Archive for the ‘Civil society’ Category

Kim Jong-un’s new year address (2014)

Wednesday, January 1st, 2014

A new year has begun, so most DPRK watchers are analyzing Kim Jong-un’s new year address (a return to a practice established by Kim Il-sung which was replaced by the “joint editorial” in the Kim Jong-il era). I have compiled most of the good analysis of the speech below.

First of all, you can watch the full speech here (in Korean):

You can read the full speech on KCNA here (English, Korean). For those of you who cannot access KCNA, click here to read a PDF of the speech in English and Korean.

Commentary:

38 North and here

New York Times

Washington Post

Institute for Far Eastern Studies

Yonhap and here

Choson Exchange

Stephan Haggard

Council on Foreign Relations

Nautilus Institute

Hankyoreh

New Focus International

Evans Revere

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Dennis Rodman’s third trip to DPRK

Thursday, December 19th, 2013

UPDATE 2 (2013-12-26): A couple of the individuals involved in getting Rodman into the DPRK for his second trip (post-Vice) have written an op-ed explaining their motivation. According to the article:

Sometimes private citizens can ease tensions between governments when public officials cannot.

Since we met NBA Hall of Famer Dennis Rodman in May, we have been helping to coordinate his visits to the Democratic People’s Republic of Korea and organize an international basketball tournament sponsored by Irish bookmaker Paddy Power. Seeing as our government has branded the DPRK a “critical” national security threat, we find it reflects badly on Foggy Bottom that the three Americans best acquainted with its supreme leader are a retired NBA star, a mixed martial arts fighter and a tuba-playing human geneticist.

Mr. Rodman constantly reminds those around him to “just do one thing: Do your job.” Now it seems he is picking up some of the slack for the U.S. State Department.

Despite decades-old antagonisms, it was ultimately not confrontation but détente between the capitalist and communist blocs that brought the threat of global nuclear war to an end. Perhaps the most memorable episode of this process was President Richard M. Nixon’s visit to the People’s Republic of China and the period of Ping-Pong Diplomacy that laid the groundwork for it; USA/PRC relations were theretofore nonexistent. As Klaus Mehnert put it, the country “had been closed off so completely that there seemed to be about as many astronauts going to the moon as there were foreign observers getting into China.”

In 1967, presidential candidate Richard Nixon expressed his hope for détente with Peking, writing, “There is no place on this small planet for a billion of its potentially most able people to live in angry isolation.” On Christmas 1970, People’s Daily ran a front-page story with a photograph of Chairman Mao Tsetung and American journalist Edgar Snow standing side by side atop the Tien An Men rostrum; at the top of the page, the day’s Mao quote: “All the peoples of the world, including the American people, are our friends.” While Washington dismissed this gesture given Snow’s sympathy for Mao, in retrospect it seems it was intended as a subtle olive branch.

With spring came a chance meeting between American and Chinese ping-pong players concluding with an exchange of gifts. This simple act of humanity touched off a string of cultural and, later, diplomatic interactions.

Days later, the American team was invited to Peking. President Nixon took the opportunity to announce an easing of sanctions and his hope for normalized bilateral relations and “the ending of the isolation of Mainland China from the world community.”

Henry Kissinger’s secret visit to Peking that summer paved the way for “the Week that Changed the World.” Although Nixon and Mao certainly did not see eye to eye, their shared view that diplomacy is preferable to both isolation and war made normal relations between Washington and Peking possible.

The value of cultural exchanges consists in their power to erode misconceptions. For instance, Dr. Terwilliger spent a month this summer in Pyongyang teaching human evolutionary genetics to a class of very talented Korean undergraduates.

Aside from teaching scientific critical thinking, he took care to present his students with the best side of the American people, to demonstrate that we are a generous and friendly people rather than the “brigandish aggressors” of the familiar caricature. He was both surprised and encouraged by their interest in Mr. Rodman’s February visit.

They noted that hearing Mr. Rodman say nice things about their country made them rethink their stereotypes about Americans, for they had now seen one embracing their leader. Many had even read Mr. Rodman’s autobiography and remarked that they admired his frankness in describing the difficulties he faced in his early life.

Such reactions can only bode well. Hostility is inevitable when the common man on each side sees highlighted only the worst aspects of the other. Mutual understanding is where rapprochement starts.

While the first few timid steps may proceed slowly as trust is built, the example of Ping-Pong Diplomacy demonstrates that if the momentum is sustained it can offer governments new options with which to pursue peace and may even be developed into a full gallop (what the Koreans call “Chollima speed”) toward rapprochement. At the very least, track-two diplomacy can present unique opportunities for engagement between private citizens whose governments remain at odds.

Mr. Rodman would be the first to recognize that he is neither a politician nor a diplomat — and yet, that is precisely what makes him such a promising agent of reconciliation. As a cultural icon, Mr. Rodman has the power to project a relatable human face in a way a government functionary simply cannot: by doing down-to-earth things all people can enjoy.

Our government has repeatedly missed the basket, but at least this time Mr. Rodman is there to pick up the rebound. As he has said, “[Kim Jong Un] loves basketball. … Obama loves basketball. Let’s start there.”

An associate professor at Columbia University in New York City, Joseph D. Terwilliger was a member of Dennis Rodman’s September and December delegations to Pyongyang. John Doldo IV, a Watertown native who has also spent time in North Korea, has been working behind the scenes helping to coordinate many aspects of the project. Both authors worked on a strictly voluntary basis in order to avoid any financial conflict of interest.

UPDATE 1 (2013-12-24): According to NK News, the Irish gambling company Paddy Power has decided to end its sponsorship of Rodman’s trips to the DPRK. According to the article:

Irish betting company Paddy Power has ended its partnership with Dennis Rodman and his “basketball diplomacy” initiative.

“We have been reviewing the partnership on an ongoing basis, and with the benefit of hindsight, we probably got this one wrong,” company spokesman Paddy Power (and son of Paddy Power’s founder, Paddy Power) tells NK News.

“Circumstances have changed quite a lot in North Korea; there has been worldwide scrutiny of the North Korean regime, probably more in the past month than in the past couple of years.

“There has been almost total condemnation of North Korea worldwide, and we’re really responding to that.”

Though they won’t be involved, Rodman’s plan to bring 11 other former NBA players to Pyongyang is still a go, according to Power.

“We have spoken to Rodman’s people,” he says. “The event is apparently still happening, but we just won’t be a part of it.”

“Dennis is very appreciative of Paddy Power’s support up to this point for this historic game of basketball diplomacy taking place on Jan. 8th,” Rodman’s agent Darren Prince told the Associated Press.

Here is an article on the history of Rodman and Paddy Power.

ORIGINAL POST (2013-12-21): Dennis Rodman has made his third trip to the DPRK. Trip one post here. Trip two post here.

The organizer, Michael Spavor, has been tweeting the trip here. Based on his pics, here is the appx itinerary:

1. Arrive at night and drive to hotel (motorcade). 2013-12-19

2. Meeting with sports minister. Poto with sports minister. Meeting room. 2012-12-20

3. Dennis Rodman “leads” training for DPRK team. Game scheduled against an American team in January. Pic 1, Pic 2, Pic 3, Pic 4, Pic 5. 2012-12-20. Here is AP video of the training. Rodman is smoking a cigar.

4. Travel to Koryo Hotel for lunch. 2012-12-20

5. Travel to Korea Federation for the Protection of the Disabled. Pic 1, Pic 2, Pic 3. 2012-12-21

6. Travel to the Recuperation Center and pools at the newly renovated Munsu Water Park. Pic 1, Pic 2, Pic 3, Pic 4, Pic 5, Pic 6, Pic 7, Pic 7, Pic 8, Pic 9. 2012-12-21

7. Travel to Mirim Riding Club. Pic 1, Pic 2, Pic 3, Pic 4, Pic 5, Pic 6. 2012-12-21

Rodman and the group left the DPRK without meeting Kim Jong-un, however, I suspect that he will get together in the upcoming fourth trip slated to take place in January.

Journalists have asked Rodman about current events (Jang song-thaek, Kenneth Bae and human rights) in the DPRK, and he has responded. According to the Telegraph:

“It has nothing to do with me. I mean, whatever his uncle has done, and whoever’s done anything in North Korea, I have no control over that,” Rodman said in Beijing. “I mean, these things have been going on for years and years and years.

“I’m just going over there to do a basketball game and have some fun,” he said.

Ahead of the trip, Seoul-based North Korean human rights activist Shin Dong-hyuk said in an open letter in the Washington Post that Rodman should talk to Kim about human rights abuses in North Korea.

Rodman said it was not his place to talk about such issues.

“People have been saying these things here and there. It doesn’t really matter to me. I’m not a politician. I’m not an ambassador,” he said.

“I’m just going over there to try and do something really cool for a lot of people, play some games and try to get the Korean kids to play,” he said.

“Everything else I have nothing to do with. If it happens that he wants to talk about it then great. If it doesn’t happen I just can’t bring it up because I don’t (want) him to think that I’m over here trying to be an ambassador and trying to use him as being his friend and all of a sudden I’m talking about politics. That’s not going to be that way,” Rodman said.

Rodman is expected to provide North Korea’s national basketball team with four days of training during the trip.

Here is a video interview with Rodman at the Koryo Hotel. Here is much of what he said in the video printed in an article.

He also intends to return to Pyongyang in January with a team of fellow former National Basketball Association stars to hold basketball games on Kim’s birthday.

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DPRK’s “Economic Research” focuses on regional economic development zones

Sunday, November 10th, 2013

According to Yonhap:

North Korea is focusing more on diversified development of its economy and pushing regional industries to play a greater role in earning foreign capital, Pyongyang watchers said Sunday.

Observers in Seoul said that the Oct. 31 issue of “economic research” published in the North highlighted the need for regional governments to generate more revenue, bolster industrial output and earn more foreign capital.

According to papers in the research journal that offer a glimpse into how Pyongyang wants to run the country, factories in the provinces must strive to modernize and form close knit alliances with industries located in the capital city and with laboratories.

This call is similar to a speech given by Vice Premier Ro Du-chol on Wednesday at a ceremony marking the 40th anniversary of regional governments being given authority to generate profits and manage their respective budgets.

The senior official stressed that all cities and counties need to do their utmost to improve their economies and come up with necessary policy plans.

Such a move calls for redoubled efforts to attract overseas investments in mineral mines and other manufacturing facilities.

Ro’s remarks have been interpreted as Pyongyang paying more attention to regional economies and getting local authorities to take charge of providing for its citizens, instead of relying on the central government.

Related to such calls, the North recently announced that it will set up a total of 14 special economic zones across the country to pursue economic growth and bring in more investments. At present the communist country only has four such special zones, including those set up in Kaesong and the Mount Kumgang resort.

“There has been a trend coming into this year of the North paying closer attention to building up its regional economy,” said Cho Bong-hyun, an analyst at the IBK Economic Research Institute. The North Korean expert said that this may be a move by the North to bring about results on the economic front under the Kim Jong-un leadership.

Kim, who took over running the country following the sudden death of his father in late 2011, has called for the simultaneous development of the country’s nuclear capability and its economy.

This move is seen as a departure from the “songun,” or military-first politics, pursued by his late father, Kim Jong-il.

Read the full story here:
N. Korea focusing more on regional development: research journal
Yonhap
2013-11-10

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Recent DPRK wage increases / economic management changes

Wednesday, November 6th, 2013

UPDATE 3 (2013-11-14): North Korea accelerating economic reforms? Wages and prices to be self-regulated (IFES):

North Korea appears to be pushing for internal economic improvement measures. Chosun Sinbo, the pro-North Korean newspaper in Japan, released an article on November 6 that discussed various performance-enhancing management and operational changes that took place at the Pyongyang Essential Foodstuff Factory this year.

Chosun Sinbo referred to Kim Jong Un’s speech made last March at the plenary meeting of the Central Committee of the Workers’ Party about improving economic management and named the recent changes at the food factory as a pilot project for this purpose. The news article added that “There are studies to bring fundamental changes in economic management and specific measures are being made to turn this into a reality.”

The main systemic changes made at the Pyongyang Essential Foodstuff Factory were the increase in autonomy of the company and the enforcement of wage differential based on performance. Based on the principle of cost compensation, prices of products produced with raw materials at the factory may be freely adjusted after consulting with the state.

The news article further explained that “The principle of socialist distribution is a simple system of distributing as much as you earn and the cost of living is determined by labor productivity.”  It also reported that some of the employees’ wages increased. Such news is likely intended to advertise to the outside world about North Korea’s changing domestic economic policies.

The North Korean economic journal Kyongje Yongu has also been increasingly reporting on the principle of distribution based on economic performance. In the recent issue published on October 30, 2013 (issue No. 4), an article titled “The Principle Problem of Properly Implementing the Socialist Labor Wage System” criticized the equalization of product distribution as it decreases the enthusiasm of workers toward production: “The strength and life used during the process of labor must be compensated through the principle of earning the amount of your labor.” The article stressed that wages must increase with production and rationalized the need for such wage increase.

Chosun Sinbo and Kyongje Yongu articles reveal the long-term efforts by the North Korean government in enhancing research about economic improvement measures and expanding projects in various factories, companies, and cooperative farms to implement these measures.

Recently, North Korea launched the State Economic Development Commission and organized a number of international forums on special economic zones.  These can be construed as possible signals toward economic reform, as North Korea continues to make various changes in its internal economic policies.

UPDATE 2 (2013-11-7): Another story of note in the Daily NK ties factory wage increases to the ability of enterprises to negotiate prices with the state:

Choson Sinbo, the regular publication of the pro-North Korea General Association of Korean Residents in Japan (Chongryon), has published news of a Pyongyang-based food factory being used as a testing ground for independent economic management. The enterprise fixes prices semi-independently in discussion with the state and pays increased wages, the piece, published yesterday, explained.

The publication conveyed, “Pyongyang Essential Foodstuff Factory became a test unit and conducted research in order to enact changes to overall economic management. They are currently implementing these.”

It continued, “Of particular note is the organization of production and economic management based on cost compensation principles and the socialist rules of division. Pyongyang Essential Foodstuff Factory has enacted the measures for themselves and prepared the collateral to allow for expansion and reproduction.”

“This factory has shed the state planning model and sources its own materials, and in discussion with the state it has been able to set its own prices as it sees fit. There is also a measure currently being adopted that provides monthly allowances in consideration of the labor of the employees,” it further emphasized.

However, a high-ranking defector was skeptical when asked about the piece, telling Daily NK, “These factories produce things like soybean paste, soy sauce, salt and side dishes. They have always played the role of distributor to the people, so there is no way that they would be able to just set prices how they wish on these products. It’s likely that the measures focus on work teams making apple and pear beverages, liquor and beer; things that do not relate to improving the lives of the people.”

UPDATE 1 (2013-11-7): The Daily NK follows up on the DPRK’s strategy to bring official wages in line with the price level:

North Korea’s decision to drastically increase the wages of workers in parts of the heavy industrial sector is designed to boost morale and improve productivity, the better to expand the country’s capacity to generate foreign currency income from investments in the exploitation of its mineral resources.

As exclusively reported yesterday by Daily NK, major industrial concerns in North Hamkyung Province such as Kim Chaek Iron and Steel Complex have raised wages by a factor of approximately one hundred, from a derisory 3,000 won per month, around half the market price of a kilo of rice, to 300,000 won. Thus far, 100,000 won of the total has been paid in cash and the remainder in kind in an attempt to head off the very real danger of dramatic price inflation that would result from 100% cash payments.

That such a substantial wage rise was only deemed feasible in enterprises with the potential to export primary or secondary resources for foreign exchange should not come as a surprise. Smaller domestic enterprises don’t have the liquid resources to take such a step. As with the Kaesong Industrial Complex, wages in cash and kind have always been more generous for workers in joint venture enterprises than elsewhere. The latest move reflects an extension of that reality.

At this early stage, experts believe that the measure is designed to create a business model for North Korea not unlike that on show at Kaesong, under which each province can improve its economic performance and attract greater quantities of foreign capital. By actively nurturing those rare businesses that are competitive in the regional environment, the country hopes to raise productivity overall.

A researcher with Industrial Bank of Korea, Cho Bong Hyun told Daily NK, “Raising salaries for enterprises in the minerals sector looks like an inevitable choice, since productivity couldn’t have been expected from light industrial enterprises when the operational level of most of those factories is so low.

Cho continued, “The Kim Jong Eun regime, which is currently concentrating on producing results in the economic sphere, made this decision based on the fact that for some time it has been earning foreign currency quite easily by exporting its mineral resources. They also hope that by raising salaries they can induce greater productive effort, since workers have not wanted to work properly since the public distribution system collapsed [in the 1990s].”

Yoon Deok Ryong, a senior research fellow with the Korea Institute for International Economic Policy added, “Kim Jong Eun has granted this autonomy to firms and raised wages in order to earn foreign currency and firm up his system. He wants to right the economy by discriminating in favor of businesses that are somewhat competitive.”

However, despite cautious enthusiasm for the latest step, the two experts cautioned that unless North Korea moves further in the direction of a market economic system, the measure might not prove effective.

Cho explained, “No matter how tightly the North Korean authorities seek to control economic activity, they will find it almost impossible to stop these wage rises inciting inflation and causing the value of the North Korean Won to nosedive even more. There is also the danger of conflict with between military and Party-Cabinet elements over the management of mineral resource enterprises that can be used to produce military goods.”

Yoon added that workers in enterprises excluded from the latest wage rises will not see the bigger economic picture, and will simply be aggrieved at there being no improvement in their own conditions. “Conflict is unavoidable,” he concluded.

ORIGINAL POST (2013-11-6): According to the Daily NK:

Wage levels for workers in some larger industrial enterprises have risen by a factor of approximately one hundred times, Daily NK has learned. The move, which was put forward as part of the “June 28th Policy” in mid-2012 and is designed to bring wages more into line with market price levels, appears designed to improve the productivity and competitiveness of major industrial concerns.

According to a source from North Hamkyung Province, the monthly wage of people working at Musan Iron Mine, Kim Chaek Iron and Steel Complex and Sungjin Steel Mill rose from an average of just 3000-4000 won up to 300,000 won in September and October. In an attempt to forestall the inflation that such a step would otherwise guarantee, 200,000 won of the payment is issued in goods, with just 100,000 won provided in cash.

The source explained to Daily NK on the 5th, “In September the order was handed down in the name of the State Economic Development Commission to Musan, Kim Chaek and Sungjin; it was about guaranteeing independence in terms of production and the authority to set salary levels. At the time most workers did not believe that they were going to be given a wage of 300,000 won, and are really surprised now that they are actually getting it.”

The source went on to assert that the same instructions have been handed down to all provinces, not only North Hamkyung. “Relatively more competitive” industrial enterprises in each province have been selected, he said, and are resetting wages at a higher level.

Explaining the system of payments in kind, the source said, “Because they are concerned about the danger of inflation being created by the wage rises, they give 200,000 won of it in rice, vegetables, side dishes, other necessities, and electronics. Only the remaining 100,000 won is given in cash.” Workers have been told “not to make purchases in public markets since the state is now providing for your daily needs,” although the instruction is not likely to be adhered to.

Predictably, the source revealed that the move has attracted attention from surrounding enterprises. “Workers who had been ‘off sick’ are coming back,” he said, “and workers from other enterprises have been descending on us after hearing that we are getting a lot of wages and other stuff.”

The move appears designed to increase the competitiveness of major industrial enterprises in North Korea, and to improve the attractiveness of joint ventures to companies in China.

At the time of writing, the dramatic wage increase has not generated rice price inflation in public markets in the North Hamkyung Province region. For example, the price of rice in Musan is currently stable at around 5,800 won/kg.

On this, the source concluded, “Because some of the wages have been given in kind, demand in markets will not rise for the time being.” However, he cautioned that later, when workers attempt to buy and sell the products they have received, instability and inflation could result.

Read the full story here:
Wages Rise 100x in Heavy Industry
Daily NK
Lee Sang Yong
2013-11-6

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FIFA supporting development of sport in the DPRK

Thursday, October 31st, 2013

2013-10-31-international-football-school

Pictured Above (Google Earth): The Pyongyang International Football School and support facilities

According to the Korea Herald (Yonhap):

International soccer’s governing body FIFA has provided funds worth $500,000 to build infrastructure to update a soccer academy in Pyongyang, a media outlet reported Thursday.

The International School of Football opened earlier this year and has been training North Korean youths between the ages of 6 and 13, according to a report by Radio Free Asia.

The Washington-based broadcaster said support was given as part of its “goal project” to help build football-related infrastructure in less affluent countries.

FIFA started providing support to the North from 2001 onwards, with around $2 million having been spent so far on six development projects.

Related to the school, North Korean media said its leader Kim Jong-un in June personally designated a name for the new facility that opened on May 31.

Read the full story here:
FIFA gives funds to improve soccer academy in N.K.
Korea Herald (Yonhap)
2013-10-31

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Agreements on Cooperation between DPRK and Mongolia signed

Monday, October 28th, 2013

According to KCNA (2013-10-28):

Agreements on Cooperation between Governments of DPRK, Mongolia Signed

Pyongyang, October 28 (KCNA) — An agreement on cooperation in the fields of industry and agriculture and an agreement on cooperation in the fields of culture, sports and tourism were signed here on Monday between the governments of the DPRK and Mongolia.

Present there from the DPRK side were Kim Yong Nam, president of the Presidium of the DPRK Supreme People’s Assembly, Pak Ui Chun, minister of Foreign Affairs, Ri Ryong Nam, minister of Foreign Trade, Kim Jong Suk, chairwoman of the Korean Committee for Cultural Relations with Foreign Countries, Pak Kil Yon, vice-minister of Foreign Affairs, Kwak Il Ryong, vice-minister of Land and Maritime Transport, Hong Kyu, DPRK ambassador to Mongolia, Jong Song Chan, vice general director of the General Bureau of Software Industry of the DPRK, and officials concerned.

Present from the Mongolian side were Mongolian President Tsakhiagiin Elbegdorj, Luvsanvandan Bold, minister of Foreign Affairs and Trade, Manibadrakh Ganbold, Mongolian ambassador to the DPRK, Khaltmaa Battulga, minister of Industry and Agriculture, Tsagaandari Enkhtuvshin, secretary general of the National Security Council, Tserendejid Byambajav, chief of the General Staff of the Armed Forces, Khabshai Erjan, vice-minister of Road Transport, Lundeg Purevsuren, national security and foreign policy advisor to the President, Amgalanbaatar Ganbaatar, advisor for mass liaison and mass policy to the President, Pureb Altangerel, secretary of state for the Ministry of Culture, Sports and Tourism, officials concerned and staff members of the Mongolian embassy here.

The agreement on cooperation in the fields of industry and agriculture was inked by Ri Ryong Nam, minister of Foreign Trade, and Khaltmaa Battulga, minister of Industry and Agriculture, and the agreement on cooperation in the fields of culture, sports and tourism by Kim Jong Suk, chairwoman of the Korean Committee for Cultural Relations with Foreign Countries, and Luvsanvandan Bold, minister of Foreign Affairs and Trade, on behalf of the governments of the DPRK and Mongolia.

Meanwhile, the 2013-2015 plan for exchange in the IT field between the General Bureau of Software Industry of the DPRK and the IT, Post and Telecommunication Bureau of Mongolia was signed.

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Evaluation of Kim Jong Un’s first two years: The rise in construction of sports and entertainment facilities and exports to China

Wednesday, October 16th, 2013

Institute for Far Eastern Studies (IFES)
2013-10-16

The first chairman of the National Defence Commission of North Korea, Kim Jong Un, took office two years ago. Since then, construction of sports and entertainment facilities are reported to have increased considerably. According to the South Korean Ministry of Unification, North Korea’s Pyongyang Folk Park (September 2012), Taesongsan General Hospital (March 2013), and Haedanghwa Service Complex (April 2013) were recently completed. Since the launch of the Kim Jong Un regime, the Masik Pass Ski Resort and other similar sports facilities have been undertaken and are nearing completion.

In addition, the People’s Theatre (April 2012), Rungna People’s Pleasure Ground (opened in July 2012), Sunrise Restaurant (September 2012), and Unification Street Center (September 2012) have been recently renovated. In addition, the Mirim Riding Club, Pyongyang Gymnasium, Munsu Wading Pool, Aprok (Yalu) River Amusement park, Karma Hotel, and New Day Hotel and other hotels around Pyongyang are currently under renovation and repair. Entertainment and sports facilities around other major cities are being constructed as well. Furthermore, after the successful launch of Kwangmyongsong 3-2 last December, North Korea has begun to construct major residential complexes for scientists, granting them preferential housing in Unha scientist residence, Kim Il Sung University educator residence, and Pyongsong residence. Other large-scale housing projects are also reported to be under development.

In the wake of major celebrations in North Korea — such as the 100th anniversary of the birth of Kim Il Sung and 60-year anniversary of the “Victory in the Fatherland Liberation War” — a large memorial was erected and existing facilities were repaired. Specifically, the Korean People’s Army Exhibition of Arms and Equipment, Kumsusan Memorial Palace, War Victory Monument, and the Cemetery of the Fallen Fighters of the KPA were refurbished.

Unlike the large-scale construction of sports and entertainment facilities, new constructions of harbors, roads, power plants and other social overhead capital (SOC) is reported to be in decline.

Last August, North Korea’s trade with China has shown an 8 percent increase in exports and 6 percent decrease in imports, following a similar trend from last year. According to the South Korean Ministry of Unification, North Korea’s current trade volume with China is reported to be 4 billion USD (1.89 billion USD in exports and 2.2 billion USD in imports).

North Korea’s most popular export items are mineral resources such anthracite, coal, and iron ore. In the case of clothing products — which are mostly consigned processing — there has been an increase of 42 percent (200 million USD) against the previous year. Major categories of imports from China are crude oil, food, and fertilizers. Compared to the previous year, food imports have declined 57 percent (17.4 million tons), and fertilizer and crude oil imports are also showing gradual reduction at 27 percent (18.3 million tons) and 6 percent (34.6 million tons), respectively.

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Overseas restaurant earnings

Tuesday, October 15th, 2013

According to the Washington Free Beacon:

North Korea’s global network of state-run restaurants, most in China, are dens of espionage and sites of operations involving tens of thousands of overseas North Koreans who send the regime in Pyongyang more than $100 million in hard currency annually, according to U.S. and western intelligence officials.

In Asia alone, the U.S. government has identified 60 restaurants ranging from Nepal to Cambodia to Dandong, China – located along the Yalu River separating China from North Korea.

Additionally, North Korea has dispatched up to 40,000 guest workers abroad. The workers are forced to live in slave-like conditions and provide a large portion of their funds to the communist government, said officials who discussed intelligence on the operations on condition of anonymity.

North Korea’s restaurants have become important sources of currency. The restaurants make annual payments to Pyongyang of between $10,000 and $30,000, according to defectors from North Korea with direct knowledge.

From the 60 restaurants in Asia—including 44 in China, one each in Bangladesh, Burma, Malaysia, Nepal, Indonesia, and Laos, and five each in Cambodia and Vietnam—up to $1.8 million is remitted to Pyongyang.

Under Kim Jong-Il, Kim Jong-Un’s predecessor and father, all North Korean foreign intelligence stations were directed to procure their own funds. “The Reconnaissance General Bureau has been using its North Korean restaurants in Beijing to finance its operations,” one defector said.

The North Koreans operate 11 restaurants in the Chinese capital; six in Shanghai and six in Dandong near North Korea.

Many of the restaurants feature a traditional cold noodle dish and include song and dance numbers by North Korean waitresses and singers who intelligence officials say are also trained in the black arts of intelligence seduction.

The restaurant network is controlled by the North Korean military’s General Reconnaissance Bureau—specifically, Bureau 39, which is in charge of gathering hard currency for the regime. The Bureau is part of North Korea’s vast political police and intelligence system designed to keep the totalitarian communist regime of ruler Kim Jong-Un in power.

The General Reconnaissance Bureau is under Gen. O Kuk-Ryol, a National Defense Commission vice chairman, who has been directly linked by U.S. intelligence to North Korea’s production of counterfeit $100 bills so convincing they have been dubbed “supernotes.” The Treasury Department recent issued a new $100 bill with security features designed in part as a result of the North Korean counterfeiting.

The restaurants also have been linked to money laundering operations and other illicit activities by North Korea, whose agents in the past have been implicated in illegal drug trafficking.

The Pyongyang Koryo Restaurant in Dandong was opened in 2012 and is the largest franchise with more than 200 staff workers. It is located in a five story building on the Yalu River separating China from North Korea.

Another mission of the restaurants is to spy on South Korean travelers who frequent the restaurants. Defectors say waitresses at the eateries are trained in intelligence gathering with an emphasis on prying corporate secrets from business travelers.

The restaurants are also meeting places for North Korean intelligence officers and North Korean agents. Officials, businessmen, and overseas workers also frequent the restaurants to recruit targets for foreign intelligence services, including the Central Intelligence Agency (CIA), China’s Ministry of State Security, and South Korea’s National Intelligence Service, as well as other spy agencies.

You can read the full story here:
North Korea’s Overseas Restaurants Used for Espionage and Gaining Hard Currency
Washington Free Beacon
Bill Gertz
2013-10-15

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Ruediger Frank on the DPRK economy

Tuesday, September 24th, 2013

Ruediger Frank writes in the East Asia Forum:

After decades of being divided into a population of a small and mostly invisible elite and everyone else, a middle class of about 2 million people is on the rise. These are the people who have mobile phones, use taxis and show a remarkable diversity in clothing and accessories. The local 7-inch tablet computer, ‘Samjiyŏn’, sells for US$180 and comes with the Android operating system and a number of apps such as a dictionary, changgi (Korean chess), and a collection of the works of the two deceased former leaders, Kim Il-sung and Kim Jong-il.

The quality of life in the capital differs significantly from the rest of the country. Some observers believe this will increase discontent; but it also smartly diverts attention away from the shiny examples of foreign metropolises spread on pirated DVDs and USB sticks, and offers the population a domestic Xanadu. The key question for social stability is thus not what peasants in the countryside dream about, but what middle-class Pyongyangites aspire to. Meanwhile, the number of solar panels and small windmills is rising, which is the countryside’s solution to having less privileged access to power.

Despite all the changes, many of the old problems remain unsolved. Prices rise, speculation is rampant and frustration grows in sync with corruption and an ever-more obvious gap between the poor and the new middle class. It would be unrealistic to imply that Kim Jong-un even theoretically had the chance to improve the lives of the majority of his people significantly within a year of taking over. But he has not been idle. Inequality in North Korea is a sign of deepening change. A growing income and welfare gap between individuals indicates that the economy is on the move away from socialist egalitarianism towards capitalist diversity.

Read the full report here:
North Korea’s rolling economic reforms
Ruediger Frank
East Asia Forum
2013-9-24

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US hip hop performers film video in DPRK

Wednesday, September 18th, 2013

UPDATE 4 (2014-1-8): You can see the video here:

UPDATE 3 (2014-1-7): The Guardian offers additional information on the rap video trip here:

Pacman and Peso have granted the Guardian an exclusive preview of the video – as well as their first interview about an adventure in the world’s most despotic regime.

The genesis of their music video was a random encounter earlier this year with Ramsey Aburdene, a 25-year-old Washington-based investment banker who liked their music and became their manager. Aburdene had a friend who used to be in the military and specialises in getting people into Pyongyang, so they hatched the plan to shoot a rap video there.

No one involved in the trip could easily articulate why exactly North Korea was an appropriate backdrop for the music video. But they still managed to raise $10,400 on the crowd-funding website Kickstarter.

Interviewed recently in Aburdene’s bedroom in a shared house in Mount Pleasant, Pacman, 19, and Peso, 20, recounted their surreal, eye-opening experiences in North Korea.

They managed to film their rap video inside Pyongyang’s faltering metro, beside the demilitarized zone bordering South Korea, on a rice farm and in front of various North Korean monuments, not least the Kumsusan Palace of the Sun, an ornate mausoleum for Kim Il-sung, the so-called founder and eternal president of the country, and his son, Kim Jong-il.

Before arriving in North Korea, the group took part in a tour through Asian countries including China, Hong Kong and Mongolia. But it almost began in disaster in Beijing, when the rap entourage, which included some of Aburdene’s university friends, decided to hire motorcycles.

Peso, whose real name is Dontray Ennis, collided with a car near Tiananmen Square and, aware that he was not insured, fled. An angry crowd apprehended Pacman, whose real name is Anthony Bobb. “I was like, man, we ain’t going to North Korea. I’m gonna get locked up in Beijing,” Pacman recalls. “This shit gonna be on the news.”

After some ad-hoc diplomacy and a visit to a car repair shop, the group was let free, but missed their flight to Hong Kong, arriving late for the next leg of the journey – hosted by their main financial backer.

James Passin, a 41-year-old hedge fund manager who has poured millions of dollars in Mongolia, and also has business interests in North Korea, donated $5,100 to their Kickstarter campaign.

Described in BusinessWeek as ‘The American Who Bought Mongolia’, Passin was keen to be involved in the project. “He actually wanted to be in the North Korea video, but then his advisors told him it was probably better not to be,” Aburdene said.

Instead, Passin invited the rapping tour to Hong Kong, where he happened to be hosting his investor conference – and birthday celebration – in the Grand Hyatt hotel. Later, Passin flew the group to Ulan Bator, the capital of Mongolia. It was Peso’s favourite stop on the whole tour, not least because of the generous hospitality of their host. “The moment we arrived we got chauffeur rides to the hotel,” he said. “I had lobster with some fries while I was sipping on Sprite,” said Pacman.

Returning briefly to Beijing, the group picked up some tailored silk suits in preparation for North Korea. But by then the situation in Pyongyang had changed.

It was the end of November, and Merrill Newman, an 85-year-old Korean War veteran, had been detained in North Korea. The State Department strongly discouraged American citizens against visiting North Korea, the first warning of its kind since Pyongyang began allowing tourists into the country in 1995.

Pacman and Peso were being compared to Dennis Rodman, the former basketball star who has developed unlikely friendship with Kim Jong-un. Unlike Rodman, who is currently in Pyongyang accompanied by a fleet of former basketball players, the DC rappers did not have the blessing of Kim Jong-un, or indeed anyone else from North Korean officialdom.

Instead, they had always planned to travel beneath the radar, shooting their video under the cover of a sightseeing tour. With the five-day trip just hours away, the entourage began to realise that an interview with the BBC was probably not the best way to maintain a low-profile. Shortly before boarding, they read a Gawker article mentioning how, despite the State Department advice, “a much-publicized trip by two DC rappers, Pacman and Peso, is going ahead as planned.”

“All the buzz we were getting, I thought we were gonna get hemmed up, captured,” said Pacman. His rapping partner agreed: “I was like: uh-oh. Are we gonna make it?” They put their worries behind them and flew to Pyongyang regardless.

When the aircraft doors opened, they walked out to the sound of snapping cameras. “As soon as I seen cameras, I started being myself,” said Peso. “I started flipping my jacket open, smoking my cigarette in front of the cameras, turn[ing] round to make sure they got the suit.”

Despite the the flurry of attention from Associated Press journalists at the airport, the rappers succeeded in going largely unnoticed in North Korea.

Each day, Pacman and Peso hopped on a tourist bus, which ferried them to approved locations across the country in the company of government-sanctioned tour guides. So as not to attract attention, they used a small, Canon camera to shoot video, filming segments surreptitiously whenever their minders were looking the other way. Microphones, headphones, or amplified music were out of the question. Instead, they improvised. “We were just spitting the voice that was in our head,” Peso said. “It was just work, work, work, non-stop.”

They were not helped by the sub-zero temperatures and snow. There was rarely heating in any of the buildings and the silk suits provided little comfort. “One of the North Koreans, he gave me his coat,” Pacman said. “I asked him if he wanted it back, and he was like, ‘Nah, just keep it for the rest of the night.’”

Memories such as that left both young men with a positive experience of North Korea. They still speak about their recollections in dreamy monologues. “The old ladies looked like they were carrying the heaviest things. The army people walking down the street had guns,” said Pacman. “You see a whole bunch of rice fields. People was riding bikes. The little kids was walking down the street by themselves, they must have been in first grade. But everybody waved.”

One month on, both Pacman and Peso say they still feel energised by their journey to North Korea. They look and sound more animated than before they departed, when the anxiety was showing on their faces. “No-one has made a music video in North Korea before. Or even thought about it,” Peso said proudly. Pacman said his rapping had improved since their return. “It sounds stronger, the words are coming faster, quicker,” he said.

Smiling, he remembers the elation he felt when they departed Pyongyang. “The first thing I thought was: we made it out,” he said. “We beat the odds.”

UPDATE 2 (2013-12-1): According to the Associated Press:

The two rappers said their trip shied away from politics.

“I mean we did not go there to be political. We just go down there to shoot our video and that about the reason why we went, not political,” said Pacman – whose real name is Anthony Bobb.

The duo from the Washington area spoke to reporters at an airport in Beijing upon their return from a five-day trip to North Korea.

“Nobody shot a video in North Korea, let alone thought of it. Nobody even thought of making a video in North Korea. You know what I’m saying?” said Peso, whose real name is Dontray Ennis.

More in The Guardian.

UPDATE 1 (2013-11-8): According to the Guardian:

Pacman and Peso have never traveled much beyond the poor suburb of Washington DC where they live. But after a successful internet fundraising drive, the unsigned hip-hop duo will next Saturday embark on a trip, to shoot a video they hope will jumpstart their career, with an unlikely destination – North Korea.

After raising $10,400 from their  Kickstarter campaign, the pair will first fly to China and then on to Pyongyang, where they plan to film songs such as “God Bless Amerika” on a party bus.

Neither of them have flown on an airplane. They say they only recently discovered that North Korea was a foreign country.

Comparisons are inevitably being made with Dennis Rodman, the former basketball player whose visits to North Korea resulted in an unlikely friendship with the country’s dynastic leader, Kim Jong-un. But Pacman, 19, and Peso, 20, unsigned artists in search of a record deal to lift them out of poverty, are on the cusp of a very different kind of trip.

The story of the rap duo’s adventure could only be forged in a place like Washington, a deeply divided city where separated communities only occasionally overlap. A few months ago, Pacman was walking through his neighbourhood, Congress Heights, when he came across a group of twentysomethings shooting a music video. He struck up a friendship with one of the group, a white, 24-year-old investment banker named Ramsey Aburdene, who has since been managing the pair in his spare time.

Aburdene, from DC’s affluent north-west quadrant, had an acquaintance who happened to be an expert on North Korea. Mike Bassett, 34, is a former Iraq war veteran who was lived for seven years in South Korea, four of them with the US army.

A self-described pacifist, Bassett has become a fixer for people interested in traveling to Pyongyang. A Master’s student at American University, he has coordinated several cultural exchanges and traveled extensively in the country since restrictions were eased in 2010.

He has arranged the two rappers’ flights and visas, and laid the necessary groundwork for their tour. Bassett insists North Korea is misunderstood in the eyes of the west, and says Pacman and Peso will be treated with courtesy. Still, he has felt it necessary to provide the young rappers with some cultural advice, and instructed them to amend some of their lyrics.

An entourage consisting of Pacman, Peso, Bassett and Aburdene, plus other friends, departs next Saturday. At their leaving party in Washington on Thursday, in a bar near Aburdene’s house, Peso and Pacman provided well-wishers with an introduction to their debut mixtape.

Once or twice, the crowd broke out into chants of “North Korea”. But no-one really seemed to know exactly why the pair were traveling to the autocratic state, least of all Pacman and Peso. “I’m a thrill-seeker, I don’t fear nothing,” said Pacman, a smiley, baby-faced teenager whose real name is Anthony Bobb. “I like an action movie. I can’t sit and watch a drama flick – it takes too long.”

Pacman said people keep telling him not to go; his aunt tried to talk him out of the trip and his mum told to him to watch his back. “Me personally, I don’t pay too much to politics, so I can’t say what is right. Then again, who is to say what is right and what is wrong?”

His serious-looking partner Peso, from Landover, said: “I’m excited – the only thing I’m not excited about is the plane.” He added: “We’re changing the game. Nobody has shot a video in North Korea like we’re about to do.”

Asked if he was worried for his safety, Peso, whose real name is Dontray Ennis, replied: “You don’t think this is a dangerous place to be living at right now? There’s your answer, then.”

The idea that Pacman and Peso are just as likely to be subject to arbitrary detention, arrest and mistreatment in the streets around their home as Pyongyang has become a theme in the promotion surrounding their trip. It was the thrust of a piece profiling the pair in the Washington Post, which helped them easily surpass their fundraising goal of $6,000. The 4,000-word feature gave the pair huge exposure in the city, not least because the reporter interviewing them, Monica Hesse, was stopped and searched by police in the process.

“We’re not trying to be political heroes or anything like that,” said Aburdene. “We understand there is terrible stuff going on in North Korea, but there is terrible stuff going on here that people aren’t straight up about.”

Both Pacman and Peso have spent time in jail for minor offences. There is no doubt their day-to-day lives are not comparable to that of of the predominantly white community that is fast gentrifying America’s capital.

Aburdene said that he trusts Bassett when it comes to protecting the party’s safety in North Korea. He is not worried they will be detained, but is concerned their footage might get confiscated and said he realised they may need to tread carefully. “Even if it’s not a standard, crazy, party-like thing, I’ll enjoy the anthropological side,” he said.

But beneath the bravado, there appears to be at least a hint of anxiety on the part of the two young rappers.

At one point during a pre-show interview, Peso seemed only half-joking when he talked about the pair maybe being killed in North Korea. “If we don’t die, it will probably be a big life-changer,” he said.

He looked a little uncertain, before adding: “Can I ask you a question? What do you think is going to happen when we go over there?

ORIGINAL POST (2013-9-18): US hip hop performers to film video in DPRK. According to the Washington Post:

A few weeks ago, a Kickstarter project was posted on the Internet featuring two young men who went by the names of Pacman and Peso. The duo and their producer were using the crowdsourcing site to raise money for a creative endeavor; they wanted to make a music video. A rap music video. They wanted to do it on a karaoke party bus. They needed only $6,000, a fairly modest sum, considering that this estimate also included lodging and two overseas flights. The video, you see, was going to be filmed in Pyongyang.

North Korea.

Rappers Pacman, 19, and Peso, 20, are raising $6,000 to make a music video. They want to do it on a karaoke party bus in Pyongyang, North Korea. Here, they spend time in the District and Maryland, making music and spending time with family and friends.

“This trip will be a fantastic opportunity for Pacman and Peso to meet young, dynamic people and significantly broaden their horizons,” read the proposal, which was posted Aug. 30, “in addition to jump starting their musical careers.” The title was straightforward and surreal: “Pacman & Peso Make a Music Video in North Korea.”

So, yes, it sounds weird. Two African American youths from Southeast D.C. and Prince George’s County have paired with a white part-time producer from Northwest D.C., and they all want to go to North Korea because they see it as their best shot at a better future. Call Christopher Guest. Call Dave Chappelle. Someone is pulling your chain.

Unless, of course, it’s real. Unless it’s complicated. Unless it’s a whimsical windmill-tilt of a heartbreak.

“My goal was to rap,” says Peso, 20, whose real name is Dontray Ennis. If it wasn’t that, it was football. “But other than that, it was either doing wrong in the streets, or getting locked up.”

“This is my only option now,” he says of North Korea. “If it was to work.”

Read more here.

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