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South Korean companies sue for sanctions losses

Thursday, July 21st, 2011

According the Hankyoreh:

South Korean businesses engaged in economic cooperation with North Korea who have incurred major losses due to sanctions are showing signs of working together in response to their predicament, including suing the government for compensation. The South Korean government imposed the sanctions on North Korea in connection with the sinking of the Cheonan.

Around 10 heads of businesses investing in tourism at Mt. Kumgang, businesses planning to move in to Kaesong Industrial Complex, and businesses trading with other parts of North Korea are known to have gathered in central Seoul on July 19 and agreed to embark jointly on responsive measures, including taking legal action against the government.

“In a situation where there is no sign of an improvement in inter-Korean relations, businesses cooperating with North Korea are going beyond the limits of their tolerance,” said one official working in a field related to inter-Korean economic cooperation during a telephone interview with the Hankyoreh on July 20. “Those taking part in the meeting easily agreed to respond as a group, including by suing the Ministry of Unification for damages. They decided to meet once more some time around next week and decide upon a specific plan. Around ten businesses are currently preparing to sue.”

The affected businesses have decided to demand that the government withdraw the Cheonan sanctions while urging it to provide systematic guarantees that North-South economic cooperation can continue in a stable manner regardless of the political situation. They are also known to be considering plans such as one-man protests, returning their business licenses and issuing a statement.

Two materials processing companies, including CEO Kim Chan-ung’s NFN, have sued individually for damages, but this is the first time since the sanctions were imposed, on May 24 last year, that businesses dealing with North Korea have acted together against the government in an organized manner.

Read the full story here:
S.Korean businesses to sue for losses from sanctions
Hankyoreh
Kim Jong-cheol
2011-7-21

Posted in International trade, Kaesong Industrial Complex (KIC), Mt. Kumgang Tourist Special Zone, South Korea, Special Economic Zones (Established before 2013) | Comments Closed

Foreign clothing gaining popularity in DPRK

Thursday, July 21st, 2011

According to the Daily NK:

Young people in North Korea are emerging as proponents of Hallyu (the South Korean cultural wave) and as fashion leaders, showing themselves to be particularly keen on the South Korean music, movies, and fashion that are being smuggled into the country and traded.

On Wednesday, The Daily NK met with a Chinese merchant who conducts business in Pyongyang to find out about trends amongst young people in North Korea. He told us that, “Hooded sweatshirts are enjoying immense popularity with young people at the moment.” The reason, he explained, is that, “They want to emulate the fashion they see in South Korean dramas.”

He added, “At the jangmadang, hooded sweatshirts sell for about 200 Yuan (around US$31), so they’re not cheap, but so many people come looking for them that we almost run out of hooded sweatshirts to sell.”

The source explained that, in spite of this, South Korean brands and products with English lettering are prohibited from being sold.

“As the days get hotter, people are looking to get their hands on short-sleeve clothing. Light-colored clothing is most popular,” he noted, also mentioning that, “In general, new clothes sell for about 15,000 won and second-hand clothes for about 3,000 won.

One-piece dresses are in vogue with females as summer takes hold. These dresses tend to sell at the jangmadang for around 70,000 won. Additionally, the source said, “There are lots of young ladies looking for high-heel shoes, which go for about 25,000-30,000 won. Skinny jeans are as popular as ever, and you see lots of people walking around in three-quarter pants.”

He also mentioned that many people are taking advantage of the opportunity to wear shorts and sleeveless shirts to beat the humidity.

However, authorities have already cracked down on “inappropriate attire” for women, for example by banning skirts that do not go down past the knee. The sleeveless shirts, short skirts and pants that have become fashionable in recent times are difficult to wear out of the house because a person wearing them would become a target of the Union of Democratic Women’s community watch guards.

Regarding this, the source said, “People get punished for wearing shorts or skirts that don’t come down past the knee. The UDW’s community watch guards are in every lane and alleyway inspecting women (who break the law). Sleeveless clothes do sell, but nobody can wear them. So they just wear such items at home.”

Furthermore, he mentioned that, “Young ladies walk around wearing earrings and bracelets,” explaining that, “Bracelets, watches, rings and hairpins all tend to be popular itemsbecause people think they’re pretty.” North Korean authorities restricted the wearing of accessories in the past, but appear to have eased off on this policy in recent times.

He relayed that crackdowns on South Korean-made goods are as common as ever. According to him, those who get caught in the crackdowns have their goods confiscated on the spot. “The crackdowns on South Korean goods are still going strong,” he said. “At the outdoor market, the patrolling officers are checking practically every item tag now. That’s how serious it has got.”

“The intensity of crackdowns on South Korean movies and dramas on DVD that are coming into the country is always increasing,” he said, “but university students and young people in general are getting hold of South Korean and other foreign movies and selling them in secret.”

South Korean dramas and movies usually sell for 5,000 won (a normal DVD sells for 1,300 won), and at the moment IRIS, Assorted Gems, Slave Hunter, Queen of the Game and Smile, Mom are said to be the most popular.

Read the full story here:
Fashion Also Influenced by South Korean Culture
Daily NK
Choi Cheong Ho
2011-7-21

Posted in Black markets, Civil society, Clothing, Economic reform, General markets (FMR: Farmers Market), South Korea | Comments Closed

DPRK’s import of luxury goods and estimated trade data

Wednesday, July 20th, 2011

UPDATE 2 (2011-7-20): The Daily NK offers some more statistics:

It has been confirmed the North Korean authorities were concentrating on importing luxury items for privileged people, while international humanitarian organizations were worrying about North Korea’s chronic food shortage and the damage to the vulnerable classes.

According to statistics from the South Korean government and Chinese customs, from January to May this year, the cost of food import is only about 4% out of the total amount of imports, which translates to about 46 million dollars out of 1.148 billion dollars.

The total amount of trade with China was doubled as compared with the corresponding period from last year: exports were increased by 217% and imports by 58%. The export amount is 812 million dollars while the import is 1.148 billion dollars.

In comparison, around 10 million dollars were used to purchase high quality liquor, cigarettes and others for privileged classes. The amount of cigarette imports, such as Marlboro, Mild Seven and others, is 7.5 million dollars. 2.4 million dollars were used to buy Cognac or whisky like Chivas Regal, Hennessy X.O. and other kinds of alcohol.

The amount of alcohol imported was increased by 94 % compared to the same period of last year.

It was reported that other items, such as international designer brands clothes, watches, and other items and electronic goods from SONY and Samsung were also imported.

It also showed that North Korean authorities sold wheat it had received from the international community to other countries. 200,000 tons of phosphate rock, which is materials for fertilizer, provided by Middle Eastern countries for free in 2010, were sold to some countries in Europe.

In addition, since South Korean markets have been blocked due to May 24 Measures, North Korea tried to download agricultural products, which are disguised as Chinese products, onto South Korean vessels in international waters by secretly working with Chinese traders. The South Korean government reported that there were four cases last year and 11 cases so far this year.

So apparently everyone has seen the data source but me.

UPDATE 1 (2011-7-22): The Los Angeles Times picked up on the report and offered a few more details:

North Korea’s importing of luxury goods from China nearly doubled in the first five months of this year, compared with the same time period for 2010, according to a report by Beijing customs officials obtained by the South Korean Unification Ministry.

…

The communist regime spent $46 million on imported corn, rice and other food staples, but it also spent $10 million on luxury items from January through May of this year. Imported through China, the items reportedly include Marlboro cigarettes, Hennessy cognac, whiskey and Japanese beer, South Korean officials said this week, quoting the Chinese customs report.

The imports included about $500,000 worth of high-grade beef, apparently for luxury meals, which North Korean leader Kim Jong Il uses to maintain the support of the power elite, Seoul officials said.

…

This year, the regime again requested food aid, citing reduced crop yields. Though the European Union plans to send $14.5 million in food aid, the United States and South Korea have been reticent to supply such aid.

Some scholars believe that North Korea has exaggerated its need for food, alleging that the aid is turned over to the military or stored for future use, such as a planned celebration next year to mark the anniversary of the regime.

“I do not believe these claims about mass starvation,” said Andrei N. Lankov, a professor at Kookmin University in Seoul and the author of several books on North Korean history and politics.

He called the move by Pyongyang “a deliberate campaign to get free food, which will then be distributed to the privileged groups as government gifts. This will allow them to increase their legitimacy and win some popular support at the expense of the Western and South Korean taxpayers.”

I still have not seen the original Chinese source. If anyone has it, please send it my way.

ORIGINAL POST (2011-7-20): Yonhap cites an unnamed South Korean government official (anyone want to take credit for these statistics?) who claims that the DPRK is skirting UN sanctions and obtaining luxury goods. According to the article:

Despite years of food shortages, North Korean leader Kim Jong-il has engaged in the gift politics of showering his top aides and other elites with luxury goods to win their loyalty.

Some ruling elites also enjoyed McDonald’s hamburgers delivered from China via Air Koryo, North Korea’s flagship airline, the official said, without elaborating.

The North also spent about US$7.5 million in buying cigarettes such as Marlboro and Mild Seven in the first five months, a rise of 117 percent compared to the same period last year, according to figures by South Korea and China. It also showed that the North imported $2.4 million worth of Hennessy Cognac, whiskey and Japanese beer, up 94 percent compared to the same period last year.

The trade volume between North Korea and China stood at US$1.96 billion in the first five months, twice as much as in the same period last year, according to Lee.

Since the article does not name a source or provide any way to track down the numbers, take them with a grain of salt.

Read the full story here:
N. Korea imports luxury goods for ruling elites despite food shortages
Yonhap
2011-7-20

Posted in International trade, Statistics, Trade Statistics, UN Security Council | 1 Comment »

DPRK defection numbers / trends update

Wednesday, July 20th, 2011

(2011-7-14) The International Crisis Group published a report on DPRK defectors living in South Korea. Here is the executive summary. Here is the full report (PDF). Below are some statistics that others might like to know for future reference (Footnotes can be found in the original document):

There were only 86 defectors from 1990 to 1994, and the numbers remained under 100 each year until 1999. North Korea’s deteriorating economy and a subsequent famine in the mid-1990s, along with an erosion of border controls that opened an escape route into China, began to push the numbers higher by 2000. In 2001, 583 North Koreans arrived in South Korea. The following year the figure nearly doubled to 1,138. By 2007, about 10,000 North Korean defectors had arrived in the South, and by December 2010, the number reached 20,360. The number is expected to remain steady at about 2,500-3,000 per year or even to increase, although slightly fewer defectors arrived in 2010 due to tightened restrictions in North Korea, including greater punishment for attempting to defect.

…

In 1998, only 12 per cent of the 947 defectors in the South were female. But they surpassed males in 2002, and in 2010 they accounted for 76 per cent of the 2,376 defectors who arrived in the South. By January 2011, the cumulative total of defectors nineteen years of age and younger was 3,174 – 15.4 per cent of all defectors in the South.

About 70 per cent of the defectors arriving recently have graduated from middle school or high school, about 9 per cent have graduated from junior colleges, and about 8 per cent are college graduates. About 50 per cent were unemployed or dependents before they left the North, and about 39 per cent were workers.

…

According to Pak Chŏn-ran [Park Jeon-ran], a specialist on defectors at Seoul National University’s Institute for Unification Studies, “the health status of defectors who left their families in the North is five times worse than that of defectors who escaped North Korea with relatives or friends”.107 She also found in a study that 20 per cent of ailments afflicting defectors were psychosomatic. The medical staff at a government reintegration centre reported that about 70 per cent of their patients exhibited symptoms of depression or other stress-related disorders.

…

In 2007, researchers from Seoul National University disclosed that in interviews conducted with over 200 defectors, 80 per cent indicated they had contracted at least one ailment since arriving in the South. In April of the same year, the Korea Institute for Health and Social Affairs released a study on the health of 6,500 defectors who had arrived in the South between 2000 and 2005. Some 1.8 per cent were infected with syphilis in 2004 and 2.1 per cent in 2005. About 20 per cent of 700 women aged twenty to 49 suffered from some type of gynaecological disorder.

The Korea Centre for Disease Control and Prevention (KCDC) reports that the average height and weight of defectors is much lower than their South Korean counterparts. The average North Korean male defector is 164.4cm tall and weighs 60.2kg, compared to the average South Korean man, who stands 171.4cm tall and weighs 72kg. The figures for North Korean female defectors and South Korean women are: 154.2cm and 158.4cm; 52.8kg and 57.1kg. The average teenage male defector’s height is 155.7cm, 13.5cm less than the average South Korean counterpart; the average weight is 47.3kg, 13.5kg less than that of the South Korean. The average heights and weights for teenage female defectors and South Korean teenage females are: 151.1cm and 159.4cm; 46.9kg and 52.3kg.

…

In January 2011, only 50 per cent of defectors were employed (10,248 of 20,539), and most of these were in unskilled manual labour jobs (7,901, or 77 per cent of those employed). Only 439 defectors (4 per cent) were working in skilled jobs, and 381 were working in administrative positions.

…

Those who do find work earn on average W1.27 million (about $1,170) per month, which is just above the minimum subsistence level for a family of three.

These levels of unemployment persist despite subsidies for employers who hire defectors; the government provides up to W500,000 of monthly salaries for the first year and up to W700,000 of monthly salaries for the second year.

…

Many defectors reach the South with the help of people known as brokers. The journey can cost anywhere from $2,500 to $15,000. Many brokers will defer payment until the government in Seoul has paid resettlement money. To prevent a developing business in bringing defectors to the South, in 2005 the government cut the payments from a W10 million (about $9,400) lump sum to W6 million (about $5,600) paid out over several years. This has left many defectors with considerable debts.

More posts on this topic below:

(more…)

Posted in Civil society, Demographics, Emigration, Emigration statistics, Labor conditions/wages, South Korea, Statistics, USA | Comments Closed

UK to boots English education in the DPRK

Tuesday, July 19th, 2011

According to KBS:

The British government is planning to expand its English education program in North Korea as the U.K. considers it having positive effects on bilateral relations.

Voice of America reported that U.K.’s Foreign Office Minister Lord Howell said Wednesday that the English programs will be expanded from three universities to six universities by the end of the year.

The minister also said the British government signed a memorandum of understanding with a North Korean educational committee last month on a new plan to operate English teaching programs for the next three years.

Read the full story here:
UK to Expand English Program in NK
KBS
2011-7-19

Posted in Education, United Kingdom | 1 Comment »

Kaesong wages set to increase (2011)

Friday, July 15th, 2011

UPDATE 1 (2011-8-10): Wages of North Korean workers in Kaesong Industrial Complex set to rise 5% for the fifth consecutive year. According to the Institute for Far Easter Studies (IFES):

The minimum wage for North Korean workers at the Kaesong Industrial Complex (KIC) has risen annually at a rate of 5 percent since 2007. The year 2011 stands to mark the fifth consecutive year that such an increase has occurred.

Recently, the steering committee for the KIC and South Korean and North Korean authorities reached an agreement to accept a 5 percent wage hike for North Korean workers at the complex. Accordingly, as of August 1, 2011, North Korean workers at the KIC should earn USD 63.814 rather than USD 60.775 in monthly wages. South Korean authorities, as an exchange for accepting the North Korean demand for a wage increase, requested that productivity be elevated via the adoption of a more efficient method of worker placement.

At the meeting, the Kaesong Industrial District Management Committee, representatives of companies in the complex, and the head of corporations were in attendance and reached an agreement to form a task force specifically for the improvement of productivity of workers. While the overall output of the KIC has increased, the output per worker has not improved, leading to the decision to establish the task force, with the goal of enhancing the competitiveness of the complex.

The minimum monthly income of USD 60.775, which kicked in last August, remained in effect until July 31 of this year. The Labor Law of the KIC caps the wage increase at 5 percent; a 5 percent increase to the minimum wage this year would elevate the minimum monthly wage for workers to USD 63.814.

At the meeting, North Korea mentioned international wage levels and made demands for a wage hike of more than the upper limit. However, most of the companies that operate in the KIC adamantly oppose such demands.

Despite the May 24 sanctions implemented by the South Korean government after the March 2010 sinking of the ROK navy corvette Cheonan, the growth of the KIC has continued. The trade volume has increased by 24.23 percent while the production output has increased by 26.1 percent compared to the same period last year.

Although the eight-year old Kaesong Industrial Complex boasts its competitiveness against other industrial complexes in China and Vietnam, it still has many challenges that must be resolved, including employment flexibility and incentive system.

From the institutional perspective, there are many tax benefits that Kaesong offers that industrial complexes in China and Vietnam do not. For example, the enterprise profit tax in Kaesong is at 14 percent. In contrast, China and Vietnam abolished the preferential treatment for foreign companies in 2008 and 2009, respectively; they currently apply a 25 percent of enterprise profit tax to both domestic and foreign companies. Even in terms of labor and wages, the KIC would appear to offer better quality of labor. In addition, the labor productivity of the KIC is comparable to 71 percent of South Korea, which is much higher than that of China’s Qingdao Industrial Complex (60 percent) and Vietnam’s Tanttueon Industrial Complex (40 percent).

Another advantage is the KIC’s favorable geographical proximity to South Korea, which helps reduce distribution costs and time. This advantage helps to reinforce the sales competiveness of the companies in the complex. In addition, the KIC has sufficient potential for expansion into markets in China, and domestic markets in South and North Korea.

On the other hand, Kaesong has relatively low flexibility of employment due to the principle of indirect recruitment. Difficulties in applying an incentive system are also a disadvantage of the KIC.

ORIGINAL POST (2011-7-15): Kaesong wages set to increase. According to Yonhap:

The minimum wage for workers at the inter-Korean industrial park in the North Korean border town of Kaesong is likely to rise 5 percent this year, the same annual rate of increase since 2007, industry sources said Friday.

More than 46,000 North Koreans work at about 120 South Korean firms operating in the complex, despite the South’s suspension of all other economic ties with the North over the deadly sinking of a South Korean warship last year. The local workers currently earn a minimum monthly income of US$60.775 following a 5 percent increase that took effect last August.

This year’s new minimum rate goes into effect next month after negotiations between the factory park’s management officials from the two sides. Under the park’s labor regulations, the minimum wage can increase only up to 5 percent from the previous year.

“The North Koreans are demanding an increase of more than the upper limit (of 5 percent), citing wage levels in other parts of the world,” said an official from one of the South Korean firms in Kaesong. The person spoke on the condition of anonymity.

“In effect, this is equivalent to demanding a wage rise of 5 percent,” the official said, adding that the businesses operating in the joint industrial park had tentatively agreed to accept the demand. After the increase, the North Korean workers will earn $63.814 monthly.

Meanwhile, production at the industrial zone has continued to grow, according to recent data. The park’s output of clothes, utensils, watches and other goods rose 26.1 percent last year from 2009. Since its opening in 2004 under former liberal South Korean President Roh Moo-hyun, the complex has served as a source of tens of millions of dollars for the cash-strapped North annually.

Read the full story here:
Minimum wage for N. Koreans in Kaesong likely to rise 5 pct
Yonhap
2011-7-15

Posted in Economic reform, Foreign direct investment, International trade, Kaesong Industrial Complex (KIC), Labor conditions/wages, South Korea, Special Economic Zones (Established before 2013), Statistics, Trade Statistics | Comments Closed

Kaesong zone continues to undermine official DPRK narratives

Friday, July 15th, 2011

Pictured above (Google Earth): Two official marketplaces in Kaesong highlighted in yellow. South Korean treats are popular in these markets.

According to the Daily NK:

Shin Ramen (a brand of instant noodles), Choco-pies and coffee mix, the snacks offered to Kaesong Industrial Complex workers, leak out and are now very popular in the jangmadang in Kaesong, according to sources.

The news was revealed by a South Korea government official and a staff member from an enterprise in the Kaesong Complex on the 15th.

North Korean workers often ask their employers for Shin Ramen uncooked and packed so that they can sell it in the jangmadang to augment their wages, according to the Ministry of Unification.

One staff member from a company stationed in the Kaesong Industrial Complex explained, “The time when the North Korean workers are given Shin Ramen, Choco-pies and coffee mix is the time they look forward to the most.”

“I am aware that North Korean workers take the several ramen given to them at snack times or when doing evening overtime back into North Korea,” he added. “They sell the ramen they take for roughly the same price as a kilo of rice. But it is not just Shin Ramen; Choco-pies are very popular with the North Korean workers, and they also use Shin Ramen soup as a seasoning at home.”

Kaesong Industrial Complex companies are known to get assistance from domestic companies, so pay less than market price for the Shin Ramen and other snacks that they offer to workers.

The company staff member said he saw the situation in a positive light, explaining,, “There have been almost no inter-Korean exchanges of late, so in this situation the Shin Ramen and Choco-pies and other things offered by enterprises provide a link between the North Korean people and South Korea. If the workers take the Korean-made products and sell them in the jangmadang then not just the workers but also the North Korean people get to know about South Korea.”

Unfortunately, meanwhile, although workers in the Kaesong Industrial Complex receive a wage of approximately $100/month, they are not free to keep it. 30% is taken by the North Korean authorities in the form of a ‘Socialist Culture Policy Tax’, and other costs are extracted as well. Therefore, the take-home pay is around $30/month, although even this is not paid in cash but in the form of an exchange coupon.

A Ministry of Unification explained one part of that system, saying, “Most of the money and other things that come from the South go to the central North Korean authorities, but a proportion goes to Kaesong city authorities. That money which goes to Kaesong City is meant to be for the purpose of buying rice for distribution to the local people.”

There are now approximately 46,000 North Korean workers in the Kaesong Complex, and complex operations are, as such, a $4.6 million monthly subsidy for the North Korean authorities.

Despite the measures put in place by the South Korean government following last year’s Cheonan and Yeonpyeong Island incidents, the number of workers earning money in Kaesong has continued to expand. According to the Ministry of Unification, at the end of February there were 46,420 workers, an 11% increase on one year previously. Earnings have also risen significantly in the same period.

Donald Kirk was the first (of whom I am aware) to write about the subversive nature of Choco Pies back in May 2009.

Read the full story here:
Shin Ramen Popular in Kaesong Jangmadang
Daily NK
Kim Yong-hun
2011-7-15

Posted in Civil society, Food, General markets (FMR: Farmers Market), Kaesong Industrial Complex (KIC), Labor conditions/wages, South Korea, Special Economic Zones (Established before 2013) | Comments Closed

Lankov pessimistic on the DPRKs SEZs

Thursday, July 14th, 2011

Pictured above (Google Earth) is the electrified fence around the Rason special economic zone.

Lankov writes in the East Asia Forum:

SEZs are acceptable to the North Korean government because they are relatively easy to control. North Korean SEZs have been fenced off with barbed wire and all visitors have had their IDs carefully studied at checkpoints.

The North Korean government obviously hopes that small areas of controlled capitalism will generate enough income to make a difference — or at least to keep afloat the long-decaying economy.

Similar SEZs with China to those recently declared have been attempted before. At Raseon a major problem was its isolated location and underdeveloped transport infrastructure, even by meagre North Korean standards. At Sinuiju there were numerous problems. One was North Korea’s choice of the Chinese entrepreneur Yang Bin to lead the project as he wanted to transform the city into a gambling centre, a Macau of the North. This was not welcomed by the Chinese government. Also, it did not help that the North Koreans, following their modus operandi, did not bother to liaise with the Chinese beforehand.

…

The success of KIZ might seem encouraging, but it is actually a very special case. It is viable because the South Korean government is willing to go to great lengths to support it. It has subsidised industrial development and has provided adventurous developers and companies with generous subsidies and guarantees that made the entire undertaking possible. This willingness is driven by a multitude of political considerations. Frankly, it is doubtful whether the Chinese side would be equally interested in subsidising a similar undertaking by Chinese companies in Sinuiju.

…

What will happen to these two planned new SEZs? The fate of Raseon seems pretty certain. Available evidence indicates it is largely about transportation links. Chinese Manchuria is landlocked, so Chinese companies will save a small fortune on transportation costs if they are given access to a seaport on the Eastern coast of the Korean Peninsula. If this is what happens in Raseon, it has a relatively bright future.

The future of the Hwanggumpyong SEZ is far less certain. Obviously Chinese businesses want to do there what their South Korean counterparts did in Kaesong, take advantage of low labour costs in North Korea. Even though Chinese labour is cheap, North Korean labour is much cheaper still, since US$15-20 a month would be seen by the average North Korean worker as a good wage. For the same labour, they would have to pay a Chinese worker between US$100 and US$150 a month.

But that said, the business reputation of North Korean managers leaves much to be desired. They are likely to intervene in operations − partially as a way to extort bribes, but largely because they will worry about excessive exposure of their population to dangerous Chinese influences. South Korean businesses in Kaesong accept such interference, but they are backed by the South Korean government. It remains to be seen whether the same situation will develop in a Chinese-led zone.

Previous posts on the Sinuiju (including Waudo and Hwangumphyong) can be fond here.

Previous posts on Rason (Rajin-Sonbong) can be found here.

Read the full story here:
North Korea-China special economic zones
East Asia Forum
Andrei Lankov
2011-7-14

Posted in China, Economic reform, Foreign direct investment, Hwanggumphyong and Wihwado Economic Zones (Sinuiju), Kaesong Industrial Complex (KIC), Labor conditions/wages, Rason Economic and Trade Zone (Rajin-Sonbong), Special Economic Zones (Established before 2013) | Comments Closed

US Census forecast of DPRK population

Wednesday, July 13th, 2011

According to Yonhap:

North Korea is expected to become larger and older in 40 years with its population growing at a slower pace, data showed Tuesday.

According to the U.S. Census Bureau, North Korea’s population is estimated to rise 10 percent by 2050 to 26.96 million from this year’s 24.45 million.

The census bureau also projected that South Korea’s population will decrease 11 percent from 48.75 million last year to 43.37 million in 2050.

North Korea’s population has been on a steady increase since 1995, when it totaled 22.11 million, and the trend is likely to continue into 2050, the bureau said.

The population growth rate, however, is forecast to dwindle from 0.5 percent this year to a negative growth of 0.1 percent in 40 years, the data showed.

The slower rate of population growth will bring down the North’s ranking worldwide in 2050 to 64th among 228 countries. It ranked 48th this year, according to the agency.

North Korea’s birthrate is forecast to drop to 1.7 in 2050 from 2.0 in 2011, while its life expectancy is estimated to increase to 78 in 2050 from this year’s 69, indicating North Korea will face an aging society.

The agency did not mention what exactly would attribute to such changes in the country’s demographics, but said on its Web site that the estimates were based on the census each country conducted while also taking into account political and social variables alongside specific factors such as natural disasters.

A separate U.N. report published last year found that North Korea’s population is to increase by 600,000 to 24.6 million in 2050.

Information on the DPRK’s last census can be found here.

Read the full story here:
N. Korea’s population expected to rise to 27 mln by 2050
Yonhap
2011-7-12

Posted in Demographics, Statistics, USA | Comments Closed

France to open Pyongyang office (Take 2)

Tuesday, July 12th, 2011

UPDATE 2 (2011-7-15): Adam Cathcard provides additional data in the comments.

UPDATE 1 (2011-7-12): Over a year after first making the announcement, France reiterates that it is opening an office in the DPRK. According to the AFP:

France will open a cooperation bureau in North Korea, Le Monde newspaper said Tuesday, but underscored that Paris was not launching diplomatic relations with the reclusive Stalinist state.

A senior French diplomat is currently in Pyongyang where he “will present to the North Koreans” the future French representative, the daily said, identifying him as Olivier Vaysset, a diplomat who has worked in Singapore.

“The opening of this office does not signify that France is opening as such diplomatic relations with this totalitarian country,” it said but added that it could serve as a “diplomatic intermediary.”

The proposed office will handle cultural cooperation, it said.

The French embassy in Seoul declined comment on the report, saying any comment would have to come from Paris.

The then-French foreign minister Bernard Kouchner said in March last year his country would not establish diplomatic relations with the North but would open an office to support non-governmental groups.

“We are not going to open an embassy, certainly not,” Kouchner told a news conference in Tokyo. “Open an office, yes, in order to help the NGOs there.”

France is the only major European Union member that does not have diplomatic ties with the communist state.

Paris has argued that the human rights situation must improve and has cited concerns over nuclear proliferation.

French special envoy to Pyongyang, Jack Lang, visited the North in November 2009. He said afterwards that France had offered to forge permanent cultural links with North Korea but not full diplomatic ties.

The French move comes as ties between North and South Korea are at their lowest ebb after Seoul accused Pyongyang of torpedoing a warship in March 2010, killing 46 sailors.

Original Post (2010-3-18): According to the AFP:

France will not open diplomatic relations with North Korea but plans to establish an office there to support non-governmental groups, French Foreign Minister Bernard Kouchner said Thursday.

‘We are not going to open an embassy, certainly not,’ Kouchner said at a press conference in Tokyo. ‘Open an office, yes, in order to help the NGOs (non-governmental organisations) there.’

France is the only European Union country other than Latvia that does not have diplomatic ties with the communist state.

Paris has argued that the human rights situation in North Korea must improve and has cited concerns over nuclear proliferation.

In December the French special envoy to Pyongyang, Jack Lang, said France had offered to forge permanent cultural links with North Korea but not full diplomatic ties, hoping to pressure it on the nuclear issue.

‘Our proposal… is to open a permanent structure of cooperation with North Korea – humanitarian, cultural and linguistic cooperation,’ Lang told a hearing of members of the French parliament at the time.

Kouchner, asked to clarify the French position during his Japan visit, said that ‘we are not rewarding them at all in opening an office’ that would support French NGOs working in the isolated country.

Additional Information:

1. Kim Jong-il’s neice committed suicide in Paris.

2. The Kim family is fond of French doctors.

Read the full story here:
France rules out opening embassy in N.Korea
Associated Free Press
3/18/2010

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