Archive for January, 2014

North Korea promoting localization of raw materials for light and construction industries

Monday, January 20th, 2014

Institute for Far Eastern Studies (IFES)
2014-1-20

North Korea is encouraging “localization” of raw materials in light and construction industries from this year to improve the lives of the North Korean people.

On January 7, Rodong Sinmun introduced that various Cabinet organizations were espousing the New Year’s address of Kim Jong Un. It reported, “The Ministry of Light Industry’s executives and employees are engaging in discussions to explore ways to increase localization of raw materials in light industry factories.”

Pyongyang City rally was held earlier this month at the Kim Il Sung Square pledging to accomplish national tasks put forward by Kim Jong Un. Tong Jong Ho, Minister of Construction and Building-Materials Industry delivered a speech that vowed to “make an unprecedented leap in localization of building materials (cement, glass, metals, and other construction materials),” by repairing building materials factories in all provinces.

The Choson Sinbo, pro-North Korean newspaper in Japan reported on January 2 that at the New Year Meeting at the Pyongyang Socks Factory, the plant manager, Lee Sung Hui made a speech and promised to “raise the level of socks production and localization of raw materials to a higher level in Vinalon and PP fibers (synthetic) this year.”

North Korea is promoting light and construction industries as the key sectors to improve the living standards of the people and asserting localization of raw materials should take precedence to make advancement in these fields.

In his New Year message, Kim Jong Un emphasized that the lighting industry had a “significant role in improving people’s lives,” and the construction sector was “at the frontline to providing a place of happiness for the people.”

In particular, he encouraged modernization of factories in light industry and directed normalization of production and placed great importance on localization of raw materials.

Many experts analyze the rising emphasis on the localization of raw materials this year reflect the intentions of the North Korean authorities to achieve realistic and achievable policy goals first. However, localization of facilities entail construction of domestic production base but this is met with limitations such as international sanctions and lack of foreign currency which is not an easy issue that can be resolved in a short period.

From 2012, North Korea’s launch of a long-range rocket and third nuclear test was accompanied with rising weight on the importance of localization of equipment and technology. On December 3, 2013, Rodong Sinmun carried an article entitled, “Localization and National Pride,” that reported on the onsite inspection visits by Kim Jong Un to various economic sectors where he underscored the importance of “equipment, materials, and elements of localization” and “our strengths and technology” on many occasions.

North Korea acclaimed the launch of long-range rocket in December 2012 was a “successful launch of a satellite based on 100 percent domestic science and technology.” Then in February last year immediately following the nuclear test, it boasted, “Thrilling clap of independent nuclear thunder broke out based on 100 percent of our own wisdom and technology.”

Share

KPA Journal Vol. 2, No. 12

Monday, January 20th, 2014

The latest issue of KPA journal came out a few days ago. You can download it here.

Topics include:

  • KPN 30mm CIWS
  • KPA Lessons Learned From Foreign Conflicts (III)
  • Spaced Armor Screening for KPA Tanks
  • KPA Antennas (II)
  • KPN Training Aids
  • Organization of the KPA Tank Battalion
  • Editor’s Notes and Endnotes

A comprehensive index of all articles published in KPA Journal is available here.

Share

My work at NK News Pro

Friday, January 17th, 2014

NKNews-logo-2013-7-30

New products and price points! Sign up here

I joined the NK News service as a reader and as a regular contributor. From May 1, 2013 most of my original work will appear there.

North Korean Economy Watch will continue to be updated with generally available public information so it will continue to serve as a useful resource to journalists, academics, policy makers, and the NGO community.

All of my contributions can be found here, but below are links to individual posts

20. East Pyongyang’s new shopping mall.

19. Satellite imagery reveals major urban development in Rason.

18. Identifying the Ibiza of North Korea: Where Kim Jong-un met Rodman.

17. Three new railway updates.

16. Kim Jong-un holds guidance meeting at Kangdong compound.

15. North Korea’s Supreme Court: Where Americans go for sentencing.

14. DPRK expands tourist access to Kalma Penninsula (related story here)

13. First live picture of Kim Jong-un tweeted at new KPA cemetery in Pyongyang

12. Rason Trade Fair 2013

11. New Central Bank Headquarters in Pyongyang.

10. Wonsan International Airport. Follow-up here.

9. Contributed to James Pearson’s piece on Kim Jong Un’s yacht

8. North Korea’s ‘Torure’ rail transport system 

7. Kim Jong-un’s east coast guidance trips

6. New Yalu/Amnok River bridge

5. DPRK’s ski destinations

4. New residential construction in Chongjin. Follow story up here

3. DPRK’s Turf Institute

2. DPRK propaganda changes

1. DPRK’s drone testing site

Share

World Vision to donate US$1m in assistance

Thursday, January 16th, 2014

According to Yonhap:

 A U.S. private relief agency plans to provide aid worth US$1 million to North Korea this year to help support North Korean children and other vulnerable people, a news report said Thursday.

World Vision Inc. also plans to provide clean water to more than 8,000 North Koreans in provincial areas while providing nutritional assistance to children under the age of six, according to the report by the Washington-based Radio Free Asia.

The Christian organization plans to expand its humanitarian project in other rural areas, the report said.

Read the full story here:
U.S. relief agency to give aid worth US$1 mln to N. Korea
Yonhap
2014-1-16

Share

Some new satellite images

Tuesday, January 14th, 2014

Below are the first public satellite images of the new Munsu Water Park and Mirim Riding Park.

Munsu-wading-pool

 

Mirim-riding-park

Share

Kim Jong-un increases economic inspections in 2013

Tuesday, January 14th, 2014

According to Yonhap:

North Korean leader Kim Jong-un nearly doubled his inspection tours of the economy last year, the unification ministry said Tuesday, underscoring his pledge to improve the country’s economic conditions.

Kim made 71 economy-related public appearances out of a total of 209 public outings last year, the ministry said, citing data released by the North’s state media.

In 2012, Kim made 37 economy-related public appearances out of a total of 151 public appearances.

Kim has called for efforts to boost agricultural output in a country where the U.N. World Food Program says the food security situation is still serious, with 84 percent of all households having borderline or poor food consumption.

Meanwhile, the young leader visited military bases and made other military-related public appearances on 62 occasions, compared with 49 in 2012, the ministry said.

The figures suggest that Kim still places major importance on the country’s 1.1 million-strong military, a key backbone of the power he inherited upon the death of his father, the late leader Kim Jong-il, in 2011.

Kim Jong-il advocated military-first, or “songun,” politics that channeled the country’s scarce resources into the armed forces, helping him maintain their loyalty.

Kim Jong-un’s public appearances also offered a rare glimpse of the rise and fall of his aides.

In 2012, Kim’s once-powerful uncle Jang Song-thaek accompanied the leader on 106 occasions, followed in a distant second by Choe Ryong-hae, the North Korean military’s top political officer, with 85.

A year later, Jang accompanied Kim on 52 occasions while Choe accompanied the leader on 153 occasions, according to the ministry.

Choe, a former provincial chief of the ruling Workers’ Party, appears to have secured a position as the country’s new No. 2 figure following the December execution of Jang on charges of treason.

Read the full story here:
N. Korean leader nearly doubles economic inspections
Yonhap
2014-1-14

Share

DPRK-China trade

Tuesday, January 14th, 2014

From the PRC’s Global Times:

“Like the ancient Chinese verse that goes ‘a duck knows the coming of springs beforehand,’ the so-called ‘gray’ trade on the border of China and North Korea serves as a thermometer of North Korea’s politics and economy,” Lin Jun, a merchant from Dandong, a border city of Northeast China’s Liaoning Province, told the Global Times. Lin has 12 years of experience in Sino-North Korean border trade.

Since Jang Song-thaek, allegedly the second powerful man in North Korea, was purged in December, the northeast Asian country has released mixed signals toward the outside world: On the one hand, it seems to be toughening its political stance, but on the other, it pledges continued reconciliation with South Korea and further economic development.

The sensitive border trade between the two countries has witnessed dramatic ups and downs during recent months.

“My North Korean partner came by speedboat on December 30, bringing orders from Sakchu, Bakcheon and Pyongyang, demanding all the goods ready by the next day,” said a man surnamed Deng, who works for Lin.

“However, the next day he suddenly called to cancel the deals without giving any reason. There was no such precedent, even after North Korea conducted the nuclear test [in February last year],” he said.

Luxury goods

“Two years ago, North Korean people mainly needed cooking oil, rice, garments and second-hand electric appliances,” Deng told the Global Times reporter when taking his ship to Sakchu down the Yalu River.

“Nowadays, they will also ask for Apple computers, iPads, cell phones, Japanese washing machines and brand-new fridges, though the consumers of these luxury goods are mostly officials. Even senior officials in Pyongyang are using tablet computers bought from us,” Deng said proudly.

Such gray trade between China and North Korea has been an established fact for a long period, Lü Chao, a Korea expert with the Liaoning Academy of Social Sciences, told the Global Times.

He noted that it was quite commonly seen at border areas that people throw a pack over from one side of the border and those on the other side would pick it up and go away on a motorcycle, hence “gray trade” is also known as “bag-throwing trade.”

Given the long border between China and North Korea and the common language people living around the border share, it is hard to eliminate such trade, Lü noted.

However, although gray trade was not fully legal, it was indeed a supplement to the North Korean economy and a market always short of goods, especially for people’s daily lives, Lü said.

“Those engaged in the border trade are definitely not ordinary people,” Cui Mingxuan, a Dandong businessman who has retired from border trade for more than a year, told the Global Times.

Read the full story here:
Gray trade
Global Times
2014-1-14

Share

Black market home prices falling

Thursday, January 9th, 2014

According to Radio Free Asia:

Houses in impoverished North Korea are fully owned by the government and trading on them is forbidden. But some dwellers “sell” their homes illegally with the approval of corrupt officials to cash in on the acute shortage of homes.

Sources in provinces along North Korea’s border with China told RFA’s Korean Service that the value of their home transactions had fallen by as high as 85 percent from last summer.

“Housing prices in Gilju-gun, North Hamgyong province, dropped to around U.S. $500 from what was U.S. $3,300 last summer,” a source from the province told RFA’s Korean Service on condition of anonymity.

He said that in North Hamgyong’s Cheongjin city, the trading price for a two-bedroom home had plummeted to around U.S. $3,300 from U.S. $8,300 in the summer last year, and yet no buyers were showing any interest.

Another source from Yanggang said housing prices in his province had been similarly affected in the last several months.

“I was barely able to afford my house near the Yalu River [separating North Korea from China] at around U.S. $3,300 early last year,” he said, also speaking on condition of anonymity.

“The trading price of my house, which was still U.S. $3,300 in August last year, has now dropped to about U.S. $990.”

The Yanggang source said the housing crash began in the fall in the capital Pyongyang and had led to widespread unease because the cause of the depreciation remained unknown.

He added that it was impossible to guess how far prices would drop.

Other sources said that the market crash had led to increased tension in the affected areas.

Read the full story here:
Housing Prices in North Korea Plunge on Black Market
RFA
2014-1-9

Share

Dennis Rodman’s fourth trip to North Korea

Wednesday, January 8th, 2014

UPDATE 9 (2014-1-18): Joseph Terwilliger gives an interview here.

UPDATE 8 (2014-1-18): The AP reports that Rodman has checked into rehab:

Dennis Rodman has checked into an undisclosed alcohol rehabilitation center to treat his long-time struggle with alcoholism, his agent says.

Darren Prince declined on Saturday to say which facility will treat Rodman and how long he will be there. Rodman recently returned to the United States from his latest trip to North Korea.

He later apologized for comments he made in North Korea about a detained American missionary, saying he had been drinking and was under pressure as he organized an exhibition game there. He also sang “Happy Birthday” to North Korean leader Kim Jong Un at the start of the friendly game.

“What was potentially a historic and monumental event turned into a nightmare for everyone concerned,” Prince said. “Dennis Rodman came back from North Korea in pretty rough shape emotionally. The pressure that was put on him to be a combination `super human’ political figure and `fixer’ got the better of him.

“He is embarrassed, saddened and remorseful for the anger and hurt his words have caused.”

UPDATE 7 (2014-1-14): The apologies, via the Associated Press:

Former basketball star Dennis Rodman apologized on Monday for not being able to help an American missionary detained in North Korea while he played there to celebrate the birthday of his friend and leader Kim Jong Un.

“I’m sorry, I’m sorry I couldn’t do anything,” Rodman told media on his arrival at Beijing airport from a weeklong trip. “It’s not my fault. I’m sorry. I just want to do some good stuff, that’s all I want to do.”

He said he would return to North Korea next month, but gave no details.


Acknowledging the controversy surrounding the trip, one of the players, Charles D. Smith, said Rodman “opened the door and he did some missteps along the way.”

In an interview in Beijing, Smith said Rodman’s singing of “Happy Birthday” to Kim before the exhibition game at a Pyongyang stadium was something that he alone had decided to do. “I think that it might not have been the right thing to do, but he did it … if it was done in private it would be different, but when it’s done in the open like that, people are going to have opinions.”

During the trip, Rodman was also slammed for not using his influence with Kim to help free Kenneth Bae, the missionary in poor health who has been detained for more than a year for “anti-state crimes.” Rodman apologized last week for comments he made in a CNN interview implying Bae was at fault, saying he had been drinking and was upset because some of his teammates were under pressure to leave.

Smith said the controversy surrounding Bae was a “bad situation” that “overshadowed some of the things that we were doing.”

“Dennis is not a member of the State Department, he is not a member of the U.N.,” Smith said. “For them to put the flag in his hands and say go and negotiate and talk about it, he probably would have made it worse, you know.”

He said North Korean officials had invited the team back “at any given time.”

On Monday, Rodman reiterated that his trip was one of goodwill.

“This is not a bad deal,” he said. “I want to show people that no matter what’s going on in the world, for one day, just one day, no politics, not all that stuff.

“I’m sorry for all the people and what’s going on, I’m sorry,” he continued. “I’m not the president, I’m not an ambassador, I’m just an individual that wants to show the world the fact that we can actually get along and be happy for one day.”

Rodman and Kim struck up a friendship when the basketball-player-turned-celebrity first traveled to the secretive state last year.

UPDATE 6 (2014-1-9): KCTV footage of the visit has been made public. The fist video shows Rodman’s delegation meeting with Kim Jong-un, presenting him with customized vodka bottles, singing “Happy Birthday” to Kim Jong-un, then offers game highlights.

The second video shows the game itself.

UPDATE 5 (2014-1-8): Dennis Rodman sings “Happy Birthday” to Kim Jong-un. Here is Simon Cockerell talking about the game via Skype.

UPDATE 4 (2014-1-8): According to the Daily NK, the DPRK is using the Rodman game to treat Chinese investors.

A source in China informed Daily NK on the 8th, “Some Chinese traders who have given a great deal to projects in Pyongyang, including the construction of department stores, shops and restaurants, have been invited to go and celebrate Kim Jong Eun’s birthday. All accommodation, food and travel while in the country is being covered by the Chosun side, and all other expenses are to be borne by the invitee.”

“Chosun [North Korea] has only invited a select group, and there will only be two or three officials from the Chinese side, so the total number of people won’t have exceeded 30. Their schedules for today are to attend the friendly basketball game and then inspect Pyongyang [Munsu] Water Park. Later there will be a tour of Kaesong and Panmunjom, and I hear that a number of banquets have been prepared,” the source went on.

By hosting the group in this way, Kim Jong Eun is following in the footsteps of Kim Il Sung and Kim Jong Il, both of whom invited foreign business people and dignitaries to partake of their birthday celebrations. The only difference is the small number of invitees, the lack of publicity outside the country thus far, and the fact that today is not actually a North Korean public holiday.

“Kim Jong Eun has not done much in terms of showing himself off as yet,” the source posited, “and since he has a great many things to worry about at home right now, such as the execution of Jang Song Taek, he cannot host a large spectacle for this birthday this year. Nevertheless, it does appear that they want to convey their gratitude to foreign investors, so he’s invited them to help him celebrate.”

Furthermore, “These invitations have been extended because there is a sense of urgency about attracting investment for special economic zones and other projects that call for capital. After creating a genial atmosphere via the tourist activities, they will actively work to encourage the invitees to invest in things like the construction of water parks in each major city.”

Meanwhile, a second source has revealed that the North Korean authorities have also summoned a select group of provincial cadres to Pyongyang for the birthday celebrations. The source from North Hamkyung Province reported to Daily NK, “Some provincial cadres have gone up to Pyongyang for the Marshal’s (Kim Jong Eun’s) birthday celebrations on January 8th. This has not been officially reported to the people, and cadres are the only ones being quietly called up.”

UPDATE 3 (2014-1-7): Dennis Rodman completely lost it during this live interview on CNN. Here is Andray Abrahamian’s response.

UPDATE 2 (2014-1-7): A traveler visiting the DPRK to see the Dennis Rodman game has introduced Bitcoin to the DPRK. Here is an instagram photo of the first Bitcoin transaction in the DPRK.

UPDATE 1 (2014-1-6): Apparently Paddy Power is still funding this trip despite publicly bowing out during Rodman’s last visit. According to the Irish Times:

Just before Christmas, Paddy Power withdrew sponsorship of Rodman’s event, saying this was as a result of general condemnation of Pyongyang. This followed the rare public purge of leader Kim’s powerful uncle Jang Song-thaek, who was executed last month.

The company said it “took a back seat” after those events but would still “honour all of its contractual obligations”.

ORIGINAL POST (2014-1-4): Rodman has made three trips to the DPRK. Here are links to the first, second and third trips. In a gesture towards his fourth trip he has named a slate of basketball players that will be joining him for an exhibition match in honor of Kim Jong-un’s birthday.

According to Sports Illustrated:

Dennis Rodman has named a team of former NBA players to participate in an exhibition basketball game in Pyongyang, North Korea.

Rodman leads a team that includes former NBA All-Stars Kenny Anderson, Cliff Robinson, and Vin Baker. Craig Hodges, Doug Christie and Charles D. Smith are on the team, as well. They will play against a top North Korean Senior National team on Jan. 8, marking Kim Jong Un’s birthday.

and…

Rodman calls the game his version of “basketball diplomacy.”

“My previous travels have allowed me to feel the enthusiasm and warmth of fans,” Rodman said. “The positive memories and smiles on the faces of the children and families are a testament to the great efforts we have put into fulfilling our mission wherever we go voiding any politics. We are all looking forward to arriving in Pyongyang, meeting the citizens, visiting various charities and using the opportunity to develop new relationships that result in our annual return.”

Here is some more infor on the players.

Share

UN WFP assistance to the DPRK falls in 2013

Wednesday, January 8th, 2014

According to Yonhap:

North Korea received record-low food aid from the United Nations food agency in 2013 due to sluggish contributions from the international community, a media report said Wednesday.

Some 38,000 tons of food were delivered from the World Food Program (WFP) to the impoverished communist country in 2013, some 30 percent of the agency’s target for the year, according to the Washington-based Radio Free Asia (RFA).

It was less than half the amount sent in the previous year and the smallest since 1996 when the agency began helping the North, the report said, adding it was attributable to the WFP’s failure to raise enough funds to achieve the goal.

The amount of the U.N. agency’s food aid to the North has been fluctuating from some 136,000 tons in 2008, 50,000 tons in 2010, 100,000 tons in 2011 and 84,000 tons in 2012, according to WFP data.

Citing its dark fund-raising prospects in 2014, the WFP told the RFA that most of its factories for producing nutrition biscuits for the people there were on the verge of shutting down in February.

The daily food rations for the people in the North came to some 400 grams per person last year, far lower than the minimum recommended amount of 600 grams and the North Korean regime’s target amount of 573 grams, the WFP said.

North Korea’s food production is estimated to have been at about 5.03 million metric tons in 2013, up 5 percent from the previous year, according to the WFP report posted on its website.

The food security situation, however, is still serious, with 84 percent of all households having borderline or poor food consumption, it added.

The North’s leader Kim Jong-un put an emphasis on food production in his New Year’s message last week, saying “all efforts should go for agriculture … in order to build a strong economy and to improve the people’s livelihoods.”

Here is the UNFAO November 2013 food security assessment.

Here is additional analysis from Benjamin Silberstein.

Here are previous posts on “Food“, “Agriculture“, “International Aid“, “International Aid Statistics“.

Read the full story here:
WFP’s food aid to N. Korea hits all-time low in 2013
Yonhap
2014-1-8

Share