Choson Exchange has published their 2015 annual report. Read it here to learn about the interesting work they are doing in the DPRK.
Archive for April, 2016
Choson Exchange 2015 report
Tuesday, April 19th, 2016North Korea’s natural resource risks: Kim Jong-il’s own take
Thursday, April 14th, 2016By Benjamin Katzeff Silberstein
As North Korea debates and experiments in economic strategies, it’s always interesting to go back and look at older debates of a similar nature. While reading vol. 14 of Kim Jong-il’s Collected Works (Sonjib) I stumbled upon an interesting speech attributed to Kim from 1995.* Whether it was foresight or just common logic of political economy, Kim actually warned of the risks of North Korea becoming a mere natural resource exporter to other countries, without reaping the full benefits of trade. Recall that one of the charges against Jang Song-taek was selling out the country’s natural resources for his own benefit. The issue itself, of course, is much older.
In the speech, given to an audience of Central Committee functionaries, Kim attacks cadres that have a faulty understanding of foreign trade under socialism, and think only about how their own “units” (단위) can make foreign currency profits (p. 8). He also emphasizes the need to calculate all the costs involved with foreign trade, including production costs at home, to calculate actual profit.
The most interesting part, in my opinion, however, is where Kim gets to the natural resource question. Kim states that natural resources shouldn’t just be sold to other countries, but processed (가공) domestically to the greatest extent possible (p. 10). He says that “now, capitalists are buying natural resources at a cheap price from our country, processing them and selling them to a higher price.”
Kim complains that it’s a grave crime that capitalists are pocketing their own wallets by selling off North Korea’s own resources by processing them, and that North Korea could become mere suppliers to monopoly capitalism if it doesn’t start processing their natural resources itself. He also states that those who just sell off natural resources without processing are just like slaves to foreign countries.
Kim also warns people about thinking that foreign currency can be earned “for free.” “The imperialists and capitalists never give anything to anyone for free,” Kim states, and says that if capitalists say they have anything to give, it is because they have their own desires” (p. 11).
This speech is a reminder that North Korea has grappled with how to handle its natural resources for a long time, and it suggests that controversies abounded in the 1990s as well.
*These works are sometimes edited after the fact, sometimes several times over, but this edition is from 2000, published by the Worker’s Party Publisher (N’odongd’ang chulpan’sa). All translations are my own, and if anyone has any corrections to offer, please get in touch.
North Korea assesses three years of Byungjin Policy
Thursday, April 14th, 2016Institute for Far Eastern Studies (IFES):
Commemorating the third anniversary of Kim Jong Un’s announcement of the byungjin line — the parallel pursuit of nuclear weapons development and economic growth — North Korea emphasized the policy as a “milestone to the ultimate victory.”
On March 30, 2016 the North Korean state media Korean Central News Agency (KCNA) self-evaluated the country’s three years of byungjin policy, claiming that it has “raised the DPRK to a prosperous country of the people with almighty nuclear power.”
The media then listed recent weapons-related tests — such as that of a hydrogen bomb (forth nuclear test), submarine launched ballistic missile (SLBM), new-type large-caliber multiple launch rocket system (MLRS), simulation of an atmospheric re-entry of a ballistic missile, and solid-fueled engine that boosts the power of ballistic missiles — saying that the country “has both nominally and virtually shown its status as a world nuclear power.”
In regards to progress on the economic front, the media mentioned Wisong Scientists Residential District, Unha Scientists’ Street, Yonphung Scientists Rest Home, Mirae Scientists Street, Sci-Tech Complex, Munsu Water Park, and Masikryong Ski Resort, among others, claiming that “the plan has achieved three consecutive years of economic development and surprised the world.”
The report also emphasized that “the party’s byungjin line is not a temporary policy to confront the current stern situation, but the party’s revolutionary strategy and milestone to the ultimate victory, which will provide the greatest advantages in the revolution and the bright future for our nation.”
The media also noted that “the bright future awaits us upon our strong military and economic development by the nuclear program,” saying that “with the speed of Choson we will move forward to reach the top of strong prosperity.”
At the Party’s Central Committee plenary meeting on March 31, 2013, leader Kim Jong Un stated that “against the imperialists and their worshippers’ indiscreet nuclear threats and possible invasion talks, the party’s byungjin line will enable us to hold the nuclear power to build an economically strong country.”
In a new North Korean book publication, Looking at Today’s Choson from 100 Questions 100 Answers (in Korean), the byungjin policy is described as follows: “by relying on the nuclear energy industry, it will develop the nuclear capability and solve the energy shortage as well, thus strengthening the defense capacity and build the economy to better the living standards of the people.”
Meanwhile, to commemorate and signify the importance of the byungjin policy, on March 31, 2016 various North Korean run websites released photos of Kim Jong Un giving on-site instruction at military and economic-related facilities.
North Korea Establishes Korea Yongpung General Corporation
Monday, April 11th, 2016Institute for Far Eastern Studies (IFES):
North Korea has recently founded a trading company, ‘Korea Yongpung General Corporation’ (AKA: Korea Yongphung Corporation), which focuses on the shipping industry. On March 28, 2016 North Korean website Naenara introduced the company saying the “newly founded” company “is engaging in and expanding its various trade activities, development and cooperation.” Though the date of the establishment was not revealed, the use of “newly founded” suggests the company’s recent establishment.
According to the website, this new company’s parent is the larger Myohyang Shipping Co. (founded in 1993), and the new company is comprised of multiple companies such as Nos. 1 and 2 Trade Company, Myohyang Shipping Company, an investment trading company, and external economic technology development agencies.
This includes Ryukyung 105 Company and Ryushin Cooperation Company, with other companies and factories such as Ryukyung Condensed Milk, an iron smelt, spring mineral water factory, marine foodstuffs export factory, Taedonggang Construction Company, Myohyang seamen’s academy, Myohyang seamen’s station, and others. It purportedly also has networks of volunteers and stores throughout the country, as well as branches abroad — a foreign economic and technology cooperation agency in Russia and overseas representative agencies in China (Beijing and Dandong) and Singapore.
The new company focuses on such things as operation of freighters and joint venture ships, trading goods, mining, fisheries, construction and technological cooperation abroad, IT development, and development and sale of information technology goods.
In order to run the freighters and joint venture ships, the company recruits captains, chief engineers, navigators, and sailors through the Myohyang seamen’s academy. It is also in the process of developing and modernizing the Sohaeri mine and Toksong ophiolite mine.
In addition, Yongpung Information Technology Exchange Lab is said to be strengthening cooperation with others in information exchange for development of web and mobile programs, development and sale of software programs such as 3D games, and various technologies.
The external economic and technology development agencies are tasked with building international relations in construction, technological cooperation, and architectural ornamentation abroad. They also focus on ship repair and services, inter alia.
The website also introduced the company by saying it “advocates scientific management strategy and corporate strategy based on strong material technological foundation, to expand trading activities in various ways and promote long range ship chartering and joint venture ship operation while also promoting foreign investment of loadstone and ophiolite mining.”
Here is the text from the original Naenara article:
The newly established is expanding its activities for trade, development and cooperation.
Its predecessor is the Myohyang Shipping Company which was inaugurated in 1993. Now it has developed into a mammoth enterprise comprising Trading Companies No. 1 and No. 2, Myohyang Shipping Company, Investment Trading Company and External Economic Technology Development Company. Its business categories include operation of cargo vessels and joint-owned vessels, trade in commodity, mining, fishing, construction abroad, technical cooperation, IT development, production and sale of IT products.
Affiliated to the corporation are such companies as Ryugyong Company 105 and Ryusin Joint Venture Company; Ryugyong Chain Filling Station, Reduced Iron Factory, Onchon Spring Factory, Onchon Aquaculture Farm Seafood Exports; Taedonggang Construction Company, Myohyang Crew Training School, Myohyang Crew Transient Station and several other training centres and some commercial outlets in Pyongyang and other places of the country.
The corporations overseas branches are the External Economic Technology Cooperation Agency in Russia and missions in Beijing and Dandong, China, and in Singapore.
The operation of cargo vessels and joint-owned vessels, the main business categories of the corporation, are conducted by captains, chief engineers, navigation officers and other crews, all of whom are graduates from the Myohyang Crew Training School.
With mining as a key business category, the corporation directs great efforts to developing and modernizing Sohaeri Mine and Toksong Serpentinite Mine while paying due concern to inviting investment in these mines from foreign countries.
The promising talents of the Yongphung Information Technology Exchange Company are playing a pivotal role in promoting exchangs and cooperation with other countries in the development and sale of such software such as the wed mobile application and 3D games and technical services for various kinds of hardware.
The External Economic Technology Development Company is promoting exchanges and cooperation with several countries in construction, technical assistance, and architectural decoration and is briskly conducting trade activities including cargo vessel repair and service business.
According to its scientific strategies for business operation and enterprise management and underpinned by its solid material and technological foundations, the corporation is conducting multi-faceted trade activities, encouraging long-term chartering and joint operation of ships, putting emphasis on inviting investment in the magnetic iron ore and serpentinite mines.
Kim Jong-un’s mother’s grave (Ko Yong-hui)
Friday, April 8th, 2016I reported this in Radio Free Asia last week….
It has never been announced in the North Korean media, but Kim Jong-un has “quietly” built a grave for his mother, Ko Yong-hui, on Mt. Taesong.
Pictured above (Google Earth): The grave of Kim Jong-un’s mother, Ko Yong-hui.
The site where the grave was built was cleared of a few small buildings by May 2012 (Kim Jong-il died in December 2011). Construction appears to have been completed by October 2012.
Although the grave is on Mt. Taesong, it does not appear to be a revolutionary site. It is not featured on a nearby map of revolutionary sites on Mt. Taesong, and North Koreans are not being brought to it by the bus load (very little traffic in fact). Kim jong-un may have visited the grave unofficially, but never as a public ritual. The only foreigner I have spoken to who has visited the site saw only one guard on duty. So maybe someday years from now it is intended to be a revolutionary site, but not for now.
Back in 2010, Michael Madden posted this picture of Ms. Ko’s birthplace in Osaka, Japan. I was able to locate it on Google Earth at these coordinates: 34.663147°, 135.531080°
Ko’s father (Kim Jong-un’s maternal grandfather) was buried on Jeju-do in South Korea, but the family had his grave moved to an undisclosed location to prevent it from attracting crowds. It is highly unlikely that Kim Jong-un will ever visit this grave.
UPDATE: A reader sent in this very helpful information:
Ko’s father is not buried on Jeju-Do! This grave is a so-called “가묘”, an “empty or fake grave”. The reason for erecting a “가묘” was to be able to perform the (in Korean culture) important ancestor rites, since they are actually without any remains of the deceased since their whereabouts are mostly unknown. Especially after the Korean War, many “가묘” were erected in Korea, because many family members just disappeared …
Here is more information about the “fake” tomb of Kim Jong Un’s grandfather in Jeju-Do: http://m.blog.daum.net/_blog/_
m/articleView.do?blogid=0Li0k& articleno=7763730 Under the photo it is written “가묘” (for the empty/fake tomb)
On the tombstone you may read the following sentence: “사정에따라 허총을 만들다” (because of circumstances an empty/fake tomb was made)
Here they use 허총, this word has the same meaning as 가묘.
Further the following is written on the tombstone:
“His name was 고경택 (Ko Kyong-thaek)
He was born in 1913, in 1929 he moved to Japan and he died in 1999.
The last two lines mention the name of his father (Ko Yong-ok) and his six sons: Ko Yong Hun, Bong Hun, In Hun, Kwang Hun, Chol Hun and Sang Hun.
His daughters (among them obviously Ko Yong Hui) are not mentioned.
Those 가묘/허총 (fake tombs) can also be seen in North Korea!
The Korean wiki-page about the Patriotic Martyrers Cemetery in Pyongyang includes the following information:
“대한민국에서 사망한 김삼룡, 김달삼, 최일천, 조봉암, 김종태, 최영도, 최백근, 이현상 등은 가묘 형태로 묘소가 마련되어 있다.”
Roughly: (all the mentioned martyrs) died in South Korea, that is why a 가묘 had to be set up …
Gasoline prices in North Korea up by 52 pct in first week of April
Friday, April 8th, 2016By Benjamin Katzeff Silberstein
Daily NK reports some interesting (albeit anecdotal) price data from North Korea:
Firm sanctions imposed by the UN on North Korea have now been in effect for over a month. Although rice prices and the exchange rate in North Korean markets have remained relatively stable, the price of fuel has skyrocketed.
On April 4, Daily NK spoke with a source in Ryanggang Province who confirmed these facts. The price of 1 kilogram [the kilogram is the standard measurement of gasoline and diesel fuel in North Korea, though the liter is often used colloquially] of gasoline, which was 7,000 KPW [0.86 USD] at the end of March, increased in the first week of April to 10,700 KPW [1.32 USD].
This represents a 52 percent price increase in just a week.
Sources in North Hamgyong Province and Pyongyang have corroborated this news, reporting that prices in their regions are reflecting the trends prevailing in Ryanggang Province.
Diesel fuel prices have increased in tandem with gasoline. In Hyesan, 1 kilogram of gasoline is going for 6,350 KPW [0.78 USD] at the markets, a 1,000 KPW [0.12 USD] increase over last month’s prices.
This is a much smaller prices change — an 18 percent increase — but still significant.
A major factor behind the price spike is thought to be the large-scale construction projects that are underway, the source said, further noting that, “Workers mobilized for construction projects are saying that their worries are increasing at the same rate as fuel prices.”
Concerns that these prices will only continue to rise are widespread. Of particular importance, because planting season is just around the corner, farmers are also trying to procure fuel supplies for themselves, increasing demand and further exacerbating the situation. This has been made more difficult by the fact that fuel previously supplied to the markets through smuggling is comparatively harder to come by due to intensified crackdowns on these activities.
Furthermore, April and May are the prime months for catching mackerel, and June is when squid season gets underway. In anticipation of this busy period, fishermen are anxious to get their hands on fuel. “As the saying goes,” the source said, “fishing is survival, and the fishermen anticipate huge losses this year if they fail to secure an adequate supply of fuel right now.”
Citizens are divided over whether or not the sanctions are responsible for driving the increase in fuel costs, the source added. Although some believe that this is the sanctions beginning to show their effects, others are blaming the military for siphoning off supplies, pointing out that prices for other goods have remained constant.
As is often the case, it seems the price increases cannot be attributed to one single factor such as the sanctions. Aside from the factors cited above, it would not be surprising if expectations play a role and hoarding has increased, out of anticipation that sanctions may sooner or later impact prices.
Full article here:
April brings fuel price hike
Kang Mi Jin
Daily NK
2016-04-07
North Korean reforestation in practice
Friday, April 8th, 2016By Benjamin Katzeff Silberstein
On this blog, we’ve often written about forestry issues in North Korea. It’s a particularly interesting area from an economic point of view, because it embodies many of the fundamental problems with central planning in North Korea. DailyNK reports on how these problems continue to show up in the current reforestation campaign:
“On Arbor Day (March 2), the grounds still hadn’t thawed from the winter cold, so no matter how hard you try, the trees aren’t able to secure their roots,” a source from North Hamgyong Province told Daily NK on Wednesday. “There’s not enough manpower to dig through the frozen ground, and the tree and forest management offices are all for show. So from the initial planting stage, we’re unable to find healthy saplings to plant.”
(See this post for some pictures from the Russian embassy’s activities on Arbor Day).
Sources in Ryanggang Province and South Hamgyong Province corroborated this news.
“On top of that, those from above are pushing the citizenry to plant tens of thousands of trees in time for the ‘70-Day Battle’, so some people find tree segments without roots and just place them in the soil, before reporting them as progress made,” he added. “You can even see people who don’t have the money to buy these saplings, going out at night to uproot those planted elsewhere and transferring them to new areas that have been designated for forestation that month.”
North Korea has for many years pushed for reforestation in the spring with all-out campaigns, but the results have been negligible so far, according to the source. This is because the majority of the trees planted each year are unable to survive due to poor soil conditions and problems with sapling health. Even those that manage to survive do not last long in the absence of proper care.
Not only that, some people quietly cut down the trees to use for firewood, while others uproot them to cultivate the corn needed to feed their families, as many are planted on small mountain plots that were previously used by individuals to grow produce.
A defector with three decades of experience participating in reforestation campaigns in the North explained that such efforts are destined to fail as long as people are struggling to resolve fundamental necessities like securing enough food and fuel for heat.
“Outside of Pyongyang, people in the North don’t use gas to heat their homes, so they’re out looking for coal or firewood. Without enough coal in the rural areas, they have no choice but to go to the mountains and chop down trees,” said the source, who declined to be identified, adding that the situation is no different when the land needs to be cleared for crops.
South Korea previously supported the North’s reforestation efforts, the defector noted, adding that, “more than 100,000 trees were sent over during that time, but they probably all ended up in cadres’ furnaces,” emphasizing how futile these campaigns are when more pressing needs exist.
If the central government orders that trees must be planted, they must be planted, no matter the conditions on the ground. The problem, of course, is much deeper than just a lack of tree plantation efforts. As long as North Korea’s structural energy and food problems aren’t alleviated, campaigns like this one are bound to have little success in the long run.
Full article here:
Another year, another misguided attempt at reforestation
Kim Ga Young
DailyNK
2016-04-07
