Archive for the ‘International Governments’ Category

Inter-Korean trade falls more than 30%

Friday, August 6th, 2010

According to Yonhap:

Inter-Korean trade has fallen more than 30 percent since the South cut almost all business relations with the North after Pyongyang was blamed for torpedoing one of its naval ships in late March, the customs office here said Friday.

According to data provided by the Korea Customs Service, the trade between the two Koreas came to US$123.06 million in June, down 32 percent from April, when they still kept their ordinary business relations despite a probe into the naval disaster.

South Korea’s exports to the North amounted to $56.88 million in June, down 27 percent from April, while imports decreased 36.5 percent to $66.18 million over the same period, the data showed.

Inter-Korean trade also dropped 21 percent from May, with its exports to and imports from the North falling 4 percent and 32 percent, respectively.

Despite such a sharp shrinkage, the customs office said the decline was not as steep as expected thanks to the Kaesong complex, which takes up most inter-Korean trade.

“The reason why the decline was not as sharp as expected is because we still keep a trade channel open in the Kaesong complex, which accounts for around 70 percent of total trade with the North,” a customs official said.

South Korea is the North’s second-largest trade partner after China. A suspension of inter-Korean business would cause a significant impact on the efforts of the reclusive communist nation to secure cash, according to experts.

Earlier, a state-run think tank here said inter-Korean trade suspension could cost North Korea about $280 million annually, adding to pressure on the North’s cash-strapped regime in governing its country.

Read the full story here:
Inter-Korean trade falls more than 30 pct amid heightened tensions
Yonhap
8/6/2010

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DPRK-Bulgarian trade to expand?

Thursday, August 5th, 2010

According to the Sophia News Agency:

North Korea has expressed interest in buying Bulgarian foods, pharmaceuticals and software, among other products.

This has been announced by the Bulgarian Chamber of Commerce and Industry (BCCI), which is researching the opportunities for organizing a business delegation trip to North Korea or North Korea and China in the fall of 2010.

According to the announcement of the International Organizations and International Cooperation Directorate of the BCCI, the North Korean side has shown interest in Bulgarian software products, pharmaceuticals, food products – including canned food, wines, juice, yellow cheese, and compotes; as well as metals – cesium, potassium, zinc, radium.

Read the full story here:
North Korea Interested in Buying Bulgarian Compotes, Software
Sophia News Agency
8/5/2010

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DPRK takes PRC diplos to Kumgang

Thursday, August 5th, 2010

Accroding to the Choson Ilbo:

North Korea apparently offered a tour to the Mt. Kumgang resort to some 20  Chinese embassy staff last month but did not tell South Korea’s Hyundai Asan, which built the facilities there and has the exclusive right to run the tours. A Unification Ministry official said this was “a clear violation” of Hyundai’s operating rights.

According to the website of China’s Foreign Ministry, the officials toured the scenic mountain resort for three days from July 21 at the invitation of North Korea’s Foreign Ministry. The officials toured sites in Mt. Kumgang that require permission from Hyundai Asan. “The splendid peaks and strange rock formations of Manmulsang, the spectacular scenery of the Haekum River, the flowing waters of the Kuryong Falls… listening to the tour guide made us feel like we were in Shangri-La,” a participant wrote. There is also a photo of them in front of the Kuryong Falls.

In 2000, Hyundai Asan paid US$500 million to North Korea for the exclusive right to operate seven projects in the North, including tours to Mt. Kumgang. But Hyundai Asan said it was unaware of the tour for the Chinese diplomats. “When our tourism operations ran smoothly, North Korea always informed us when they were bringing guests into Mt. Kumgang,” a Hyundai Asan staffer said. “It’s objectionable that they offered the tour without notifying us.”

In April, North Korea froze real estate in Mt. Kumgang belonging to Hyundai Asan and the South Korean government and said it would allow Chinese travel agencies to operate tours to the resort. When a number of Chinese travel agencies began offering tours, the South Korean government and Hyundai Asan protested, and in May Culture and Tourism Minister Yu In-chon sent an official letter to the Chinese government explaining that the freeze was a breach of contract and asked Beijing to take the resort off the list of travel destinations.

“The fact that Chinese diplomats, who must have been aware of the delicate situation, visited Mt. Kumgang is simply puzzling,” a South Korean official said.

Read the full story here:
N.Korea Takes Chinese Diplomats on Mt. Kumgang Tour
Choson Ilbo
8/5/2010

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DPRK’s Arms Exports Stay Steady

Thursday, August 5th, 2010

According to the Daily NK:

Despite the implementation of UN Security Council Resolution 1874 in June, 2009, North Korea’s weapons exports last year earned the country approximately the same amount as they have since Resolution 1718 was passed in 2006.

Song Young Sun, a lawmaker sitting on the National Defense Committee of the National Assembly, told reporters on Wednesday, “South Korea’s intelligence organizations have obtained a figure of around $50 million, and they assume that in practice the North has exported much more than that.”

Intelligence authorities apparently believe that the reason is that North Korea has exported parts and supported foreign munitions factories in other ways, rather than exporting finished weapons.

In September of last year, a Georgian cargo plane containing 35 tons of weapons parts including those for the Taepo-dong 2 was intercepted in Bangkok. Two months later, a ship heading for Congo was also revealed by South Africa to contain parts of the T-54 and T-55, North Korean tanks based on Soviet designs.

Meanwhile, the most successful period for the sanctions regime was immediately after UN Resolution 1718 was imposed on North Korea in 2006, when North Korean exports are estimated to have been reduced to $30 million, just 1/7th of the previous year’s total.

Read the full story here:
North Korea’s Arms Exports Stay Steady
Daily NK
Kim Min Su
8/5/2010

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DPRK overseas financial organizations

Thursday, August 5th, 2010

They have been in the news quite a bit recently.

According to the Donga Ilbo:

The U.S. has reportedly confirmed that nine of the 15 financial institutions North Korea operates overseas are involved in illegal activity.

Accordingly, the nine and more than 20 other institutions and individuals, including financiers who oversee the institutions, will be subject to Washington’s new financial sanctions announced against Pyongyang.

A government source in Seoul said Wednesday, “The U.S. government and intelligence are pointing to Kim Tong Myong, president of Danchon Commercial Bank of the North. The bank helped to amass slush funds overseas for the North.”

“Washington judges that organizations subject to Executive Order 13382, which regulates weapons of mass destruction, are also involved in other activities, including the illegal trade of luxury goods and money laundering. The U.S. is considering including many such organizations in the new executive order.”

Under Executive Order 13382, three financial institutions and 18 trading companies were subject to financial sanctions. The imminent addition of six more North Korean financial institutions abroad will further put the Stalinist country in a bind.

On Washington’s plan to impose additional sanctions against Pyongyang, South Korean Foreign Minister Yu Myung-hwan said, “Measures designed to impose specific sanctions on organizations and individuals and freeze assets will come in two weeks.”

And according to the Choson Ilbo:

Hong Kong financial authorities are inspecting all banks in the territory to find out if North Korea’s Taepung International Investment Group has opened secret accounts there. Taepung has the unenviable task of attracting foreign investment to the North.

According to information obtained by the Chosun Ilbo, the Hong Kong Monetary Authority in late July asked banks to report no later than Aug. 3, if they had engaged in “any kind of transactions” with four companies over the past six years.

The four are Taepung International Investment Hong Kong, Taepung International Investment Holdings Virgin Islands, Taepung International Investment Group, and Taifung (Taepung’s Chinese pronunciation) International Investment Group.

This was the first time Taepung has been targeted for financial sanctions by a third country.

A source in Hong Kong said it seems authorities have asked all Hong Kong branches of about 190 banks from the U.S., Europe and Asia for data about the four Taepung affiliates and two Iranian firms.

Taepung Hong Kong is believed to be a paper company. In April it registered at Rm.# 2508, Lippo Centre, 89 Queensway, Hong Kong, but the only office at the address is a local law firm.

Read the full stories here:
US: 9 Illegal NK Financial Entities Abroad Confirmed
Donga Ilbo
8/5/2010

Hong Kong Looks for Secret N.Korean Accounts
Choson Ilbo
8/5/2010

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More on upcoming US sanctions

Wednesday, August 4th, 2010

According to the AFP:

The United States is expected to blacklist three key North Korean figures suspected of handling secret funds for leader Kim Jong-Il as part of its new sanctions, a report said Wednesday.

Washington is devising the measures to punish the North for an alleged deadly March attack on a South Korean warship and to push it to abandon its nuclear weapons ambitions.

Yonhap news agency, quoting an unidentified South Korean government source, said one of the three officials is Kim Tong-Myong, head of the North’s Tanchon Commercial Bank.

“The US is paying special attention to three people, including Kim Tong-Myong, who operate North Korea’s secret funds abroad,” the source was quoted as saying.

“If they are included in the new sanctions, it could deal a blow to North Korea’s leadership.”

The foreign ministry had no comment on the report.

Washington also has evidence that nine North Korean financial institutions operating overseas and at least two trading firms have been used for illicit activities such as trading in conventional arms, luxury goods and counterfeit money, the source was quoted as saying.

Overall, the US is expected to add 10-20 North Korean entities and individuals to its blacklist, the report said.

Robert Einhorn, US State Department special adviser for non-proliferation and arms control, said Monday during a visit to Seoul the new measures would designate companies or individuals involved in the North’s illicit activities.

Any property or assets they possessed which were under US control could be blocked.

“By publicly naming these entities, these measures can have the broader effect of isolating them from the international financial and commercial system,” Einhorn said.

He named Tanchon Bank as one of several North Korean companies active overseas. The bank has already been designated by the US and the UN Security Council for suspected illicit activities.

South Korean Foreign Minister Yu Myung-Hwan said details of the new US sanctions will emerge soon.

“We’re expecting concrete measures within the next two weeks that will freeze assets of related North Korean individuals or companies and will prohibit third countries from dealing with such individuals or companies,” Yu told a local radio station.

South Korea, the United States and other countries, citing a multinational investigation, accuse the North of torpedoing a South Korean warship in March with the loss of 46 lives — a charge it denies.

Read the full story here:
US to target secret funds of N.Korea’s Kim
AFP
8/4/2010

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Chongryon’s Korea University

Tuesday, August 3rd, 2010

According to the Chronicle of Higher Education:

North Korea’s red, white, and blue flag flutters on the campus, signs are written in Hangul, and female students stroll through the corridors wearing the traditional jeogori costume. Professors lecture beneath iconic portraits of the father-and-son hereditary dictatorship that has run the reclusive Stalinist state since 1948.

Roughly 800 miles from P’yongyang in Tokyo’s leafy western suburbs, Korea University is an anomaly, an intellectual oasis in a society that distrusts and even despises the ethnic group it caters to—native Koreans loyal to P’yongyang. The institution has never received financial support or even official recognition from the government of Japan.

The university is part of a network of educational institutions established decades ago to serve the Korean population here. Its students wrestle with politics and computer science but also the philosophy of the North’s leader, Kim Jong-il, and the merits of their isolated country’s fossilized centralized government. Surrounded by one of the planet’s most high-tech cities, undergraduates spend their entire four years in Spartan on-campus dorms designed to encourage shared collective identity.

“Part of what we do here is protect our culture,” said the institution’s president, Chang Byong-tai. “Our country and our identity were stolen from us by Japan.”

While unusual, the university for the most part resembles other higher-education institutions, with some notable exceptions. A tour reveals a quiet campus, with aspiring teachers taking a music lesson and students reading in the library, where yellowed English-language newspapers from P’yongyang sat on shelves.

The university offers a standard range of courses, including languages, history, economics, and hard sciences, and has carved out a niche offering legal and other specialist qualifications to Koreans. It has become an academic pit stop for Korean students on their way to Japanese graduate universities.

Set up in 1956, the university is struggling to survive. Hit hard by the decline in Japan’s Korean population, enrollment has plummeted to just 800 students, down from 1,500 in the mid-1990s. Student fees pay for 70 percent of the institution’s costs; donations and endowment investment earnings pay for the rest. Cash from P’yongyang, once a lifeline, has dried up to a thin, unreliable trickle.

“We’re very worried about the future,” said Mr. Chang.

A Political Punching Bag

Mostly left alone for decades by Japan’s authorities, the institution—like any with connections to North Korea here—has recently become a political punching bag. Ultrarightists have driven up this quiet cul-de-sac and blasted the campus with anti-P’yongyang slogans from loudspeakers. Political conservatives have zeroed in on the roughly 70 P’yongyang-affiliated Korean schools that feed the university, demanding they be excluded from a new tuition-waiver system.

“The atmosphere now is very, very bad,” said Kim Yang-Sun, an administrator at the university. Like most of the staff here, Mr. Kim resents the recent attention, which comes on the back of growing tensions between Tokyo and P’yongyang and what he sees as unfair long-term treatment by the Japanese authorities. “Donations to universities are tax deductible in other parts of the world, but not for us. We have been discriminated against.”

Mr. Kim’s ancestors have been in Japan since its annexation of the Korean peninsula in 1910. When occupation ended in 1945, about 700,000 Koreans stayed on rather than return to their homeland, which was then sliding into a war that would eventually split the country into two bitterly opposed states.

These refugees were rendered stateless when Japan’s postwar government ended the citizenship of former colonial subjects in 1947. Well-documented discrimination meant that many found the typical postwar route to prosperity in Japan—lifetime employment in large companies—effectively barred.

When Tokyo normalized relations with South Korea in 1965, Koreans in Japan had to choose essentially an administrative category—to opt for life as a South Korean with permanent residency or to leave the word “Korean” on their alien-registration cards and so become de facto North Koreans. Most declined South Korean citizenship—ironic given that the vast majority originates from the geographic south. South Korea was then a poor dictatorship backed by the United States, while North Korea, though offering little freedom, at least boasted the rhetoric of a “workers’ state.”

“Koreans in Japan were very poor and had no civil rights, so it was a big deal that there was a nation that regarded them as fellow compatriots, that gave them help, and funded this university,” said Sonia Ryang, a professor of anthropology and director of the Center for Asian and Pacific Studies at the University of Iowa.

Today at the university, the grandchildren of those first-generation Koreans struggle with profound identity issues. Many distrust the Kim Jong-il regime but remain loyal out of respect for their parents or the desire to preserve their cultural heritage.

“The reputation of the university is less important that what we study here,” said Ho Tae-jung, a political-economy student. “I’m a Korean, and I want to protect my culture, language, and identity. That’s why my parents and I chose this place.”

Said Ms. Ryang: “They do an amazing job of maintaining Korean culture in a hostile environment.”

Those familiar with the university say one of its unofficial roles is to act as an ethnic matchmaking service. “Most of us want to marry a Korean and have Korean children,” said Yun Minna, a third-year law and politics student at the college.

“I don’t hate Japan, but when you see how our community is getting smaller, it would be better to marry a Korean,” said Mr. Ho.

‘Education Gives Us Pride’

But many Japanese view the community and the college with mistrust since the 2002 revelation that the North Korean military had been kidnapping Japanese citizens in the 1970s and 80s in a bizarre plot to train spies. News-media interest, often prurient, has grown as relations have deteriorated with P’yongyang, which recently became a nuclear power. For conservatives, the university and the rest of North Korean network in Japan are a sort of Trojan horse, breeding disloyalty and even incubating spies. Students and graduates respond that they are the victims of McCarthy-style persecution.

“I don’t talk anymore to the Japanese media because I’m sick and tired of how they portray us,” said Chung Hyon Suk, a graduate of the university who now supervises press events at the Foreign Correspondents’ Club of Japan. Like most students who have graduated from the university, she says there are huge misconceptions about what goes on there. “Students discuss Marx and Lenin, of course, but they can talk very freely and criticize the [P’yongyang] government. A lot of us feel inferior, so education helped give us pride as Koreans, in our language and culture.”

Said Ms. Ryang, who is also a graduate of the university: “Depending on the occasion, students felt free to make jokes about North Korea, but by the same token, again depending on the occasion, students were able to conform with university orthodoxy, upholding North Korea as their glorious fatherland.”

With over 10,000 Koreans a year either assuming Japanese citizenship or swapping their affiliation to South Korea, according to Japan’s Ministry of Internal Affairs and Communications, the minority community served by the university is shrinking, from a peak of 700,000 to just over 400,000. Many parents are sending their children to Japanese schools. For some, that’s an opportunity to bury the past completely and scrap their Korean names and identities.

“We have heard cases of schoolchildren finding photographs of their grandparents wearing Korean dress and being astonished at this background,” said Moogwi Kim, of the Korean Youth Association in Japan. “Their parents kept it from them.”

Mr. Chang, the university’s president, believes that government recognition as a foreign university, which is currently afforded very few Japanese universities, and allowing donations to be tax deductible might help his institution survive.

Ms. Ryang, however, wonders if the university would really welcome recognition by the government. “If it were recognized, it would have to receive periodic inspections, comply with certain levels of transparency, and it has no experience of that.”

She said few people understand how isolated the community and the university felt. “Japan is not a violently segregated community; it’s politely segregated. Until 1981 we were not able to travel outside Japan. I never had Japanese friends when I was a kid. That’s changing now, and the university is within reach of globalization, but is it ready for that?”

Read the full story here:
In Japan, a North Korean Campus Keeps National Identity Alive
Chronicle of Higher Education
David McNeill
8/3/2010

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Rok aids businesses formerly engaged with DPRK

Monday, August 2nd, 2010

According to Yonhap:

South Korea began examining applications for low-interest loans Monday for companies troubled by a government ban on trade with North Korea, an official said.

The measure is part of the South Korean government’s efforts to alleviate the financial troubles of private enterprises that had to stop trading with North Korea after Seoul announced in May that Pyongyang was responsible for the March 26 sinking of its warship.

North Korean firms are moving business to China.

Read the full story here:
S. Korea launches support for companies banned from trading with N. Korea
Yonhap
8/2/2010

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RoK bans civic group from visiting DPRK

Monday, August 2nd, 2010

According to KBS:

South Korea has turned down a civic organization’s request to visit North Korea.

The Unification Ministry in Seoul said Monday that it decided not to allow a cross-border trip by a delegation from the Korea NGO Council for Cooperation with North Korea, citing icy inter-Korean relations.

The NGO council sought to make a four-day visit to Pyongyang starting Wednesday to discuss the establishment of a branch office in the North Korean capital.

The government has banned South Koreans from traveling to North Korean regions other than the Gaeseong Industrial Complex and the Mount Geumgang resort in the wake of North Korea’s sinking of the “Cheonan” naval vessel.

Read the full story here:
S.Korea Bans Civic Group from Visiting NK
KBS
8/2/2010

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DPRK defector numbers

Monday, August 2nd, 2010

UPDATE: The Daily NK offers these numbers:

This September, the number of North Korean defectors living in South Korea is likely to pass 20,000. Hanawon, the resettlement education center for defectors located just outside Seoul, recently revealed that a total of 19,300 defectors were in South Korea as of 1 July, and forecast that the tally would surpass the 20,000 mark this coming September.

It is a number which has been rising steadily ever since eight people first crossed the border in 1993, with records for 2006, 2007, 2008, and 2009 showing 2018, 2544, 2809, and 2927 defectors reaching South Korean territory respectively.

ORIGINAL POST: According to the Donga Ilbo:

The [Unification] ministry said the number of North Koreans who arrived in the South in this year’s first half was 1,237, or 42.3 percent of last year’s figure of 2,927. The number for the second half is expected to decline further because the number of defectors awaiting entry into South Korea has dropped.

More than six months is normally needed for defectors to enter the South after fleeing the North. So the number of North Koreans to enter the South this year will reach an estimated 2,000, or two thirds last year’s figure.

This is a big change given that the number of defectors to South Korea had grown 10-30 percent every year. Had this pace been maintained this year, the number would have exceeded 3,000.

The number of defectors reaching South Korea was marginal through 1993, but increased to 52 in 1994. It exceeded 100 in 1999, 1,000 in 2002, and 2,000 in 2006.

The drop is largely due to the North’s stepped-up crackdown on defectors. The Stalinist country set up layered surveillance networks in border areas early this year shortly after its major security agencies — the People’s Security Ministry and the State Security Ministry — issued their first joint statement declaring war on defectors in February.

The People’s Security Ministry is in charge of maintaining public order and the State Security Ministry handles intelligence gathering. Unlike in the past, the two organizations are working closely together with military forces dispatched to border areas to prevent defections.

The North is known to have significantly strengthened its crackdown after its disastrous currency revaluation in December last year.

The punishment for defectors deported from China has also gotten tougher. In the past, North Koreans who fled their country were subject to labor if they left to earn a living but now face more than three years in prison without exception. In worst cases, public execution is their fate.

The heightened crackdown on defectors has raised the price of crossing a river to escape. The cost used to be tens of thousands of North Korean won (tens of U.S. dollars) in the past, but has soared to millions of won (hundreds of dollars). Even this amount, however, does not guarantee safe passage out of the North.

North Koreans who escaped to South Korea used to send money to the North to help their families flee, but it has gotten more difficult not only to send money, but also to contact their families in the North.

All of this is related to strained inter-Korean relations. The powerless defectors are victims of the bilateral confrontation that began with the inauguration of the Lee Myung-bak administration in 2008.

Read the full stories here:
No. of Defectors Drops Amid Heightened Crackdown
Donga Ilbo
8/2/2010

Rekindling Hope for North Korean Youth
Daily NK
Mok Yong Jae
8/6/2010

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