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China releases document on trade restrictions with DPRK

Tuesday, September 24th, 2013

…although I cannot find a copy of it anywhere.  It is probably being sent around in PDF form and only available in Chinese.

According to the New York Times:

In a sign of growing concern about North Korea’s nuclear ambitions, China published a long list on Tuesday of equipment and chemical substances to be banned from export to North Korea for fear they could be used in adding to its increasingly sophisticated nuclear weapons programs.

If put into place, the export controls would be some of the strongest steps taken by China, the North’s closest ally, to try to limit the country’s nuclear programs. The announcement indicates that China is now following through on some United Nations Security Council sanctions it approved months ago, according to a noted American arms expert.

The list of banned items was released amid a flurry of reports suggesting that North Korea is accelerating its two nuclear weapons programs. Two weeks ago, new satellite photographs showed that North Korea might be resuming production of plutonium at its newly reconstructed nuclear reactor at Yongbyon. And this week, two American arms experts reported that North Korea appeared to have learned to produce its own crucial components for uranium enrichment.

The move also comes less than a week after China made an unsuccessful attempt to revive talks aimed at persuading the North to give up its nuclear capabilities. The United States continues to resist restarting the talks, which North Korea has used in the past to extract concessions without making long-term changes to its nuclear program.

“The release of the new export control list is a signal China is concerned about the speeding up of weaponization” of North Korea’s nuclear capabilities, said Zhu Feng, the deputy director of the Center for International and Strategic Studies at Beijing University, who called the move “very important.” In particular, he said, the Chinese are concerned about resumption of plutonium production at the Yongbyon complex, the centerpiece of North Korea’s nuclear program.

Another Chinese expert on North Korea, who declined to be identified because of his position in the government, said the publication of the list “says that China is increasingly unsatisfied with North Korea’s actions.”

“This is one of the practical actions to show it,” he said.

Both plutonium and highly enriched uranium can be used in nuclear bombs, but analysts say the North’s plutonium program is much further along. At least two of the three bombs the country has tested used plutonium.

China has long resisted punishing North Korea for its nuclear programs, but has appeared increasingly frustrated as the North’s young leader, Kim Jong-un, has appeared to ignore Chinese pleas for moderation. China agreed to the United Nations sanctions after the North conducted a nuclear test this year over Chinese objections.

The North responded to the sanctions with months of nuclear threats against South Korea and the United States, which, analysts say, ended only after China exerted strong pressure, apparently fearful of instability that could harm its economic progress.

David Albright, the American expert who said China was now implementing the United Nations sanctions passed in March, added that the Chinese ban “will help, since North Korea procures so much from China.” Mr. Albright, the president of the Institute for Science and International Security, added that China could take additional measures to “dramatically increase the inspection of goods into North Korea by road and rail.”

China has moved before to stop the export of other technologies that could be used in nuclear programs, including missile technology, though it did not single out any countries when it did so.

The items on the list China released Tuesday were called “dual-use technologies” because they can be used for either civilian or military purposes, and they included items that could be used to build more chemical weapons and to make biological weapons.

Banned items include Ebola, a virus that can be used for medical research as well as a biological weapon; nickel powder; radium; flash X-ray generators; and microwave antennas designed to accelerate ions. China’s Commerce Ministry, the Ministry of Industry and Information Technology, the General Administration of Customs, and the Atomic Energy Authority jointly published the list.

In a statement, the Ministry of Commerce said the items in the 236-page document were prohibited from being sent to North Korea because “the dual-use products and technologies delineated in this list have uses in weapons of mass destruction.”

Reuters also adds:

Released by the commerce ministry along with the Ministry of Industry and Information Technology and the China Atomic Energy Authority, the document describes items that could be used to build nuclear and chemical weapons, as well as technology that could build and fuel nuclear reactors.

Yonhap adds:

The ban took effect on Monday (September 23).

Read the full stories here:
China Bans Items for Export to North Korea, Fearing Their Use in Weapons
New York Times
Jane Perlez
2013-9-24

China releases list of goods banned from export to North Korea
Reuters
Megha Rajagopalan
2013-9-23

China issues long list of banned items for exports to N. Korea
Yonhap
2013-9-24

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Posted in China, International trade, Nuclear | Comments Closed

Russian firm Evraz selling coking coal to DPRK

Monday, September 23rd, 2013

According the Russian outlet Izvestia (translated by Google Translate):

Tensions between the U.S. and North Korea do not interfere with the group Evraz, the largest shareholder is Roman Abramovich, it is advantageous to work with both countries: part of the holding coal company “Raspadskaya (Распадской)” began selling coal in North Korea. At the end of 2013 the total supply of “Raspadskaya” to North Korea could reach $ 32 million – half of it is comparable to last year’s total exports from Russia to North Korea.

During the first half of 2013 “Raspadskaya” delivered to North Korea coking coal at $ 4.5 million, follows from the statements of the company. In the total volume of exports “Raspadskaya” is about 4%, which makes the DPRK fifth largest export market for sales of coal (after China, Ukraine, South Korea and Japan).

…

In the DPRK embassy in Russia, “Izvestia” reported that, except for “Raspadskaya”, none of the Russian coal industry supplies goods to North Korea. There’s also clarified that the recipient of coal – Metallurgical Works named. Kimchaek– one of the largest steel companies in North Korea.  Total design capacity metkombinatu them. Kimchaek on all kinds of products, according to various estimates, 6.5 million tons, but in recent years the plant has significantly underutilized. According to South Korean estimates, the actual production of steel in all of North Korea is 1.25 million tons per year (Statistics Korea itself does not publish a lot of years). 

The volume of coal supply to the “Raspadskaya” to North Korea – to 20 kt (4-5 railroad tracks) on a monthly basis under the current annual contract, described in the company. Price is tied to the international price system (quotation Australian HCC with a discount for the quality of the brand SHCC). That is the sum total of the contract – about $ 32 million, considered BCS analyst Oleg Peter and Paul: The current market price of coking coal at $ 152 per ton (FOB Australia), but the average price for the first half was $ 134.

– Last year, the entire bilateral trade between Russia and North Korea amounted to less than $ 80 million – says Ludmila Zakharova, a senior researcher at the Center for Korean Research Institute of Far Eastern Studies. – At present, trade between our two countries in a state of crisis, Russia accounts for less than 1% of North Korea’s foreign trade.

In 2012, Russian exports to Korea totaled $ 65 million, told “Izvestia” in Economic Development. North Korea among foreign trade partners of Russia occupies 124th place with a “specific weight of 0%,” stated in the department.  Starting this year, however, there is growth of sales: in January-July 2013 two-way trade turnover of Russia and North Korea reached $ 56 million ( an increase of 31% compared to the same period in 2012), including Russian exports totaled nearly $ 51 million (an increase of 38%).

A small volume of direct trade is partially offset by other forms of economic cooperation continues Ludmila Zakharova. For example, it is estimated that about $ 100 million a year is the so-called labor services: experts from North Korea come to work in Russia (for the current year quota for North Korean workers reached 35 thousand people). Since the DPRK shortage of agricultural land, there are projects to provide Koreans to lease farmland in the Primorye Territory. In the last few years has intensified investment direction of Russian-North Korean cooperation. The other day, completed the reconstruction of the railway Hasan-Rajin. Investment in this project is a joint Russian Railways and the Ministry of Railways North Korea amounted to more than $ 200 million

According to data provided by the Ministry of Economic Development, the amount of accumulated investment of Russia to the DPRK at the end of the first quarter of 2013 amounted to only $ 572 million, while the DPRK in Russia – more than $ 79 million

Evraz – a vertically integrated global company with assets not only in Russia but also in other countries, including the United States. Evraz North American division includes several large steel companies formerly known as Oregon Steel, Rocky Mountain Steel, Claymont Steel and Ipsco.

– Evraz to some degree of risk. Under existing U.S. sanctions against the DPRK any large company with offices in the U.S. carries certain risks, working with North Korea – warns Ludmila Zakharova. – America includes a list of objects sanctioned North Korean banks and organizations that are involved in nuclear and missile program. All legal entities operating in the United States, engaging in economic relations with the companies on this list are subject to the relevant law and can not only get the fines, but generally lose access to the U.S. market and the U.S. banking system. In this case, unlike the UN sanctions, the U.S. rules imply a sufficiently broad interpretation than may be exploited Evraz. Of course, the steel industry is difficult to draw to a nuclear program, but you can.

The contract with the DPRK was verified for international risks assured “News” in the “Raspadskaya”.

– At Evraz in America a lot of assets, but the supply of this market are small. Much more dangerous for her to lose access to local banking system – says Oleg Peter and Paul. – Still, the U.S. market civilized, hardly any of the competitors Evraz want to speculate on its relations with the DPRK. Also tied to the steel industry’s nuclear program would be extremely difficult. 

If any Russian translators care to improve on the text offered by Google Translate, please do so.

Read the full story here:
Компания Абрамовича подзаработает в Северной Корее
Известия
2013-9-23

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Posted in Coal, Energy, International trade, Manufacturing, Russia | Comments Closed

US hip hop performers film video in DPRK

Wednesday, September 18th, 2013

UPDATE 4 (2014-1-8): You can see the video here:

UPDATE 3 (2014-1-7): The Guardian offers additional information on the rap video trip here:

Pacman and Peso have granted the Guardian an exclusive preview of the video – as well as their first interview about an adventure in the world’s most despotic regime.

The genesis of their music video was a random encounter earlier this year with Ramsey Aburdene, a 25-year-old Washington-based investment banker who liked their music and became their manager. Aburdene had a friend who used to be in the military and specialises in getting people into Pyongyang, so they hatched the plan to shoot a rap video there.

No one involved in the trip could easily articulate why exactly North Korea was an appropriate backdrop for the music video. But they still managed to raise $10,400 on the crowd-funding website Kickstarter.

Interviewed recently in Aburdene’s bedroom in a shared house in Mount Pleasant, Pacman, 19, and Peso, 20, recounted their surreal, eye-opening experiences in North Korea.

They managed to film their rap video inside Pyongyang’s faltering metro, beside the demilitarized zone bordering South Korea, on a rice farm and in front of various North Korean monuments, not least the Kumsusan Palace of the Sun, an ornate mausoleum for Kim Il-sung, the so-called founder and eternal president of the country, and his son, Kim Jong-il.

Before arriving in North Korea, the group took part in a tour through Asian countries including China, Hong Kong and Mongolia. But it almost began in disaster in Beijing, when the rap entourage, which included some of Aburdene’s university friends, decided to hire motorcycles.

Peso, whose real name is Dontray Ennis, collided with a car near Tiananmen Square and, aware that he was not insured, fled. An angry crowd apprehended Pacman, whose real name is Anthony Bobb. “I was like, man, we ain’t going to North Korea. I’m gonna get locked up in Beijing,” Pacman recalls. “This shit gonna be on the news.”

After some ad-hoc diplomacy and a visit to a car repair shop, the group was let free, but missed their flight to Hong Kong, arriving late for the next leg of the journey – hosted by their main financial backer.

James Passin, a 41-year-old hedge fund manager who has poured millions of dollars in Mongolia, and also has business interests in North Korea, donated $5,100 to their Kickstarter campaign.

Described in BusinessWeek as ‘The American Who Bought Mongolia’, Passin was keen to be involved in the project. “He actually wanted to be in the North Korea video, but then his advisors told him it was probably better not to be,” Aburdene said.

Instead, Passin invited the rapping tour to Hong Kong, where he happened to be hosting his investor conference – and birthday celebration – in the Grand Hyatt hotel. Later, Passin flew the group to Ulan Bator, the capital of Mongolia. It was Peso’s favourite stop on the whole tour, not least because of the generous hospitality of their host. “The moment we arrived we got chauffeur rides to the hotel,” he said. “I had lobster with some fries while I was sipping on Sprite,” said Pacman.

Returning briefly to Beijing, the group picked up some tailored silk suits in preparation for North Korea. But by then the situation in Pyongyang had changed.

It was the end of November, and Merrill Newman, an 85-year-old Korean War veteran, had been detained in North Korea. The State Department strongly discouraged American citizens against visiting North Korea, the first warning of its kind since Pyongyang began allowing tourists into the country in 1995.

Pacman and Peso were being compared to Dennis Rodman, the former basketball star who has developed unlikely friendship with Kim Jong-un. Unlike Rodman, who is currently in Pyongyang accompanied by a fleet of former basketball players, the DC rappers did not have the blessing of Kim Jong-un, or indeed anyone else from North Korean officialdom.

Instead, they had always planned to travel beneath the radar, shooting their video under the cover of a sightseeing tour. With the five-day trip just hours away, the entourage began to realise that an interview with the BBC was probably not the best way to maintain a low-profile. Shortly before boarding, they read a Gawker article mentioning how, despite the State Department advice, “a much-publicized trip by two DC rappers, Pacman and Peso, is going ahead as planned.”

“All the buzz we were getting, I thought we were gonna get hemmed up, captured,” said Pacman. His rapping partner agreed: “I was like: uh-oh. Are we gonna make it?” They put their worries behind them and flew to Pyongyang regardless.

When the aircraft doors opened, they walked out to the sound of snapping cameras. “As soon as I seen cameras, I started being myself,” said Peso. “I started flipping my jacket open, smoking my cigarette in front of the cameras, turn[ing] round to make sure they got the suit.”

Despite the the flurry of attention from Associated Press journalists at the airport, the rappers succeeded in going largely unnoticed in North Korea.

Each day, Pacman and Peso hopped on a tourist bus, which ferried them to approved locations across the country in the company of government-sanctioned tour guides. So as not to attract attention, they used a small, Canon camera to shoot video, filming segments surreptitiously whenever their minders were looking the other way. Microphones, headphones, or amplified music were out of the question. Instead, they improvised. “We were just spitting the voice that was in our head,” Peso said. “It was just work, work, work, non-stop.”

They were not helped by the sub-zero temperatures and snow. There was rarely heating in any of the buildings and the silk suits provided little comfort. “One of the North Koreans, he gave me his coat,” Pacman said. “I asked him if he wanted it back, and he was like, ‘Nah, just keep it for the rest of the night.’”

Memories such as that left both young men with a positive experience of North Korea. They still speak about their recollections in dreamy monologues. “The old ladies looked like they were carrying the heaviest things. The army people walking down the street had guns,” said Pacman. “You see a whole bunch of rice fields. People was riding bikes. The little kids was walking down the street by themselves, they must have been in first grade. But everybody waved.”

One month on, both Pacman and Peso say they still feel energised by their journey to North Korea. They look and sound more animated than before they departed, when the anxiety was showing on their faces. “No-one has made a music video in North Korea before. Or even thought about it,” Peso said proudly. Pacman said his rapping had improved since their return. “It sounds stronger, the words are coming faster, quicker,” he said.

Smiling, he remembers the elation he felt when they departed Pyongyang. “The first thing I thought was: we made it out,” he said. “We beat the odds.”

UPDATE 2 (2013-12-1): According to the Associated Press:

The two rappers said their trip shied away from politics.

“I mean we did not go there to be political. We just go down there to shoot our video and that about the reason why we went, not political,” said Pacman – whose real name is Anthony Bobb.

The duo from the Washington area spoke to reporters at an airport in Beijing upon their return from a five-day trip to North Korea.

“Nobody shot a video in North Korea, let alone thought of it. Nobody even thought of making a video in North Korea. You know what I’m saying?” said Peso, whose real name is Dontray Ennis.

More in The Guardian.

UPDATE 1 (2013-11-8): According to the Guardian:

Pacman and Peso have never traveled much beyond the poor suburb of Washington DC where they live. But after a successful internet fundraising drive, the unsigned hip-hop duo will next Saturday embark on a trip, to shoot a video they hope will jumpstart their career, with an unlikely destination – North Korea.

After raising $10,400 from their  Kickstarter campaign, the pair will first fly to China and then on to Pyongyang, where they plan to film songs such as “God Bless Amerika” on a party bus.

Neither of them have flown on an airplane. They say they only recently discovered that North Korea was a foreign country.

Comparisons are inevitably being made with Dennis Rodman, the former basketball player whose visits to North Korea resulted in an unlikely friendship with the country’s dynastic leader, Kim Jong-un. But Pacman, 19, and Peso, 20, unsigned artists in search of a record deal to lift them out of poverty, are on the cusp of a very different kind of trip.

The story of the rap duo’s adventure could only be forged in a place like Washington, a deeply divided city where separated communities only occasionally overlap. A few months ago, Pacman was walking through his neighbourhood, Congress Heights, when he came across a group of twentysomethings shooting a music video. He struck up a friendship with one of the group, a white, 24-year-old investment banker named Ramsey Aburdene, who has since been managing the pair in his spare time.

Aburdene, from DC’s affluent north-west quadrant, had an acquaintance who happened to be an expert on North Korea. Mike Bassett, 34, is a former Iraq war veteran who was lived for seven years in South Korea, four of them with the US army.

A self-described pacifist, Bassett has become a fixer for people interested in traveling to Pyongyang. A Master’s student at American University, he has coordinated several cultural exchanges and traveled extensively in the country since restrictions were eased in 2010.

He has arranged the two rappers’ flights and visas, and laid the necessary groundwork for their tour. Bassett insists North Korea is misunderstood in the eyes of the west, and says Pacman and Peso will be treated with courtesy. Still, he has felt it necessary to provide the young rappers with some cultural advice, and instructed them to amend some of their lyrics.

An entourage consisting of Pacman, Peso, Bassett and Aburdene, plus other friends, departs next Saturday. At their leaving party in Washington on Thursday, in a bar near Aburdene’s house, Peso and Pacman provided well-wishers with an introduction to their debut mixtape.

Once or twice, the crowd broke out into chants of “North Korea”. But no-one really seemed to know exactly why the pair were traveling to the autocratic state, least of all Pacman and Peso. “I’m a thrill-seeker, I don’t fear nothing,” said Pacman, a smiley, baby-faced teenager whose real name is Anthony Bobb. “I like an action movie. I can’t sit and watch a drama flick – it takes too long.”

Pacman said people keep telling him not to go; his aunt tried to talk him out of the trip and his mum told to him to watch his back. “Me personally, I don’t pay too much to politics, so I can’t say what is right. Then again, who is to say what is right and what is wrong?”

His serious-looking partner Peso, from Landover, said: “I’m excited – the only thing I’m not excited about is the plane.” He added: “We’re changing the game. Nobody has shot a video in North Korea like we’re about to do.”

Asked if he was worried for his safety, Peso, whose real name is Dontray Ennis, replied: “You don’t think this is a dangerous place to be living at right now? There’s your answer, then.”

The idea that Pacman and Peso are just as likely to be subject to arbitrary detention, arrest and mistreatment in the streets around their home as Pyongyang has become a theme in the promotion surrounding their trip. It was the thrust of a piece profiling the pair in the Washington Post, which helped them easily surpass their fundraising goal of $6,000. The 4,000-word feature gave the pair huge exposure in the city, not least because the reporter interviewing them, Monica Hesse, was stopped and searched by police in the process.

“We’re not trying to be political heroes or anything like that,” said Aburdene. “We understand there is terrible stuff going on in North Korea, but there is terrible stuff going on here that people aren’t straight up about.”

Both Pacman and Peso have spent time in jail for minor offences. There is no doubt their day-to-day lives are not comparable to that of of the predominantly white community that is fast gentrifying America’s capital.

Aburdene said that he trusts Bassett when it comes to protecting the party’s safety in North Korea. He is not worried they will be detained, but is concerned their footage might get confiscated and said he realised they may need to tread carefully. “Even if it’s not a standard, crazy, party-like thing, I’ll enjoy the anthropological side,” he said.

But beneath the bravado, there appears to be at least a hint of anxiety on the part of the two young rappers.

At one point during a pre-show interview, Peso seemed only half-joking when he talked about the pair maybe being killed in North Korea. “If we don’t die, it will probably be a big life-changer,” he said.

He looked a little uncertain, before adding: “Can I ask you a question? What do you think is going to happen when we go over there?

ORIGINAL POST (2013-9-18): US hip hop performers to film video in DPRK. According to the Washington Post:

A few weeks ago, a Kickstarter project was posted on the Internet featuring two young men who went by the names of Pacman and Peso. The duo and their producer were using the crowdsourcing site to raise money for a creative endeavor; they wanted to make a music video. A rap music video. They wanted to do it on a karaoke party bus. They needed only $6,000, a fairly modest sum, considering that this estimate also included lodging and two overseas flights. The video, you see, was going to be filmed in Pyongyang.

North Korea.

Rappers Pacman, 19, and Peso, 20, are raising $6,000 to make a music video. They want to do it on a karaoke party bus in Pyongyang, North Korea. Here, they spend time in the District and Maryland, making music and spending time with family and friends.

“This trip will be a fantastic opportunity for Pacman and Peso to meet young, dynamic people and significantly broaden their horizons,” read the proposal, which was posted Aug. 30, “in addition to jump starting their musical careers.” The title was straightforward and surreal: “Pacman & Peso Make a Music Video in North Korea.”

…

So, yes, it sounds weird. Two African American youths from Southeast D.C. and Prince George’s County have paired with a white part-time producer from Northwest D.C., and they all want to go to North Korea because they see it as their best shot at a better future. Call Christopher Guest. Call Dave Chappelle. Someone is pulling your chain.

Unless, of course, it’s real. Unless it’s complicated. Unless it’s a whimsical windmill-tilt of a heartbreak.

“My goal was to rap,” says Peso, 20, whose real name is Dontray Ennis. If it wasn’t that, it was football. “But other than that, it was either doing wrong in the streets, or getting locked up.”

“This is my only option now,” he says of North Korea. “If it was to work.”

Read more here.

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Posted in 2013 DPRK engagement, Music, Tourism, USA | Comments Closed

UN to give DPRK US$2.1m in flood aid

Wednesday, September 18th, 2013

According to Yonhap:

The United Nations has decided to provide more than US$2 million in emergency relief to flood-stricken North Korea this year, a news report said Wednesday.

According to the Voice of America, the U.N. Central Emergency Response Fund allocated a total of about US$2.1 million in “Rapid Response Grants” following reports of heavy flood damage in the communist country.

The U.N. had said earlier that $5.8 million will be needed to help the flood victims in the North.

The relief aid will be conducted by the World Health Organization (WHO), the World Food Program (WFP), the U.N. Population Fund (UNFPA) and UNICEF, it said.

The WHO will use the money to send clean water to people affected by floods, and the WFP will provide food aid to expectant mothers. The UNICEF will also provide medicine and vaccines to the communist state.

A report by the U.N. released in August claimed there was an outbreak of a waterborne epidemic in the country.

Exact information on North Korea is hard to come by, but the International Federation of Red Cross and Red Crescent Societies said that some 33 people were killed, 18 reported missing and 50,000 displaced by this summer’s flooding that affected large parts of the country.

Read the full story here:
U.N. to give N. Korea US$2.1 mln in flood aid: report
Yonhap
2013-9-18

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Posted in International Aid, UN, UN Population Fund, UN World Food Program, UNICEF, UNWHO | Comments Closed

DPRK border security affecting smuggling (not just defections)

Tuesday, September 17th, 2013

According to the Daily NK:

Following the formal tightening of controls along the Sino-North Korean border for much of this year, it has emerged that smugglers have been suffering at the hands of the National Security Agency (NSA) [More properly Ministry for State Security-MSS]*. NSA officers have been described as engaging in “excessive” interrogation techniques in order to build their credentials and improve their bribe-taking, a source inside North Korea claims.

“A week ago, someone from a family that smuggles second-hand clothes with Chinese merchants was caught by a border patrol as he was receiving the goods, and is now getting interrogated by the NSA,” a North Korean source based in Yangkang Province reported to Daily NK on September 16th. “When I went to meet him at the NSA, I found that his limbs had been broken with a piece of wood. His face was so beaten up I couldn’t even recognize him.”

According to the source, people caught smuggling used items along the border with China used to pay a bribe of around 1000 Yuan approx. $160) to secure their release, but now that has risen to 5000 Yuan (approx. $800). The rise in beatings is believed to have occurred because smugglers are unable to pay the higher bribe rate.

“If smugglers are detained by border guards they are supposed to pay 5,000 won now, and if they don’t have the money they get handed over to the NSA,” the source confirmed. “If that happens they have to pay 5,000 to 10,000 Yuan, but poorer ones find it impossible to do that.”

“To a smuggler living off selling used clothes, 10,000 Yuan is an very large amount of money,” continued the source. “While smugglers’ families may do everything they can to raise the money to pay for the release, selling everything they have wouldn’t make that amount of money.”

“As Chuseok approaches there is a rise in smuggling activity, and this is being used by the border patrols and NSA to make a killing off ordinary people,” the source went on to allege. “Some particularly unsavoury NSA agents first show the relatives the broken limbs of a family member prior to demanding money.”

*Added by NKeconWatch

Read the full story here:
Smugglers Facing Big Fines and Beatings
D
Kang Mi Jin
2013-9-17

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Posted in Black markets, China, International trade | Comments Closed

DPRK’s Minister of Trade releases information on recent foreign economic cooperation at forum in China

Thursday, September 12th, 2013

Institute for Far Eastern Studies (IFES)
2013-9-12

After North Korea’s launch of a long-range rocket in December 2012 and third nuclear test in February 2013, China endorsed UN sanctions against North Korea. Consequently, North Korea appears to be increasing its economic cooperation with Mongolia and Russia.

On September 6, the 7th annual Northeast Asia joint high-level forum was held in Changchun (Jilin Province), China. Ku Bon Tae of the DPRK Ministry of Trade is reported to have been present and to have delivered a presentation on North Korea’s recent economic cooperation activities.

Ku stated, “Currently, cooperation between North Korea and Mongolia is making positive progress,” and “the international freight transport coordination issue and Mongolian corporate investments, telecommunications and other cooperation issues at the Rason Special Economic Zone are at the final stages of agreement.”

He added, “We hope more Northeast Asian nations will actively take part in the Rason Special Economic Zone.”

In May, a Mongolian oil companies HB Oil JSC acquired 20 percent stake in North Korea’s state-run Sungri oil refinery. In July, the two countries signed an agreement on information and communication cooperation and exchanges. In addition, Mongolian experts in the field of livestock are said to be involved in North Korea’s Sepho tableland (Gangwon Province) reclamation project, which seeks to create a large stockbreeding complex.

As for economic cooperation with Russia, the Khassan–Rajin railway — part of an international container rail transport line connecting Russia and North Korea and linking Northeast Asia to Europe — has its opening ceremony scheduled for this month after having received extensive reconstruction. Russia also has a long-term lease on Rajin Port’s pier No. 3. Russia has been renovating the pier, and renovations are expected to be completed by the end of this year.

North Korea and Russia plan to develop Khassan–Rajin rail line and Rajin Port in order to transport cargo from Asia to Europe: as containers arrive at Rajin Port, they are moved to the Khassan-Rajin railway and then transferred to the Trans-Siberian Railway (TSR), headed for Europe.

Ku further added, “After the projects are completely finished friendly cooperation between Russia and North Korea and international transport pathway will be opened connecting Asia to Europe through the development of economic and trade relations between the two countries.”

In Ku’s speech, the public economic cooperation with regards to China was covered briefly, and exclude the recent progress made. He commented only on the establishment of Joint Management Committees in Rason and Hwanggeumpyeong economic zones and that banks of the two countries are in the process of negotiating the usage of Chinese renminbi as the currency of trade.

Ku emphasized, “As with our past, our Republic hopes to promote independence, peace and friendship between Northeast Asian countries in the future, based on our foreign policy and will make every effort to further develop and expand this friendly cooperative relationship.”

The 9th China–Northeast Asia Expo opening ceremony was also held (in Changchun) on the same day as the forum. Political and business leaders from China, South and North Korea, Russia, Japan, and Mongolia were present at the event.

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Posted in Energy, Foreign direct investment, Gasoline, Hwanggumphyong and Wihwado Economic Zones (Sinuiju), International trade, Ministry of Trade, Mongolia, Oil, Railways, Rason Economic and Trade Zone (Rajin-Sonbong), Russia, Transportation | Comments Closed

North Korea’s minister of trade releases information on recent foreign economic cooperation at forum in China

Thursday, September 12th, 2013

Institute for Far Eastern Studies (IFES)
2013-9-12

After North Korea’s launch of a long-range rocket in December 2012 and third nuclear test in February 2013, China endorsed UN sanctions against North Korea. Consequently, North Korea appears to be increasing its economic cooperation with Mongolia and Russia.

On September 6, the 7th annual Northeast Asia joint high-level forum was held in Changchun (Jilin Province), China. Ku Bon Tae of the DPRK Ministry of Trade is reported to have been present and to have delivered a presentation on North Korea’s recent economic cooperation activities.

Ku stated, “Currently, cooperation between North Korea and Mongolia is making positive progress,” and “the international freight transport coordination issue and Mongolian corporate investments, telecommunications and other cooperation issues at the Rason Special Economic Zone are at the final stages of agreement.”

He added, “We hope more Northeast Asian nations will actively take part in the Rason Special Economic Zone.”

In May, a Mongolian oil company HB Oil JSC acquired 20 percent stake in North Korea’s state-run Sungri oil refinery. In July, the two countries signed an agreement on information and communication cooperation and exchanges. In addition, Mongolian experts in the field of livestock are said to be involved in North Korea’s Sepho tableland (Gangwon Province) reclamation project, which seeks to create a large stockbreeding complex.

As for economic cooperation with Russia, the Khassan–Rajin railway — part of an international container rail transport line connecting Russia and North Korea and linking Northeast Asia to Europe — has its opening ceremony scheduled for this month after having received extensive reconstruction. Russia also has a long-term lease on Rajin Port’s pier No. 3. Russia has been renovating the pier, and renovations are expected to be completed by the end of this year.

North Korea and Russia plan to develop Khassan–Rajin rail line and Rajin Port in order to transport cargo from Asia to Europe: as containers arrive at Rajin Port, they are moved to the Khassan-Rajin railway and then transferred to the Trans-Siberian Railway (TSR), headed for Europe.

Ku further added, “After the projects are completely finished friendly cooperation between Russia and North Korea and international transport pathway will be opened connecting Asia to Europe through the development of economic and trade relations between the two countries.”

In Ku’s speech, the public economic cooperation with regards to China was covered briefly, and exclude the recent progress made. He commented only on the establishment of Joint Management Committees in Rason and Hwanggeumpyeong economic zones and that banks of the two countries are in the process of negotiating the usage of Chinese renminbi as the currency of trade.

Ku emphasized, “As with our past, our Republic hopes to promote independence, peace and friendship between Northeast Asian countries in the future, based on our foreign policy and will make every effort to further develop and expand this friendly cooperative relationship.”

The 9th China–Northeast Asia Expo opening ceremony was also held (in Changchun) on the same day as the forum. Political and business leaders from China, South and North Korea, Russia, Japan, and Mongolia were present at the event.

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Posted in Agriculture, Ministry of Trade, Mongolia, Railways, Rason Economic and Trade Zone (Rajin-Sonbong), Russia | Comments Closed

DPRK approves ROK flag and anthem for first time

Monday, September 9th, 2013

According to Yonhap:

North Korea has approved for the first time the hoisting of South Korea’s national flag and playing of its anthem on the communist country’s soil, the unification ministry said Friday.

The move comes as the North invited South Korean weightlifters to attend the 2013 Asian Cup and Interclub Weightlifting Championship to be held in the communist country, the Ministry of Unification said.

If realized, it will be the first time in history that South Korea’s national flag, the Taegeukgi will be raised and the national anthem performed in North Korea.

The ministry in charge of all inter-Korean relations said it approved the cross-border trip by the 41-member team made up of South Korean weightlifters and officials who plans to visit Pyongyang next week for a nine-day stay to attend the international sporting competition. The event is set from Sept. 11-17 in the North Korean capital.

Officials here said approval was given because the event is an international gathering organized by the Asia Weightlifting Federation, and Pyongyang vowed to guarantee the safety of the athletes from the South.

Such reconciliatory gestures from both sides are in line with a recent series of signs of thawing relations following a deal to restart the shuttered joint industrial park in the North’s border city of Kaesong and to arrange reunions for families separated by the 1950-53 Korean War.

In 2008 I attended a DPRK-ROK World Cup prelim match in Shanghai.  The game was supposed to be held in Pyongyang, but the North Koreans refused to allow the South Korean anthem and flag to be used (as the South Koreans had done).

Read the full story here:
N. Korea allows S. Korean flag hoisting, anthem for first time
Yonhap
2013-9-6

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Posted in Football (soccer), South Korea, Sports | Comments Closed

Pyongsu to open new pharmacy in Phyongsong

Sunday, September 8th, 2013

According to Yonhap:

A joint venture between North Korea and Switzerland will open its first chain drugstore in a provincial city in the communist country by the end of this year, according to the company’s website Sunday.

The new store will be situated in Pyongsong, South Pyongan Province, where many of the North’s well-off people who can afford medicine live, the Pyongsu Pharma J-V Co. said.

Launched in 2004 as a joint venture between Parazelsus, a Swiss investment and management company with a focus on healthcare, and Pyongyang Pharmaceutical Factory under the North’s health ministry, Pyongsu Pharma has since opened nine chain stores in Pyongyang to provide North Koreans with essential medicine, such as aspirin and digestive aids.

Pyongsong, located just north of Pyongyang, is the capital of North Pyongan Province. It was developed into a science-research city, housing many research institutes in the 1960s, but now is a hub of logistics for distributing everyday goods all over the country.

Last month, the North Korean authority opened the city to foreign tourists, according to a Chinese tourism agency specializing in tours to the North.

“Since medicine is as precious as rice in North Korea, Pyongsong will be crowded with people coming to buy medicine from other parts of the country if a drug store opens in the city, which has a relatively well-developed traffic network with other cities,” a source well informed on North Korea said.

Read the full story here:
N.K.-Swiss joint venture to open drugstore in N.K. provincial city
Yonhap
2013-9-8

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Posted in Foreign direct investment, Health care, Joint Ventures, Pharmaceuticals, PyongSu Pharma, Switzerland | Comments Closed

Rodman makes second trip to DPRK

Sunday, September 8th, 2013

UPDATE 3 (2013-12-1): Macleans has more information on how Rodman arranged his second trip to the DPRK:

Sometime last spring, Dennis Rodman, the unpredictable, flamboyant NBA hall of famer, found he had a problem: How was he going to get back into North Korea?

As it happened, Rodman had a standing invitation from that hermetic country’s supreme leader, Kim Jong Un—a man Rodman has described as “my friend” ever since his first trip to the Democratic People’s Republic of Korea (DPRK) last March. But, the DPRK is not an easy holiday destination, and Kim hadn’t offered to send a personal jet.

Rodman’s first trip had been worry-free—it was arranged by the in-your-face media company Vice, which used Rodman’s allure as a former Chicago Bull (the ruling Kim dynasty has an enduring fascination with the team) to gain entry to the country and shoot an HBO documentary. But the Vice crew’s anti-Kim agenda had left North Korean officials, and Rodman himself, nonplussed. This time, Rodman wanted to go unencumbered by cameras and press people. So what to do?

“They tried to go to a travel agent, I guess, but obviously it doesn’t work that way,” says Joseph Terwilliger, a geneticist at the Columbia University Medical Center, who got involved in Rodman’s quest after successfully bidding on a basketball game with him at a charity auction. The pair shot hoops, but mainly they talked North Korea.

Terwilliger told Rodman he knew exactly who could help: Michael Spavor, a Canadian he’d first met at the bar of the Yanggakdo International Hotel in Pyongyang some years ago, and who has developed a reputation for being one of those rare things—a foreigner whom the North Koreans have come to trust, and who can get things done in that country.

Spavor, 38, is not what you’d expect from an emissary to North Korea. An affable, mild-mannered type who grew up in a Calgary suburb, he first became intrigued by North Korea during a short stay in Seoul in the late 1990s, when, flipping through the Lonely Planet travel guide, he stumbled across the section on the DPRK—“just a little sliver in the back,” he recalls. “It was the most interesting part of the whole book.”

He went on to live in Pyongyang for six months in 2005, working as a teacher at a school affiliated with a Vancouver-based NGO. He’s been in and out of the DPRK ever since, developing key contacts in the regime along the way. Spavor speaks the North Korean dialect—a more formal variant of the southern—so fluently that he fools people on the phone, and he ran a school specializing in DPRK Korean in Yanji, the city in a largely Korean corner of northeast China where he now lives.

Not your typical line of work, and occasionally it raises eyebrows. Passing through the U.S. a few weeks ago, his unusual travel itinerary raised red flags with a customs official. Spavor asked if the officer had heard about Rodman’s trip to North Korea in early September. Sure, he had. “I organized it,” Spavor told him. “It was a blast.”

It was, in some ways, a bro vacation. Rodman’s entourage included; Christopher Volo, a mixed-martial-arts fighter, and Terwilliger, the Columbia prof, who also happens to be a pro tuba player. Terwilliger had become fascinated by the DPRK as a kid listening to shortwave radio from Pyongyang; he’d been on North Korea’s propaganda mailing list for years and found the material he received “interesting.” Together, the men sang, drank, ate and laughed with Marshall Kim, as he likes to be known, at his seaside retreat, a “seven-star” home-away-from-home that Rodman later compared to Ibiza.

“In the media, Marshall Kim Jung Un is portrayed as serious,” Spavor told Maclean’s in an interview. “But we were able to see a more charismatic, friendly side to him. He has a good sense of humour.”

Spavor carries official pictures, taken by a state photographer, of the encounter on his iPhone, and though he’s wary of whom he shows them to—Spavor is fastidiously careful in regards to everything DPRK-related—it’s clear from the shots that this was a casual affair enjoyed by Rodman, his entourage, and by Kim, who is thought to be around 30.

“Dennis and Marshall Kim talked, and Michael and I tried to translate as much as we could,” explains Terwilliger.

Then he corrects himself.

“I mean, Michael translated as much as he could to Korean,” he says. “I was more translating Dennis to English.”

The two Rodman visits to North Korea have received their share of ridicule—North Korea, after all, is a pariah state, with a troubling human rights record and a history of threatening its enemies, including the U.S., with nuclear destruction. But, Spavor, who has led many similar, though lower-profile, cultural-exchange tours there—students and faculty from Cambridge, Harvard and McGill have seen North Korea from the inside, thanks to his ministrations—saw Rodman’s visits as “a chance for international relationship-building, in this case, through the medium of sport.”

Asked if such an endeavour makes him an apologist for what many consider a pretty nasty regime, Spavor won’t be drawn in. “I’m really in no position to comment on political and human rights issues,” he says. “Those issues are better discussed between governments.”

During his time living in Pyongyang, Spavor was able to observe “regular, everyday life”—people going to work, young couples walking hand-in-hand, vibrant markets. “I met a lot of really beautiful people—so sweet,” he says. “It was contrary to what I’d heard, that they were cold. You hear about this mysterious, unfriendly place.”

He credits his good contacts in North Korea with his capacity to interact with the North Koreans on their own terms—a rapport he picked up while eating, drinking and singing with them during his brief time living there. “I really learned how to party with North Koreans—to party and enjoy myself in their environment,” he says. “I have a rare and odd skill that enables me to connect the DPRK to other people.” Spavor celebrated his birthday in North Korea in November, feasting on North Korean birthday cake, which he says was delicious.

It was his relationship with the North Korean regime that helped Spavor spirit Rodman through Beijing, where the basketball legend sought to keep a low profile, and onto a flight with Air Koryo, the North Korean airline. “You know, it’s not easy hiding a six-foot-seven black guy with tongue piercings and tattoos in China,” says Terwilliger.

Indeed, Spavor has carved out a reputation as a street-smart, savvy conduit, someone the North Koreans know is capable of discretion.

“If you sent a traditionally diplomatically minded person, it would be very difficult for such a person to deal with North Korea,” says Andrei Lankov, a professor at Kookmin University in Seoul and a leading authority on North Korea. “Michael has a great deal of common sense, and he’s a very normal guy, but also very smart. He understands the society and he’s not afraid to experiment and do things that are unusual.” Hence, Spavor’s willingness to engage with the North Koreans on the basketball court.

Spavor’s unusual relationship with the North Koreans is driving plans, bankrolled by the colourful Irish bookmaking company Paddy Power, to mount a basketball exchange between the U.S. and the DPRK in January, when between 10 and 12 former NBA players—Spavor won’t name names—are due to arrive in Pyongyang to help coach North Korea’s national basketball team.

And it is Spavor, as a Canadian, whom officials in North Korea’s ministry of sport approached with the idea of setting up a hockey exchange between North Korea and Canada. The project is still in its early stages, but Spavor says there is interest from the NHL. He envisions NHL players and coaches arriving next autumn or winter to help train the country’s national team. As it turns out, the North Koreans do play hockey, in the International Ice Hockey Federation’s Division III category, which also includes such lesser hockey nations as South Africa, Ireland and Greece. He’s also looking into organizing another sports exchange between North Korea and Canada—this one centred on skiing (the DPRK is poised to open its first ski resort, at the Masik Pass, on the country’s east coast).

The DPRK is borrowing from American culture in other ways, too. Spavor carries with him the Samjiyon, a North Korean-made tablet computer loaded with North Korean books, and with the republic’s answer to Angry Birds, a computer game called Gomuchong—rubber gun—that looks remarkably similar to the one-time iPhone sensation. Another stab at a cultural exchange? Perhaps. It may also be piracy.

UPDATE 2 (2013-9-8): Just as Kenji Fujimoto taught us the name of Kim Jong-un, Rodman has revealed to the world the name of Kim Jong-un’s daughter. According to The Guardian:

Dennis Rodman has already described Kim as an “awesome guy”. On Sunday, he told the Guardian the leader was also a “good dad” to his baby daughter, whom he named as Ju-ae.

“The Marshal Kim and I had a relaxing time by the sea with his family,” Rodman said of his recent visit to the world’s most isolated country. “We shared many meals and drinks where we discussed our plans to play a historic friendship basketball game between North Korea and the US as well as ways to develop their basketball team.”

“I held their baby Ju-ae and spoke with Ms Ri [Sol-Ju, Kim’s wife] as well. He’s a good dad and has a beautiful family. Kim told me, ‘I’ll see you in December.'”

Rodman plans to organise a basketball game between American and Korean teams.

“Kim is a great guy, he loves basketball, and he’s interested in building trust and understanding through sport and cultural exchanges,” Rodman said. “I know in time Americans will see I’m just trying to help us all get along and see eye to eye through basketball and with my friendship with Kim I know this will happen.” Further details on the basketball match are expected on Monday.

If the Rodman in Pyongyang story wasn’t unusual enough, there is an extra twist – it is being sponsored by an Irish bookmaking firm, which cheerfully admits it has no experience of international diplomacy.

Paddy Power used Rodman for a promotional stunt involving bets about the new pope, after which the eponymous son of the founder of the firm went for “pizza and a few glasses of wine” with the ex-NBA star in Rome. Rodman then explained his “basketball diplomacy” idea.

Despite thinking it was “all a bit bonkers”, Power decided to get involved. He said: “If you’d told me about this 12 months ago I’d have got the men in white coats to take you away. It’s an unusual idea to say the least.”

Power stressed that the project did not mean that the company or Rodman “endorse or support” one of the world’s most repressive regimes, which has an appalling human rights record.

The company consulted a Korea expert at the International Crisis Group thinktank, which argues that this is not entirely a stunt.

“Someone might say that Dennis Rodman provides political legitimacy to the regime, or it can be treated as a propaganda coup,” said ICG’s Daniel Pinkston, who has been an expert on North Korea for 30 years. “I think that’s greatly exaggerated. If you have a former president of the United States, that factor might be much greater. But someone like Dennis Rodman can’t do that. He can’t lift sanctions – he doesn’t have that power or authority.”

“The risks and costs are very, very low, and what you’re creating is a channel for the exchange of ideas. It’s a very small channel, but it’s there.”

He said the interaction between Kim and Rodman sent out a signal to the world – and to North Koreans. “Here’s someone who’s one of the most nonconformist individuals you can think of. And here’s the leader, embracing him. That is an implicit signal – it’s OK to be different.”

The New York Times also reports:

On Monday, Mr. Rodman said Mr. Kim gave him the right to write a book about him.

…

Mr. Rodman said he would put together a team of 12 former N.B.A. stars to travel to Pyongyang in January for one week. He said he hoped to recruit people like his former Chicago Bulls teammate Scottie Pippen and Karl Malone. They will play a North Korean team on Jan. 8 and another game two days later, he said. Mr. Kim promised a stadium and 95,000 fans.

Mr. Rodman said he planned to travel to Pyongyang in December to help select and prepare a North Korean team. A second set of games between the teams will be played in June in Europe, according to an agreement between the North Korean minister of sports and Mr. Rodman that was read during the news conference on Monday.

Mr. Rodman said he accepted Mr. Kim’s request for him to train the North’s Olympic basketball team.

UPDATE 1 (2013-9-7): Reuters reports that Dennis Rodman has left without Kenneth Bae.

Former U.S. basketball star Dennis Rodman returned on Saturday from his second visit to North Korea this year where he again met the reclusive country’s leader Kim Jong-un, but did not come back with jailed American missionary Kenneth Bae.

…

“That’s not my job to ask about Kenneth Bae. Ask Obama about that. Ask Hillary Clinton,” he told a throng of reporters. “I don’t give a shit.”

…

Rodman showed reporters in Beijing pictures of him meeting Kim, and said he had given Kim a gift of his Bad Boy vodka, which “he loved”.

“He is my friend for life. I don’t care what you guys think about him. I don’t give a shit about what people around the world think about him,” he added.

Rodman’s latest trip was sponsored by Irish bookmaker Paddy Power.

ORIGINAL POST (2013-9-7): Back in February Dennis Rodman made headlines by visiting the DPRK with the Harlem Globetrotters for a trip arranged by the new Vice show on HBO.

On September 3, Rodman returned to the DPRK for his second trip.

Here is coverage in Rodong Sinmun:

Supreme leader Kim Jong Un met ex-NBA star Dennis Rodman and his party on a visit to the DPRK.
He warmly greeted them and had a cordial talk with them.

Warmly welcoming Dennis Rodman visiting the DPRK again as a friend in a good season, Kim Jong Un told him that he might visit the DPRK any time and spend pleasant days, having a rest.

Saying he feels very grateful to Kim Jong Un for sparing a precious time to meet him and his party despite his tight schedule, Dennis Rodman said this is an expression of good faith towards the Americans.

He said that he was fortunate to revisit the DPRK as he has friendly relations with broad-minded Marshal Kim Jong Un.

Dennis Rodman evinced his will to contribute to boosting diverse sports and cultural exchange with the DPRK.

He presented Kim Jong Un and his wife Ri Sol Ju with a gift he prepared with the deepest respect for them.

Kim Jong Un, together with him and his party, watched a basketball match between the April 25 Team and the Amnokgang Team.

Kim Jong Un hosted a dinner for Dennis Rodman and his party.

Expressing his heartfelt thanks to Kim Jong Un for spending a lot of time for him and his party and according them the warmest hospitality, Dennis Rodman said he would remember this visit as an unforgettable beautiful memory all his life.

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Posted in 2013 DPRK engagement, Olympics, Sports, USA | Comments Closed

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