in no position to comment on political and human rights issues,” he says. “Those issues are better discussed between governments.”

During his time living in Pyongyang, Spavor was able to observe “regular, everyday life”—people going to work, young couples walking hand-in-hand, vibrant markets. “I met a lot of really beautiful people—so sweet,” he says. “It was contrary to what I’d heard, that they were cold. You hear about this mysterious, unfriendly place.”

He credits his good contacts in North Korea with his capacity to interact with the North Koreans on their own terms—a rapport he picked up while eating, drinking and singing with them during his brief time living there. “I really learned how to party with North Koreans—to party and enjoy myself in their environment,” he says. “I have a rare and odd skill that enables me to connect the DPRK to other people.” Spavor celebrated his birthday in North Korea in November, feasting on North Korean birthday cake, which he says was delicious.

It was his relationship with the North Korean regime that helped Spavor spirit Rodman through Beijing, where the basketball legend sought to keep a low profile, and onto a flight with Air Koryo, the North Korean airline. “You know, it’s not easy hiding a six-foot-seven black guy with tongue piercings and tattoos in China,” says Terwilliger.

Indeed, Spavor has carved out a reputation as a street-smart, savvy conduit, someone the North Koreans know is capable of discretion.

“If you sent a traditionally diplomatically minded person, it would be very difﬁcult for such a person to deal with North Korea,” says Andrei Lankov, a professor at Kookmin University in Seoul and a leading authority on North Korea. “Michael has a great deal of common sense, and he’s a very normal guy, but also very smart. He understands the society and he’s not afraid to experiment and do things that are unusual.” Hence, Spavor’s willingness to engage with the North Koreans on the basketball court.

Spavor’s unusual relationship with the North Koreans is driving plans, bankrolled by the colourful Irish bookmaking company Paddy Power, to mount a basketball exchange between the U.S. and the DPRK in January, when between 10 and 12 former NBA players—Spavor won’t name names—are due to arrive in Pyongyang to help coach North Korea’s national basketball team.

And it is Spavor, as a Canadian, whom officials in North Korea’s ministry of sport approached with the idea of setting up a hockey exchange between North Korea and Canada. The project is still in its early stages, but Spavor says there is interest from the NHL. He envisions NHL players and coaches arriving next autumn or winter to help train the country’s national team. As it turns out, the North Koreans do play hockey, in the International Ice Hockey Federation’s Division III category, which also includes such lesser hockey nations as South Africa, Ireland and Greece. He’s also looking into organizing another sports exchange between North Korea and Canada—this one centred on skiing (the DPRK is poised to open its ﬁrst ski resort, at the Masik Pass, on the country’s east coast).

The DPRK is borrowing from American culture in other ways, too. Spavor carries with him the Samjiyon, a North Korean-made tablet computer loaded with North Korean books, and with the republic’s answer to Angry Birds, a computer game called Gomuchong—rubber gun—that looks remarkably similar to the one-time iPhone sensation. Another stab at a cultural exchange? Perhaps. It may also be piracy.

UPDATE 2 (2013-9-8): Just as Kenji Fujimoto taught us the name of Kim Jong-un, Rodman has revealed to the world the name of Kim Jong-un’s daughter. According to The Guardian:

Dennis Rodman has already described Kim as an “awesome guy”. On Sunday, he told the Guardian the leader was also a “good dad” to his baby daughter, whom he named as Ju-ae.

“The Marshal Kim and I had a relaxing time by the sea with his family,” Rodman said of his recent visit to the world’s most isolated country. “We shared many meals and drinks where we discussed our plans to play a historic friendship basketball game between North Korea and the US as well as ways to develop their basketball team.”

“I held their baby Ju-ae and spoke with Ms Ri [Sol-Ju, Kim’s wife] as well. He’s a good dad and has a beautiful family. Kim told me, ‘I’ll see you in December.'”

Rodman plans to organise a basketball game between American and Korean teams.

“Kim is a great guy, he loves basketball, and he’s interested in building trust and understanding through sport and cultural exchanges,” Rodman said. “I know in time Americans will see I’m just trying to help us all get along and see eye to eye through basketball and with my friendship with Kim I know this will happen.” Further details on the basketball match are expected on Monday.

If the Rodman in Pyongyang story wasn’t unusual enough, there is an extra twist – it is being sponsored by an Irish bookmaking firm, which cheerfully admits it has no experience of international diplomacy.

Paddy Power used Rodman for a promotional stunt involving bets about the new pope, after which the eponymous son of the founder of the firm went for “pizza and a few glasses of wine” with the ex-NBA star in Rome. Rodman then explained his “basketball diplomacy” idea.

Despite thinking it was “all a bit bonkers”, Power decided to get involved. He said: “If you’d told me about this 12 months ago I’d have got the men in white coats to take you away. It’s an unusual idea to say the least.”

Power stressed that the project did not mean that the company or Rodman “endorse or support” one of the world’s most repressive regimes, which has an appalling human rights record.

The company consulted a Korea expert at the International Crisis Group thinktank, which argues that this is not entirely a stunt.

“Someone might say that Dennis Rodman provides political legitimacy to the regime, or it can be treated as a propaganda coup,” said ICG’s Daniel Pinkston, who has been an expert on North Korea for 30 years. “I think that’s greatly exaggerated. If you have a former president of the United States, that factor might be much greater. But someone like Dennis Rodman can’t do that. He can’t lift sanctions – he doesn’t have that power or authority.”

“The risks and costs are very, very low, and what you’re creating is a channel for the exchange of ideas. It’s a very small channel, but it’s there.”

He said the interaction between Kim and Rodman sent out a signal to the world – and to North Koreans. “Here’s someone who’s one of the most nonconformist individuals you can think of. And here’s the leader, embracing him. That is an implicit signal – it’s OK to be different.”

The New York Times also reports:

On Monday, Mr. Rodman said Mr. Kim gave him the right to write a book about him.

…

Mr. Rodman said he would put together a team of 12 former N.B.A. stars to travel to Pyongyang in January for one week. He said he hoped to recruit people like his former Chicago Bulls teammate Scottie Pippen and Karl Malone. They will play a North Korean team on Jan. 8 and another game two days later, he said. Mr. Kim promised a stadium and 95,000 fans.

Mr. Rodman said he planned to travel to Pyongyang in December to help select and prepare a North Korean team. A second set of games between the teams will be played in June in Europe, according to an agreement between the North Korean minister of sports and Mr. Rodman that was read during the news conference on Monday.

Mr. Rodman said he accepted Mr. Kim’s request for him to train the North’s Olympic basketball team.

UPDATE 1 (2013-9-7): Reuters reports that Dennis Rodman has left without Kenneth Bae.

Former U.S. basketball star Dennis Rodman returned on Saturday from his second visit to North Korea this year where he again met the reclusive country’s leader Kim Jong-un, but did not come back with jailed American missionary Kenneth Bae.

…

“That’s not my job to ask about Kenneth Bae. Ask Obama about that. Ask Hillary Clinton,” he told a throng of reporters. “I don’t give a shit.”

…

Rodman showed reporters in Beijing pictures of him meeting Kim, and said he had given Kim a gift of his Bad Boy vodka, which “he loved”.

“He is my friend for life. I don’t care what you guys think about him. I don’t give a shit about what people around the world think about him,” he added.

Rodman’s latest trip was sponsored by Irish bookmaker Paddy Power.

ORIGINAL POST (2013-9-7): Back in February Dennis Rodman made headlines by visiting the DPRK with the Harlem Globetrotters for a trip arranged by the new Vice show on HBO.

On September 3, Rodman returned to the DPRK for his second trip.

Here is coverage in Rodong Sinmun:

Supreme leader Kim Jong Un met ex-NBA star Dennis Rodman and his party on a visit to the DPRK.
He warmly greeted them and had a cordial talk with them.

Warmly welcoming Dennis Rodman visiting the DPRK again as a friend in a good season, Kim Jong Un told him that he might visit the DPRK any time and spend pleasant days, having a rest.

Saying he feels very grateful to Kim Jong Un for sparing a precious time to meet him and his party despite his tight schedule, Dennis Rodman said this is an expression of good faith towards the Americans.

He said that he was fortunate to revisit the DPRK as he has friendly relations with broad-minded Marshal Kim Jong Un.

Dennis Rodman evinced his will to contribute to boosting diverse sports and cultural exchange with the DPRK.

He presented Kim Jong Un and his wife Ri Sol Ju with a gift he prepared with the deepest respect for them.

Kim Jong Un, together with him and his party, watched a basketball match between the April 25 Team and the Amnokgang Team.

Kim Jong Un hosted a dinner for Dennis Rodman and his party.

Expressing his heartfelt thanks to Kim Jong Un for spending a lot of time for him and his party and according them the warmest hospitality, Dennis Rodman said he would remember this visit as an unforgettable beautiful memory all his life.

Posted in 2013 DPRK engagement, Olympics, Sports, USA | Comments Closed

DPRK Economic Development Commission

Friday, September 6th, 2013

UPDATE 5 (2013-10-31): North Korea Opens Fourteen Special Economic Zones Nationwide (IFES):

North Korea announced that it has opened fourteen special economic zones (SEZs) in various provinces this year.

The Rodong Sinmun, official newspaper of the Workers’ Party of Korea (WPK) covered the news about the Pyongyang International Conference on Special Economic Trade Zone held from October 16 to 17, 2013. This conference was convened by the Korean Economic Development Commission.

According to the newspaper, a law professor from Kim Il Sung University, Dr. Kang Jong Nam, presented at the conference and said, “There are four well-known special economic zones in our country: the Rason Economic and Trade Zone, Hwanggumpyong and Wiwha Islands Economic Zones, Kaesong Industrial Complex, and Mount Kumgang International Tourism Zone. But from this year, fourteen new economic zones were established.” However, details on where these fourteen new SEZs are located were not disclosed.

Kang added, “To meet the growing demands for development, operation and management of new economic development zones, increasing legal measures are being taken to reinforce the development with establishment of new laws or amendment of existing laws.”

North Korean leader and Chairman of the National Defence Commission Kim Jong Un made a statement at the WPK Central Committee meeting in early March, saying that economic development zones be established in each province, taking into consideration the special characteristics of each region.

Experts confirmed that North Korea has officially announced its plans to develop Wonsan and Chilbosan as tourism zones this year. SEZ development of Kangryong District in Southern Hwanghae Province began from last July.

In addition, the Korean Central News Agency announced on October 17 that ‘Kaesong High-Tech Industrial Park’ will be jointly developed by North Korea and foreign consortium, and this is likely to be one of the new fourteen SEZs built this year.

North Korea is actively hosting international forums targeted to attract foreign investment into the country, with experts from Canada, Malaysia, the United States and other foreign countries attending.

The Rodong Sinmun also quoted Director Choe Hyon Chol of the Korean Association of Economic Development: “It is crucial to educate and train experts to work in the economic zones and this will be the next step for the development of SEZs.” He also said that “We are willing to participate in various functions such as international forums, investment briefings, and exhibitions to encourage more international investment and cooperation.”

Meanwhile, on October 21 the KCNA reported on the extended cabinet plenary meeting. At the meeting, reports were given on the performance of the third quarter of the national economic plan and measures to successfully implement the plans for the fourth quarter. The central agenda for the last quarter is increasing production of coal and steel products and improving agricultural and light industries to resolve the shortage of food and consumer goods for the people. In addition, improvement in education, health services, and sports sectors were named as imperative areas to recover the country’s status as a powerful socialist nation. Specific tasks and strategies of the fourth quarter were presented at the meeting for the implementation of the national budget.

UPDATE 4 (2013-10-31): Rodong Sinmun follows up on the Economic Development Commissions’ conference on Special Economic Zones:

On Oct. 16 KCNA reported that the Pyongyang International Conference on Special Economic Zone (SEZ) development opened. Many foreign sources conveyed the news, each with their own comments.

Economic experts from without were not many in number, but each of the attendants was a specialist who had either been involved in successful development of SEZ in Asia and the rest of the world or rich in relevant research experience.

Among the organizers of the conference was Prof. Kyung Ae Park, director of the Center for Korean Research, University of British Columbia, who played a big role in inviting experienced specialists and scholars to the conference.

The first foreign speaker on the first item on the agenda was professor of the Chinese University of Hong Kong.
Exchanged at the conference were experience on SEZ development in Vietnam, Malaysia, India and many other Asian countries.

Economists and specialists from Canada and the U.S. also spoke at the conference.

Many speakers expressed their unusual feeling of having the opportunity of academic exchange on SEZ development in the city of Pyongyang.

Impressions on Pyongyang were in some points common to all. They said in one voice that Pyongyang, the capital of the DPRK, is beautiful and peaceful, and that Korean economists and specialists were very sincere and enthusiastic in their attitude to the SEZ development.

All the attendants of the conference, both from within and without, expressed thanks to the Korean Economic Development Society, the sponsor, and Kyung Ae Park, organizer, of the conference, which was conducive to seeking a new way of economic development that suits the needs of the 21st century.

UPDATE 3 (2013-10-24): North Korea Launches New Economic Development Organizations (IFES, 2013-10-24)

North Korea announced that it had installed the State Economic Development Commission to oversee the national economic development.

The Korean Central News Agency (KCNA) reported on October 16 that preamble to raise the existing General Bureau for State Economic Development to State Economic Development Commission was adopted at the recent Presidium of the Supreme People’s Assembly. Details for appointment of officials and function of the commissionareyet to be announced.

The bureau was established in 2011 to design and carry out the 10-year plan for the development of the national economy. The elevation of this institution from bureau to commissioncan be interpreted as increasing emphasis on economic development.

In particular, the State Economic Development Commissionis likely to serve as the control tower, overseeing the development of special economic zones and the 10-year economic plan.

The KCNA also reported on the establishment of a non-state organization called the Korean Economic Development Association. As the news explained, this organization was installed for the purpose of “attracting interests of economic, business, and academic communities from abroad in special economic zones (SEZs)” and “to promote SEZs to companies and organizations of other countries to draw investments for development in these areas.”

The association is expected to organize and provide support services to foreign investors and coordinate debates, conferences, exhibitions, economic information exchanges, and provide advisory services, in accordance with government mandates and investment agreements. Essentially, the association’s chief focus is to attract foreign investments into SEZs and provide various services to assist their activities in the economic zones.

The news reported the first project of the association was the organization of the “Pyongyang International Conference on Special Economic Zones (SEZ) Development,” held at the Yanggakdo International Hotel. The conference brought together economic experts from North Korea, the United States, Canada, India, and Malaysia. The association’s contact information (phone and fax numbers;email address)were also released.

The launch of a non-state organization for the promotion of SEZs is a first for North Korea. This is considered as a follow-up measure to the Law on Economic Development Zones, which was enacted in June 2013.

UPDATE 2 (2013-10-23): Rodong Sinmun follows up on the Economic Development Commissions’ conference on Special Economic Zones and reports that there will be 14 Economic Development Zones:

An International Conference on Special Economic Zone (SEZ) Development was held in Pyongyang, the beautiful capital of Juche Korea on Oct. 16 and 17 under the sponsorship of the Korea Economic Development Association. It proceeded in an amicable atmosphere with the participation of competent economic professors and experts of Canada, Malaysia, U.S., Vietnam, India and China, economists and researchers of the Korea Economic Development Association, Kim Il Sung University, University of National Economics, Wonsan Jong Jun Thaek University of Economics and Academy of Social Sciences and officials of various fields who were striving to develop regional economy in Rason City and other areas.

The conference heard first the speeches of Vice-chairman of Korea Economic Development Association Ri Chol Sok and Prof. Kyung Ae Park from University of British Columbia, who was the organizer of the conference. It discussed 6 themes. The matter of primary concern at the conference was the actual situation and prospect of special economic zone development in the DPRK and the legal system related to it. Officials of the Korea Economic Development Association and professors of Kim Il Sung University spoke of this matter.

Thanks to the measures of the DPRK government, Rason Economic Trade Zone, Hwanggumphyong-Wihwado Economic Zone, Kaesong Industrial Zone and Mt. Kumgang International Tourist Special Zone have already been created and this year witnessed the establishment of 14 economic development zones. In conformity with this, legal measures for development, management and operation of the special economic zones were newly taken and the existing laws are being revised and supplemented.

At the session held on the theme “Next Steps for DPRK Economic Zones” held prior to the closing ceremony, Choe Hyon Chol, director of the Korea Economic Development Association, explicated the prospects for development of the special economic zones in our country and hoped for broad and positive international cooperation.

The Pyongyang International Conference on Special Economic Zone Development held under tense situation was an important occasion showing the peace-loving stand and policy of the WPK and DPRK which are concentrating efforts on the development of economy and improvement of people’s living standard.

Here is coverage of this report in Yonhap.

UPDATE 1 (2013-10-17): In September, IFES reported the creation of the DPRK’s Economic Development Commission” (See original post below). It appears that KCNA has finally announced its creation. According to KCNA in two different articles:

General Bureau for State Economic Development Renamed

Pyongyang, October 16 (KCNA) — The DPRK decided to rename the General Bureau for State Economic Development the State Economic Development Commission.

A decree of the Presidium of the DPRK Supreme People’s Assembly was promulgated on Wednesday in this regard.

And…

Economic Development Association Organized in DPRK

Pyongyang, October 16 (KCNA) — The Economic Development Association was organized in the Democratic People’s Republic of Korea.

As a non-governmental organization, it helps foreign businesses and entities to get a better knowledge of special economic zones in the DPRK and to make investments in them.

It is also working to assist business activities of foreign investors in the zones.

As part of its first work, it hosted the Pyongyang International Conference on Special Economic Zone (SEZ) Development in Pyongyang starting from Wednesday, attended by economists from Canada, Malaysia and the United States.

The details to contact with the association are as follows:
Tel: 00850-2-381-5912
Fax: 00850-2-381-5889
E-mail Address: [email protected]

Here is the Korean version of the articles:

국가경제개발총국을 국가경제개발위원회로 하기로 결정

(평양 10월 16일발 조선중앙통신)조선에서 국가경제개발총국을 국가경제개발위원회로 하기로 결정하였다.

이와 관련한 조선민주주의인민공화국 최고인민회의 상임위원회 정령이 16일 발표되였다.(끝)

조선경제개발협회 조직

(평양 10월 16일발 조선중앙통신)조선경제개발협회가 조직되여 자기 활동을 시작하였다.

협회는 다른 나라의 기업들과 단체들이 조선의 특수경제지대들에 대하여 잘 알게 하고 그 진출을 협력해주는 민간급단체이다.

조선의 특수경제지대개발에 도움이 되는 투자토론회, 상담회, 전시회, 경제정보교류, 자문봉사, 정부의 위임에 따르는 투자합의, 투자가들의 기업활동방조 등 다양한 봉사를 제공하고있다.

협회는 앞으로 조선의 특수경제지대개발에 관심을 가지거나 투자에 참가하는 여러 나라 경제계와 기업계, 학계의 광범한 인사들의 리익을 도모하기 위해 자기의 역할을 끊임없이 높여나가게 된다.

조선경제개발협회는 첫 사업으로서 카나다와 말레이시아, 미국을 비롯한 여러 나라의 경제전문가들을 초청하여 16일부터 특수경제지대개발에 관한 평양국제토론회를 주최하고있다.

협회는 전화 00850-2-381-5912와 확스 00850-2-381-5889, 전자우편 [email protected]로 기업, 단체들과 련계하고있다.(끝)

I am unsure of the difference between the “Economic Development Commission” and the “Economic Development Association”, but they appear to be the same organization. The same name difference is apparent in the Korean articles as well: 조선국가경제개발총국, 조선경제개발협회. I also assume this is the same “Economic Development Commission” reported by IFES in September and posted below.

The first high profile event of the Korea Economic Development Association/Commission was an event: The Pyongyang International Conference on Special Economic Zone (특수경제지대, SEZ) Development. Below are articles on the event:

KCNA (2013-10-16):

International Conference on SEZ Development Opens in DPRK

The International Conference on Special Economic Zone (SEZ) Development opened at the Yanggakdo International Hotel in Pyongyang on Wednesday, with economists from the Democratic People’s Republic of Korea, Canada and other countries in attendance.

In this regard, KCNA met Ri Chol Sok, vice-president of the Korea Economic Development Association.
Ri said:

The conference takes place at a time when the DPRK is paying deep attention to developing special economic zones in local areas, as the Rason Economic and Trade Zone.

The conference deals with present-day situation and prospect of the special economic zones in the DPRK and its laws for SEZs, characteristics of special economic and exports processing zones in China and Vietnam as well as the experiences gained in developing them.

It also introduces the roles the zones play in the economic development in each country.

The DPRK has constituted a series of laws for ensuring free business activities in the zones.

Meanwhile, the country is making efforts to improve economic management methods, while consolidating the socialist economic system.

This conference will mark a good occasion in promoting international exchange and cooperation and in developing the economy of the country.

Xinhua:

The Democratic People’s Republic of Korea (DPRK) said Wednesday it would establish special economic zones open to investment from “any country.”

Ri Chol Sik, deputy head of the Korea Economic Development Association (KEDA), told the first international conference on Special Economic Zone (SEZ) development here that the DPRK was preparing to open many SEZs at provincial level, with legal protection and preferential policy already set up.

“Policies and regulatory environment and their implementation are critical to the success of SEZs,” said Bradley Babson, chair of the DPRK Economic Forum at the U.S.-Korea Institute at John Hopkins School of Advanced International Studies.

A DPRK professor with Kim IL Sung University told Xinhua the seminar was “a great opportunity for our people to learn from other countries’ successful experience on SEZs.”

The seminar, sponsored by KEDA and co-hosted by Park Kyung Ae, director of the Canada-DPRK Knowledge Partnership Program (KPP) at the University of British Columbia, Canada, was attended by DPRK scholars and officials and dozens of foreign economic specialists from countries such as the United States, Canada, China, Vietnam, India, and Malaysia.

Park told Xinhua it was a chance to exchange ideas and promote cooperation between DPRK and the outside world. She has been engaging for years in a KPP academic exchange program, which sends DPRK professors to study and do research in Canada.

KEDA, a newly formed non-government organization, aims to support activities by foreign businesses and scholars interested in the country’s special zones, said KCNA, DPRK’s official news agency.

The non-governmental association, the first of its kind in DPRK, arranges meetings, supports business activities and offers information and consulting to prospective investors.

Also on Wednesday, the National Economic Development General Bureau was renamed the National Economic Development Committee, KCNA said.

And from KCNA on 2013-10-17:

Ri Chol Sok, vice-president of the Korean Economic Development Association (KEDA), said in his closing address at the Pyongyang International Conference on Special Economic Zone (SEZ) Development that other countries’ experience would be helpful to the DPRK seeking to create economic development zones in its localities.

The conference was held at the Yanggakdo International Hotel on October 16-17, with the attendance of KEDA officials, professors of Kim Il Sung University, University of National Economy, Academy of Social Sciences and other related institutions and economists of the DPRK and experts of academic and economic circles of different countries, including University of British Columbia in Canada, Chinese University of Hong Kong, University of Delhi in India, Planning & Economic Research in Malaysia and University of Wisconsin in the United States.

It focused on such matters as the features of SEZ planning and the study of its examples, management and investment in SEZ and development course of SEZ.

Its participants presented papers on experience and lessons of some countries and valuable propositions and exchanged their views on the prospect of SEZ development in the DPRK and international cooperation in this respect.

Professor Pak Kyong Ae of University of British Columbia in Canada recalled that the conference was conducive to establishing and putting into practice the strategy of comprehensive economic development including the creation of SEZs.

The professor hoped that the good ties forged between the participants through the conference would lead to continuous exchange.

And from Xinhua (2013-10-17):

The Democratic People’s Republic of Korea is hosting an international conference to explore ways of developing its economy. Earlier this year, the country announced a new law governing new economic zones.

A sign of new climate in economic development, thirteen foreign academics and experts from countries including the US, Canada, India, China, Malaysia and Vietnam gathered in Pyongyang on Wednesday for an international economic conference.

They joined about 60 economists from the Kim Il Sung University, the Academy of Social Sciences, and other local institutions.

The conference comes as economic zones are starting to be created all over the country. On June 5th, the DPRK’s state news agency KCNA announced a new law governing special economic zones. Foreigners can now invest in the new economic zones with preferential conditions for land-use, employment and tax.

The DPRK has experimented with special economic zones for years. In the early 1990s, the DPRK set-up the Rason Special Economic Zone in the far northeast, but it made little progress until recently being reinvented as a joint project with China.

Another DPRK-China joint economic development project on the border between the two countries at Hwang-gum-pyong is still at a much earlier stage of development.

The joint industrial zone with South Korea at Kaesong has not long reopened after a months-long shutdown earlier this year due to tensions on the peninsula.

The new law on special economic zones is one of a number of signs that the DPRK may be seeking to speed up its economy.

Here is coverage in Yonhap (2013-10-16):

North Korea has established a private organization to develop special economic zones, its media said Wednesday, following toughened business sanctions slapped on the communist country for its nuclear weapons test earlier in the year.

The organization, dubbed the Korean economic development federation, aims to support activities of foreign businesses and scholars interested in the special zones in North Korea, the Korean Central News Agency (KCNA) said.

The regime’s news wire added that the organization will arrange meetings, support business activities and offer consulting and information to prospective investors.

As part of its first official activity, the federation arranged an international conference attended by United States, Canadian and Malay economists that kicked off earlier in the day in Pyongyang, the KCNA said.

North Korea observers said that the creation of a civilian entity to manage a handful of special zones is a first for the communist country and that it follows the revision of related laws in late May aimed at fueling growth and attracting more foreign investors.

“The federation seems to be a copy of similar private sector organizations in capitalist countries and shows the importance placed on pulling off economic growth by the Kim Jong-un government,” said Lim Eul-chul, a research professor at Kyungnam University in South Korea.

Other experts said with the toughened sanctions from the United Nations, the North may be seeking to circumvent the existing business and trade restriction by creating a private body.

Here is coverage in the Daily NK:

According to an October 16th report by Chinese news agency Xinhua’s correspondent in Pyongyang, Yoon Yong Suk, who is in charge of the Chosun Economic Development Committee, recently spoke at the “Pyongyang International Symposium on Special Economic Zone Development,” held at the Yanggakdo Hotel. He said, “We are actively preparing to establish special economic zones in all provinces and introduce foreign capital.” Chosun Economic Development Committee is a “non-state” institution established for the purpose of developing special economic zones.

He explained, “At the Central Committee meeting last March, it was decided that special economic zones should be established in each province, and tourist areas, too, in order to invigorate the tourist industry, and bring about greater diversity in international trade. Currently, each province is moving forward with the establishment of development zones and the task of attracting foreign currency, in accordance with the plan.”

“It is the consistent policy of our country to develop the Rason Special Economic Zone, the Hwangguempyeong and Wihwa Island areas, Mt. Geumgang International Tourist Area, and economic development zones in each province,” he added. “We will find practical and logic means by which to expand economic, trade and scientific exchanges, as well as enhance understanding, exchanges and contacts with governments, private industry, and private groups.”

On October 1st, Daily NK reported that economic officials in provincial areas of North Korea had been ordered to formulate plans for the designation of two candidate cities for development, and that legal and systemic modifications were being investigated, in order to try and ensure interest from foreign capital.

According to Daily NK’s information, the profit derived from joint ventures would be shared 50-50; owever, foreign companies would only have to cover the cost of land use and wages.

Naenara, one of the DPRK’s official web portals, has also posted lots of content on the meeting. See here, here, here, here, here, and here. I have compiled all these articles into this PDF.

Read full story here:
N. Korea sets up civilian body for special economic zones
Yonhap
2013-10-16

ORIGINAL POST (2013-9-6): On May 29, the Presidium of the Supreme People’s Assembly promulgated the “DPRK Law on Economic Development Zones“. Now it appears they have named a body to administer the law. According to the Institute for Far Eastern Studies (IFES):

DPRK Economic Development Committee launched: Special economic and tourism zones to be named (IFES)

In the wake of normalizing the Kaesong Industrial Complex (KIC) agreement, North Korea has announced that it had installed the Economic Development Committee and named special economic and tourism zones, as well as newly appointed officials in charge. In the near future, North Korea has plans to announce specific special economic zones in Sinuiju, Nampo, and Haeju, along with tourism zones in Mount Baekdu, Wonsan, and Chilbosan. The head and director-level executives for the Economic Development Committee are likely to be appointed from the Joint Venture Investment Committee. The head of the Tourism Development is reported to be the former director of Korea Tourism Administration.

Meanwhile, North Korea has released the preamble of the economic development law adopted at the recent Presidium of the Supreme People’s Assembly held on May 29. As inter-Korean relations are progressing with the plans of restarting the Kaesong Industrial Complex and the reunion of separated families moving forward, North Korea’s economic development law is drawing attention once again.

In principle, the selection process for the special economic zones must possess these following elements: Area must 1) be in a favorable location for foreign economic cooperation and exchanges; 2) contribute to the economic and science and technology development; 3) be at a fixed distance from the residential areas; and 4) be at a location that does not intrude in the state protected areas (Article 11). This can be interpreted as the North’s effort to segregate the existing residential areas with the special economic zone similar to the Kaesong Industrial Complex so as to minimize the political and social impact of these zones.

The newly confirmed information for the new Economic Development Law is the list of development activities. “Investors from other countries are permitted to develop economic zones either alone or in collaboration after obtaining state approval (Article 20).” Evidently, North Korean institutions and enterprises may also develop economic zones after receiving approval from the state.

In addition, the law granted comprehensive property rights to the development companies. It states that “Companies have the right to sell, re-lease, bequeath, or transfer the ownership of the buildings and land lease” and “the selling or re-lease price shall be determined by the development company” (Article 29).

As for recruitment of workers, there is a provision that states “our country’s labor force must be given preferential consideration” (Article 41), and “the minimum wage for the employees of the Economic Development Zone shall be determined by central guidance organization of special economic zone” (Article 42). This poses some concern as the employee wage at the Economic Development Zone could be compared to that of the KIC, which could lead to wage disputes after the KIC begins to implement its internationalization process.

Another noteworthy change is the currencies permitted at the zone: “currency for circulation and payment must be Korean Won (KPW) or other specified currency” (Article 46), suggesting that other currencies such as the US dollar and euro will be allowed.

Furthermore, the Act specifies that “Companies in the economic development zone will decide on the commodity and service prices, and all the prices in the Economic Development Zone between institutions, enterprises and organizations shall be determined by the international market price based on agreement of all the parties” (Article 43). This suggests that the products produced in the zone may be traded domestically in North Korea.

In this Act, corporate income tax rate was set at 14 percent of profits and “Economic Development companies that operate for more than 10 years will be considered for a tax cut or exemption from the corporate income tax.” Article 58 grants “communication guarantees” for the usage of mail, telephone, and fax services, but did not include the use of the Internet.

Posts on the DPRK Law on Economic Development Zones can be found here.

Posted in DPRK Law on Economic Development Zones, Economic reform, Hwanggumphyong and Wihwado Economic Zones (Sinuiju), Institute for Far Eastern Studies, Special Economic Zones, State Economic Development Commission (SEDC) | Comments Closed

ROK to donate $6.3m to DPRK

Monday, September 2nd, 2013

According to Yonhap:

South Korea will give US$6.3 million won in humanitarian aid to North Korea through a United Nations agency, the unification ministry said Monday.

The move comes as Seoul has maintained it will provide assistance to underprivileged people in the North regardless of political and diplomatic developments.

Inter-Korean tensions that spiked in the first half of this year have eased in recent months with the two Koreas engaged in talks to fully reopen the factory park in Kaesong and hold family reunions for people separated by the 1950-53 Korean War on Sept. 25-30.

“The money to go to the World Health Organization (WHO) will help repair medical facilities, train healthcare workers and give essential drugs to the North that can help all people,” a unification ministry official said.

The funds will come from the inter-Korean cooperation fund managed by the state with final approval to be given by the South and North Exchange and Cooperation Promotion Council.

Besides money to be sent to the WHO, Seoul plans to allow 12 civic groups to send 2.35 billion won (US$2.13 million) worth of aid to the North in 13 different projects, the ministry official said.

This move will mark the second time that the Park Geun-hye administration has allowed humanitarian aid to reach the North. The last shipment was approved in late July when Seoul said it would send $6.04 million to the North through the U.N. Children’s Fund and allowed 1.47 billion won in aid to be sent by five civic groups.

The aid to be provided by private charity groups includes medical supplies, baby formula, vitamins, soup, soy milk, supplies to make nutritionally fortified bread and stationary for children, he added.

Charity groups such as the Eugene Bell foundation, Human Earth Organization, Headquarters of Zero Tuberculosis World, Movement for One Corea, Korea Foundation for International Healthcare and Korea Love One groups want to send humanitarian supplies to the North.

The official said that compared to the last aid that focused on giving aide to newborns, young children and pregnant women, the latest move aims to help all people in need of assistance.

“Final approval will be made following confirmation that local relief organizations have received assurance of transparent distribution of the aid from Pyongyang, and they have acquired the necessary supplies to send to the communist country,” he said.

Related to the aid plan, various international organizations, including the Food and Agriculture Organization of the United Nations, claimed the North will likely suffer from a food shortage this year.

Read the whole story here:
S. Korea to give US$6.3 mln in humanitarian aid to N. Korea
Yonhap
2013-9-2

Posted in 2013 aid from South Korea, Eugene Bell Foundation, International Aid, South Korea, UN, UNWHO | Comments Closed

North Korea enthusiastically promoting tourism industry to attract foreign investments

Thursday, August 29th, 2013

Institute for Far Eastern Studies (IFES)
2013-8-29

The Korean Central News Agency reported on August 24 that a tourism briefing session was held in Pyongyang for the purpose of attracting foreign investment.

The state-run Korea International Travel Company (KITC) opened a briefing session at the Yanggakdo International Hotel to explain the preferential treatment for foreign investments. Officials from various embassies, along with Chinese, English, and German travel agency representatives were present at the briefing session.

Cho Song Gyu, president of Korea International Travel Company, said that “tourism districts will be operated as special tourism zone and all management activities such as customs, tax, communication, and investment protection will be guaranteed in accordance with the special zone law and international standards.” It was said that investments of foreign owned enterprises and joint venture companies are to be given priority.

President Cho added, “There are plans to invite foreign experts to improve other special tourism zones such as Wonsan and Mount Chilbo districts.”

North Korea recently disclosed plans of developing mountains Baektu, Kumgang, and Chilbo, with plans of constructing ski resorts in these areas.

In addition, North Korea’s tourism policy is rapidly changing and significant ease on restrictions can be observed on foreign tourists. Unlike in the past, tourists are now allowed to travel to North Korea at any time of the year, with fewer date restrictions.

Meanwhile, North Korea’s economic journal is attracting attention as it argues for the diversification of foreign investment. This call for diversification might reflect a North Korean concern about China’s growing investment in North Korea’s resource sector.

In the current issue of Kyongje Yongu (Economic Research, July 30 issue), North Korea’s quarterly economic journal, it was stated that “Foreign companies in our country are heavily concentrated in joint ventures with domestic companies in the collection industries and their main interest is in developing natural resources.”

The article analyzed that investments by foreign companies are largely concentrated in natural resources development, as they are trying to secure raw materials necessary for production activities. In addition, the article called for improvements in the method and diversification of foreign investment as it stressed that without any intervention, the situation could lead to negative results.

Most of the foreign investment in North Korea is known to be from China. Last year, gold mining companies and Chinese enterprises signed joint venture agreements one after another, displaying Chinese companies’ growing interest in North Korean mines.

Here is the story from KCNA:

Tourism-related Explanation Session Held in DPRK

Pyongyang, August 24 (KCNA) — A tourism-related explanation session, sponsored by the International Travel Company of the DPRK, took place at the Yanggakdo International Hotel here Saturday.

Present at the session on invitation were staff members of foreign embassies in DPRK and representatives of travel companies from China, Britain, Germany and other countries.

Addressing the session, Jo Song Gyu, head of the International Travel Company of the DPRK, referred to the development of tourism in the DPRK and its policy on tourism.

Mts. Paektu, Kumgang and Chilbo, Wonsan City and other scenic spots and areas in the country have turned into recreation grounds and tourist resorts and a brisk drive is being conducted to further develop them, he noted.

The tourist resorts will be run in the form of special zone for tourism and all the management activities such as passage through boundaries, customs, taxes, communications and investment protection will go by the DPRK’s relevant law on special zones as well as the international rules, Jo said.

He further said that businesspersons and investors of any countries and regions interested in tourism of DPRK would be welcomed and preference be given to private and joint-venture and collaboration businesses.

He also mentioned a plan to invite foreign experts needed for the development and management of the tourist resorts in various parts of the country including Wonsan City and Mt. Chilbo.

Posted in DPRK Law on Economic Development Zones, Economic Development Zones (2013), Special Economic Zones, Tourism | Comments Closed

DPRK develops tourism as one of its “major industries”

Wednesday, August 28th, 2013

According to KCNA (2013-8-28):

The Democratic People’s Republic of Korea is directing big efforts to developing tourism as one of major industries.

In this regard, KCNA met Jo Song Gyu, director of the International Travel Company of the DPRK.
Jo said:

Consistent is the policy of the Workers’ Party of Korea and the DPRK government to develop tourism in the country.

Abundant in tourism resources, the country has a bright future to develop tourism.

Regular air route will be opened between Pyongyang, Lake Samji and Wonsan for local and foreign tourists.

The country also plans to open air routes between Pyongyang and Chinese cities like Shanghai and Yanji.
Air services will also be available for people in Southeast Asia and Europe to come to DPRK for sightseeing.

Wonsan and Mts. Paektu and Chilbo areas are likely to be linked with other countries and regions by air services.

Economic development zones to be built in each province will serve as tourism destinations.

Hotels in Pyongyang City are being renovated at the world’s level.

A number of fitness centers, service complexes and souvenir and duty-free shops will be built for tourists.

The government will allow foreigners to launch independent business or joint venture in the country to invest in tourist resorts and economic development zones and construct and manage hotels, shops and other tourist facilities.

It will render preferential treatment to foreign businesses which come to the DPRK before others so that they can begin making profits as early as possible.

It is also inviting foreign tourist experts for development of tourist resorts and operation of hotels, restaurants, etc.

Read the full story here:
DPRK to Develop Tourism as One of Major Industries
KCNA
2013-8-28

Posted in Aviation, Economic Development Zones (2013), Economic reform, Foreign direct investment, Special Economic Zones, Tourism, Transportation | Comments Closed

Masik Ski Pass News

Tuesday, August 27th, 2013

Pictured above: Masik Pass Ski Resort under construction (Google Earth: 2013-5-22)

UPDATE 11 (2013-8-27): Koryo Tours posts images of the new resort and offers a status update.

UPDATE 10 (2013-8-19): Switzerland bans the export of ski lifts to the DPRK. According to Reuters:

Switzerland has banned the sale to North Korea of equipment for a luxury ski resort planned for the ruling elite in the widely impoverished state that is under U.N. sanctions, officials said on Monday.

North Korean leader Kim Jung-un, who studied under an assumed name in the Swiss capital Berne and is believed to have gone on school ski trips in the Alps, wants to develop leisure activities for tourists and the upper crust among its 23 million citizens.

North Korea approached several Swiss companies, including Bartholet Maschinenbau AG, to provide chair lifts and cable cars worth 7 million Swiss francs ($7.57 million) for its sprawling Masik resort, the Geneva daily Le Temps reported on Monday.

But the Swiss government, contacted by the firms for clearance, added luxury sporting equipment to its list of goods banned under United Nations sanctions, Marie Avet of the State Secretariat for Economic Affairs (SECO) said.

“The Federal Council decided on July 3 to also put infrastructure for sports facilities on the list, especially when they have a more luxury character for resorts,” Avet told Reuters. “These resorts have a luxury character, that is why it is not appropriate to export.”

The neutral country’s sanctions list for the Democratic People’s Republic of Korea (DPRK) also includes equipment for golf, horseback riding, water sports, billiards and casinos, as well as luxury watches, jewellery, caviar, perfume and artworks.

DPRK tried to ship gas masks to Syria

Tuesday, August 27th, 2013

According to the Los Angeles Times:

North Korea tried to export gas masks to Syria this spring, presumably for use in the Middle East nation’s chemical weapons program, but the shipment was intercepted by Turkey along with arms and ammunition, a Japanese newspaper reported Tuesday.

The Libya-flagged ship El Entisar (“Victory”) was stopped April 3 by Turkish authorities as it passed through the Dardanelles, the Sankei Shimbun reported. Acting on the tip from the United States, authorities searched the ship and seized 1,400 rifles and pistols and about 30,000 rounds of ammunition as well as the gas masks.

The captain of the vessel admitted that the shipment had come from North Korea, according to the newspaper, which said the plan was for the arms to be unloaded in Turkey and transported by land into Syria to support the government of President Bashar Assad.

The revelation comes amid international outrage over accusations that Syrian troops used chemical weapons against civilians suburbs of Damascus last week. Any connection between North Korea and the alleged attacks could further isolate North Korea.

…

This is not the first time that North Korea has been accused of supplying equipment related to chemical arms to Syria. In November 2009, Greece seized almost 14,000 suits that provide protection from such weapons on a North Korean ship they believed was headed to Syria. South Korean authorities also intercepted a North Korean shipment of protective gear on a vessel sailing near the South Korean port of Busan that year.

“There is a long-term relationship between North Korea and Syria, similar to the agreement with Iran, on nuclear and conventional weapons,” said Park Syung-je, a military expert at the Asia Strategy Institute in Seoul. “I don’t see any signs that it has diminished.”

A Syrian delegation was reported to have visited Pyongyang, North Korea’s capital, in late July. The Korean Central News Agency quoted North Korean leader Kim Jong Un saying the talks were aimed as “boasting bilateral relations” between their countries.

Read the full story here:
North Korea tried to ship gas masks to Syria, report says
Los Angeles Times
Barbara Demick
2013-8-27

Posted in Arms shipment, Illicit activities, International trade, Syria | Comments Closed

North Korean Economy Watch

Archive for 2013

North Korea’s minister of trade releases information on recent foreign economic cooperation at forum in China

DPRK approves ROK flag and anthem for first time

Pyongsu to open new pharmacy in Phyongsong

Rodman makes second trip to DPRK

DPRK Economic Development Commission

ROK to donate $6.3m to DPRK

North Korea enthusiastically promoting tourism industry to attract foreign investments

DPRK develops tourism as one of its “major industries”

Masik Ski Pass News

DPRK tried to ship gas masks to Syria

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