North Korean Economy Watch

Google Earth is offering some new imagery of the DPRK so I wanted to point out a few of the new locations we can identify.  The Pyongyang imagery is dated 2011-3-15. The east-coast imagery is dated 2011-5-14.

1. Solar Equipment Center (태양열설비쎈)

(Google Earth Coordinates: 39.014504°, 125.662840° , Google Maps, Wikimapia)

Kim Jong-il visited this facility on October 9, 2011.  It produces solar water heaters (KCNA).

2. Kumkop (gold cup) Combined Foodstuff Factory (금컵체육인종합식료공장)

(Google Earth Coordinates: 39.009592°, 125.671213°, Google Maps, Wikimapia)

According to KCNA:

The factory produces rice cake, bread, confectionary, processed meat and drinks. It also has welfare facilities for its employees.

The drinks, including carbonated water and nutritious water, are made with natural medicinal materials good for recovery from fatigue and promotion of health.

3. New Taekwando Center construction:

(Google Earth Coordinates:  39.016453°, 125.681939°, Google Maps, Wikimapia)

This facility is due to be completed in July.  I am not sure what it offers that the other Taekwando Center located right next door doesn’t have.

4. Something new at the old baseball stadium:

(Google Earth Coordinates:  39.008113°, 125.679196°, Google Maps, Wikimapia)

5. Wonsan – Hamhung Road (Partial map):

(Google Earth Coordinates:  39.421286°, 127.272296°, Google Maps, Wikimapia)

Read more about this road here.

6. And not really new, but Kim Jong-il recently visited the wind power farm of KPA Air Force Unit 1016–so I thought I would post it:

This facility is located in Kwail County (과일군) at  38.442086°, 124.939944°.  I have also marked it on Wikimapia and Google Maps.  According to KCNA:

[Kim Jong-il] toured a wind power plant built by the unit. After being briefed on the plant, he went round its inside and outside to learn about its construction and output of electricity.

Very pleased to hear that servicepersons of the unit successfully completed the plant with high output capacity in cooperation with Kim Chaek University of Technology and scientific institutions, he gave a high appreciation of their merit.

I am relaxed to hear that pilots and servicepersons rejoice at the plant as they can freely use enough electricity for combat preparations while cooking and heating with it, he said.

Being told that the plant freed the unit from the shortage of electricity and some of excessive power is supplied even to a bathing resort in the unit’s stationary area, he said with high appreciation that the People’s Army has done good things for the people.

After his inspection, Kim Jong Il gave the accompanying commanding officials and staff members of the KPA Supreme Command precious teachings needed to further strengthen the KPA into an invincible revolutionary army of Mt. Paektu and thus defend the socialist motherland as firm as a rock.

Just east of this facility is an air force base, so it is reasonable to assume that this is the home of KPA Air Force Unit 1016:

This wind power farm is not the KPA Air Force’s only or even largest experiment with wind power. Below is a Google Earth image of a facility in Ongjin County:

This facility is located in Google Earth here: 37.941508°, 125.409778°. I have also tagged it on Wikimpaia and Google Maps. It contains four wind turbines on two different sites (as of 2010-7-4).

I have uploaded a short clip to You Tube that is taken from North Korean television.  It shows a romanticized account of the installation of these specific wind power turbines.  You can see the clip here.

Pictured above (Google Earth): Manwoldae Palace in Kaesong, DPRK. See in Google Maps here.

According to Yonhap:

South Korea’s Unification Ministry said Sunday it has allowed a group of historians to visit North Korea this week for the resumption of a long-stalled joint project to excavate an ancient royal palace site.

The approval is another sign of lessening tensions on the divided Korean Peninsula, as Seoul is easing restrictions on civilian contact with Pyongyang following a year of animosity caused by the North’s deadly military attacks on the South.

On Monday, 14 South Korean historians will travel to the North’s border city of Kaesong, the site of Manwoldae, the royal palace of the Goryeo Dynasty that ruled the Korean Peninsula from 918 to 1392.

During their 10-day stay in Kaesong, the South Korean experts will conduct a safety survey on the site with their North Korean counterparts, a ministry official said.

“Based on the results of the safety survey, the joint excavation work will begin on Nov. 24 for one month,” the official said on the condition of anonymity.

The two Koreas launched the excavation project in 2007, but South Korea halted it last year as part of its sanctions against Pyongyang for the March sinking of a South Korean warship blamed on the North.

Seoul’s new Unification Minister Yu Woo-ik, who took office in September, has said he would consider “flexibility” in dealing with North Korea. The ministry is in charge of North Korea policy.

Kaesong served as the capital for most of Goryeo’s reign. Now it is home to an industrial complex run by both Koreas.

The Choson Ilbo also covered this story.

Read the full story here:
S. Korea OKs historians’ visit to N. Korea
Yonhap
2011-11-13

Here is the relevant satellite imagery from Google Earth which shows the construction of the facility (which began in late 2005):

Image Dates: (L) 2005-8-5, (R) 2005-10-5

Image Dates: (L) 2006-11-11, (R) 2009-4-16

Image Dates: (L) 2010-3-28, (R) 2010-10-6

You can see the facility in Google Maps here.

Here is the story according to KCNA:

Pyongyang, November 9 (KCNA) — The Ryongsong Water-purifying Station has been built on a modern basis.

Latticing, detritus chamber, settling basin and others were successfully built to ensure the flow of clean water into the River Pothong and provide the people in the capital city with better living conditions and circumstances.

A ceremony for its completion took place on Wednesday.

Present there were Vice-premier Jon Ha Chol, officials concerned, scientists, builders and workers.

Hwang Hak Won, minister of Urban Management, addressing the ceremony, noted that the station was perfectly completed in a short span of time.

He stressed the need to strictly abide by the requirements of the technical regulations in managing and operating the station, further perfect the processes and make green-belt in its surrounding area.

Additional information:

1. Some Pyongyang water sanitation projects  have been funded by Kuwait Fund for Arab Economic Development.

2. Here is a previous post on waste management in the DPRK.

Pictured above (Google Earth): The towns mentioned in the article below from which the Kaesong Industrial Zone could draw more labor: Pongchon (봉천), Kumchon (금천), and Phyongsan (평산).

Institute for Far Eastern Studies (IFES)
2011-10-20

According to South Korea’s Ministry of Unification (MOU), the “May 24 Sanctions” that went into effect after the sinking of the naval boat Cheonan was relaxed and began to permit the resumption of construction of businesses in the Kaesong Industrial Complex (KIC). In addition, plans to build fire stations and emergency medical facilities in the area are also currently underway.

After South Korean Grand National Party chairman Hong Jun-pyo visited KIC on September 30, 2011, the ROK government has reached the following decisions: 1) to allow the resumption of halted factory constructions; 2) to build a fire station and emergency medical facility; 3) to resume repair work for commuting roads for KIC employees; and 4) to extend the operations of commuter buses.

This means seven companies that received permits in the past to begin construction but stopped after the sanctions went into effect would be able to resume the halted construction projects.

According to the Ministry of Unification, the seven companies include three metal and machinery, three textile, and one electronic factories, taking up a total area of 103,527 square meters. The total site of production facilities of stage 1 businesses in the KIC reaches 2,171,900 square meters, in which the currently operating 123 companies take up 783,471 square meters. With the sanctions lifted, the total area of businesses in operation will reach 885,950 square meters.

In addition, five companies awaiting construction for expansion will have to wait a little longer. The authorities announced to discuss this issue at a later date, looking positively on their construction to resume shortly as well.

Also the MOU announced to push forward with the establishment of fire stations and emergency medical facilities, “to protect the properties and health of businesses and employees of the KIC. The plans to break ground for fire station will begin in mid-November and is expected to be completed by late next year.”

The layout for the KIC fire station was completed in December 2009 and 3.3 billion USD has been budgeted to fund the construction. The station will be constructed on a steel frame on a 3,305 square-meter lot with the total floor space to be around 2,182 square meters.

The Kaesong Management Committee has been operating a “fire/police station” from April 2005. But with occurrences of accidental fires since last winter, it has reinforced the number of fire engines and manpower – currently at a total of eight fire trucks and 36 fire fighters.

Medical facilities in the KIC will also be completed by the end of 2012 once the construction begins early next year. About 3 billion USD is set for this project.

Currently at the KIC, Green Doctor’s Cooperation Hospital is in charge of providing medical and health services in the KIC, with South Korea Green Doctor’s Kaesong Hospital treating the South Korean employees and North Korean Comprehensive Clinic treating the North Korean employees exclusively. The South Korea Green Doctor’s Kaesong Hospital is currently operated by volunteers at a clinic level. The hospital was in the process of improving the facilities to more than ten beds. However, this project was halted after the May 24 sanctions went in effect.

On another note, the MOU also announced that maintenance work for the road connecting Kaesong City to the KIC would begin. The road is normally used by North Korean employees of the KIC. It was also announced that the number and operation of commuter buses would increase to help with the commute. The buses operate in the 20 km radius; the plan is to increase that to 40 km. Since September 2010, the number of buses increased to 400.

There are plans to extend the service to cover the areas of Kumchon, Bongchon, and Pyongsang. However, the roads to these areas are unpaved and extension of transportation services to these areas will require negotiations with the North Korean authorities.

Although these measures will alleviate some of the problems faced by the businesses in the KIC, the MOU still stands firm on its position that North Korea must take responsibility and make formal apology for the Cheonan incident in order for a fundamental resolution of the situation to occur.

Via Geoffrey See at Choson Exchange:

On my last trip to Pyongyang, I had the opportunity to catch up with some Egyptian expatriates from Orascom Telecom Holding over popcorn and whiskey. They were also kind enough to bring our team clubbing into the wee hours of morning.

Orascom Holdings is three companies each headed by a different brother of the Orascom family. Orascom Telecoms is headed by Naguib Sawiris, while the resorts arm Orascom Development is run by Samir Sawiris, and the construction arm Orascom Construction by another brother. All three brothers have stakes in different assets in North Korea, with the infamous Ryuggyong Hotel owned by Samih Sawiris. As of May 2010, when I had met Samih Sawiris in Switzerland, he had yet to visit Pyongyang. Recent pictures from Pyongyang indicate that this has changed.

The most exciting development to us was Orascom’s 3G Internet service which was still under the testing phase. The plan is to roll out this service in the near future, although the service will only be available to resident foreigners in the initial phase. Approval for this service to be provided on a larger-scale to North Korean citizens, in any censored form, has yet to be given although the infrastructure to do so is in place. For foreign residents in Pyongyang, the service could offer cost-savings of up to 60-80 percent over current satellite internet offerings. There is no information on what security trade-off such a service might entail.

We also discussed text advertising and the current mobile service business. While text advertising is possible, there has yet to be approval for the company to run such a service. Currently, handsets cost Euro 50 each and there is a monthly subscription fee of 900 Won (we are not sure how this cost scales with usage). For reference, the unofficial exchange rate has fluctuated around 2500 to 3500 Won to 1 Euro this year.

Click here to see previous posts about Orascom and cell phones in the DPRK.

According to the Daily NK:

The North Korean authorities in Hamheung are demanding 150,000 won from each trader in local markets to support construction projects in Pyongyang, according to a source from the city.

“Since the start of October, Hamheung Municipal People’s Committee has been taking money from market traders on the premise that ‘You have to give material support to Pyongyang construction workers,’” the source told the Daily NK today. “In the case of traders in the markets in Hoisang and Sapo, they are being asked for as much as 150,000 won each.”

Hamheung is the most famous industrial city in North Korea, and as such has larger markets than many other places. Thus, given that each of the two markets mentioned by the source has more than 500 traders, if the authorities were to reach their goal figure then they would be able to take 75,000,000 won from each one.

However, the Market Management Office for each market already receives 300-500 won per day from traders in the form of a ‘stall tax’, with sellers of home appliances and other high priced goods paying 500 won and those who sell food only paying 300 won. Thus, 150,000 won represents a huge cost, and many traders are apparently reacting to the demand with incredulity.

The source also noted that this does not appear to represent a central Party directive, with only traders in South Hamkyung and Yangkang Province having been hit by it to date.

“In Hyesan Market in Yangkang Province, it is 100,000 won per trader,” the source revealed, adding, “It seems like a case of the provincial Party preparing funds to support Pyongyang construction by taking money from traders.”

Elsewhere, although traders are now angry at the demand for funding, everything else is good, with official market controls being very lightly implemented at the moment, according to the source.

“The market is open from morning to night, and with the exception of the usual crackdowns on grasshopper traders there are no notable inspections,” he revealed.

But then, he added sarcastically, “They are taking money from the market as if it were some kind of state industry, so maybe that’s why they are leaving it alone.”

Read the full story here:
To Hamheung Traders: 150,000 Won for Pyongyang!
Daily NK
Lee Seok Young
2011-10-18

Pictured above (Google Earth): Kaesong Industrial Zone (Sept. 2009)

According to Reuters:

South Korea said on Tuesday it will allow 120 of its firms to restart building a joint industrial park with North Korea, a fresh sign of tensions between the rival countries easing.

Construction of five factories can resume, and work to build seven new ones can go ahead, South Korea’s Unification Ministry said, 17 months after stopping activity in protest at what the South said was an attack by the North on one of its ships.

The South Korean firms employ about 46,000 North Korean workers at the Kaesong industrial park to make clothes, utensils and watches, taking advantage of cheaper labour and property than is available in the South.

According to the Choson Ilbo:

[The Ministry of Unification] will also build a fire station and hospital at the complex, repair a highway linking the city of Kaesong with the industrial complex, and add 45 buses to shuttle North Korean workers to and from the facility.

Previous posts on the Kaesong Zone can be found here.

Read the full story here:
S.Korea allows work at factories in North to restart
Reuters
2011-10-11

UPDATE 1 (2012-1-13): A reader sent in a picture taken from the recently published Architekturführer Pjöngjang (Order from Amazon here, and more on the book here and here). The book was published in May 2011, but inside is a picture containing the already renovated Mansu Hill Revolutionary History Museum.  You can see the picture here:

The caption on the photo reads  “Wall painting of Pyongyang from a birdseye view in the Paektusan Institute (photo taken 2007)”.

Thanks to a reader for sending this to me!

ORIGINAL POST (2011-10-11): A recent visitor to the DPRK took the following picture of the Korean Revolutionary History Museum on Mansu Hill:

See original photo here.  If you compare it with the photo I took in 2004, you can see that there appears to be some serious renovations going on:

I wonder what new revolutionary feats are being added to the museum’s displays?

Additionally, the Kim Il-sung statue is no longer under wraps, so it appears that it was covered for its protection from construction debris, not because it was being altered in any substantial way.

Click images for larger view.

According to KCNA (2011-9-22):

New posters have been produced in the DPRK to help more splendidly spruce up Pyongyang and hasten the harvest this year.

Poster “Let’s develop Pyongyang, the capital city of revolution, into a world-class city!” vividly reflects citizens all out to turn their city into a more beautiful and magnificent one.

Poster “Let us all go for harvesting!” depicts an agricultural worker at work with joy against the background of a coop field alive with harvesting. It arouses the people to go out for reaping in good time the crops cultivated with the sweat of their brow during spring and summer.

Click here to learn more about Pongyang’s recent renovations.

Pictured above (Google Earth): Kaesong Industrial Zone (Sept. 2009)

According to Yonhap:

With Seoul’s plan to build a hospital within the inter-Korean industrial park in the North stalled, more than 220 South Korean workers have had to be rushed to hospitals in the South for emergency treatment over the past five years, the Unification Ministry said Monday.

As many as 227 South Korean workers who were injured or fell ill while working in the joint complex in the North’s border town of Kaesong had to be transferred across the border to general hospitals in South Korean border cities between 2007 and June this year, according to the ministry.

Though a small clinic manned by two doctors and three nurses has been in operation in the Kaesong complex since 2005, it is only capable of administering simple first aid, it added.

To cope with steady demand for emergency medical services, Seoul had planned to set up a hospital with 10 beds and a dozen medical staff by the end of last year, and earmarked 326.8 billion won (US$301.7 million) in 2010 and 330 billion won in 2011 to fund the project.

But with the souring of inter-Korean relations over Pyongyang’s two deadly attacks on South Korea last year, Seoul has yet to even take the first steps toward building such facilities, according to the ministry.

“Our plan for a better medical environment for the Kaesong workers will be pushed back in consideration of overall inter-Korean relations and how things will unfold in the industrial park,” a ministry official said.

Around 500 South Koreans, together with more than 46,000 North Koreans, currently work at some 120 South Korean companies in the Kaesong joint industrial park, which has been in operation since 2004.

Read the full story here:
Inter-Korean hostility inconveniences Kaesong complex patients
Yonhap
Oh Seok-min
2011-8-22