Archive for the ‘International Governments’ Category

DPRK/ROK graphite mine opens

Thursday, April 27th, 2006

Korea Times
4/27/2006

South Korea’s state-run resources development corporation on Thursday announced the opening of a joint graphite mine in North Korea.

The 50-50 joint venture between the Korea Resources Corp.(KORES) and a North Korean firm can produce 3,000 tons of graphite per year.

Of that, South Korea will import 1,830 tons every year for the next 15 years. This amount is equivalent to 20 percent of the South’s domestic demand.

The corporation has invested $10.2 million into the mine in Chongchon, South Hwanghae Province. It is estimated to hold 6.25 million tons of graphite.

Graphite from the mine can be used in batteries, brake-lining for cars and flame-proof or heat-resistant materials. The first batch of graphite is to arrive in South Korea in the second half of the year.

The joint development pact was signed in March 2003 with a formal deal signed four months later. South Korea transferred mining materials and other equipment to the mine in early 2004 and development got underway shortly afterwards.

 

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Nautilus Claims Sinuiju Project Underway

Thursday, April 27th, 2006

According to the Nautilus Institute’s web site [Link broken since posing]:

“Under the direction of central authorities, foreign currency management groups are rapidly being moved into Sinuiju, while ordinary residents are being relocated to other regions only to be replaced by residents of Pyongyang and other areas who are in the process of moving in.”

The Sinuiju Special Administrative Region (SAR) project lost momentum in September 2002 when its first governor-to-be, Chinese-born Dutch businessman Yang Bin, was arrested in China. North Korean leader Kim Jong Il’s visit to China at the beginning of this year, however, appears to have triggered a turnaround. With Kim’s China trip focused on the revision of economic policies, the rejuvenation of Sinuiju SAR development plans came into the spotlight.

Most South Korean press have run pieces, based on the stories of North Korean defectors and Chinese residents in Dandoong and other border areas, alluding to the fact that there is change in the air around Sinuiju. A North Korean businessman in Dandoong was quoted as saying, “No official word has come down from central [authorities], but they are busy preparing the Sinuiju SAR,” while rumors are spreading among area residents that “Sinuiju is the next Hong Kong.”

The most reluctant promoters are the People’s Committee and regional administrative organs. As orders come down, some administrators are required to immediately pack and relocate to southern Sinuiju, an underdeveloped area not even comparable to Sinuiju proper. Authorities had chosen the site as far back as 1986, and while development was fully promoted, only factories were built up. Housing, roads, and other indirect social capital facilities are still lacking. While regional authorities may have decided to build up southern Sinuiju, it will take another ten years of hard work to do so.

On the other hand, the outlook for city authorities is considerably brighter. This is because in the future, they will have the opportunity to rise up though organizations run by special administrative businesses. Up until now, instructions have come through the Regional People’s Committee, security bureau and defense authorities, but even though they own the facilities, they can still receive orders directly from the central government. Because of this, regional officials are still influenced by the temperament of local and central party politics while being faced with increasing pressure from city authorities to transfer power to them. While some factories — like the Sinuiju Cosmetics Factory, Sinuiju Shoe Factory, Sinuiju Synthetic Fiber Plant, and other large factories — are preparing for foreign capital support and cooperative ventures, most administrators appear to be pushing for keeping the status quo.

There are still many concerns. As the SAR is being set up, central officials are being dispatched to fill roles as factory officials; central officials without any personal interest. A similar sort of dispatch of central officials took place in the Rajin-Sonbong Special Economic Zone in the past.

Most small- and medium-sized enterprises and regional factories are beginning to transform into trading companies. There are currently around one hundred fifty such trading offices in Sinuiju. In the future, if Sinuiju is officially designated as a SAR, it appears that a great many more trade offices will appear.

Other news from Sinuiju insiders is that the People’s Committee, People’s Security Force, National Security and Defense Bureau and other central government departments that have received Kim Jong Il’s permission to trade have already opened offices in Sinuiju, employing people in the area and busily seeking out people with connections in China in order to find trading partners.

It appears by looking at the relocation currently underway that the goal is to move residents within the same timeframe that was required for the first round of relocations in 2002, when residents were moved to Chunma, Kwaksan, Dongrim and other areas around the outskirts of Sinuiju. There are problems here as well, as the government wants to relocate residents from Pyongyang and other regions to Sinuiju. At issue is the fact that while the number of residents who can move in needs to equal the number relocated out of the area, some North Koreans have already used connections with the central and regional party affiliates in order to move to the region.

In addition, the housing market is active, with housing prices in central downtown areas having already skyrocketed. While officially owned by the state, dwellings are unofficially “sold” through the use of “modification fees”: apartments run from 25 to 30 million won (8 to 10 thousand USD), while two-three story condominiums in “Chinatown” in the Namsang district run in the tens of thousands of dollars.

However, complications have arisen. Many residents being moved out have decided to get rid of their houses, but this has proved more difficult than expected. Some have put up their house for sale but have been unable to find a buyer. There are also those who were caught in the midst of sales through “real estate offices” when a crackdown by authorities resulted in their expulsion. A source stated that the administrative authority of the city security bureau in charge of relocating residents is undermanned and takes different measures to direct different groups of residents, while pressing for the expulsion of what it deems as “lesser” or unemployed people.

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Kaesong Complex Continues to Grow

Wednesday, April 26th, 2006

According to Yonhap:

The number of North Korean workers at a South Korean-run industrial complex in the North Korean border city of Kaesong rose 22 percent every month over the past one and a half years, the South’s Unification Ministry said Wednesday.  Production increased 36 percent every month due largely to a rise in the number of South Korean factories operating in the complex, according to the ministry.

As of Friday, a total of 6,859 North Korean workers, including 1,047 construction workers, were registered at the complex.

“Some North Korean workers even took annual leaves after their work period was more than one year old. So far, about 120 workers used their annual leaves,” said Go Gyeong-bin, the director general of the Kaesong industrial complex project office at the ministry.

In November 2004, several South Korean companies hired 255 North Korean workers when they moved into the complex at its opening.

The complex, still in its pilot stage, is now home to 11 South Korean companies that produce garments, kitchenware and shoes.

Go said four of them, such as apparel maker Shinwon Co. and socks manufacturer Sunghwa, sent a total of 53 North Korean workers to China for technical training.

“Since the first product was made in December 2004, the total output has amounted to US$27.46 million, which means a monthly average rise of 36 percent. In particular, production exceeded $5 million in March, a 40 percent rise from February,” he said.

The Kaesong industrial complex, located just north of the demilitarized zone dividing the two Koreas, 60 kilometers, or a one-hour drive from Seoul, is the flagship project for inter-Korean cooperation, combining South Korean capital and expertise with the North’s cheap land and labor.

The North Koreans work with about 300 South Koreans in Kaesong.

South Korea hopes to promote the Kaesong complex as a role model for inter-Korean economic partnership, while officials in Washington express concern over its possible negative impact on the multilateral efforts to end North Korea’s nuclear weapons program.

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Counterfitting of [Your Product Here] Case Continues to Build

Wednesday, April 26th, 2006

The US Secret Service, which is part of the Treasury Department, has the responsibility to track down counterfit US currency, and becuase of a quirk of history, also protects the President of the USA.

According to Yonhap, the Secret Service has collected up to $50 million of “supernotes,” first discovered sixteen years ago and believed to come from North Korea….

But the latest trend shows the communist regime depends heavily on counterfeiting cigarettes for major income, smuggling at least one 40-foot container every month into the U.S., they said.

Testifying before the Senate in the first Congressional hearing on Pyongyang’s illicit financial activities, Michael Merritt, deputy assistant director of the U.S. Secret Service, gave statistics gathered from a global investigation.

There were more than 170 arrests involving more than 130 countries since the supernote was first detected in 1989 by a Central Bank cash handler in the Philippines, he said.

“Our investigation has revealed that the supernote continues to be produced and distributed from sources operating out of North Korea,” he said.

The amount seized, he acknowledged, is low compared to other types of counterfeit currency, such as over $380 million produced in Colombia.

But the high quality of the supernotes, not the quantity circulated, is the primary concern, he stressed.

“These sophisticated counterfeits range from older series $100 notes which bear the smaller portrait, to counterfeits of more recently redesigned ‘big head’ notes, to include the latest version of the 2003 series,” said Merritt.

“These new versions show corrections or improvements in the flaws which are used by banking and law enforcement to detect them,” he said.

“A major source of income to the regime and its leadership, we believe, is the counterfeiting of cigarettes,” he said.

“From 2002 through September 2005, DPRK-sourced counterfeit Marlboro cigarettes were identified in 1,300 incidents in the United States,” he said.

“Recently filed federal indictments allege that for several years criminal gangs have arranged for one 40-foot container of DPRK-sourced counterfeit cigarettes per month to enter the United States for illicit sale over several years,” Prahar said.

The U.S. government is seeking $5 million in criminal forfeitures in several of these indictments, according to the official.

I was told on my last visit to the DPRK that Marlboro Reds were popular in the DPRK and many astute smokers could taste the difference between the American and European versions–and prefered the American product

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If the Glove Doesn’t Fit…?

Wednesday, April 26th, 2006

According to Yonhap, the US State Department has reported to the US Senate (who controls its funding) that it does not have “sufficient information to designate North Korean individuals or organizations under the Kingpin Act, a legislation that denies foreign drug traffickers access to American financial institutions.”

According to the Article:

Peter Prahar, a director at the [State] [D]epartment’s bureau for international narcotics and law enforcement, told a Senate hearing that the U.S. does not yet have sufficient information to designate North Korean individuals or organizations under the Kingpin Act, a legislation that denies foreign drug traffickers access to American financial institutions.

He said indictments are unlikely at this point, since they require “a certain level of evidence that I don’t believe exists,” he said.

Asked if North Korea might be put on the major drug trafficker nation list, Prahar said it is something his department considers “on a regular basis.”  But he cited inability to confirm reports of massive opium cultivation in North Korea, or find evidence that the country’s drug transiting is impacting the U.S.

“But this is something…that we consider regularly within the Department of State, and if we have information that will substantiate that finding, that is a recommendation we are going to make,” Prahar said.

Kim Seong-min, a former North Korean director, claimed it is certain that Pyongyang continues to produce opium.  “Youngsters are used to collect extract from opium,” he told the hearing.  As much as 70 percent of three North Korean counties are set aside to cultivate poppy seeds, totaling some 30,000 hectares, he claimed.

Prahar also stressed alarm at North Korea’s counterfeiting of pharmaceuticals which is “still sketchy” so its magnitude cannot be measured.

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Catholic aid

Wednesday, April 26th, 2006

From the Korea Times:

A delegation from the South Korean Catholic Church left for Pyongyang early Wednesday to tour regions in the North it has provided with humanitarian assistance, the Archdiocese of Seoul said.

The 61-member delegation from the Seoul archdiocese, led by Monsignor Choi Chang-hwa, will take field trips in and around Pyongyang until Saturday, it said.

“This is the first time a Catholic delegation has traveled to North Korea on such a large scale, and with laymen included,” Ma Young-ju, an archdiocese’s public relations official said.

Pyongyang sent an Air Koryo plane to Incheon International Airport to pick up the delegation, Ma said.

The Seoul archdiocese has provided food and equipment worth 11 billion won ($11.6 million) since it started assisting in the midst of a deepening food shortage in the North in 1995.

It helps operate flour factories in Nampo and Shinchon on the North’s west coast and provides 1,200 tons of flour annually, according to the archdiocese.

 

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North Korean Food Rations Uncertain

Wednesday, April 26th, 2006

According to the Manilla Times and ABS/CBN Interactive:

North Korea could suspend food rations for ordinary citizens in Pyongyang next month due to its worsening famine, a South Korean aid group warned Sunday.   The North Korean capital has had a better food supply than other areas despite a chronic food shortage since the 1990s.

“Pyongyang is no longer a safe zone in food supply,” Good Friends, a Seoul-based aid group for North Koreans, said in a newsletter.  “Food supply officials in Pyongyang say food rations lasted only 10 days in April and will be suspended for ordinary citizens beginning in May,” the group said. The aid group said big businesses and state organizations would remain unaffected.

United Nations food aid to North Korea ended late last year after Pyongyang said it no longer needed emergency shipments from the World Food Program (WFP) and other international humanitarian agencies. The North Korean government said it instead wants development assistance and a smaller operation with fewer international staff whose monitoring activities would be restricted.

WFP has proposed a downsized aid plan to feed 1.9 million people, largely women and children vulnerable to malnutrition and disease. It used to feed 6.5 million people.

North Korea’s grain production rose 5.3 percent to 4.54 million tons last year, still far short of its annual demand of six million tons, South Korea’s unification ministry report says.

According to the Daily NK:

North Korean sources have claimed that since April only some areas of Pyongyang have gotten food rations, and local areas were already cut off. North Korea recently relaunched rationing on the Workers’ Party Foundation Day (10/10/2005), yet from the beginning, the program did not meet its objectives, and furthermore, from this spring even Pyongyang is seeing a shortage of food.

Mr. Kim, who is a North Korean trader and now stays in Dandong, China said, “Officials working at the central agencies (the Party, Ministries, Court) in Pyongyang have gotten rations, but workers in general factories and small companies in local cities have to resolve their April and June food prooblmes themselves.”

Mr. Kim stated, “Despite a severe shortage of food, some wealthy, powerful people are persisting well. Yet other people who rely on the food rationing of factories mainly go to local areas to exchange goods for food.” It led to a situation where North Koreans have to withstand starvation by all means, before new potatoes come out.

At the same time, price of rice at the Jangmadang 9farmers markets) began rising.

Rice prices at the Shinuiju Jangmadang are:

1,000W ($0.33) to 1,200W($0.4) per 1kg
Yongcheon rice  is 1,200W 1kg
Chinese rice is 900W($0.3) to 930W($0.31) per 1kg

Corn is 300W($0.1) to 400W($0.133).

Shinuiju rice is a little more expensive than that of other cities, and its wheat flour is cheaper. It is because rice comes in from other cities, and Chinese wheat flour is distributed to each city via Shinuiju. 

Mr. Lee hinted that travel permits to China are issued “conditionally.” That is, after visitors to China come back to North Korea, they have to offer some food to the National Security Agency, and people with no relatives have a harder time getting passes.

Mr. Lee said, “As for me, it is better because I found my older brother. However, other people living in our village go out to rivers to dig for gold and to mountains to dig for edible plants.”

March and April, called the ‘Barley Period (Borigogae)’ are the months when food crunches are most severe. This is when the crops and edible plants (side dishes) harvested last year begin to run out. When edible plants run out, North Koreans prolong their lives by eating grass or wild plants. However, because of death by starvation in the mid 90’s, which resulted in massive foraging, even wild plants like bracken are not easily found now.  

 

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Mangyongbong-92 traveling agian

Tuesday, April 25th, 2006

According to the Associated Press, the Chongryun have once again begun shipping service between their homes in Japan and Wonsan, DPRK.

I remember seeing this very ship when I visited Wonsan in August 2004.  I did not get to walk aboard or anything, I just got a glance as my bus zoomed by….unfortunately too fast to take a picture.

Shipping from North Korea was severly curtailed by the Japanes Authorities in response to public outcry over the kidnapping issue.  Although Japan was coy enough to avoid an outright trade embargo, leaving the door open to future talks, they did place insurance and safety requirements on ships in their ports…requirements very few North Korean ships can meet.

From the article:

The Mangyongbong-92 was inspected by Japanese authorities as nearly 500 police guarded the area. Officials found six minor problems with the vessel, including ones related to fire prevention and communications, but issued no corrective orders, according to the Transport Ministry.

The ferry from Wonsan to Niigata has been a catalyst for Japanese protests. As the only regular passenger service between the two countries, its visits provide the isolated North with a crucial link to the outside world.

The vessel, which was to depart from Niigata on Wednesday, is scheduled to make 18 more visits through October, according to Transport Ministry official Hajime Nakamura.

In late March, police raided the Osaka office of a chamber of commerce for North Korea on suspicion that its top officials were involved in one kidnapping.

In March, Japan passed a law requiring all foreign ships over 100 tons entering Japan to be insured against oil spills, losses and other damage.

Few North Korean ships were believed able to meet the requirement, and officials acknowledged the measure was intended to increase pressure on the North.

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Japanese Language on Decline in DPRK

Tuesday, April 25th, 2006

Well, if you thought the Japanese were unpopular in South Korea, you should see the propoganda in the North. Still, there are strong ties between North Korea and Japanese of Korean descent. The Chongryun in North Korea send lots of hard currency, investment, and students through Wonsan. This support, however, seems to be on the decline. The Japanese government has restriced the number of North Korean ships that can dock in their ports (Under insurance requirements….a way of imposing an economic embargo without calling it so). Also, becuase of the unknown fate of the Japanese citizens in North Korea, the popularity of the pro-North Korean is at an all time low.

According to the Japanese press, here are some interesting statistics on foreign language learning in the DPRK:

At the elite Pyongyang University of Foreign Studies, the number of Japanese majors has fallen to a quarter of what it was a decade ago as the outlook for the two countries normalizing diplomatic ties becomes murkier, according to language professors at the institution.

“There were about 200 students of Japanese in the mid-1990s, after talks on normalizing diplomatic relations began,” a young professor at the foreign studies university said. “Now, there are only about 50 students for the entire four years.”

The most popular language for North Korean students now is English, with about 1,000 of the 2,000 students at Pyongyang University majoring in it. Chinese has become the second-most popular language, as trade ties between China and North Korea grow. Russian, the leading language to study in the days of the Soviet Union, when it had extensive political and economic ties with the North, comes in third place, and Japanese is the fourth-largest group.

“For business, English and Chinese are obviously the most important languages now. This is a phenomenon that reflects the change of the times,” said Noriyuki Suzuki, a senior analyst at Radiopress in Tokyo, a Foreign Ministry-backed foundation that monitors the North Korean media.

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North Korean Economics Presentations at KEI

Tuesday, April 18th, 2006

Economic Reform and SEZ as Survival Strategy of DPRK
PDF: Deok Ryong Yoon.pdf
Deok Ryong Yoon

Introduction to & implications of Gaesong Industrial Complex Project
PDF: kaesong.faqs.pdf
Ministry of Unification

Gaeseong Industrial complex: Past, Present and Future
PDF: Dong-geun Kim.pdf
Speech by Dong-geun Kim, Chairman of Gaeseong Industrial District Management Committee

Gaeseong Industrial Complex : Frequently Asked Questions (FAQs)
PDF: kaesong.faqs1.pdf
Ministry of Unification, ROK

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