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DPRK expanding Chinese tourism to Kumgang

Monday, October 3rd, 2011

According to Yonhap:

North Korea is expanding travel routes between China and its scenic resort in Mount Kumgang, a source familiar with the North said Monday, indicating Pyongyang’s continued efforts to earn much-needed cash from Chinese tourists.

The new routes will include extra flights from Chinese cities to Mount Kumgang on North Korea’s east coast, in addition to trains and expressways linking Beijing to the mountain resort via Pyongyang, the source said on condition of anonymity.

The move comes after North Korea recently ran a trial cruise from its northeastern port city of Rajin to Mount Kumgang.

The source also said more than 100 Chinese tourists traveled to the resort on a five-day itinerary at the end of last month.

By the end of this month, North Korea is planning to launch a tour program to Mount Kumgang from China’s northeastern city of Harbin, although it is not clear whether the flight will land in Pyongyang or at a military airport on the mountain, the source said.

North Korea is reported to be considering converting a military airfield near the resort to a civilian airport to facilitate travel to the area.

“Starting with Harbin, (North Korea) plans to operate flights for Mount Kumgang from 16 cities across China, including Beijing, Shenyang and Guangzhou,” the source said.

“They also plan to attract Chinese visitors by opening a railway and expressway linking Beijing, Pyongyang and Mount Kumgang,” the source added, saying the first train tour on the route will likely be in April.

The move comes amid a dispute over the handling of South Korean assets at the resort. Seoul halted an inter-Korean joint tour program to the resort in 2008 following the shooting death of a South Korean tourist in the area.

In protest, North Korea recently expelled South Korean workers from the resort and vowed to legally dispose of all South Korean assets there. The tour program had served as a cash cow for the impoverished North.

South Korea has asked foreign countries not to invest or engage in tourism activities at the resort in a bid to protect its property rights there.

Previous posts on Kumgang here.

Read the full story here:
N. Korea expands travel routes for Chinese tourists: source
Yonhap
2011-10-3

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Posted in China, Mt. Kumgang Tourist Special Zone, Special Economic Zones (Established before 2013), Tourism | Comments Closed

DPRK-China Trade Volume Reaches Record High at 3.1 Billion Dollars

Thursday, September 29th, 2011

Institute for Far Eastern Studies (IFES)
2011-9-29

This year’s trade volume between China and the DPRK reached an all time high.

According to the (South) Korea Trade Investment Promotion Agency, the trade volume between China and North Korea between January and July of 2011 recorded 3.097 billion USD, surpassing last year’s 3.472 billion USD by 88 percent.

This is the second year since 2008 for the yearly trade volume to continue to break the record of the previous year.

During the same period, China exported 1.783 billion USD and imported 1.314 billion USD to North Korea. Compared to the same period last year, exports increased by 53.3 percent while imports increased by 169.2 percent, and its trade surplus decreased by 30.4 percent.

The main exports of China are oil, diesel freight vehicles, nitrogenous fertilizers, and grains while the top imports were anthracites, steel, and non-alloy pig irons.

The total amount of fertilizer North Korea imported between January and June totaled 193,960 tons (equaling about 39.88 million USD), a hike of 91 percent against last year’s 99,588 tons (25.4 million USD).

The price per ton of imported fertilizers was 188 USD for ammonium sulfate fertilizer (164,456 ton) and 346 USD for urea fertilizers (25,577 ton). Last year, 59,110 tons of ammonium sulfate fertilizer and 45,310 tons of urea fertilizer were imported. A drastically higher amount of ammonium sulfate fertilizer was imported this year compared with the previous year, the cause of which is speculated to be either a radical decrease in the fertilizer production in North Korea or an attempt to improve the country’s food production.

The total amount of grains imported from China from January to June totaled 149,173 tons, a boost of 5.5 percent from the previous year. The price of grain per ton went up from 372 USD to 404 USD, a rise of 8.6 percent. The cost of imported grain increased 14.4 percent against last year, an increase from 52.7 million USD to 63.1 million USD.

The grains imported were corn (38.2 percent), flour (37.5 percent), rice (16.9 percent), and bean (7.2 percent). Compared to last year, corn and flour imports rose while rice and bean slightly decreased. This year’s average price per ton of grain was 661 USD for bean, 538 USD for rice, 395 USD for flour, and 304 USD for corn.

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Posted in Agriculture, Agriculture statistics, China, Food, Institute for Far Eastern Studies, International trade, Statistics, Trade Statistics | Comments Closed

DPRK increases grain imports from China

Thursday, September 29th, 2011

According to Yonhap:

North Korea imported nearly three times as much grain from China in August as last year, an expert said Thursday, an unusual increase that may suggest food shortages in the impoverished nation have worsened.

The North purchased 47,978 tons of corn, flour and rice in August, up from 16,723 tons in the same period of last year, said Kwon Tae-jin, a North Korea expert at the Korea Rural Economic Institute.

“It is unusual that the North increased grain imports sharply in August ahead of the harvest season in fall,” Kwon said. “It is believed that the North increased imports as its grain stock is falling low.”

The North imported 216,535 tons of grain from China in the first eight months, a rise of 20 percent compared to the same period last year.

China is the North’s key ally, economic benefactor and diplomatic supporter.

North Korea suffered devastating floods in recent months that washed away tens of thousands of hectares of farmland, damage that is feared to threaten its already fragile food situation.

The North has relied on international handouts since the late 1990s when it suffered a massive famine that was estimated to have killed 2 million people.

Back in June 2011, Yonhap reported:

North Korea imported more than 50,000 tons of grains from its key ally China in May, an expert said Thursday, amid chronic food shortages in the North.

The North purchased 50,328 tons of corn, flour and rice in May, up 31.5 percent compared to the same period last year, said Kwon Tae-jin, a North Korea expert at the Korea Rural Economic Institute.

The North also imported 114,300 tons of fertilizer from China in the first five months, a rise of 39 percent compared to the same period last year, Kwon said, citing figures from Seoul’s Korea International Trade Association.

China is the North’s last remaining ally, key economic benefactor and diplomatic supporter.

In March, the U.N. food agency appealed for 430,000 tons of food aid to feed 6 million vulnerable North Korean people, a quarter of the country’s population.

Washington sent its delegation to North Korea in May to assess the food situation, though no decision on food aid has been made yet.

The North has relied on international handouts since the late 1990s when it suffered a massive famine that was estimated to have killed 2 million people.

However, the outside aid has dwindled following the North’s missile and nuclear tests and other provocations.

There are basically two conflicting narratives being played out in the media in regards to this kind of news. The first narrative is that heavy seasonal floods and typhoon damage wiped out a large percentage of North Korea’s fall harvest and they are in desperate need of food assistance. The second narrative is that the DPRK is boosting food stocks in advance of 2012, the year the country is supposed to transition into a “Strong and Prosperous Country” (according to official propaganda). Since the DPRK’s appeal for large-scale food aid has gone largely ignored by the international community (despite the best efforts of organizations like the UNWFP and charities like Samaritan’s Purse), the country is forced to increase food stocks through international trade if it wants to live up to the expectations it has created among the domestic population.  Meeting these expectations is especially important right now as they will play an important role in facilitating the leadership  transition to Kim Jong-il’s designated successor, Kim Jong-un.

I have been posting stories about this year’s food shortage here (though neglected for a couple of weeks).

Read the full stories here:
N. Korea’s grain imports from China increase threefold
Yonhap
2011-9-29

N. Korea increases grain imports from China
Yonhap
2011-6-30

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Posted in Agriculture, Agriculture statistics, China, Food, Foreign aid statistics, International trade, Statistics, Trade Statistics | Comments Closed

DPRK-China trade update

Tuesday, September 27th, 2011

According to Yonhap:

North Korea’s trade dependence on China deepened over the past four years, in contrast to a reduction in South Korea’s share in the North’s external trade, Seoul’s Unification Ministry said in a report Sunday.

The proportion of China in North Korea’s foreign trade is on the rise, increasing from 41.6 percent in 2007 to 49.5 percent in 2008, 52.7 percent in 2009 and 57.1 percent last year, the report said.

By contrast, South Korea saw its share of the North’s trade declining from 38.0 percent in 2007 to 33.0 percent in 2009 to 31.4 percent last year, it noted.

In terms of trade volume, too, bilateral trade between North Korea and China jumped from US$1.97 billion in 2007 to $2.68 billion in 2009 and $3.47 billion in 2010, the report said, adding the inter-Korean trade volume slightly increased from $1.8 billion in 2007 to $1.91 billion last year.

I looked on the Ministry of Unification’s web page, but I was unable to find the report mentioned above.  It  has obviously not been published in English.

As this information was released in South Korea, the DPRK’s premier, Choe Yong-rim, is in China.  According to the Korea Times:

The North’s Premier Choe Yong-rim and his Chinese counterpart Wen Jiabao “pledged to promote trade, investment and economic cooperation” between the nations during a meeting held on Monday night during Choe’s official visit to China, Xinhua news agency said.

“Under the context of the complicated regional and international situation, the parties, governments and peoples of China and the DPRK (North Korea)…made joint efforts to push forward bilateral ties,” Xinhua quoted Wen as telling Choe during the talks.

Wen hailed the North’s achievements in developing its economy and vowed that Beijing will continue to offer assistance within its capability, according to the report.

He then called on the two sides to speed up mutually beneficial cooperation in fields such as trade, investment, infrastructure, natural resources and agriculture, the report said.

Here is the Xinhua report.

Scott Snyder had some interesting comments on the DPRK-PRC trade relationship:

South Korea’s perceived failure to compete with China for economic influence in the North as a result of heightened tensions in inter-Korean relations remains an active subject of frustration in South Korea, especially among progressives, but North Korea’s continued pursuit of nuclear and missile tests and other tension-raising provocations against the South make it clear that China has been unable to use the North’s economic dependency on Beijing as a tool for imposing political restraint on Pyongyang.

Read the full stories here:
N. Korea deepens trade dependence on China
Yonhap
2011-9-25

Premiers of NK, China vow to boost economic cooperation
Korea Times
2011-9-27

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Posted in China, International trade, Statistics, Trade Statistics | Comments Closed

Chinese joint venture company takes over Hyesan Youth Copper Mine

Monday, September 19th, 2011

Pictured above (Google Earth): Hyesan Youth Copper Mine.  See in Google Maps here.

According to Xinhua (China):

Hyesan-China Joint Venture Mineral Company, a large joint project between China and the Democratic People’s Republic of Korea (DPRK), started operation at Hyesan of Ryanggang province on Monday.

The mineral company was jointly set up by Wanxiang Resources Limited Company of China and the Ministry of Mining Industries of the DPRK on Nov. 1, 2007. Its main business was to produce and sell copper.

DPRK Mining Industries Minister Kang Min Chol and Chinese ambassador Liu Hongcai attended the opening ceremony.

Kim Chol, chairman of the people’s committee of the Ryanggang province, said at the ceremony that the joint venture was one of the symbols of the development of the DPRK-China friendship and would be a model of modernization, science and economic benefits.

Liu believed the company would make profits for both sides, benefit the two peoples and promote traditional China-DPRK friendship.

According to Reuters:

The mine was located a few miles from the Chinese city of Changbai in the northeastern province of Jilin and was 51 percent owned by Wanxiang, a source with direct knowledge of the project told Reuters on Tuesday.

The mine had a designed annual capacity of 50,000-70,000 tonnes of copper concentrate, expected to contain 20-30 percent copper, he added.

“All the concentrate will be sold to China,” the source said.

The source said the joint venture would conduct second-phase construction to expand the capacity of the mine if production ran smoothly, but did not give details on timing or expanded capacity.

China is the world’s top copper consumer but does not produce sufficient concentrate to meet demand. The country imported 3.4 million tonnes of copper concentrate in the first seven months of 2011, down 11 percent from a year earlier.

According to KCNA:

The Hyesan Youth Mine in Ryanggang Province was successfully updated as required by the new century.

The workers and technicians of the mine together with Chinese technicians and skilled workers completed the vast modernization project and successively ensured their commissioning.

The modernization of various production processes including mining, carriage and ore dressing made it possible to boost mineral production and thus contribute to economic development and the improvement of the standard of people’s living.

A ceremony for the completion of the modernization project at the Hyesan Youth Mine and the Hyesan-China Joint Venture Mineral Company was held on Monday.

Present there were Kang Min Chol, minister of Mining Industry, Kim Hi Thaek and officials concerned, Liu Hongcai, Chinese ambassador to the DPRK, and staff members of his embassy and Han Youhong, president of the Wanxiang Resources Co., Ltd. of China, and personages concerned.

Ri Mun Yong, manager of the Ryanggang Provincial Mining Complex, made an address to be followed by congratulatory and other speeches.

At the end of the ceremony, the participants went round production processes.

That day a reception was given in connection with the ceremony.

Although foreign investors and aid groups frequently build/ repair / upgrade North Korea’s state owned enterprises, it is rare that they are given any credit for their work in the official media.

Previous posts about the Hyesan Mine:
1. Poor electricity supply (2011-5-16)

3. Mine is flooded (2007-11-1)

4. China investing in mine (2007-4-12)

5. Chinese investing in mine (2006-12-24)

Additional mining information:
1. DPRK – China minerals for food program (2011-8-19)

2. DPRK looking to export rare earths (2011-7-23)

3. DPRK – China trade: 1995 – 2009 (2011-6-7)

4. Increase in DPRK’s mineral resources exports to China expected again for this year (2011-2-28)

5. DPRK – China mining deal (2011-2-6)

6. China expanding mining rights in DPRK (2010-1-15)

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Posted in China, Copper, Foreign direct investment, International trade, Joint Ventures, Mining/Minerals, Statistics, Trade Statistics | Comments Closed

North Korea Encourages Investment in Rajin-Sonbong (Rason) Economic and Trade Zone

Friday, September 16th, 2011

Institute for Far Eastern Studies (IFES)
2011-9-14

At the seventh China Jilin and Northeast Asia Investment and Trade Expo (NEASIAEXPO), the North Korean delegation actively promoted the Rajin-Sonbong (Rajin) Economic and Trade Zone to attract investment.

During the expo, the DPRK’s Ministry of Trade and China’s Ministry of Commerce and People’s Government of Jilin Province co-sponsored the “(North) Korean Business Day and China-DPRK Trade and Investment Session” at the Changchun International Conference and Exhibition Center on September 7. Hwang Chol-nam, the vice mayor of Rason City, briefed the attendees on the current situation, advantages, and special benefits of his city.

According to Hwang, “The spacious 470 square-kilometer Rason Economic and Trade Zone is one of the largest economic trade zones,” and advertised the geographic and economic advantages of Rason as the “transportation hub of Northeast Asia that connects China and Russia via Tumen River and with Japan across the East Sea.”

He also introduced the three ports in the region. “Rajin Port is equipped with the annual loading capacity of 3 million ton and Sonbong Harbor is able to transport 2 to 3 million ton of oil while Ungsang Harbor is able to handle up to 600,000 cubic-meter of lumber annually.” He also boasted the ports to be deep enough where it does not freeze during the winter.

Rason was also introduced to have received the “special city” designation in 2010 and will grow to have a population of one million. The recently amended “Law on the Rason Economic and Trade Zone” was revised and supplement with over 50 articles.

Hwang also elaborated on the eight preferential policies providing special tax benefits to foreign investors. He asserted, “The government of North Korea will guarantee the investment of the foreign investors by not nationalizing or demanding requisitions. For inevitable cases where such demands occur, proper compensation will be provided.”

The income tax is also at 14 percent, which is 11 percent lower than other areas in North Korea. For companies with business plans over ten years, foreign capital companies will receive three years of tax-free benefit starting from the profit earning year and two years thereon after will receive 50 percent tax-free benefits. According to Hwang, over 100 foreign companies and offices are operating businesses currently in the special economic zone.

He also announced that the current highway construction project connecting Rajin with Wonjung is expected to be completed in October, and that the Tumen-Rajin port railway system is to be upgraded to a broad gauge railway next month.

Specifically, Russian Railways reached an agreement with North Korea to repair the Hasan-Rajin Railway and improve the Rajin port facilities, especially focusing on Pier 3. The plans include upgrading Rajin as a container harbor to be capable of transporting twenty-foot equivalent units annually. Russia and the DPRK have already conducted measurement and geological surveys and reached the process design phase.

However, Seo Gil-bok, the DPRK’s vice minister of commerce, stated in a speech that North Korea would “actively work hard to make the Rason region a successful collaboration between the DPRK and China,” saying further that they would “pull out all the stops to realize the goals agreed by the best leaders from both nations.”

Many foreign media and correspondents were present at the event to cover the “Korean Business Day.” At the event, North Korea actively promoted the Rason Economic and Trade Zone by also presenting a promotional video of the zone.

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Posted in Automobiles, China, Economic reform, Finance, Fiscal & monetary policy, Foreign direct investment, Ministry of Trade, Railways, Rason Economic and Trade Zone (Rajin-Sonbong), Russia, Sea shipping, Special Economic Zones (Established before 2013), Transportation | Comments Closed

Rajin market on display to foreigners

Tuesday, September 13th, 2011

Pictured above: (L) satellite image of the Rajin Market, (R) a ground-level photo taken in 1999

Among the the flurry of activities that comprised the DPRK’s recent public relations campaign in Rason (Rajin-Sonbong), the Rajin Market appeared on the itineraries of a few visiting delegates. Alexa Olsen writes about the market for the Associated Press:

Chinese travel agents, potential investors and foreign journalists recently traveled into the North to get a look at the special economic zone Pyongyang is promoting in Rason. It lies in the far northeastern tip of North Korea, 600 miles (1,000 kilometers) from Pyongyang, but will be about an hour’s drive from China once the road is completed.

Rumbling Chinese cargo trucks already ply the route, churning up plumes of choking dust and ferrying containers of Chinese-made shoes, plastic toys, computer speakers, T-shirts and DVDs to the Rason Free Trade Market.

The market, a 13-year-old experiment in small-scale capitalism, has been so successful that the Chinese managing company, the Tianyu Group, is planning to expand the jam-packed 54,000-square-foot (5,000-square-meter) market to 320,000 square feet (30,000 square meters), Tianyu vice director Zheng Zhexi said.

“As I see it, this is the way of economic development, and it’s something that the people want,” Zheng said. “I think it’s reached a point where it cannot be reversed.”

North Korea declared the area a special economic zone 20 years ago. But after a brief flurry of activity and funding from the U.N. Development Program, the project languished without backing from Pyongyang’s leadership.

…

Rason has benefited from the shift in Pyongyang’s priorities. When Zheng arrived in 1997 to set up the market, people were hesitant to get involved. Now Tianyu doesn’t have the space to approve even a fraction of the applications from prospective vendors, he said.

“Ordinary people’s sense and the awareness of the market, and their views on the economy — all these have changed a lot,” Zheng said.

Foreign journalists, who typically are barred from local markets, were taken on a strictly controlled, 15-minute tour. No photos, no notes, the guide instructed: “Just use your eyes.”

Vendors, mostly women, stood behind stands loaded with freshly skinned rabbit and live chickens, as well as goods mostly imported from China: blouses, speakers, refrigerators, sofas, shampoo, playing cards, binoculars.

High heels went for 25 yuan (US$4), a Kim Jong Il-style beige suit for 85 yuan ($13) and a container of sea salt for 3 yuan ($0.47).

North Korean tour guide Mun Ho Yong, 25, said his family shops at the market several times a week to supplement state rations of rice, oil and fish.

Everything Mun wore — striped dress shirt, belt, polyester trousers and black dress shoes — was bought at the market except his pin of late President Kim Il Sung attached to his shirt, over his heart.

One major challenge will be to successfully leap from the market’s small-scale commerce to full-fledged manufacturing and trade.

(UPDATE) In an article published later in the New York Times (2011-10-12):

A Chinese company critical to Rason’s development, the Yanbian Tianyu International Trade Company, got involved here 13 years ago. It began by erecting the bazaar, then built the casino, a hospital, a bread factory and a telecommunications building. It is now working on a cement factory, and operates two iron mines.

“The policy environment has been improving continuously,” said Zheng Zhexi, 58, the company’s vice president. “It’s moving towards a market economy.”

He pointed to the official tolerance for the bazaar, where merchants rent stalls from the government to sell goods that they buy from Chinese traders. Prices fluctuate and shoppers haggle. The bazaar has proved so successful that it is expanding to six times the current size.

These kinds of markets have sprung up all over the country to supplement the government’s weak food distribution system. Still, the government is sensitive to their capitalist nature, and some top officials have tried to set limits on them. Foreign journalists were permitted a 15-minute tour of the Rason market on the condition that they not photograph it or take notes.

The market, open just a few hours each day, was bustling, with goods like skinned rabbits, sofas, Sony headphones and Dell computer mice. A soldier with a Kalashnikov slung over his back walked among the aisles, looking to buy, and women running stalls wore red vests, the uniform of officially registered merchants.

In one corner was an office with the English words “Foreign Exchange” above the door. In Rason, currency is exchanged at the market rate — one Chinese renminbi to 350 North Korea won — rather than at the official rate, which values one renminbi at 15 won.

Additional Information:

1. Previous posts on Rason can be found here.

2. Additional information can be found here.

3. Source:
Tending a Small Patch of Capitalism
New York Times
Edward Wong
2011-10-12

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Posted in Black markets, China, Economic reform, Fiscal & monetary policy, Foreign direct investment, General markets (FMR: Farmers Market), Joint Ventures, Price liberalization, Rason Economic and Trade Zone (Rajin-Sonbong), Special Economic Zones (Established before 2013) | Comments Closed

Dandong customs house is busy, busy, busy

Tuesday, September 13th, 2011

In the last decade we have seen the expansion of trade between the DPRK and the PRC.  You can see the data here (KEI) and here (Natuilus). You can also see this trend using satellite imagery:

Above image date: 2002-4-29

Pictured above (2002) is the former coal yard next to the Dandong train station in China.  Through this facility, China managed its DPRK coal trade.

Above image date: 2005-1-19

By January 2005, the coal field had given way to the construction of what was to become the Dandong Customs House, which manages rail and vehicle trade with the DPRK city of Sinuiju on the other side of the Amnok (Yalu) river. There are three things to notice in the picture above: New registration office (yellow box on the right), new main building (blue roof), preservation of nearby apartment blocks (yellow box on left).

Above image date: 2009-10-11

Above is the first photo of the completed facility which was taken in October 2009.  As is usually the case the parking lot is nearly entirely full.

Above image date: 2010-4-5

In the picture above we can see trucks moving in both directions through the registration office.  This facility is the first port of call for vehicles crossing the Friendship Bridge from Sinuiju, DPRK. Again we can see that the customs house is busy.

 

Above image dates: 2010-6-7, 2010-10-28

The above pictures (most recent on Google Earth) again reinforce the notion that the Dandong-Sinuiju trade route is bustling.

For the record, the North Koreans have expanded their customs facilities on the Sinuiju side of the border in relationship to the growing levels of trade:

Above image dates: 2002-4-29, 2010-10-28

But this is not all.  The North Koreans and Chinese are also building a second bridge and additional trade infrastructure in Ryongchon County, south-west of Sinuiju.  Learn more about that here.

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Posted in China, Google Earth, International trade | Comments Closed

Chinese foreign ministry publication frank on Rason and Hwanggumphyong

Wednesday, August 31st, 2011

The Choson Ilbo reports:

The World’s Knowledge biweekly published by World Knowledge Publishing House under the [Chinese] Foreign Ministry supervision dismissed the North Korean plan to build what it called “its own Hong Kong.” In its latest edition, Tang Longwen, an associate professor at the Dandong party school, said, “The North’s plan to develop the two islands by leasing them to Chinese enterprises costs too much.”

Chinese businesses “need to check if it is worth making huge investment in areas that neither have abundant resources nor are worth developing,” Tang wrote.

Tang also mentioned risks from the lack of proper governance in North Korea. Citing the joint Korean Kaesong Industrial Complex as an example, he said, “What is important is not the development of the two islands but whether the North genuinely intends to open its doors. Everybody worries that the North will just open and close the islands as it likes.”

He cited the North’s habitual disregard for international norms, apparently referring to its unilateral abrogation of its contract with Hyundai Asan in the Mt. Kumgang package tour project and repeated bans on passage to the Kaesong industrial park.

“The North is calling for simultaneous development of the Rajin-Sonbong area and Hwanggumpyong, but China is more interested in the Rajin-Sonbong area, which would give it access” to the East Sea, he said. As Chinese President Hu Jintao said during Kim’s visit to China in May, “the two countries should seek ‘win-win’ economic cooperation. It should not be sought through one-sided aid.”

On three visits to China between May last year to May this year, Kim asked China to support the development of Wihwa and Hwanggumpyong islands, but Beijing told him cooperation “should be sought based on market principles.”

Chinese officials attended a ground-breaking ceremony on Hwanggumpyong at the North’s request in June, but there has reportedly been no progress in construction since then.

A recent in the Financial Times article quotes another Chinese academic who expresses some skepticism about the success of the new ventures:

North Korea’s past experience of working with other countries has left it with a serious credibility problem and this will stop a lot of foreign investment from even considering these new zones,” says Zhang Liangui, a professor of international strategic research at China’s central Communist party school.

Mr Zhang graduated from the Kim Il-sung University in North Korea and is considered one of China’s top experts on the country. “Even though Chinese entrepreneurs are being encouraged and supported by China to invest there, they are still very cautious about considering the Hwanggumphyong Island Economic Zone, and investors from other countries will be even more circumspect,” he explains.

“It will be very difficult to build this zone up,” he adds, citing the unpredictability of the political situation in North Korea and UN sanctions which would prevent many investors from considering the venture.

In addition, analysts warn that similar moves in the past have led to nothing. The Rason zone that Chinese and North Korean officials broke ground on in June will incorporate an area that was designated as an investment zone in the early 1990s but never attracted any real interest.

Previous posts on Hwanggumphyong here.

Previous posts on Rason here.

Read the full story here:
Chinese Magazine Dismisses N.Korean Development Dreams
Choson Ilbo
2011-8-31

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Posted in China, Economic reform, Foreign direct investment, Hwanggumphyong and Wihwado Economic Zones (Sinuiju), Kaesong Industrial Complex (KIC), Rason Economic and Trade Zone (Rajin-Sonbong) | Comments Closed

Roundup of Kim Jong-il’s 2011 trip to Russia (and China)

Wednesday, August 31st, 2011

UPDATE 12 (2011-8-31): The North Koreans have made a short documentary of Kim Jong-il’s trip to Russia.  I have uploaded it to YouTube in three parts: Part 1, Part 2, Part 3.  The North Koreans published footage of Kim’s trip through China on the evening news (2011-8-30: Part 1, part 2, part 3) and in a separate documentary (2011-9-8: Part 1, part 2, part 3).

UPDATE 11 (2011-8-29): When Kim Jong-il returned to Pyongyang his trip was hailed as a success. A banquet was held for him and he attended a performance of the State Merited Chorus.  According to Yonhap:

North Korean leader Kim Jong-il attended a banquet held to congratulate him on his “successful” recent visits to Russia and China, the North’s state media said Monday.

The banquet was hosted by the Central Military Commission of the ruling Workers’ Party and the National Defense Commission, according to a brief dispatch by the Korean Central News Agency (KCNA), monitored in Seoul. It did not mention where or when the event took place.

KCNA has a little more on the banquet here and the chorus here.

Afterwards, Kim Jong-il returned to his never-ending work for the people. Just as he did following his previous trip to China, Kim visited the construction site of the Huichon Power Station.

UPDATE 10 (2011-8-27): According to Yonhap, Kim Jong-il’s train has crossed back into the DPRK.  Given the information provided, it appears that Kim entered the DPRK via the railroad crossing at Manpo (Manpho, 만포).  See the bridge in Google Maps here. According to Yonhap:

North Korean leader Kim Jong-il returned home by train Saturday, wrapping up a week-long trip to Russia and China, during which he discussed the resumption of stalled six-party talks on his country’s nuclear ambitions.

Kim’s special train was seen crossing into North Korea via the Chinese border city of Jian around 5 p.m. local time (6 p.m. Korean time). The train had left the northeastern Chinese city of Daqing on Friday evening and made a stop in the city of Tonghua on Saturday morning.

According to KCNA, Kim Jong-un and Kim Kyong-hui were there to welcome him.  Kim Jong-un played the same role on Kim’s previous trip to China in May.

UPDATE 9 (2011-8-26): While Kim travels in Russia and China, Yonhap reports a KCNA announcement that the DPRK and Russia signed a protocol calling for economic cooperation between the two countries.  According to the article:

A Russian economic delegation, led by Minister of Regional Development Viktor Basargin, was in North Korea to sign “a protocol of the 5th Meeting of the DPRK (North Korea)-Russia Intergovernmental Committee for Cooperation in Trade, Economy, Science and Technology,” the North’s Korean Central News Agency (KCNA) said.

Trade Minister Ri Ryong-nam inked the protocol on behalf of North Korea, said the KCNA report, monitored in Seoul.

The report did not give any details of the protocol.

Also on Friday, the North’s premier, Choe Yong-rim, met with the Russian economic delegation at the Mansudae Assembly Hall in Pyongyang, the KCNA said in a separate report.

UPDATE 8 (2011-8-26): Xinhua reports on Kim’s activities in China. According to the article:

Top leader of the Democratic People’s Republic of Korea (DPRK) Kim Jong Il visited northeast China’s Heilongjiang Province on Friday at the company of Chinese State Councilor Dai Bingguo.

…

During his stay in Heilongjiang, Kim visited the cities of Qiqihar and Daqing. In Qiqihar, Kim toured Qier Machine Tool Group Co., a large state-owned enterprise, and Mengniu Dairy, a leading Chinese dairy producer. In Daqing, he toured an urban planning exhibition hall and a residential district.

“I’ve seen new changes every time I came here,” he said. He wished that China would smoothly realize the goals set in its 12th Five-year Plan under the leadership of the CPC.

KCNA has a rather long (erm…detailed) update on Kim’s visit to China. Here is the report for August 25th:

He passed through the Inner Mongolian Autonomous Region of China on August 25.

He arrived in Manzhouli of the region, the border railway station, that afternoon.

When the train pulled in the railway station, he was warmly greeted by Wang Jiarui, Sheng Guangzu, Hu Chunhua, secretary of the Inner Mongolian Autonomous Regional Party Committee, Fu Taizeng, secretary general of the autonomous regional party committee, Luo Zhihu, secretary of the Hulun Buir City Party Committee, the mayor of Hulun Buir City, the secretary of the Manzhouli City Party Committee and other central and regional senior officials of China.

He exchanged cordial greetings with the senior officials present to greet him and had a talk with them.

Wang Jiarui said he was specially dispatched to conduct Kim Jong Il who is passing through Northeast China in the whole period of his visit upon the authorization of the collective leadership of China including Hu Jintao. He paid highest tribute to Kim Jong Il for having made a great contribution to boosting the friendship among countries and accomplishing the human cause of independence through his energetic external activities.

Kim Jong Il thanked Wang Jiarui and other senior central and local officials and people for their warm reception.

He, conducted by senior party and government officials of the autonomous region, toured Hailar District, Hulun Buir City of the region.

Commanding a bird’s-eye view of the night scenery, he got familiar with the history and culture of the region and the achievements made by its people in construction.

The Inner Mongolian Autonomous Regional Committee of the CPC gave a grand banquet in honor of Kim Jong Il visiting the region.

When he appeared in the banquet hall, women of the Mongolian tribe of the autonomous region presented him with a blue silk towel and liquor according to the customs peculiar to the nation, warmly welcoming him.

Hu Chunhua said that today they welcomed Kim Jong Il to the vast steppe where President Kim Il Sung was accorded enthusiastic welcome several times long ago, thereby seeing the desire of the party, the government and the people of the autonomous region come true at last.

Hu Chunhua noted that the traditional Sino-DPRK friendship will remain ever-green like the vast steppe along with history, expressing firm belief that the friendly Korean people would make fresh success in the efforts to improve the standard of people’s living and build a prosperous and powerful nation.

A specially prepared art performance was given in honor of Kim Jong Il.

The performers clearly reflected the boundless respect and reverence of the government and the people of the region for Kim Jong Il visiting China again for the development of the Sino-DPRK friendship.

Kim Jong Il conveyed a floral basket to the performers in congratulation of their successful performance and had a photo taken with them.

He was presented with a gift by Hu Chunhua on behalf of the party committee of the autonomous region.

He expressed thanks for the warm reception and cordial hospitality accorded him by the party, government and people of the Inner Mongolian Autonomous Region. He hoped the people of the region would achieve a fresh victory in their struggle for the prosperity and development of the country under the leadership of the CPC.

Here is the KCNA report for August 26th:

Kim Jong Il passed through Heilongjiang Province of China on August 26.

He arrived in Qiqihar City, Heilongjiang Province that morning.

When the train pulled in Qiqihar Railway Station, he was warmly greeted by Ji Bingxuan, secretary of the Heilongjiang Provincial Party Committee, Wang Xiankui, governor of Heilongjiang Province, the secretary of the Qiqihar City Party Committee, the mayor of Qiqihar City and other senior party and government officials of the province and the city.

He exchanged warm greetings with the senior officials present to greet him and had a talk with them.

Ji Bingxuan said it is great honor and pride to welcome again to their place Kim Jong Il on a long foreign tour for friendship among countries and warmly welcomed him on behalf of the party, the government and the people of Heilongjiang Province.

Kim Jong Il visited the Qiqihar Machine Tool Group Co. No. 2 that day.

After being briefed on its history by a senior official of the group, he went round several production processes to acquaint himself with its production, technological development and management in detail.

Then he visited the Qiqihar Branch Company of the Mengniu Dairy.

He went round the general control room, milk tank, packing shop and the products on display and wished the company greater progress in its work for the improvement of the standard of people’s diet and welfare.

Kim Jong Il also visited Daqing City that day.

He visited the urban planning exhibition hall in Daqing City and was briefed on the urban construction and long-term plan. Then he went round the housing construction district, a large bridge, Lake Liming Bridge now under construction and other places in the province.

The provincial party committee gave a banquet that evening in honor of Kim Jong Il visiting the province.

He was present at the banquet on invitation.

Ji Bingxuan said that the historic visit paid by Kim Jong Il to Heilongjiang Province again after the lapse of the three months is a striking demonstration of the Sino-DPRK friendship growing stronger day by day, adding that the provincial party, government and people would join the Korean people in playing a greater role in inheriting and developing the Sino-DPRK friendship generation after generation.

A special art performance was given in welcome of Kim Jong Il.

The performers successfully represented the excitement and joy of the Chinese people at welcoming again Kim Jong Il to meaningful Northeast China.

Kim Jong Il conveyed a floral basket to the artistes in congratulation of their successful performance.

He was presented with a gift by the provincial party and people’s government that day in welcome of him visiting the province.

He expressed thanks for the warm reception and cordial hospitality accorded to him by the party, government and people of Heilongjiang Province. He hoped the people of the province would achieve a fresh victory in their struggle for the prosperity and development of the country under the leadership of the CPC.

Here is the KCNA report for August 27th:

He arrived in Tonghua City, Jilin Province that morning.

When the train pulled in Tonghua Railway Station, he was warmly greeted by Sun Zhengcai, secretary of the Jilin Provincial Party Committee, Wang Rulin, governor of Jilin Province, Liu Baowei, secretary of the Tonghua City Party Committee, Tian Yulin, mayor of Tonghua City, and other senior party and government officials of the province and the city.

He exchanged warm greetings with the officials present there to receive him and visited the Tonghua Wine Co. Ltd., conducted by them.

He recollected with deep emotion the noble footprints left by President Kim Il Sung who was absorbed in thinking and made inquiry for the sake of the country and its people only when visiting the company nearly half a century ago.

He went round various places including the wine depot, its exhibition hall to learn in detail about the history of the company and its production system, storage of products and its taste. He wished the company greater progress in its work for the well-being of the people.

The party and government of the province hosted a grand banquet in honor of Kim Jong Il visiting the province.

He was present there on invitation.

Sun Zhengcai said that it was particular privilege and honor for his province to receive Kim Jong Il, the great leader of the Korean people, three times in a little more than one year. He offered the highest regard and warm welcome to Kim Jong Il on behalf of the party, government and people of the province.

Noting that all the Chinese people including the people of the province are rejoiced as over their own over the successes made by the Korean people recently in their efforts to significantly commemorate the centenary of birth of Kim Il Sung, Sun Zhengcai expressed expectation and belief that the Korean people would surely win a shining victory in the drive for building a prosperous and powerful socialist nation under the leadership of the Workers’ Party of Korea headed by Kim Jong Il.

Sun noted that the party, government and people of the province would join the Korean people in playing a bigger role in inheriting and developing the Sino-DPRK friendship generation after generation.

An art performance was given in welcome of Kim Jong Il.

The performance replete with the warm feelings of the DPRK-China friendship was acclaimed by the audience.

He was presented with a gift by the provincial party and people’s government that day in welcome of his visit to the province.

He expressed thanks for the warm reception and cordial hospitality accorded to him by the party, government and people of Jilin Province. He wished them a fresh success in their efforts for the prosperity of the country and the well-being of its people under the leadership of the CPC.

He wrapped up his 8 000 km odd-long trip to the Far East and the Siberian regions of Russia and Northeast China and left for the homeland that day.

Before his departure, he exchanged warm farewell greetings with central leading officials including Wang Jiarui and Sheng Guangzu who conducted him with sincerity in the whole period of his visit and leading officials of the party and government of the province and the city including Sun Zhengcai and Wang Rulin.

When the train started from the border station, central and local leading officials of China warmly sent him off, waving their hands for a long while.

Passing through several cities and regions of China, he acquainted himself with construction projects, ideas and feelings, politics, economy, history, culture, etc. of the Chinese people more deeply and conducted unremitting and energetic external activities, making another great contribution to the development of the DPRK-China friendship.

UPDATE 7 (2011-8-25/26): According to Voice of America, Kim Jong-il has left Russia and is returning to the DPRK via China.  His train crossed the Russia-China border at Zabaikalsk (Забайкальск, See in Google Maps here). Yonhap reports that on the Chinese side of the border Kim’s Train was greeted in Manzhouli by senior Chinese Communist Party envoy Wang Jiarui and other officials. Kim attended a banquet and arts performance before heading to nearby Hulunbeier (See in Google Maps here).

UPDATE 6 (2011-8-24): Kim Jong-il meets with Medvedev at Sosnovyy Bor east of Ulan-Ude (Сосновый бор, See in Google Maps here). The topics discussed are linked below:

According to the Los Angeles Times:

Medvedev ordered a commission to evaluate the parameters of laying a gas pipe through North Korea, according to the president’s statement posted on the Kremlin website. The pipe would stretch for more than 1,100 km, 700 of which would run through North Korea and would pump 10 billion cubic meters of gas annually.

The two leaders also discussed a plan for Russia to extend power lines into North Korea to sell electricity from facilities like the Bureya hydroelectric plant. Before arriving to meet Medvedev, Kim visited the Bureya plant, where he swam in a pool filled with water from Lake Baikal. Afterward, the North Korean strongman was treated to such local cuisine as meat dumplings and fish prepared over an open fire, press reports said.

Accoridng to UPI:

North Korea is willing to return to the six-party talks and to consider a moratorium on nuclear testing, Russian President Dmitry Medvedev said Wednesday.

Medvedev and North Korean leader Kim Jong Il met in Sosnovy Bor, a garrison town in the Russian Republic of Buryatia in South Siberia, RIA Novosti reported.

Natalia Timakova, a spokeswoman for Medvedev, said Kim was prepared to resume nuclear talks without any preconditions. The talks were suspended two years ago, and Russia and China have said they are prepared to return to the table immediately while the United States, Japan and South Korea want North Korea to show good faith first.

Kim also agreed to allow Gazprom, the state-owned Russian natural gas company, to build a pipeline to South Korea through his country. The two leaders also discussed North Korea’s outstanding debt to the former Soviet Union and possible food aid from Russia.

RIA Novosti said some reports estimate the project could bring about $100 million a year in much-needed hard currency to Pyongyang.

“We’ve ordered our government bodies to establish a special commission … to outline the details of bilateral cooperation on gas transit through the territory of North Korea and the joining of South Korea to the project,” Medvedev was quoted as saying.

The Russian leader said technical work on the pipeline would start soon.

South Korea is one of the largest buyers of natural gas, with imports of liquefied natural gas from Russia alone totaling 1.5 million tons last year, South Korea’s Yonhap news agency reported. The report said North Korea reacted favorably to the project during the visit of Gazprom officials.

Accoridng to Bloomberg:

North Korea owes Russia $11 billion of debt that dates back to the Soviet period and the two countries have resumed talks to restructure the Asian state’s liabilities, Deputy Finance Minister Sergei Storchak said.

Russia hasn’t lent money to North Korea since the collapse of the Soviet Union in 1991 because the communist state hasn’t settled its debt, Storchak told reporters at a military base near Ulan-Ude, a Siberian city close to the border with Mongolia. North Korea also has yet to recognize Russia as the successor to the Soviet Union, he said.

Russian President Dmitry Medvedev agreed on a joint approach to debt restructuring with North Korean leader Kim Jong Il at their meeting near Ulan-Ude today, said a Kremlin official, who declined to be identified in line with government policy. Russia and North Korea restarted talks on the issue a month and a half ago after a long pause, the official said.

The resumption of negotiations is seen as a breakthrough by the Russian delegation attending today’s meeting, according to the official.

According to RIA Novosti, the DPRK is interested in renting farm land in Eastern Siberia.

According to UPI, the Russians and the DPRK plan to increase naval cooperation.

According to the Choson Ilbo, the North Koreans might have been interested in acquiring Russian aircraft.

 

Andrei Lankov is skeptical any of the economic projects will become operational.

Aidan Foster-Carter believes the pipeline will be built.

UPDATE 5 (2011-8-22): Kim arrives in Ulan-Ude (Улан-Удэ), and tours Lake Baikal and an aircraft factory. See the Ulan-Ude train station in Google Maps here. See Lake Baikal on Google Maps here. See the Ulan-Ude Aviation Plant in Google Maps here. According to a video later released by the DPRK, Kim Jong-il also visited the Lenin-head statue at the seat Ulan Ude’s government (See in Google Maps here) and the “Mega Titan” super market (мега титан, See in Google Maps here).  Though the visit to the aircraft factory is never mentioned in KCTV coverage of the visit, the Choson Ilbo reports that the DPRK’s air force chief, Gen. Ri Pyong-chol (리병철), was also on the trip–leading to speculation that the DPRK air force was shopping for new aircraft.

According to the AP:

Kim took a two-hour Baikal tour on a yacht guarded by two North Korean boats, the Inform Polis Online website reported quoting eye-witness accounts. The water in Baikal is ice-cold even in summertime, so Kim had to take a swim onshore — in a pool filled with Baikal water. The speaker of Buryatia’s legislature joined Kim in the swim, the news website reported.

On the shore, the North Korean leader was treated to traditional Buryat food including meat dumplings and Baikal fish prepared over an open fire.

Later on Tuesday, Kim went back to Ulan-Ude to visit a major aircraft factory, which among other things produces Sukhoi attack planes, the ITAR-Tass news agency reported from the plant.

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The North Korean leader’s visit is shrouded in mystery. A few people managed to take photos of Kim at his previous stop on Sunday, but heavy police cordons kept the media and onlookers in Ulan-Ude away from the train station and the adjacent square.

Anna Ogorodnik, a photographer from Ulan-Ude, told the Associated Press by phone that nearby streets were full of riot police. The station square looked clean and deserted after authorities had tugged away cars and local buses.

The windows of the station building overlooking the tracks were plastered with sheets of paper and station employees had been ordered to stay indoors, Ogorodnik said.

The photographer said she had been detained after trying to take pictures. She was released after she had presented her journalist ID.

The station square remains cordoned off and Kim’s train is still at the station, Ogorodnik said.

It is Kim’s first visit to his country’s Cold War ally in nine years.

Russian military officials arrived in the North Korean capital on Monday for a five-day visit. The Russian Defense Ministry said the talks will focus on the renewal of military cooperation between the countries, possible joint exercises “of a humanitarian nature” and an exchange of friendly visits by Russian and North Korean ships, ITAR-Tass reported from Pyongyang.

UPDATE 4 (2011-8-23): Writing in the Asia Times, Sunny Lee offers some political context of the trip as well as offering an estimated sum the DPRK can expect to earn if it agrees to the pipeline deal:

Cash-strapped North Korea, committed to staging a great national display of prosperity next year to mark the 100th anniversary of Kim Il-sung’s birthday, is likely to welcome any such deal. If realized, it could expect to earn more than US$500 million a year in handling charges over the gas pipeline alone. Russia is also interested in linking the Trans-Siberian Railways to both Koreas, with the aim of reviving the Far Eastern region’s economy.

The Daily NK puts that number signficantly lower:

For North Korea, the gas pipeline could provide a stable income of approximately $100 million-$150 million. Compared to the Kaesong Industrial Complex, which requires more than 47,000 workers and earns North Korea just $50 million, it is a very attractive figure.

UPDATE 3 (2011-8-21): Kim Jong-il arrives in Russia’s Amur region (Bureya, Бурея) on Sunday August 21 and tours Bureiskaya Power Station. See the Bureya Train Station in Google Maps here. See the Bureiskaya Power Station in Google Maps here.  According to the AFP:

North Korea’s reclusive leader Kim Jong Il and his wife received a red carpet welcome Sunday in Russia’s Amur region where they toured a giant power station ahead of talks with President Dmitry Medvedev.

It was the second day of Kim’s week-long visit to the Russian Far East and Siberia, a rare trip out of his country battling isolation and hunger.

Earlier on Sunday his special armoured train arrived at the small Bureya station in the Amur region and smiling Russian women dressed in red national costumes offered the high-profile guest a loaf of bread and salt, in accordance with Russian tradition.

The 69-year-old leader looked serious and slightly tired as flag-waving locals greeted him at the station.

Sporting sunglasses and his trademark khaki-coloured military-style suit, Kim broke off a piece of bread as the Kremlin’s regional envoy Viktor Ishayev and a throng of local officials looked on.

“He is rather simple, seems to be a genial man,” gushed a young Russian woman in the national dress, speaking later in televised remarks.

After the short welcome ceremony Kim got into an armoured Mercedes, which he brought with him on the train, to visit a nearby hydro-power station.

He appeared to take a keen interest in the 2,000 megawatt-strong Bureiskaya power station as Ishayev and the local governor gave him a tour of the plant.

South Korea’s Yonhap news agency, citing pictures taken at the plant, said 47-year-old Kim Ok — a former secretary known as Kim’s fourth wife — was accompanying the leader on the journey.

At the power station — the largest in Russia’s Far East — Kim was treated to a spectacular show of the water being discharged into the river, a local law enforcement official said.

He watched the water release from the safety of a white tent pitched at the station, next to a table with snacks, pies and a watermelon, and was also shown a film about the plant translated into Korean, the official said.

“Inexhaustible is the strength of the Russian people who occupied Bureya nature,” the official Korean Central News Agency quoted Kim as saying in the visitor’s book.

A Russian official familiar with the matter told AFP Kim had planned to visit the station earlier in the summer when he had been expected to hold a bilateral summit with Medvedev in or near Vladivostok.

A Kremlin official was quoted as saying at that time that Kim had cancelled due to media leaks about the visit.

Yelena Vishnyakova, a spokeswoman for state-run RusHydro which operates the power plant, said her company was not currently holding any talks with North Korea about any possible construction of power stations.

While Kim toured the power station, his entourage cleaned and polished his armoured train parked at Bureya, a tiny economically depressed town near the city of Blagoveshchensk on Russia’s eastern fringes.

After returning from the station he continued his journey along the famed Trans-Siberian railway.

According to the Washington Post, the Russia has proposed selling surplus electricity produced by this power station to both North and South Korea.

The New York Times also covered the trip to the power station.

UPDATE 2 (2011-8-20): The Washington Post offers some political and economic context of the trip:

Kim’s trip, Pyongyang said, came at the invitation of Medvedev, whose government in recent weeks has pushed North Korea to cooperate on plans to connect a railway and a gas pipeline that would run from Russia through the divided Korean Peninsula.

North Korea has remained largely a no-go zone for massive foreign projects, with outside economic investment allowed only in special development zones. But if North Korea goes along with the gas pipeline project — in which Russian exporter Gazprom will annually send 10 billion cubic meters of gas to South Korea for three decades — it stands to collect handling fees. It would also allow the North a measure of influence in Seoul’s economy.

…

Some North Korea analysts say that Kim has grown wary of depending so heavily on China, particularly as North Korea prepares for the 100th anniversary next year of the birth of founder Kim Il Sung. The North has promised to build a strong and prosperous economy to mark the occasion, but such a display is largely at the mercy of foreign aid.

“North Korea has had no choice but to deepen its dependence on China, so they now need some counterbalance,” said Yun Duk-min, a professor at Seoul’s Institute of Foreign Affairs and National Security. “Kim Jong Il uses such tactics. This is using Russia to check Chinese influence.”

UPDATE 1 (2011-8-20): KCNA takes the unusual step of confirming KJI is out of the country (rather than waiting until he has returned). According to KCNA:

Kim Jong Il Passes through Khasan Railway Station, Russia
Pyongyang, August 20 (KCNA) — Kim Jong Il, general secretary of the Workers’ Party of Korea and chairman of the National Defence Commission of the DPRK, passed through Khasan, the border railway station of Russia this morning on his way to pay an unofficial visit to Siberia and the Far East Region of the Russian Federation at the invitation of Dmitri Anatoliyevich Medvedev, president of the Russian Federation.

He was greeted at Khasan Railway Station by Viktor Ishayev, presidential envoy to the Far East Region of the Russian Federation, who came to Khasan to conduct him.

He was also greeted by Sergey Darikin, governor of Maritime Territory, Valery Sukhinin, Russian ambassador to the DPRK, Irina Skorobogatova, deputy governor of Maritime Territory, and other senior officials of Moscow, maritime territory, city and district.

When the train pulled in the station, the senior officials got on the train and offered greetings to him.

Medvedev, who has paid deep attention to the Russia-DPRK friendship, dispatched them to greet Kim Jong Il, Viktor Ishayev and other senior officials said, warmly welcoming him to Russia upon the authorization of its President.

Kim Jong Il’s current visit to Russia will mark a historic occasion in putting the Russia-DPRK friendly and cooperative relations onto a fresher and higher stage, they noted.

He said he was very pleased to see for himself the achievements made by the diligent and resourceful Russian people through his current visit, thanking the senior officials of Moscow and local areas and people for warmly greeting him.

He was presented with a souvenir by Sergey Darikin on behalf of the Maritime Territorial Government and people.

After a while, he left for his destination amid send-off by senior officials of Russia.

Prior to it, he left the country to pay an unofficial visit to Siberia and the Far East Region of the Russian Federation.

He is accompanied by Kim Yong Chun, member of the Political Bureau of the WPK Central Committee and minister of the People’s Armed Forces, Kang Sok Ju, member of the Political Bureau of the WPK Central Committee and vice-premier of the Cabinet, Jang Song Thaek, alternate member of the Political Bureau of the WPK Central Committee and vice-chairman of the NDC, Kim Yang Gon, Pak To Chun and Thae Jong Su, alternate members of the Political Bureau and secretaries of the WPK Central Committee, Ju Kyu Chang, alternate member of the Political Bureau and department director of the WPK Central Committee, Pak Pong Ju, first vice department director of the WPK Central Committee, O Su Yong, chief secretary of the North Hamgyong Provincial Committee of the WPK, Kim Kye Gwan, first vice-minister of Foreign Affairs, Kim Yong Jae, DPRK ambassador to Russia, and Sim Kuk Ryong, consul general of the DPRK Consulate General in Nakhodka of Russia.

His visit to Russia, another event in achieving world peace and security and the human cause of independence, will mark a historic occasion in boosting the DPRK-Russia friendship given steady continuity generation after generation and putting strong impetus to the drive of all the servicepersons and people to build a thriving socialist nation.

ORIGINAL POST (2011-8-20): Kim Jong-il has made a “surprise” trip to Russia.  According to the AFP:

North Korea’s reclusive leader Kim Jong-Il on Saturday arrived in his armoured train in Russia and plans to meet President Dmitry Medvedev, the Kremlin said.

During the visit, his first since 2002, Kim is expected to meet with the Kremlin chief for talks in Siberia to discuss North Korea’s nuclear programme, bilateral economic projects and a worsening food crisis in the isolated state.

“A meeting between Russian President Dmitry Medvedev and Kim Jong-ll will be the main event of the visit,” the Kremlin said in a statement, saying Kim would also visit the Far Eastern and Siberian regions.

The Kremlin did not release further details but a local official in the Far East told AFP Kim’s train crossed the border earlier in the day.

…

Kim, who is known to dislike air travel due to security concerns, arrived in Khasan district after crossing the Tumangan river at 12 pm local time (0100 GMT), Naryzhny said.

He said he was unaware of the North Korean leader’s programme in Russia, adding he did not leave his train upon arrival.

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Additional Information:

1. Here is a post on recent DPRK-Russia exchanges leading up to the visit.

2. Here and here are recent stories on DPRK laborers in Russia.

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