Archive for the ‘International Governments’ Category

DPRK curtailing family visits to China

Monday, August 25th, 2014

According to the Daily NK:

The number of North Korean residents permitted to visit relatives in China is down significantly from last year’s statistics during the same period. Yet another attempt to regain control, this move is another attempt by the paranoid leadership to block exchanges with the outside world and the plethora of information available there.

A source in China reported to Daily NK on August 22, “In August, there are usually no large events taking place in North Korea, so it’s usually easier for people to visit family members in China then; this year though, that doesn’t seem to be happening.” He went on to explain the reasoning behind the decline, “There is testimony that the North Korean authorities are actively curtailing the number of those going to China for this purpose.”

North Korean residents traversing the border to visit family members in China began in 2000, just after the period of the famine, referred to as the “Arduous March.” As the authorities could no longer provide regular food rations to the people, it resorted to dispatching them to “go abroad and seek help.” Naturally, China presented as the simplest option.

The currency reform on November 30, 2009 sought to curb inflation and monetary overhang but resulted in the inverse, hyperinflation. Residents took to seeking out their brethren in China for assistance to cope with the additional financial hardship. The outcome of the 100:1 redenomination fostered increased mistrust in the authorities by residents as well as mass panic on the ground; most watched helplessly as hard-earned savings were reduced to worthless bits of paper.

The situation this year is vastly different, the source explained. This month has seen daily averages of five North Korean travelers pass through Dandong Customs House, a sharp decline from the 50-100 individuals who moved through on a given day in past years, an indication that the North Korean authorities have drastically reduced visas permitting these visitations.

A similar dip in numbers arose shortly after events commemorating the anniversary of Kim Il Sung’s birth on April 15th, 2014; the daily average of North Koreans advancing through Dandong Customs House was approximately 10 people. This is the busiest time of year in North Korea, as rice-planting season runs from May to June and the entire population is mobilized to work on farms, explaining the decline in those headed to China.

“There are some North Koreans who are still going to China, but most of them are involved in business or trading; general residents are nowhere to be seen. Compared to the annual crowds pouring out after ‘Victory Day,’ [July 27th celebrations marking the signing of the Korean War Armistice signed in 1953, perceived as a victory in the North] this is quite unusual,” he said.

The source interpreted this not as an anomaly, but rather as a measure instigated by a regime gaining confidence in its economic status. This year did see record breaking trade activity between China and North Korea and the relative stabilization of market prices in the North. Rather than seeking help abroad, the North Korean authorities are trying to solve these matters domestically; with concurrent attempts to cultivate a better image internationally.

Most notably, residents’ exposure to outside information in China has given the authorities new pause in their willingness to send them abroad; potential economic gains in China are not worth North Koreans breaking away from state ideology.

“In the past, people only had to offer up the proper amount in bribes to the State Security Department to get them to overlook activities by Christians or others entrenched in ideas acquired on the outside, but now it’s certain they would get caught,” he explained. Now that the authorities are aware of the effects, they are ratcheting up their efforts to stem them, “There are so many who don’t return these days that the authorities fear even bigger problems will arise if they allow people to go [to China].”

“The stringent controls placed on border security and outside phone calls are so much more severe since Kim Jong Eun came to power. The latest in this series of attempts at mind control is to do away with any chance for North Koreans to meet freely with relatives in China,” he concluded.

The upcoming September 9th holiday, which marks the founding date of the state, and the day the Chosun Workers’ Party was founded, October 10th, are both expected to yield even fewer able to enter China to visit family members. While there is always the possibility for the North Korean authorities to expand permission again after the events end, the downward trend is expected to continue.

Read the full story here:
NK Authorities Slash China Visits
Daily NK
Lee Sang Yong
2014-08-25

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North Koreans attend Russian arms expo

Tuesday, August 19th, 2014

According to Yonhap:

North Korea sent a delegation to a Russian arms exposition last week, a news report said Tuesday, in an apparent sign of Pyongyang’s continuing interest in trading arms despite U.N. sanctions.

North Korean government officials attended this year’s Oboronexpo held in Zhukovsky, near Moscow, from Aug. 13-17, Radio Free Asia (RFA) reported, quoting the Russian news agency ITAR-TASS.

The annual arms show puts missile systems, tanks, artillery, and other advanced weapons and relevant technologies on display.

More than 300 defense firms from 11 nations took part in the event.

The RFA, a Washington-based network, said it is possible that the North’s participation was aimed at purchasing weapons.

It has not confirmed whether Pyongyang signed any contracts during the expo, however.

The isolated nation is prohibited from weapons trading under U.N. sanctions imposed in response to long-range rocket and nuclear tests.

Read the full story here:
N. Korea joins Russian arms expo despite sanctions
Yonhap
2014-8-19

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2014 Inter-Korean development plans

Tuesday, August 19th, 2014

According to the Daily NK:

The Ministry of Unification released its plans for the 2014 Inter-Korean Development Program on August 18th. 96 new enterprises are among the proposals stipulated in the report’s 30 articles.

The chief components of the plan include:

1. the establishment of a channel for consistent Inter-Korean dialogue
2. a solution for the Separated Families issue
3. provision of humanitarian aid geared towards North Korean citizens
4. adherence to international regulations through a cooperative exchange system
5. the restoration of national solidarity through sociocultural exchanges
6. expanding other ongoing inter-Korean economic collaboration projects
7. normalization of Kaesong Industrial Park operations and
8. tailoring refugee resettlement funds to individual defector needs.

In a statement about the plan, a Ministry of Unification official said, “There is much significance in the fact that this proposal was a government-wide effort; a total of 24 administrative bodies came together to formulate these ideas and strategies.”

The comprehensive program also included detailed plans for the repair and renovation of the Kaesong-Pyongyang Expressway and the Kaesong-Sinuiju Railway. The premise of the official Inter-Korean Development Program has always been to improve overall conditions in the North while fostering better relations between North and South, but this most recent plan is the first to delineate detailed plans for large-scale investments in infrastructure.

Expansion of other inter-Korean economic collaborations were also outlined, such as:
1. Kaesong-Sinuiju railroad and Kaesong-Pyongyang railroad repairs
2. Imjin River flood prevention business
3. Food and Agriculture Organization [FAO] support of the North Korean fishing industry
4. proposals such as vitalization of inter-Korean shipping are included. In addition, depending on the situation, 5. they plan to gradually introduce reopening trade and commerce, resumption of basic economic cooperation and, launching of new businesses.

A continued dedication to improving human rights in North Korea was also announced, starting with continued pressure on lawmakers to overcome the impasse and pass the North Korean Human Rights Act. The proposed law first appeared in 2005 but has since stagnated in the National Assembly due to failure by ruling and opposition parties to reach a consensus. Additional plans to increase support to private organizations advocating human rights in North Korea as well as striving to implement the recent recommendations by the UN based on the Commission of Inquiry [COI] findings on human rights in North Korea.

The South Korean government expressed its intentions to improve the quality of life for North Korean residents by increasing humanitarian aid and support. Most notably, the South vowed to separate political and humanitarian issues, ensuring that vulnerable social groups receive the support they need, regardless of tensions on the Korean peninsula.

Read the full story here:
Report: 2014 Inter-Korean Development Plans
Daily NK
Koo Jun Hoe
2014-8-19

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DPRK defectors in the USA

Wednesday, August 6th, 2014

According to Voice of America:

The U.S. Department of State, in its monthly Refugee Admissions Report, says a total of eight North Koreans have now sought asylum in the U.S. in 2014.

Cheol Park, president of the Association of the Free North Korean American, said in a telephone interview with the VOA Korean service that the refugees came to America via Thailand. “We received information through various activities [that we do],” explained Park.

The association is an organization consisting of North Korean refugees who have settled in the U.S..

North Korean defectors can attain refugee status in the U.S. based on the 2004 North Korean Human Rights Act. However, they are not eligible if they have already settled in South Korea, which gives automatic citizenship to North Koreans and is the preferred destination by the vast majority of those fleeing the communist country.

Park said the refugees in the U.S. receive about $200 in cash, health insurance and food stamps from their respective state government for several months. They are also provided with English education and job offers.

After about a year of living in the U.S., the defectors will be granted permanent residency and are eligible to apply for citizenship five years into their life in America.

The first group of North Koreans, nine in total, entered the United States back in 2006. Since then, 171 North Koreans have entered the U.S. as refugees.

Read the full story here:
Four More North Korean Defectors Arrived in US in July
Voice of America
Yeon Cheol Lee
2014-8-6

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Yanji-Rason tour project launched

Monday, August 4th, 2014

According to Xinhua:

The Chinese border city of Yanji in northeastern Jilin Province has opened a direct bus tour service to the neighboring Democratic People’s Republic of Korea (DPRK), tourism authorities said Monday.

A total of 48 Chinese tourists and two Chinese guides ended their two-day tour to the city of Rason on Sunday completing the first batch of bus tours in Yanji, said Wang Yanbo, deputy chief of Yanji tourism bureau.

The group visited Rajin Port, greenhouses housing Kimilsungia and Kimjongilia, both flower species named after the late DPRK leaders Kim Il Sung and Kim Jong Il, the Korean Ethnic Cultural Park and the beachside of Pipa Island, said Lian Qinghua, general manager of Yanbian Northeast Asia Passenger Transport Group Co,. Ltd travel agency, operator of the tour.

The journey to the DPRK takes around four hours and will operate from Tuesday to Saturday, Lian said.P Compared with other travel methods to Rason, the nonstop trip avoids transfer processing at the China-DPRK border, he said.

Travel figures show about 10,000 Chinese tourists visit the DPRK annually.

Yonhap report here.

Read the full story here:
Chinese border city opens bus tour to DPRK
Xinhua
2014-8-4

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DPRK -china trade dips slightly in H1 2014

Monday, August 4th, 2014

According to the Institute for Far Eastern Studies (IFES):

Grain Imports Decrease, Rare-Earth Mineral Exports Increase in the First Half of 2014

It has been reported that Chinese grain imports in North Korea have fallen drastically in the first half of 2014. According to the Korean Foreign Trade Association (KFTA), Chinese exports of grain to North Korea totaled 58,387 tons in the first half of 2014, totaling a mere 47 percent of the grain exported in the first half of the previous year (124,228 tons).

China’s most heavily exported grain product to North Korea is flour, which made up 68.8 percent (40,142 tons) of all total grain exports for the first half of 2014. China also exported 13,831 tons of rice and 3,420 tons of corn to North Korea. Corn exports did not even reach twenty percent of the amount exported at the same time last year (17,655 tons).

It is postulated that China’s sharp decrease in grain exports to North Korea is due to the souring relations between the two nations in 2014. Another theory is that the decrease in exports could be due to North Korea’s recent increase in agricultural productivity over previous years.

In the first half of 2014 China exported 109,531 tons of fertilizer to North Korea, 21.3 percent less than the amount exported during the same timeframe last year (139,161 tons). In the first three months of 2014, North Korea aggressively imported Chinese fertilizer at a rate of twenty thousand tons over its monthly average. However, this decreased markedly in the months of April, May and June.

Meanwhile, North Korea has been exporting large quantities of rare-earth resources (which are used in manufacturing high-tech products) to China over the last few months. Reportedly, in May of 2014, North Korea exported 550,000 dollars’ worth of rare-earth ore to China. This figure more than doubled the following month, reaching 1.33 million USD in June.

This comes as a bit of a surprise, as North Korean rare-earth resource exports to China had come to a standstill after the first round of exports (totaling 24.7 thousand USD) in January 2013. Suddenly, after fifteen months, North Korea has exported 1.88 million USD worth of rare-earth ore (approx. 1.93 billion KRW, 62.66 thousand kilograms) over the last two months.

Since 2011, North Korea has in fact been exporting rare-earth carbonate mixtures to China; however total exports of these products have only reached 170 thousand USD over the last three and a half years.

North Korea has been placing attention on these underground rare-earth resources, of which the nation reportedly has ample quantities of in various deposits around the country. Recently, much effort has been put into surveying for deposits of these so-called “vitamins of the 21st century’s high-tech industry.” In 2013 a company for the development of rare-earth materials in North Pyongan Province was established with the cooperation of the international private equity firm “SRE Minerals.”

In July 2011, the Choson Sinbo, a news affiliate of the General Association of Korean Residents in Japan, reported in an interview with top executives from the National Resources Development Council that rare-earth resource deposits in North Korea total approximately 20 million tons. The drastic increase seen in rare-earth resource exports can be attributed to North Korea’s attempt to diversify its resource exports. In other words, the DPRK is investing in rare-earth material exports in order to reduce its dependency on other leading mineral exports such as anthracite, iron ore, and lead.

Exports of anthracite to China decreased by 23 percent in the first half of 2014 (compared to last year), totaling approximately 571 million USD. Iron ore exports, North Korea’s second leading resource export, reached approximately 121 million USD in the same time period – a drop of 5 percent when compared to the same time period last year.

According to the Korea Herald (Yonhap):

North Korea’s trade with its economic lifeline China fell 2.1 percent on year to US$2.89 billion in the first six months of this year, data compiled by South Korea’s government trade agency showed Monday, in another sign that strained political ties between the two nations have affected their economic relations.

During the six-month period, North Korea’s exports to China declined 3.9 percent to $1.31 billion and imports slipped 0.6 percent to $1.58 billion, according to the data provided by the Beijing unit of South’s Korea Trade and Investment Promotion Agency (KOTRA).

There were no shipments of crude oil from China to North Korea from January to June, the data showed.

“Despite the six-month absence of oil shipments, the scale of North Korea’s decline in imports is minimal,” the source said on condition of anonymity.

Meanwhile, North Korea’s exports of rare earth to China jumped 153.7 percent on year during the January-June period, the data showed, without providing the value of the exports.

Read the full story here:
N. Korea’s trade with China falls 2.1 pct in H1
Korea Herald (Yonhap)
2014-08-04

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Food imports from China fall in 2014

Wednesday, July 30th, 2014

According to Yonhap:

North Korea’s grain imports from China tumbled more than 50 percent on-year in the first half of this year, data showed Wednesday, amid speculation that relations between the communist allies are not like before.

North Korea imported 58,387 tons of cereal crops from China in the January-June period, down 53 percent from 124,228 tons recorded a year earlier, according to the data by the Korea International Trade Association (KITA).

By type, flour topped the list with 40,142 tons, or 68.8 percent, followed by rice and corn with 13,831 tons and 3,420 tons, respectively, added the Seoul-based agency.

Analysts say the remarkable decrease may be attributable to reportedly strained ties between the two sides in recent months.

“Of late, North Korea has appeared to move to reduce its economic dependence on China and diversify its foreign economic partners,” said Lim Eul-chul, professor at the Institute for Far Eastern Studies at Kyungnam University.

Kwon Tae-jin, researcher at private think tank GS&J, said it might have been more affected by Pyongyang’s increased crop yield.

“North Korea’s stockpile of crops seems to have grown due to a good harvest last year.

Meanwhile, China’s fertilizer exports to North Korea also plunged 21.3 percent to 109,531 tons during the January-June period this year from a year earlier, said KITA.

Read the full story here:
N. Korea’s grain imports from China halve in H1
Yonhap
2014-7-30

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Chinese Koreans and cross border trade

Tuesday, July 29th, 2014

According to the Daily NK:

The Hwagyo, North Korea’s community of overseas Chinese, are seeing their value rise in response to demand for assistance transporting cross-border freight for local traders hamstrung by their proscribed freedom of movement, according to a source inside North Korea. The local traders refer to the process as “renting a passport”.

The source in North Pyongan Province reported to Daily NK on July 28th, “Pyongyang Hwagyo are catering to the tastes of middle-class consumers in the city’s markets by taking orders from individuals or by bringing in goods on the behalf of traders.

“The measles outbreak prevented Pyongyang hwagyo in Pyongyang from taking the cross-border train, but recently that ban was lifted so they can come and go from Dandong again.” The measles travel ban was put in place during June in Yongcheon and Sinuiju, but was withdrawn on July 15th.

Hwagyo are treated as citizens in North Korea, carrying the same identification cards as all other residents; however, they are also able to hold Chinese passports, which allows for greater mobility and autonomy than other North Koreans. That is the reason for the high demand; North Korean traders and wholesalers employ them to ensure that their supplies arrive from China.

“Although there are a lot of hwagyo from Sinuiju and elsewhere in Dandong, Pyongyang hwagyo are the ones who get hired the most because the train ends in Pyongyang; This makes it easier to get the goods into circulation, and the procedures there are not as stringent,” the source reported. “This has caused their value to rise.”

“The hwagyo either use their own money to get products to sell in Pyongyang markets directly, or they use money from traders and take 5% of the total upon delivery,” she said. “They take commission for transferring goods from the cross-border trains to merchants in Pyongyang markets.”

“Merchants used to collaborate with train operators coming in from Dandong to bring goods into Sinuiju. However, more are seeking out the hwagyo instead, because it’s cheaper,” the source said.

There is a stipulated limit of 300kg of cargo per person on the train between Dandong and Pyongyang. Excess luggage is possible, but only up to 50kg, and this is charged at 1.50 RMB per kg, according to the source. The ticket for the 5hr 30min ride is 300 RMB, and this must also be factored into the overall freight transit cost.

The train departs at 10:00 daily. Once it arrives in Pyongyang at around 15:30, passengers and freight are subjected to customs procedures, followed by immigration inspections. “Not a single person can leave the train until everyone goes through immigration and officers check their passports and travel visas,” the source recalled.

“Because the staff in Sinuiji Customs House are tough about inspections and are sure to take at least one thing, it’s safer and cheaper to transport goods via the cross-border train,” the source said, concluding, “How funny it is that this place prevents North Korean citizens from moving around freely and ends up making hwagyo richer.”

Read the full story here:
Hwagyo Step in to Dominate Border Trade
Daily NK
Seol Song Ah
2014-07-29

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Eugene Bell offers TB assistance to the DPRK

Monday, July 28th, 2014

According to Yonhap:

The Eugene Bell Foundation, which provides medical assistance to the impoverished North, will send 770 million won (US$750,000) worth of TB medication to the communist country, ministry officials said.

In February, the foundation shipped 720 million won worth of TB drugs to the North in an attempt to tackle the growing issue of multidrug-resistant TB in the country.

So far this year, the South has approved 11 shipments of civilian aid worth a combined 2.82 billion won to North Korea.

The latest approval comes after Seoul announced on July 15 that it will provide Pyongyang with humanitarian aid worth 3 billion won through civilian organizations.

It marks Seoul’s first state-funded aid to North Korea since the North torpedoed the South Korean warship Cheonan in the Yellow Sea in 2010, killing 46 sailors. Following the incident, Seoul imposed a blanket ban on cross-border economic and other exchanges.

Read the full story here:
Gov’t OKs civilian medical aid to N. Korea
Yonhap
2014-7-28

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DPRK increases exports of rare earths to China

Sunday, July 27th, 2014

According to the Korea Times:

North Korea has increased its rare earth exports to China amid worries within the international community that its mineral exports could weaken the effect of sanctions imposed on the reclusive state.

The cash-strapped communist country exported goods to the value of $550,000 and $1.33 million in May and June, respectively, according to the Korea International Trade Association (KITA).

Last January, the North exported elements worth nearly $25,000 to China for the first time and continued them this year. The country has an estimated 20 million tons of rare earth elements.

The North’s resources exploitation have stirred speculation that the impoverished state may further diversify mineral exports to China, where it has previously mostly exported anthracitic and iron ore.

The KITA report identified the changing trend in North Korea’s earnings from mineral exports.

In the first half of this year, earnings from anthracitic and iron ore exports decreased 23 percent and 5 percent, respectively.

These earning deficits were compensated for by exports of rare earth elements. There has been a sharp increase in global demand over the last recent decade because several high-tech devices, including smartphones, and other high technology devices use them in core components. Rare earth elements are a group of 17 elements on the periodic table referred to by the US Department of Energy as “technology metals” because of their use and application.

The communist country relies heavily on mineral exports as a major source of hard currency after international sanctions were imposed on the Pyongyang regime for its continuing missile launches and testing of nuclear weapons.

Natural resources account for 73 percent of North Korea’s bilateral trade with China in 2012. The North exports 11 million tons of anthracitic to China annually.

Yonhap coverage:

North Korea exported rare-earth elements worth $1.87 million to China from May to June, resuming outbound shipments of the crucial industrial minerals to its key ally and economic benefactor in 15 months, data showed Sunday.

North Korea shipped rare-earth minerals worth $550,000 and $1.32 million to China in May and June, respectively, which amounted to a total of 62,662 kilograms, according to the Korea International Trade Association based in Seoul.

The communist regime first exported rare-earth metals worth $24,700 to China in January 2013 and had stopped selling them until recently.

Separately, Pyongyang has sold carbonate-containing rare-earth compounds to China since 2011, but the size of outbound shipments is small, with the total amount is estimated at about $170,000 over a period of three and a half years.

The impoverished nation is known to have large reserves of rare-earth minerals, which are crucial ingredients used in many tech products as well as the military and medical sectors.

The latest move comes as the North has stepped up developing rare-earth deposits to support its moribund economy.

Last year, the North’s state-owned Korea Natural Resources Trading Corporation signed a 25-year deal with British Islands-based private equity firm SRE Minerals Limited to mine deposits in Jongju, northwest of the capital, Pyongyang.

Experts said the recent surge in North Korea’s rare-earth shipments may be part of its attempts to diversify sources of mineral exports, which account about half of its total exports.

The North’s export of anthracite coal fell 23 percent in the first half of this year to $571.2 million from a year ago, while ironstone declined 5 percent to $120 million in the cited period, according to trade data.

“The rare-earth minerals sold to China were valued at $30 per kilogram, and they were considered to be processed iron concentrates or oxidized substances,” said Choi Kyung-soo, chief of the Seoul-based North Korea Resource Institute. “It could be seen as an attempt to diversify items of mineral resource exports, but it remains to be seen whether the North will start exporting large volumes of rare-earth minerals.”

Read the full stories here:
Rare earth elements boost NK income
Korea Times
Kang Hyun-kyung
2014-7-27

N. Korea exports US$1.8 mln worth of rare earth to China in May-June
Yonhap
2014-7-27

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