Archive for the ‘South Korea’ Category

« Older Entries
Newer Entries »

RoK cuts DPRK trade quotas in agriculture

Sunday, March 21st, 2010

According to Yonhap:

South Korea has significantly reduced import quotas for eight North Korean agricultural goods, government officials said Sunday, amid the enforcement of strong U.N. economic sanctions on the communist nation.

According to a public notice posted by the Unification Ministry, the amounts of six North Korean goods allowed to be shipped to the country, including crab, shrimp and peanut products, have been reduced to half from those of last year while the import quota for sesame seed has been reduced from 300 tons to 100 tons.

An official at the ministry, Seoul’s key office on North Korean affairs, said the move had little to do with the U.N. sanctions that were imposed shortly after the North’s second nuclear detonation test last year.

“The items, whose import quotas have been reduced this year, are the ones we had little imports of in the past five years,” the official said, asking not to be identified. “The change was only to reflect the actual amount of imports.”

The import quota for mung beans doubled from 1,000 tons last year to 2,000 tons while that of soybeans also increased from 2,000 tons to 3,000 tons, according to the official.

The government places import quotas on certain items to protect domestic markets and producers, he noted.

This comes as South Korea ends imports of North Korean sand.

Share

Posted in Agriculture, Agriculture statistics, International trade, South Korea | Comments Closed

Seoul moves to halt imports of DPRK sand

Friday, March 19th, 2010

According to the Financial Times:

South Korea is to phase out its main import from North Korea, delivering a heavy blow to an impoverished regime already reeling economically from confiscated arms shipments and bungled currency reforms.

Sand was the biggest export to South Korea from the north in 2008, earning Pyongyang $73m (£47m). That represents about twice as much as it gains annually from wages at factories in Kaesong, a cross-border industrial zone for South Korean companies.

South Korean officials told the Financial Times that Seoul would phase out sand exports when existing contracts with its northern neighbour expired.

“Once those companies receive their sand, for which they have already paid, that will be the end,” a senior South Korean security official said.

It could have a profound political impact – but South Korean officials insist the decision was taken because Seoul increasingly dredges its own sand domestically.

Officials admit that South Korea has long worried that money paid for sand goes to the military, but they say increased dredging and the imminent conclusion of numerous outstanding contracts have given it the opportunity to end the trade.

…

North Korea is trying to compensate for South Korea’s decision by seeking alternative sand markets in Russian construction projects.

Russia’s Itar-Tass news agency reported late last year that North Korea would ship sand to Vladivostock for use in building projects for the Asia-Pacific Economic Co-operation summit in 2012.

Sand shipments to South Korea started in 2002 amid inter-Korean rapprochement – but were suspended last March while North Korea prepared to fire a long-range missile over Japan.

Pressed by construction companies that have been affected by the import ban, Seoul resumed imports from North Korea in November. The current flow, however, is less than one-fifth of previous levels.

In an effort to salvage the trade with South Korea, Pyongyang has offered to provide sand to South Korean companies in exchange for other building materials and fuel.

But the South Korean unification ministry said domestic companies were not interested and had not applied for export licences to conduct such swaps.

Previous posts on North Korean sand can be found here. 

Read the full story here:
North Korea hit by Seoul move to end valuable sand imports
Financial Times
Christian Oliver and Song Jung-a
3/19/2010

Share

Posted in International trade, Mining/Minerals, Sand, South Korea, Statistics, Trade Statistics | 2 Comments »

Inter-Korean trade jumps in Feb 2010

Wednesday, March 17th, 2010

According to Yonhap:

Inter-Korean trade soared 52.1 percent from a year ago to US$153.49 million in February, according to the report by the Korea Customs Service.

South Korea’s outbound shipments came to $77.14 million while its imports from the communist country amounted to $76.35 million for the South’s trade surplus with the North reaching $792,000, the report said.

The surge came as the global economy is on the road to recovery. Inter-Korean trade is expected to soar this year thanks to rising demand amid an economic turnaround, the customs office said.

Nearly half of the companies participating in inter-Korean trade responded that two-way trade will increase this year, according to a survey by the Korea International Trade Association.

In January, the country ran a deficit of $9.55 million from its trade with the North after posting a surplus of $23.91 million in December 2009 for the first time in 16 months.

Bilateral trade has increased steadily over the past decade from $328.65 million in 1999 to $651.68 million in 2002 and surpassing the $1 billion mark for the first time in 2005.

Inter-Korean trade reached $1.79 billion in 2007 and peaked at $1.82 billion the following year. But it fell slightly last year to $1.66 billion.

Read the full article here:
Inter-Korean trade jumps 52 percent in Feb.
Yonahp
3/17/2010

Share

Posted in International trade, South Korea, Trade Statistics | 1 Comment »

North Koreans get out of cash

Thursday, March 11th, 2010

According to the Choson Ilbo:

“Wealthy people in Pyongyang prefer goods to cash as they have lost confidence in the North Korean currency since the reform,” it said. “Demand for South Korean goods, which are considered best quality, has more than doubled.”

The broadcaster quoted a Korean-Chinese trader dealing with the North as saying, “Growing numbers of people want to smuggle South Korean products and sell them in the North despite a crackdown by North Korean customs.” It said the widespread perception among North Koreans is that South Korean goods are of much better quality than Japanese or Chinese products.

Sinuiju Customs Office lets small quantities of South Korean goods that do not seem to be for sale pass through on condition that they do not carry “Made in Korea” labels, but is strict about seizing larger quantities.

Favorite products include luxury goods like necklaces and earrings, electronic home appliances such as TV sets, DVD players, digital cameras, and notebook computers, toiletries, air fresheners, and clothing.   

Pyongyang is believed to be home to an estimated 1,000 dollar millionaires, the radio station said. 

I am a bit skeptical about this story.  Given the DPRK’s monetary history, I understand the need of North Koreans to “get out of cash,” but the number of individuals hoarding South Korean goods has to be small.  Jewelry aside, manufactured goods are not a reliable store of value.  They are hard to hide, difficult to transport, they break down, and require electricity.  As for televisions, South Korean TVs operate on NTSC (like the US) and North Korea uses PAL (presumably the “South Korean” TVs are made for the Chinese market and operate on PAL–thanks Gag).  

Why not stick with Yuan?

Also, Japanese goods have been considered the paragon of quality in the DPRK for decades.  Is it realistic to assume that attitudes towards South Korean goods have changed so much so quickly? 

UPDATE: A strong counterpoint to my intuition comes from Dr. Lankov.  He notes:

Well, in the USSR of my youth many people did just that. They hoarded industrial goods, in spite of all above mentioned shortcomings. TV sets, VCRs, furniture, glassware, even books. There was a major difference, though: in the the USSR it was strictly illegal and, indeed, risky, to be possession of foreign currency.

Also see this IFES report. 

Read the full story here:
Wealthy N.Koreans Hoard S.Korean Goods
Choson Ilbo
3/11/2010

Share

Posted in Banking, Finance, Fiscal & monetary policy, International trade, South Korea | 8 Comments »

S. Korea to send powdered milk to N. Korea: Red Cross

Tuesday, March 9th, 2010

According to Yonhap (3/9/2010):

South Korea’s Red Cross said it will send 20 tons of powdered skim milk to North Korea on Wednesday as part of humanitarian aid to the impoverished neighbor.

The aid worth 156 million won (US$137,000) will be delivered on two 11-ton trucks across the inter-Korean border and unloaded in the border town of Kaesong, the Red Cross said in a release.

In January, North Korea accepted a proposal by the South to provide powdered milk along with other types of aid as humanitarian assistance.

Photo in the Hankyoreh.

Share

Posted in Food, International Aid, Pediatrics, South Korea | Comments Closed

ROK’s planned food aid for DPRK tied up

Sunday, March 7th, 2010

According to Yonhap:

South Korea’s planned shipment of its first food aid to North Korea in years has hit a snag due to sourcing difficulties, an official said Saturday.

The South has been preparing to send 10,000 tons of corn to the impoverished neighbor since mid-January, right after Pyongyang accepted its aid offer made months earlier. The shipment would mark Seoul’s first food assistance to the North since President Lee Myung-bak took office in early 2008.

The government has since approved a 4 billion won (US$3.5 million) budget to fund the assistance and notified the North of a shipping route, based on a plan to buy corn in China and ship it directly to the North from there.

“Considering shipping costs, it would make the most sense to send Chinese corn” to the North, a government official said on customary condition of anonymity.

The official said, however, that the plan has faltered because of China’s “grain export quota,” which places restrictions on food exports in order to meet the country’s rising domestic demand.

The delay has raised concern that the planned aid may not be delivered by the time the North needs it the most — usually between March and May when food shortages in the country worsen — because it usually takes at least a month after the purchase is made for such to be delivered.

But the government official said that he believes the problem will be resolved soon, though he did not elaborate.

Read the full article here:
South Korea’s planned food aid for North Korea hits snag
Yonhap
3/6/2010

Share

Posted in Agriculture, Agriculture statistics, Food, Foreign aid statistics, International Aid, South Korea, Statistics | Comments Closed

RoK improving health care in DPRK

Thursday, March 4th, 2010

According to the Associated Press (via the Washington Post):

North Koreans are getting better medical treatment as the result of a joint program between the two Koreas that has trained thousands of doctors, provided modern equipment and renovated hospitals, the World Health Organization said Thursday.

Maternal mortality has declined by over 20 percent since 2005, and diarrhea cases and deaths in operations have also dropped, said Dr. Eric Laroche.

The World Health Organization has helped in the wide-ranging program, which started in 2006 and is funded by South Korea. It has cost a total of $30.2 million so far.

The program has trained more than 6,000 doctors and nurses in emergency obstetric care, newborn care and child illnesses, said Laroche, who assessed its progress in a four-day visit to North Korea.

The specialization marks a change in health strategy in North Korea, which has about 90,000 family doctors who care for about 130 families each, according to Laroche.

“They know each family one by one,” he said. But, he added, “they’re extremely keen to be trained.”

…

Laroche said hospital staff have been trained in hygiene and clinics have received better material for operations, blood transplants and other medical interventions.

Numerous hospitals have been renovated, and material has also been distributed to 1,200 rural clinics.

Between 2007 and 2009, the number of patients dying in operations fell 73.4 percent, said Laroche, citing a study by the University of Melbourne.

He declined to give an overall view of the health system in the isolated communist nation. But he said services were well-spread among cities and communities.

Read the full article here:
WHO: Korean cooperation boosting health in north
Associated Press (via Washington Post)
Elaine Engler
3/4/2010

Share

Posted in Disease prevention, Foreign aid statistics, Health care, International Aid, Pediatrics, South Korea, Statistics, Uncategorized, UNWHO | Comments Closed

N.Korea still expects payment for summit

Friday, February 26th, 2010

Choson Ilbo
2/26/2010

North Korea is still demanding rice and fertilizer in return for an inter-Korean summit, even as it keeps sending increasingly urgent messages to Seoul to bring such a summit about.

Since a secret meeting between South Korean Labor Minister Yim Tae-hee and Kim Yang-gon, the director of the North Korean Workers’ Party’s United Front Department, in Singapore in October, “North Korea has kept asking us for a huge amount of economic aid in return for arranging a meeting” between President Lee Myung-bak and North Korean leader Kim Jong-il, a South Korean government source said on Thursday.

But the North seems to have no interest in giving in to South Korean demands to put denuclearization and the repatriation of prisoners of war and abduction victims on the summit agenda. “The North basically wants economic gain in return for letting us make political use of an inter-Korean summit for the upcoming local elections” on June 2, the source said. “It seems that the North still feels nostalgic for the Sunshine Policy,” which netted it huge benefits over the past decade.

The first inter-Korean summit in 2000 was announced only three days before the general election and was bought through a secret payment of billions of won. The second summit in 2007 was announced two months before the presidential election. Since 2000, the North has received more than 300,000 tons of rice and the same amount of fertilizer almost every year worth more than W1 trillion (US$1=W1,163) a year.

In another secret meeting between South Korea’s Unification Ministry and the North Korean Workers’ Party’s United Front Department in November, the North again insisted on specifying humanitarian aid in an agreement to be signed at an inter-Korean summit.

A “tree planting campaign for North Korea” initiated recently by the Presidential Committee on Social Cohesion also reportedly went awry because the North demanded a huge aid of food in return for letting South Korea plant trees there.

Kim Jong-il is apparently not aware that Seoul is serious about ending this cash-for-summits policy. A South Korean government official with experience in inter-Korean talks said, “At secret meetings, each side often had its own way of interpreting agendas. Maybe North Korean delegates who are accustomed to the Sunshine Policy are trying to interpret the current government’s messages the way they did with past governments.”

It seems the North has attempted to earn economic aid worth W1 trillion by prevaricating over the issue of the POWs and abduction victims, offering to handle it like part of reunions of separated families, and discussing the nuclear issue only with the U.S. 

Whether the attitude will change remains to be seen. The North is now in a worse economic situation than before in the wake of a recent disastrous currency reform on top of international sanctions and a severe food shortage.

Prof. Cho Young-ki of Korea University said, “The North is in dire need of support from the outside including South Korea to stabilize the regime for a smooth transition of power” to Kim’s son Jong-un. “It is possible that the North will reluctantly accept our request depending on progress in the six-party nuclear talks.”

The government believes that a dramatic turning point in inter-Korean relations could be reached if the North makes “big decisions” in the nuclear or POW issues, according to Kim Tae-hyo, the presidential secretary for foreign strategies.

Share

Posted in Agriculture statistics, Foreign aid statistics, Inter-Korean summit, International Aid, Political economy, South Korea, Statistics | Comments Closed

South Korea’s trade with the north falls into the red

Thursday, February 25th, 2010

Institute for Far Eastern Studies
NK Brief No. 10-2-25-1
2/25/2010

Inter-Korean trade, in which South Korea recorded surpluses throughout the Kim Dae Jung and Roh Moo Hyun administrations, has now fallen into the red under the current government.

According to customs statistics released on February 25, Seoul ran a trade deficit with North Korea under the Kim Young Sam administration until 1997, then was in the black through the Kim Dae Jung and Roh Moo Hyun administrations, almost until the end of 2007. Seoul has fallen back into the red, however, during the last two years of the current government. In other words, the People’s Government (under Kim Dae Jung) and the Participatory Government (under Roh Moo Hyun) exported more to the North than they imported, while this trend has now been reversed under Lee Myung-bak.

South Korea’s surplus in inter-Korean trade grew 11-fold from 37.9 million USD in 1998 to 417.7 million USD by 2005, then fell to 262.2 million USD in 2007. This trend occurred because exports grew at a much quicker rate than imports, from 128.9 million USD in 1998 to 1.0286 billion USD by 2007. However, as the current administration came into power, inter-Korean trade statistics dropped in to the red, with a 54 million USD deficit in 2008 and a 200.9 million USD deficit last year.

South Korean exports to the North grew considerably from the time of the People’s Government until 2008, but have fallen considerably over the past two years. In 2008, exports to North Korea amounted to 883.4 million USD, down 14.1 percent from the previous year. Last year, exports fell another 17.1 percent, to 732.6 million USD.

Last year, electrical products made up the majority of exports, at 24.8 percent (182 million USD). Following electrical products were short, synthetic ‘staple fiber’ (160 million USD) and cotton fabrics (67 million USD), followed by computers and other electronic devices (60 million USD).

On the other hand, clothing (390 million USD), fish (131 million USD), and electrical goods (122 million USD) were the top three imports. While South Korea is in the red, overall trade continues to grow, despite the international financial difficulties. This growth is driven largely by processing-on-commission manufacturing and products from the Kaesong Industrial Complex.

[NkeconWatch: I have a personal probelm with the way “the media” generally reports trade deficits as if they are somehow equivalent or comparable to budget deficits.  They are not.  Additionally, bilateral comparisons of trade deficits are silly. Bilateral comparisons are usually published by someone seeking to generate some kind of political response, but really they don’t tell you anything about what is going on in the economies of the countries involved.] 

Share

Posted in International trade, South Korea, Statistics, Trade Statistics | 2 Comments »

S. Korea to deliver anti-viral sanitizer to N. Korea next week

Tuesday, February 16th, 2010

According to Yonhap:

South Korea said Tuesday it will send 1 billion won (US$866,000) worth of hand sanitizer next week to North Korea to help the impoverished neighbor combat the spread of the H1N1 flu virus.

The shipment of 200,000 liters of sanitizer, scheduled for next Monday, comes after South Korea delivered some $15 million in anti-viral medications to the North in December in the first state-level cross-border humanitarian aid in nearly two years.

North Korea first acknowledged cases of Influenza A virus infection on Dec. 9, but it has yet to report any flu-related deaths.

The hand sanitizer will be transported to the North Korean border town of Kaesong on South Korean trucks across the military demarcation line and handed to the North there, Unification Ministry spokesman Chun Hae-sung said.

“North Korea agreed to accept the aid on Feb. 22,” he told reporters, adding about 20 25-ton trucks will likely be mobilized to deliver the aid.

The Tamiflu aid in December marked the first humanitarian assistance provided by the South Korean government to North Korea since conservative President Lee Myung-bak took office in Seoul in early 2008. Lee cut off the unconditional aid that his liberal predecessors had shipped to the North over the past decade, conditioning exchanges on progress in the North’s denuclearization.

Read the full story here:
S. Korea to deliver anti-viral sanitizer to N. Korea next week
Yonhap
2/16/010

UPDATE: The shipment has been delivered

SKorea sends 2nd batch of swine flu aid to NKorea
AP via Business Week
2/23/2010

South Korean trucks have crossed the border into North Korea to deliver a second batch of swine flu aid.

Unification Ministry spokeswoman Lee Jong-joo says South Korea sent 52,840 gallons (200,000 liters) of hand sanitizers to North Korea on Tuesday.

South Korea sent enough doses of the antiviral drugs Tamiflu and Relenza for 500,000 North Koreans in December in its first direct humanitarian aid to the communist country in nearly two years. North and South Korea have remained in a state of war since 1953.

North Korea acknowledged in December that swine flu had broken out in the country though hasn’t mentioned any virus-related deaths.

Tamiflu is made by Switzerland’s Roche Group. Relenza is a procuct of GlaxoSmithKline.

Share

Posted in Disease prevention, Epidemics, Foreign aid statistics, Health care, International Aid, South Korea | Comments Closed

« Older Entries
Newer Entries »