Archive for the ‘International Governments’ Category

DPRK refusing official food aid

Thursday, August 3rd, 2006

Red Cross In S. Korea Says North Rejects Aid
Washington Post
Kwang Tae Kim
Associated Press
Thursday, August 3, 2006; Page A18

SEOUL, Aug. 2 — The South Korean Red Cross said Wednesday that its North Korean counterpart had rejected an offer of aid for flood victims.

North Korea “expressed thanks for Seoul’s offer” but said “it will handle the recovery efforts from recent floods by itself,” a senior North Korean Red Cross official said, according to the South Korean Red Cross.

Floods caused by heavy rains in mid-July killed at least 154 North Koreans and left more than 127 missing, according to the United Nations. North Korea’s official media have said the disaster caused hundreds of deaths and cut off roads, bridges, railroads and communications.

However, the Good Friends group, a Seoul-based aid organization for North Korean refugees, said in a statement Wednesday that about 10,000 people were dead or missing and 1.5 million were left homeless by the floods.

The project coordinator for Good Friends, Lee Seung Yong, declined to identify sources for the information, but previous reports of activities in North Korea from the group have since been confirmed.

North Korea has relied on foreign donations of food since the 1990s, when natural disasters and decades of mismanagement led to the deaths of as many as 2 million people.

South Korea, a key provider of rice and fertilizer to the North, recently suspended aid shipments to protest the county’s refusal to discuss its missile launches in early July. The tests drew international condemnation and raised regional tensions.

North Korea protested the South’s decision and cut off government-level exchanges. But civilian-level exchanges remain intact, leading the North to seek civilian assistance from the South for flood victims while rejecting the offer of aid from the government-run Red Cross.

The South’s Korean Council for Reconciliation and Cooperation, which is composed of civic groups and ruling Uri Party members and is partly funded by the government, said it would send aid to the North by next weekend. It said the aid would probably be accepted but declined to give details.

JTS Korea, a private relief agency based in Seoul, also said Tuesday that it would ship emergency goods to the North. The agency’s spokeswoman, Hyun Hee Ryun, said North Korea had specified what kind of supplies it needed, suggesting that the aid would be accepted.

N. Korea declines aid from Red Cross after flooding
Korea Herald

North Korea, which was hit by torrential rain and flash floods last month, declined offers of aid from the International Red Cross and its South Korean branch, an official said.

“We asked the North Korean government what it would need in terms of relief aid to help in their efforts to recover after last month’s heavy rains,” said Kim Hyung-sup, a spokesman at South Korea’s National Red Cross. “North Korean authorities replied that while they appreciate the offer, they are able to manage on their own. I seriously doubt that.”

The International Committee of the Red Cross – to which the South Korean Red Cross belongs – also offered aid, which North Korea declined, Kim said.

Hundreds of people are dead or missing in North Korea after the rains, the country’s official Korean Central News Agency said on July 21. Floods last week also damaged farmland, tens of thousands of shelters and public buildings. Hundreds of roads, bridges and railways were destroyed, it said. South Korea was also hit and damages in the South are estimated at around 2 trillion won ($2.1 billion).

North Korea canceled two festivals this month, citing relief efforts. It postponed its Arirang Festival, featuring its mass games, as well as an annual festival with South Korea to mark their independence from Japanese colonial rule at the end of World War II.

“The biggest problem for North Korea will be food shortages, especially in winter and next year, because most of its farmlands were flooded,” Kim said. “Water and medical supplies are likely to be in demand, either because of the wounded as well as concerns of infectious diseases that may spread in the aftermath of the rains.”

A South Korean civic group said Tuesday that it plans to provide emergency aid to North Koreans.

The Join Together Society, a humanitarian aid group in Seoul, said it will send eight TEUs filled with relief goods, including 100 tons of flour, to the North from Aug. 3-9. TEUs, or 20-foot equivalent units, are a measure of containerized cargo capacity.

It is the first time that a South Korean civic group is providing aid to the communist state since Seoul stopped all efforts in the wake of the North’s recent missile tests and its ongoing boycott of six-way nuclear talks.

North Korea has depended on outside aid since the 1990s. More than a million people have died from famine because of years of flooding, drought and economic mismanagement. One in three North Koreans is chronically malnourished and many are forced to scavenge for food, resorting to ferns, acorns, grass and seaweed.

International food aid for North Korea reached 1.08 million tons last year, the world’s second largest after Ethiopia’s 1.1 million tons, according to the United Nations’ Food and Agriculture Organization. South Korea sent 394,000 tons of food aid to North Korea last year.

Daily NK:

It has been learned that serious damage has been incurred in North Korea due to heavy rain, which has also led to the cancellation of the Arirang festival.

Due to the heavy rain, hundreds of people have died, and 100,000 tons of food was lost. The Food and Agriculture Organization (FAO) estimated that necessary food aid would amount to 830,000 tons between November 2006 to October 2007.

High production agruicultural areas such as Hwanghae and South Pyongan provinces have already complained about likely food shortages next year. North Korean traders from China said that, “due to the damage from the heavy rain, the whole country will face loses”. Many international organizations have voiced a desire to aid the North Korean people after learning of the flooding, keeping the missile conflict a separate issue.

Although international organizations, including the International Red Cross, have offered to aid the North Korean people, North Korea has refused the aid. The World Food Program (WFP) offered to provide 74 tons of food to the Yeungsan district of North Hwanghae province, but due to the WFP condition of monitoring distribution of the food aid, North Korea has refused to accept it.

It was also confirmed that North Korea refused aid offered by the International Red Cross offices in Europe and the U.S., and has not yet responded to an offer of aid made by the Korean National Red Cross. It seems unlikely that the North will accept the aid, as the government has firmly refused external aid, in order to keep the international community ignorant to the situation in the North.

If the North Korean government continues to take this attitude, the number of victims will no doubt increase, particularly as the international community increases the level of isolation against North Korea.

Last December, when the U.N. General Assembly passed the North Korean Human Rights Resolution, North Korea asked the U.N. office in North Korea to withdraw. During that time, when North Korea refused food aid from the WFP, it was criticized as using its people as hostages to pressure the international community.

The South Korean government officially took the stand that it would not aid North Korea. Although some people have said that ignoring the need for aid is a bad decision, others believe that sending aid when the North did not request it would only it would only invite misunderstanding.

If the government rushes to aid North Korea, it will be criticized for supporting the North, while leaving domestic flood sufferers to fend for themselves.

However, many people point out that even though they maintain an alliance against the North in regard to the missile conflict, the South Korean government should still offer humanitarian assistance. Cooperation through international organizations, such as the WFP, with monitoring of distrubution, could ensure that the North Korean people receive the aid that they need.

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DPRK inflation on the increase

Tuesday, August 1st, 2006

from the Daily NK:

Recently, concerns mounted that a counterfeit $100 “supernote” was being used as “official currency” between North Korean traders.

For a while, the supernote was used in areas of China in common trade and drug smuggling. The counterfeit money began circulating in Jangmadang and then North Korean markets, as “unofficial forms of trade”.

As of early this year, the supernote circulated amongst North Korean common traders was valued at $70, and by June, had spread throughout the whole nation. It appears that the counterfeit money is being accepted as “income currency”.

This information was obtained by North Korean and Chinese tradesmen residing both in and outside of North Korea.

On July 26th, Park Chul Woong (pseudonym, 34), a Korean-Chinese merchant in Dandong, China said “It has been a while since counterfeit money has been used as a form of transaction in North Korea. Now, tradesmen use the supernote amongst themselves to do business”.

Park said “Even if you make a small deal of $1,000, this still equates to 600 sheets of North Korean 5,000 won notes. (The largest North Korean bill) As people do not want to carry this amount of money with them, merchants use the counterfeit money instead”.

Also, Park said “Merchants do not deal with North Korean currency as they do not trust it. When inflation rises rapidly as in 2002, merchants sit around and discuss how the money has no value. However, there is nothing you cannot do with the dollar. As the dollar is scarce, merchants have resorted to using fakes.”

The traders complain that the North Korean currency has lost its value so much, that if they were to use the money for trade at markets they would have to carry numerous bags of it. They also said “Every day the market price fluctuates dramatically. The more you trade with North Korean money, the greater the loss.”

No control of counterfeit money
 
Last May, Kim Young Man (pseudonym, 38), a Korean-Chinese who went to Shinuiju for an Investment Conference, said “North Korea is unhestitantly using the counterfeit $100 note as real $70. It is of concern as to how far they will take this.”

He said “Even business employees of the National Security Office or the Department of the People’s Armed Forces General Logistics Bureau use counterfeit when paying Chinese tradesman for products such as seafood and hand-made goods. If North Korean authorities discover that counterfeit money is circulating in North Korea on such a large scale, chaos could ensue.”

Also, he said “Merchants generally carry dollars. Rich merchants store their real currency in safekeeping and use counterfeit money for “exchange”. He continued, “Although the whole world has eradicated counterfeit money, North Korea is still far behind”.

At Dandong’s economic development zone, a Chinese tradesman said “The U.S. alleges that it will eradicate the counterfeit money, but there has been little change. The value of the counterfeit money at $70 is not depreciating”.

On the one hand, tradesmen say “Apart from the supernotes manufactured by North Korean authorities, computer-made supernotes have been discovered and rejected as a means of business.”

At present, it is difficult to estimate how much counterfeit money is circulating around North Korea. However, if the counterfeit money is accepted amongst common traders at Jangmadang, this means that the counterfeit currency has reached a large scale and is spreading further.

This substantiates the failure of the North Korean authority’s implementation of foreign transaction of the Euro in December, 2002.

Last July, at the Interpol Conference on counterfeit money in Riom, France, North Korea was marked as “a hotbed of counterfeit money”. It is expected that the U.S. will take drastic measures to control the counterfeit dollars circulating throughout North Korea as official currency.

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Isolated North Korea pulling back even more

Tuesday, August 1st, 2006

Joong Ang Daily
August 01, 2006

With North Korea more isolated than ever from the international community over its nuclear program and recent missile launches, Pyongyang is taking steps to tighten controls on its people in a bid to show it can defy the international community, North Koreans interviewed in Beijing said.

“It seems that we have to sing the revolutionary songs again,” said one North Korean in Beijing, saying it was time for his country to get mentally tougher. “Nobody listens to us, thus the only way left is to stick together,” the North Korean said.

If Pyongyang hoped to gain more concessions in nuclear negotiations and resolve the issue of financial sanctions imposed by Washington on Banco Delta Asia through its missile launch, the results have been the opposite.

A United Nations Security Council resolution backed by Pyongyang’s long-time ally, Beijing, was adopted. The Bank of China also froze North Korean accounts at its Macao branch, a Korean lawmaker has said.

In addition, a senior official of the United States Treasury Department said recently, Singapore and Vietnam have made commitments to clamp down on illicit North Korean financial activities such as money laundering.

A source in Seoul who is familiar with North Korea’s circumstances said yesterday that Pyongyang has decided to halt exchanges with the outside until April of next year. The Arirang Festival scheduled for this month has already been cancelled.

Experts said a series of economic measures aimed at reviving the North’s ailing economy, which have been underway since 2001, will also likely be put on hold.

“Inside the North, there are even some calling for a halt of the Kaesong Industrial Complex and the Mount Kumgang tours,” said the source, who added that large numbers of North Korean college students are submitting requests to enlist in the military.

Recently, a senior North Korean official on a visit to Beijing said the North is fully prepared to engage in “a march of suffering.” Recent rhetoric coming out of Pyongyang reflects a war-like atmosphere in the country. The state-run Rodong Sinmun has warned that “invaders would be swept away by the fierce anger of the country.”

A government official in Seoul yesterday admitted that in the short run, diplomatic efforts to lure Pyongyang back to nuclear negotiations would be tough. “We are in a difficult situation, but what else can we do but try?” said the official.

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North Korean energy trade with China

Tuesday, August 1st, 2006

Nautilus Institute
Nathaniel Aden
August 2006

Paper here: Nautilus-Aden.pdf
web link here

Abstract:  China is North Korea’s largest international trading partner. Since 1995, energy and fuels have dominated bilateral trade between allies.  North Korea is a net importer of Chinese crude oil and oil products; however, it became a net exporter of electricity and coal to China in 2003.  Whereas North Korean coal and electricity exports are sold at sub-market “friendship prices,” Chinese coal and oil products have been sold to North Korea at premium prices.  Over the past ten years, North Korea’s imports have become increasingly energy-intensive, while exports have become more labor-intensive.  Chinese customs data suggest that Beijing is taking a pragmatic, market-oriented approach to trade with its reclusive neighbor, while the increasingly asymmetrical energy embodiment of bilateral trade may reflect dilapidation of North Korea’s non-military industries.

Bullet Points:
1.  In 2005, bilateral trade with the PRC accounted for 39% of North Korean international trade by value.

2. North Korean trade data are compiled by partner-country Customs Bureaus, the United Nations, and the Internaitonal Monetary fund (IMF).  China and South Korea provide the best “mirror” statistics.  Customs data do not include aid shipments, official development assistance, direct government transfers, foreign direct investment, services, remittances, barter trade, smuggling, illicit trade, trade in military equipment.

3.  The DPRK has spent an increasing amount of money on diminishing quantities of energy imports, particularly Chinese crude.  The decline of energy import volumes in the face of increasing overall imports and trade may reflect demand sensitivity to increased international market prices and/or North Korea’s lack of hard currency with which to purchase imported energy and fuels.

4. The DPRK has significant, ongoing refining capabilities.

5. Between 1985 and 2002, the DPRK domestic coal production has declined from 37.5 million tons to 21.9 million tons.  Nonetheless, North Korea increased its export quantity to 2% of total domestic production since 2002. 

6.  Starting in May 2005, North Korea has been an uninterrupted monthly electricity exporter.  Hydropower may account for much of the DPRKs surplus electric power.

7.  Energy prices reflect the pragmatic, market-oriented character of China’s economic relationship with North Korea.  North Korea may be providing China coal at subsidized prices, below those of China’s other trading partners.

8.  North Korea coal export prices show an awareness of market prices starting in 2002.

9.  The DPRK has consistently paid premium prices for Chinese oil product exports over the last ten years.

10. Aside from politically-determined prices, several conditions could explain this: 1.  Real factors (transport costs, demand, goegraphy) 2. Pyongyang’s insulation from market realities 3.  No DPRK leverage.

11. In 2005, North Korea imported $2omillion worht of trucks, $2 million worth of cars, $1 million of tractors.  The transport sector has not grown significantly since 1995.

12.  Shift of DPRK trade towards energy-intensive imports and labor-intensive exports suggests deterioration of non-military industry.

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China Seeks U.N. Title to Mt. Baekdu

Monday, July 31st, 2006

From the Donga:

The Chinese Government is hurriedly working on making the world recognize Mt. Baekdu (or Mt. Changbai in Chinese) as Chinese territory.

The Wenhui Newspaper of Hong Kong reported on July 30 that China has decided to register Mt. Baekdu on the World Geopark list designated by the United Nations Educational Scientific and Cultural Organization (UNESCO).

The Jilin Provincial Government of China has so far made efforts to get Mt. Baekdu registered as a world natural heritage site by the year 2008 when Jilin hosts the general assembly of the UNESCO World Heritage Committee. It might be fair to call this the “Mt. Baekdu Project” of incorporating the old territory of Goguryeo, an ancient Korean kingdom, into Chinese history, as it follows the Northeast Asia Project that focused on incorporating its history into China’s.

Back in 1980, China got Mt. Baekdu designated as a UNESCO Man and Biosphere (MAB) zone; the State Council designated Mt. Baekdu as a national-level natural protection zone in 1986 and has since managed it.

Mt. Baekdu has long been managed by the Yanbian Korean Autonomous Prefecture, where people of Korean origin collectively reside. Last year, the Jilin Provincial Government established the “Committee for Protection, Development and Management of Mt. Changbai,” an organization directly belonging to the provincial government and responsible for management of the mountain.

In a meeting with the “First Delegation of Chinese Internet Journalists Visiting Jilin” on July 22, Vice Director Li Zhanwun of the Committee said, “Mt. Changbai ranked second out of 17 places on the preliminary list of the nation’s cultural and natural heritage that the National Construction Ministry announced for the first time in January. Protection and development of the areas near Mt. Changbai has entered a new phase of development.”

The Committee plans to inject two billion Yuan (approximately 240 billion won) to develop the western slope of Mt. Baekdu on the Chinese side and open it around the year starting 2007.

Mt. Changbai Airport, which is currently being constructed in Fusong County 36 kilometers away from the North Korean border, is scheduled to open before the 2008 Beijing Olympics begins. The Jilin Provincial Government is also sparing no investment to expand the transportation networks near Mt. Baekdu, and is planning to complete construction of the Mt. Changbai Eastern Railroad, three highway networks and circular roadways in the next three years.

The Chinese National Tourism Agency and the Jilin Provincial Government recently held the first tourism festival near Mt. Baekdu; they are also active in attracting tourists from Russia and other foreign countries by holding the Yanbian Korean ethnic exposition. They also seek to stimulate the economy by developing mineral water in the areas nearby Mt. Baekdu and expanding cultivation of ginseng there.

Meanwhile, the Chinese government is reportedly seeking to register as UNESCO world cultural heritage the remnants of the Sanggyeong Yongcheonbu, which is the old capital of another ancient Korean kingdom—Balhae—located in the Bohai Bay, Ningan City, Heilongjiang Province.

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U.S. hails Bank of China’s freeze

Friday, July 28th, 2006

Joong Ang Daily
July 28, 2006

North’s accounts were in Macau branch, Korean legislator says 

The United States is encouraged by Beijing’s “affirmative steps” in freezing North Korean accounts at a Chinese bank, White House Spokesman Tony Snow said on Wednesday.

His remarks were the first official confirmation of a South Korean lawmaker’s earlier claim that the Bank of China had frozen North Korean assets. Beijing remained silent on the issue after Grand National Party lawmaker Park Jin revealed the news, citing an unidentified former White House official as his source, after a trip to Washington.

Mr. Park said yesterday that the frozen accounts he was referring to were only in the Bank of China’s Macau branch, but that he is looking into whether the Beijing branch will make a similar move.

Mr. Snow was asked if Washington had knowledge of China’s actions in regard to freezing accounts. He answered yes, and said the move was related to counterfeiting issues.

In a related development, Stuart Levey, the undersecretary for terrorism and financial intelligence of the U.S. Treasury department warned yesterday in an interview with Yonhap News Agency that North Korea could use funds legally gained through trade for military purposes. A diplomatic source in Washington said yesterday the remarks by Mr. Levey could mean Washington might pressure Seoul about the Kaesong Industrial Complex and the Mount Kumgang tours, through which Pyongyang receives cash from the South.

A government official in Seoul said yesterday that if Washington tries to alter the current course of inter-Korean projects it would meet “heavy resistance” from Seoul.

Unification Minister Lee Jong-seok has repeatedly said the inter-Korean projects would not be influenced by North Korea’s recent missile salvo.

In October last year, the U.S. Treasury department designated eight North Korean entities as being involved in the proliferation of weapons of mass destruction. Under U.S. law, all transactions between the designated entities and any person in the United States are prohibited while all assets of these entities are frozen in territories under U.S. jurisdiction. 

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ROK caves on Kaesong in FTA talks

Thursday, July 27th, 2006

From Joong Ang Daily:

A high-level Korean government official yesterday suggested that the Kaesong Industrial Complex issue be dealt with seperately from the free trade talks with the United States.

“It would be appropriate to discuss the matter on whether products manufactured from Kaesong Industrial Complex in North Korea should be recognized as South Korean in origin in a separate discussion from the free trade negotiation between South Korea and the United States,” said Chin Dong-soo, deputy finance and economy minister.

Mr. Chin said that even though Korea has persistently brought up the issue during the second round of talks, which took place earlier this month in Seoul, there has been no detailed discussion between the two parties.

“If we continue to push the matter while there is no response from the U.S. party, other issues that are being discussed at the free trade talks will likely be jeopardized,” Mr. Chin said.

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US warns ROK on sensitive materials to Kaesong but not too worried

Wednesday, July 26th, 2006

From Korea Times:

Control on Sensitive Materials to NK Tightened

South Korea’s Ministry of Commerce, Industry and Energy has issued a warning to 80,000 local companies against any shipments of strategic materials to North Korea, officials said Wednesday.

In an e-mail message sent to trading companies, the ministry said international pressure was mounting to prevent Pyongyang from acquiring materials that can be used for the production of weapons of mass destruction. North Korea has been condemned by many countries as well as the U.N. Security Council for firing a series of missiles into the East Sea on July 5.

The ministry also said that with U.S. lawmakers poised to pass a law that penalizes foreign companies that ship dual-purpose materials to North Korea, Washington is expected to strengthen its international monitoring activities.

The message said it could lead to sanctions being imposed on all violators discovered by the U.S. surveillance.

In addition, the ministry said South Korean firms should be careful of shipping products to China and some Southeast Asian countries that could be resold to North Korea.

“If companies have any doubts about whether or not their shipping of products violated the strategic material export rules, they should not hesitate to ask the government,” an official said. He added that companies that ship products to the inter-Korean industrial complex in the North Korean city of Kaesong, just north of the demilitarized zone separating the two Koreas, should be particularly careful.

South Korea is a signatory to the Wassenaar Arrangement, a multilateral pact that restricts the export of commercial products that can be used to make weapons to certain countries. The United Nations has also stressed the need to monitor such trade.

Authorities here have said they will step up efforts to detect and penalize violations.

From Korea Times:

Inter-Korean Economic Projects Not Worrisome’ 

By Park Song-wu, Lee Jin-woo

Inter-Korean economic cooperation programs are not a worry to the United States as the money ending up in North Korea is not likely to be used for developing weapons of mass destruction (WMD), a ranking U.S. finance official said.

In an interview with the Voice of America on Tuesday, U.S. Undersecretary of Treasury for Terrorism and Financial Crimes Stuart Levey said what Washington worries about is the North attempting to abuse international financial institutions to secure funds for its development of WMD.

He said the Kaesong industrial park project and the Mt. Kumgang tourism program _ the two examples of cross-border cooperation _ are not the concerns the U.S. government has in mind to safeguard the international financial system.

In a related development, the Kaesong complex is expected to churn out products worth a record high of $6 million this month, despite security concerns on the Korean Peninsula caused by the North’s missile launches on July 5, an official at the Unification Ministry said.

Denying a negative outlook for South Korean factories in Kaesong, Ko Gyoung-bin, who is in charge of supporting the project, said “everything is going perfectly okay.”

“The total production amount is expected to reach $6 million for the first time since its opening in June 2004, almost 100 percent up from $3 million of last December,” he said during a press briefing in Seoul on Wednesday.

Ko said the export volume of Kaesong products has also been steadily increasing from $1.1 million in May to $1.6 million in June.

“I don’t agree with recent reports which tried to link North Korea’s missile threats with the Kaesong complex,” he said. “I met a few working-level North Korean officials involved in the project last week and they were determined to continue this project.”

As for concerns whether the North Korean government properly pays their workers the wages sent by South Korean firms, Ko said he is confidant that the money has not been diverted for other purposes.

“South Korea has paid some $500,000 to $600,000 for those 7,800 workers and their families each month,” he said. “I don’t think there’s enough room for North Korean authorities to use part of the relatively small amount of money for other purposes.”

He added the number of North Korean workers in the complex would reach 8,000 this month.

A North Korean worker there earns $64 in wages and allowances a month. Most of the money is paid on the 10th of the month. This month, it was paid as scheduled.

South Korea paid $6 million to rent the complex site for 50 years in 2004.

Earlier this month, the Korea Land Corp., a state-run land developer, which has been involved in the Kaesong project, decided to postpone the sales of some 516,000 pyong (1.7 million square meters) of land in the industrial complex to both South Korean and multi-national companies.

Unlike the present South Korean firms in Kaesong, which benefited from the inter-Korean cooperation fund with low interest rates and a three-year grace period to pay back borrowed money, companies which wish to newly join the project will be required to get loans from commercial banks after getting credit guarantee notes issued by the state-run Korea Credit Guarantee Fund (KODIT).

The industrial complex is expected to house about 2,000 South Korean companies employing nearly half a million North Koreans when it comes into full swing in 2012, according to the ministry.

 

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Recent moves to isolate DPRK don’t include Kaesong Industrial Zone

Wednesday, July 26th, 2006

From Yonhap:

Seoul to expand inter-Korean economic project despite U.S. concerns: official

A ranking South Korean official on Wednesday said the government may expand a joint industrial complex in North Korea’s border town of Kaesong at an early date despite concerns that money paid to North Korean laborers there may be used to build missiles.

“The Kaesong industrial complex is a project that runs strictly on the mechanism of a market system,” Goh Gyeong-bin, head of the office for the inter-Korean economic project at the Unification Ministry, told reporters.

He said the government may begin the next phase of the Kaesong development project as early as August or September, which would include leasing out 1 million pyeong of land at the joint complex to South Korean companies. One pyeong equals 3.3 square meters.

The remarks are in line with Seoul’s earlier stance that it does not need to halt the inter-Korean project despite concerns, mainly from the United States, that wages paid to North Korean workers may be forfeited and diverted by Pyongyang to build missiles and weapons of mass destruction.

The apparent opposition from Washington, although still tacit, intensified after North Korea launched seven ballistic missiles, including a long-range Taepodong-2 believed capable of hitting the U.S. west coast, earlier in the month, while the U.N. Security Council unanimously approved a resolution prohibiting missile-related dealings with the North.

South Korea’s point man on North Korean affairs, Unification Minister Lee Jong-seok, however, has refused to halt or suspend the economic project with the communist state, claiming the U.N. resolution does not require his or any other country to cut normal, legal economic relations with the North.

“What the international community, including the U.S., is worried about is the North making or taking money through illegal means,” Lee told a National Assembly committee on Monday.

Currently, 13 South Korean companies are operating at the industrial complex, where about 7,800 North Korean laborers are getting paid US$57 a month on average, according to Goh.

The ministry official said there was no way of knowing for sure whether the North Korean government was taking any of the wages, but claimed it wasn’t happening.

“There is no possibility. The amount tells us that,” Goh told Yonhap News Agency in a later telephone interview.

“Even though North Korea is an extremely poor state, it would take at least 50,000 (South Korean) won (about $50) on average to feed a family of four for a month,” he claimed.

He said the South Korean companies are paying about $500,000 to $600,000 a month to 7,862 North Korean employees.

“The issue (of possible diversion of funds) may become significant when the amount grows to a significant level through second and third phases (of the development project), but it really is not an issue at this time,” he said in the press briefing.

Between 300 to 800 South Korean companies, depending on the size of each business, are expected to move into the joint complex when the next phase of the development plan is completed, according to Goh.

The industrial complex is expected to house about 2,000 South Korean companies employing nearly half a million North Koreans when it comes into full swing in 2012, according to the Unification Ministry.

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DPRK, China agree on border river management

Tuesday, July 25th, 2006

From Xinhua via NKZone:

China and North Korea have signed an agreement to facilitate transportation through and environmental protection of a border river.

According to the agreement inked last Friday in Changchun, capital of northern China’s Jilin Province which neighbors North Korea, the two sides will cooperate on the management of navigation buoys and the dredging of part of the Yalu River.

During a nine-day meeting, traffic officials from both sides also discussed measures to prevent environmental damage caused by the dredging works.

The two sides also agreed to tighten management of cargo ships plying the river, according to sources who attended the meeting.

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