Archive for the ‘South Korea’ Category

PUST scheduled to open doors this week

Sunday, October 24th, 2010

UPDATE: The New York Times also covers the opening.  According to the article:

In spite of all this, classes in technical English started Monday at the Pyongyang University of Science and Technology. A fuller curriculum in information technology, business management and agriculture is supposed to get under way in March.

“It’s amazing, and kind of a miracle,” said Park Chan-mo, one of the founders of the school, which was largely financed by contributions from evangelical Christian groups in the United States and South Korea. “Many people were skeptical, but we’re all Christians. We had faith.”

The driving force behind the school was Kim Chin-kyung, an American born in Seoul who founded a university in China in 1992. He made periodic trips from China into North Korea and in 1998 was arrested at his hotel in the capital and thrown into prison, accused of being an agent for the C.I.A.

The relentless interrogations went on for six weeks and almost broke him. “I was ready to die,” he said in a 2001 interview, even writing out a will and bequeathing his organs for transplants and medical study in Pyongyang.

He was finally released, he said, after convincing the authorities that “I was not the kind of person who would spy on them.”

In November 2000, a man appeared in his university office in China — oddly, the same man who had ordered his arrest for espionage in Pyongyang in 1998. But this time he had a proposal from the North Korean government: could he duplicate his Chinese technical university in Pyongyang?

“Doing business with North Korea is not for the faint of heart,” Mr. Kim said on the school’s Web site, “but the effort is ennobling and necessary.”

The first group of 160 undergraduate and master’s students has been chosen by the North Korean government, selected from its top colleges and from the political and military elite. Their tuition, room, board and books are all free, financed by foreign donors and individual sponsors. The plans call for an eventual student body of 2,600 and a faculty of 250, with classes in public health, architecture, engineering and construction.

Sixteen professors from the United States and Europe arrived in Pyongyang over the weekend. For now, no South Korean professors are allowed because of recent political tensions between the Koreas.

It seems an unlikely marriage — the hard-line Communist state and wealthy Christian capitalists — and it remains to be seen how well the match has been made.

North Korea, while reluctant to expose its citizens to the outside world, has been seeking foreign investment for its decrepit educational system. For their part, the evangelicals, who have antagonized the North by encouraging defections and assisting refugees after they cross over, are seeking a foothold inside the churchless state.

North Korea has made a similar bargain before. The Unification Church of the Rev. Sun Myung Moon, not only a Christian but staunchly anti-Communist, operates a car factory in Pyongyang, for instance. But the church is allowed to make only cars, not Christians or capitalist converts.

There is no campus chapel at the new university, Dr. Park said, and there is not one in the plans. But neither, for now, are there any official portraits of the North Korean leader, Kim Jong-il, or his father, the late Kim Il-sung, which hang in every school and public building in the North.

The $35 million, 240-acre campus includes a faculty guesthouse and world-class dormitories and classrooms, all of which are said to have running water, power and heat. The school has its own backup generators, but with so little diesel and gasoline available in the North, fuel has to be trucked in from neighboring China.

Classes will be taught in English, and Internet access has been promised to all students. The campus has sirens that go off before rolling electrical blackouts, so work on computers can be saved.

“The Internet will be censored, and we can’t imagine that it won’t be,” said Dr. Park, who has been involved in educational exchanges with the North since 2000. “Even in South Korea things are blocked. I’m sure North Korea has been looking at my e-mails. I keep them businesslike.”

Dr. Park, the former president of the prestigious Pohang University of Science and Technology in South Korea, said the university project could not have been completed without the approval of the United States government. Officials at the school, eager not to run afoul of international sanctions in place against the North, have even sent its curriculum to the State Department for vetting.

One request from Washington was that the name of the biotechnology course be changed for fear that it might be seen as useful in developing biological weapons, Dr. Park said. So the course title was changed to “Agriculture and Life Sciences.”

The United States government also was also “very sensitive,” Dr. Park said, about young North Korean scientists learning skills that could be used by the military or in developing nuclear weapons. “We can’t be fooled into teaching them those kinds of things.”

Several conservative lawmakers from South Korea called for Seoul, which gave $1 million to the school in 2006, to cut off all support. One legislator, Yoon Sang-hyun, was angered that the North insisted that future economics classes include lessons about juche, or Kim Il-sung’s founding philosophy of self-reliance.

Some critics also have suggested that there must have been heavy payoffs made to the North Korean government to move the project along, but Mr. Kim insisted that no deals had been made.

“Every brick we used, every bit of steel, every bit of equipment, we brought in from China,” Mr. Kim, who was in Pyongyang for the opening, said in an interview in Fortune last year. “I have never brought any cash into North Korea.”

“I have unlimited credit at the Bank of Heaven,” he added.

ORIGINAL POST: According to Yonhap:

The first university founded jointly by South and North Korea is scheduled to open next week in Pyongyang, a school official said Friday.

The project to build Pyongyang University of Science and Technology was launched in 2001 after the two countries’ governments approved a South Korean nonprofit organization to participate in it. The university’s stated aim is to promote reconciliation and prosperity among the Korean people, separated since the 1950-53 Korean war, and “help North Korea develop the necessary economic and intellectual infrastructure to function as a member of the international community,” according to its Web site.

“All the facilities and staff are ready, and we will officially open (next Monday),” said James Chin-kyung Kim, the school’s founding president and co-chairman. Kim, a U.S. citizen, also founded the Yanbian University of Science and Technology in the Chinese city of Yanji, a major Korean-Chinese population center.

“In time for the opening, 17 foreign professors will fly to Pyongyang from Shenyang (on Saturday). These professors come from the U.S. and Europe,” he said.

South Korean staff will also be able to teach, starting next semester, according to the school.

Instruction will be in English, and 160 students have been selected for the school’s undergraduate and master’s degree courses in agriculture, information and communication technology, and industry and management. Forty doctorate-level students began studying with four foreign academics in the summer.

The university plans to increase the number of students to 500 and open more departments to teach architecture, engineering, construction and public health care.

Here are previous posts about PUST including satellite imagery of the facility’s construction.

Read the full story here:
First university founded by two Koreas to open in Pyongyang next week
Yonhap
10/22/2010

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Three South Koreans arrested for attempting to defect to DPRK

Friday, October 22nd, 2010

According to Yonhap:

Prosecutors said Friday they have arrested three people suspected of trying to defect to North Korea, allegedly disgruntled with South Korean society.

A medical doctor, identified only by his surname Shin, and two others are charged with attempting entry into the communist state via China last February, prosecutors said.

Seoul judges issued arrest warrants, citing that the suspects are feared to try to flee and destroy evidence.

The three returned to South Korea after failing to cross into the North, despite receiving help from an acquaintance in Sweden.

They met through an online pro-North Korea community and were quoted as having attempted defection because they were “sick of (South) Korean society,” prosecutors said.

Prosecutors have not found evidence of other parties’ involvement in the defection attempt, but are probing indications that the three had contact with the North during their stay in China.

Read the full story here:
Three suspected of attempting defection to N. Korea
Yonhap
10/22/2010

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ROK expanding efforts to censor DPRK web content

Wednesday, October 20th, 2010

According to Voice of America:

North Korean propaganda has emerged on popular Internet social media sites. It is not for domestic consumption as virtually no North Korean has Internet access. Rather it is targeted at other countries, especially South Korea. But in the democratic South, considered the world’s most connected country, the government blocks such content.

South Korea’s Internet censors are working harder these days to keep up with an expanding number of Web sites showing material from or sympathetic to North Korea.

South Korea blocks such sites under laws forbidding dissemination of false information or activities against the state.

Bloggers such as Kim Sang-bum, of the on-line community Bloter, which focuses on digital technology, calls the censorship an over-reaction.

“I don’t think it is necessary for our government to regulate citizens too tightly. South Koreans have become too sophisticated to fall for North Korean propaganda,” he said. “We consider that kind of propaganda as rather silly.”

South Korea’s Communications Standards Commission and the National Police Agency declined requests for interviews.

Jeon Kyoung-woong is the former director of the Korea Internet Media Association, and an on-line journalist. Jeon says pro-Pyongyang material needs to be restricted because it is not as innocuous.

“There are actually forces inside South Korea supporting the North Korean regime,” he said. “Some of them are in touch with North Korean spy groups. Thus the South Korean government sets restrictions on such on-line content.”

South Korean Internet users must register with their real names. On the most popular web sites, anyone posting comments must register with their national identity number.

“The adoption of real-name system shows that the current government is excessively sensitive about political opinion on the Internet. I think the situation has become worse since the current government came into power.”

Jeon, however, is less bothered.

“South Korean cyber police has been active for more than a decade,” said Jeon. “Recently it feels like the cyber police are becoming increasingly active but that is only because it’s being publicized by those subject to such restrictions. Political restrictions were actually tighter under the previous two governments.”

While South Koreans can freely argue about to what degree on-line content here should be regulated, that is not an option in North Korea. Only a few people there are allowed Internet access. And the country only recently established its first full connection to the Internet.

Here are previous posts about the North Kroeans moving into popular social media sites: Twitter, YouTube.

Read the full story here:
N. Korean Propaganda Appears on Popular Internet Social Media sites
Voice of America
10/19/2010

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ROK to develop reunification plan

Tuesday, October 19th, 2010

According to Yonhap:

In a move likely to draw a harsh response from North Korea, South Korea will push to come up with a plan by mid-2011 to handle the costs of unifying itself with the impoverished communist neighbor, a senior official said Tuesday.

In an August address, South Korean President Lee Myung-bak proposed a “unification tax” and suggested that his country begin discussions on dealing with what may be astronomical costs of merging with North Korea, an elusive decades-old national goal.

Unification Minister Hyun In-taek said Tuesday in a meeting with civilian advisors on relations with North Korea that his government will work with a group of researchers starting next month to create a blueprint for financing the costs of reunification.

“Based on the research to be completed in February next year, opinions from within the government will be collected by April, and a report will be presented to parliament by June,” he said.

Experts say the costs of merging the divided states will amount to trillions of U.S. dollars in the worst scenario possible.

The state-run Korea Development Institute said in August that the South will need US$2.14 trillion over three decades in the event of a regime collapse in Pyongyang, which could spark political and social chaos in the communist country.

Read the full story here:
S. Korea to draw up plan for financing reunification with N. Korea: official
Yonhap
10/19/2010

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[ROK] Investors in DPRK take huge hits; interest in FDI plummets

Monday, October 18th, 2010

Institute for Far Eastern Studies (IFES)
NK Brief No. 10-10-18-1
10/18/2010

The majority of joint ventures investing in North Korea have suffered significant losses since the South Korean government began to enforce sanctions as a result of the sinking of the ROKS Cheonan. On average, companies have incurred losses of almost one billion won, and most companies are no longer interested in investing in the North.

According to the Korea Chamber of Commerce and Industry, a survey of 500 companies (200 inter-Korean economic cooperative schemes and 300 other companies involved in business with the North) showed that 93.9 percent of respondents said they had suffered losses due to trade restrictions put in place due to the Cheonan incident, while 66.5 percent responded that they faced “financial difficulty” due to the sanctions. The companies have suffered an average of 974 million won in losses.

Investment and operational losses due to the ‘all stop’ order from the government amounted to 51.9 percent of losses reported, while 26 percent of respondents pointed to a reduction in orders and 22.1 percent blamed an increase in transportation and other associated costs. One company importing anthracite from the North turned to China, Vietnam, Russia, and other vendors after inter-Korean trade was restricted, but due to each country’s efforts to secure its own natural resources, this year’s sales are expected to be more than 10 billion won less than that seen last year.

Another company, investing in textiles, was strategically producing hand-made works in a North Korean factory, but now production has come to a halt and it may not be able to deliver goods it has produced. A source from the factory stated, “Personnel and raw material expenses in China, Vietnam, and other countries mean that profit margins will be minimal, and there is no alternative.” The same source also stated, “Special funds were distributed from the government, but [companies] are concerned about how long they can hold out.”

As companies invested in North Korea suffer losses in the wake of the Cheonan incident, interest in North Korea investment opportunities is also waning. 82.7 percent of responding companies believe that “even if economic cooperation was normalized, there would be no new investments or continuation of existing projects,” and 76.9 percent of respondents believed that “because of the uncertainty of the North Korean system” non-economic issues would dampen investment enthusiasm. 13.7 percent stated that difficulties with transportation and other infrastructure issues would discourage investment, and 9.4 percent of respondents answered, “North Korean authorities’…interference and restrictions” would turn away foreign investors.

Among those businesses not involved in cooperative economic ventures, 41.5 percent pointed to “North Korea’s overall reform and opening,” while 22.2 percent chose “guaranteeing the security of investments and expanding domestic SOC” as being necessary to propel investment in North Korea. Another 19.7 percent answered, “security issues like North Korean denuclearization” were necessary for improvement in the investment environment.

Many also voiced concerns over the ongoing ban on inter-Korean exchanges. When asked about the impact on business if sanctions against the North were to continue, 5.18 percent of respondents stated, “opportunities for foreign investors will suffer,” while 25.6 percent responded that the North’s economic reliance on China would grow, and 22.6 percent feared that the national image would suffer due to an increase in the security risk.

63.6 percent of respondents call for strengthened protection for investors, including protection against losses as well as guarantees on operational freedoms. 20.1 percent called for easing restrictions on businesses in the Kaesong Industrial Complex, and 16.3 percent pointed to the need for more monetary support.

Even after the government’s announcement halting inter-Korean exchanges on May 24, , inter-Korean trade worth approximately 80 million USD (90 billion won) was recorded due to a number of goods with special exceptions. 639 different cases of imported goods manufactured from raw materials or parts sent to the North prior to the May 24 restrictions amounted to 31.15 million USD, while 269 cases of pre-ordered exports amounted to just over 49 million USD.

This survey was conducted from August 12 to September 1, calling or faxing 200 companies invested in inter-Korean cooperative schemes and 300 of the 1000 companies involved in sales.

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DPRK-ROK aviation hotline restored

Sunday, October 17th, 2010

According to the New York Times:

North and South Korea reopened one of the three severed hot lines between them on Monday in response to a request from the North, its first apparent outreach since the youngest son of the leader, Kim Jong-il, was unveiled as his successor.

The reopened hot line connects the principal international airports — Pyongyang in the North and Incheon in the South — and a test call was conducted late Monday morning, the Unification Ministry said through a spokesman in Seoul.

Another government official here said Monday that North Korea had approached the South about reopening the hot line, which was severed in May following the sinking of a South Korean naval vessel, the Cheonan, in March.

Relations between the Koreas have been badly strained since the Cheonan sinking, which killed 46 sailors. The South has blamed the incident on a North Korean torpedo attack; the North has denied any involvement.

It was not immediately clear whether the renewal of the airspace hot line was an authentic diplomatic entreaty from the North or merely a matter of practicalities. Analysts continue to look for signs of a possibly new foreign policy approach from the North now that Kim Jong-un, Mr. Kim’s Western-educated son, has been given powerful posts in the military and the Workers’ Party.

Commercial aircraft using South Korean airports were still avoiding North Korean airspace, said Lee Jong-joo, an official with the Unification Ministry, adding that the South Korean government was still considering whether to remove that ban.

In May, the nuclear-armed North severed all three hot lines that connect the countries, which remain in a technical state of war because the 1950-53 Korean War ended in a truce, and a formal peace treaty remains elusive.

The principal hot line is located at Panmunjom, the so-called truce village on the highly militarized border. A South Korean government official on Monday described that link as “kind of the official one, used for all official messages.” The official said the North had “unilaterally shut down” that line in May and has not indicated if or when it might reopen.

The North also closed down a naval hot line intended to prevent clashes near its disputed sea border with the South. That link, which remains closed, was established in 2004 after deadly naval skirmishes in 1999 and 2002.

With the hot lines closed, communications between the two governments have been basically conducted through their jointly operated industrial park in Kaesong, located inside North Korea. The South Korean government does not have an official office at Kaesong, but diplomatic messages are routinely passed there.

This story does not explain what two naval centers are connected by the inter-Korean naval hotline. If a reader is aware what organizations are connected, I would appreciate knowing so I can map the hotline on Google Earth.

Read the full story here:
North and South Korea Restore Aviation Hotline
New York Times
Mark McDonald
10/17/2010

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DPRK defectors targets of fraud in South

Sunday, October 17th, 2010

According to the AFP:

North Korean refugees struggling to adapt to a bewildering new life in South Korea are increasingly getting sucked into insurance frauds as their first taste of capitalism.

Insurance scams have for years been common in the South, and fraudsters in recent years have targeted the refugees as sometimes unwitting accomplices.

“Sometimes defectors get involved because they don’t know how the insurance system works. They just have no idea what they are doing is wrong,” an official at the Hanawon resettlement centre told AFP.

All North Koreans who flee their impoverished communist homeland for the South must spend their first 12 weeks at the centre, which lies about 80 kilometres (50 miles) south of Seoul.

It offers job education, information on South Korea and basic survival skills — such as buying a subway ticket, opening a bank account and using a credit card.

From May it has also offered a new two-hour course on insurance fraud, with investigators from the Financial Supervisory Service (FSS) warning about the possible consequences.

“We expect that through education, defectors will think twice before making a decision to become an accessory to fraud,” the official, who supervises the course, told AFP on condition of anonymity.

Newly arrived refugees get government financial help but often must repay big debts to the brokers who arranged their escape via China.

This makes them susceptible to taking part in frauds, which focus on bogus medical insurance claims.

After the refugee has bought a private policy or enrols in a state scheme, or both, insurance company workers typically conspire with hospital administrative staff to issue fake certificates of treatment.

When a refugee has been reimbursed by the insurance company, and sometimes by the government, he or she hands over a portion to the accomplices.

“I received about three million won (2,700 dollars) and used the money to pay debts when I came to South Korea,” one woman in her late thirties told the JoongAng Daily newspaper.

Police in Gyeonggi province surrounding Seoul, a known centre for the scams, said that over the past five years ending March refugees received a total of 3.1 billion won from 31 insurance companies in bogus claims.

“It’s prevalent and we are constantly investigating to catch them,” said a provincial police investigator.

The watchdog FSS says refugees typically send 30 percent of their takings from the frauds to brokers in China and the rest to family still in the North.

In one case in 2008, police said they had charged 41 refugees accused of receiving a total of 420 million won through bogus medical claims.

“Insurance fraud has become almost the common thing to do among defectors after they come to South Korea,” Chun Ki-Won, a priest who helps the refugees, told AFP.

“The primary reason why insurance fraud is rapidly increasing is because it’s becoming harder for defectors to adapt to a new environment.”

Refugees find it harder than their southern-born counterparts to find well-paid jobs and some complain of discrimination.

In a survey conducted by legislator Kim Young-Woo, 66 percent of refugees described their living conditions as difficult.

Some 56 percent said their monthly income is below 500,000 won (450 dollars) — officially deemed to be the lowest sum on which families can manage.

About 17,000 North Korean defectors have gone through the Hanawon centre since it opened 11 years ago, and it is currently holding about 500 people.

Read the full story here:
Insurance fraudsters target North Korean refugees
AFP
10/17/2010

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Inter-Korean trade up 51.3% in first half of 2010

Wednesday, October 6th, 2010

Institute for Far East Studies (IFES)
NK Brief No. 10-10-4-1
10/4/2010

Trade between the two Koreas in the first half of 2010 totaled 980 million USD, 51.3 percent more than the 650 million dollars-worth of trade last year. North Korea’s trade with China was also up, by 16.4 percent, to 1.28 billion USD. Kim Jong Il has made two trips to China and the North has taken other steps to boost cross-border trade with the Chinese.

According to a recent report comparing inter-Korean trade to that between North Korea and China, North-South trade in 2007 equaled 91 percent of Pyongyang’s trade with Beijing, but as inter-Korean relations chilled, that number fell to 65 percent in 2008. This year, that number climbed back up to 77 percent, largely because the Kaesong Industrial Complex, which has avoided political entanglement, has grown 96 percent since last year. Textiles and home electronics top the list of goods in inter-Korean trade, while minerals are the top item traded across the DPRK-PRC border.

North Korea’s import of South Korean goods increased by 63 percent to 430 million USD, while the North’s Chinese imports rose a mere 25 percent, but still totaled 930 million USD. 36 percent of South Korean exports to the North are raw materials for North Korean textile production, while 120 million USD-worth of electronics make up the second-largest export industry. Making up the largest sector, 27 percent (250 million USD) of North Korea’s imports from China are made up of minerals and crude oil, while textiles make up 12 percent and base metal resources make up 8 percent. South Korean imports have also grown 43 percent, to 550 million USD, since last year. In comparison, Chinese imports from North Korea shrunk one percent to 340 million USD. Clothing and other ready-for-market textiles made up 44 percent of North Korean exports to the South, while electrical and electronic goods made up 17 percent. Coal, iron, and other key resources made up 51 percent of DPRK exports to China, while zinc and other base metals make up approximately 20 percent.

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ROK lawmaker seeks to cut off PUST funding

Wednesday, October 6th, 2010

According to the Choson Ilbo:

A university in North Korea set up with South Korean funding has opened a research center devoted to studying former North Korean leader Kim Il-sung’s “Juche” or self-sufficiency ideology.

Pyongyang University of Science and Technology, which was established with South Korean funding, opened the research center after erecting a monument honoring Kim Il-sung, Grand National Party lawmaker Yoon Sang-hyun of the parliamentary Foreign Affairs, Trade and Unification Committee said Tuesday.

He showed a photograph as proof and added, “We must immediately halt further aid for the university, which has turned into a school that propagates the personality cult surrounding the Kim dynasty.”

The university was established with donations gathered by South Korea’s Northeast Asia Foundation for Education and Culture in order to help North Korea to train experts in information and technology, agriculture and biosciences and international trade. North Korea provided the land and labor while South Korea handled the hiring of faculty and management.

The university was scheduled to open in April this year but has apparently yet to begin operations. “North Korea rejected our offer to open an MBA school while demanding that the Juche ideology be included as a prerequisite for graduation,” Yoon said. He added Seoul must make sure to transfer no technology through the university, “since North Korea may use it to develop weapons of mass destruction.”

Satellite imagery of the Pyongyang University of Science and Technology (PUST) can be seen here.

Previous PUST posts can be seen here.

Read the full story here:
S.Korea-Funded University in Pyongyang ‘to Preach Stalinist Ideology’
Choson Ilbo
10/6/2010

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ROK preparing for psyops…

Wednesday, October 6th, 2010

According to the Choson Ilbo:

The Defense Ministry is preparing to enlarge the range of propaganda broadcasts and float radios to North Korea, which is refusing to admit responsibility for the sinking of the South Korean Navy corvette Cheonan in March.

During a National Assembly audit of the Defense Ministry and the Joint Chiefs of Staff on Tuesday, Defense Minister Kim Tae-young said the ministry is preparing to switch the format of propaganda broadcasts from FM to AM and float balloons carrying AM radios to the North so that North Koreans can listen to the broadcasts.

The South has in the past sent many radios to the North, Kim said. He added the balloons will also carry propaganda leaflets.

“We’ve already put psychological pressure on the North merely by installing loudspeakers for propaganda broadcasts at 11 locations” along the military demarcation line, the minister claimed. But he added that the government will not start the broadcasts and send the leaflets, which are ready, until the North launches a fresh provocation and there is therefore an urgent need to put pressure on the North.

The New York Times offers some good supplemental information:

After six years of quiet along the border, South Korea has reinstalled 11 sets of psychological warfare loudspeakers, Defense Minister Kim Tae-young said Tuesday in Seoul. He said his ministry had switched its transmitters to the easier-to-receive AM band and was ready to send thousands of AM radios and propaganda leaflets across the border using helium balloons.

A continuing balloon and leaflet campaign by South Korean civilians has angered the North Korean government, which suggests that it has been effective. The leaflets ridicule the North Korean leader, Kim Jong-il, and call for people in the North to rise up. North Korea insisted that the leaflet issue be put on the agenda of recent bilateral military talks.

North and South Korea agreed in 2000 to dismantle the loudspeaker systems along the border and to stop radio transmissions. There have been no loudspeaker blasts since 2004, although South Korea made a show of putting some speakers in place in May, after the sinking of a South Korean naval vessel, the Cheonan, in March. Forty-six sailors were killed. The North has denied any involvement.

Read the full story here
Gov’t in Drive to Send Radios to N.Korea
Choson Ilbo
10/7/2010

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