South Korea « North Korean Economy Watch

Archive for the ‘South Korea’ Category

Koreas set up reunion video link

Monday, July 18th, 2005

BBC
7/18/2005

North and South Korea have joined fibre-optic cables across their border to allow families separated for decades to take part in video reunions.

A handful of face-to-face meetings have already taken place between relatives split by the 1950s Korean War, but the cables should help others reunite.

The move is part of a range of measures agreed during cabinet-level talks between the two sides in June.

The first video link-ups will be held on 15 August between 20 families.

The cables run from Munsan in the south to Kaesong in the north.

KT Corp, a South Korean telecoms company taking part in the project, said the link would allow simultaneous connections of up to 9,600 telephone lines.

“We have laid the foundation for accelerating inter-Korean exchanges,” said Kim In-chol, a North Korean postal and communications official.

Reunions between North and South Koreans, which only last a few days, are always surrounded by intense emotion, not least because many of those desperate to be reunited with their relatives are becoming increasingly frail.

Thousands die every year before getting the chance to be reunited with loved ones.

Posted in Civil society, Communications, South Korea, Telephones | Comments Closed

Bird flu outbreak in North Korea

Sunday, March 27th, 2005

BBC
3/27/2005

North Korea says it has had a first outbreak of the deadly bird flu virus.

The state Korean Central News Agency said no people had been infected but hundreds of thousands of chickens had been culled and the carcasses burned.

The agency only said that the outbreak was “recent” and occurred at “two or three” chicken farms. It did not specify the virus type.

The H5N1 virus has killed almost 50 people since its resurgence in South East Asia in December 2003.

Tight controls

KCNA said Hadang farm in Pyongyang, among the city’s largest, was one of the sites of the outbreak.

North Korea had previously said it was free of the virus that has struck many countries in south and east Asia.

South Korean news agency Yonhap earlier this month reported an outbreak at Hadang, prompting the World Health Organization (WHO) to ask the reclusive North for information.

The North has relied on food aid for more than a decade but imposes tight controls on foreign visitors and aid workers.

Experts fear the H5N1 virus could eventually combine with human flu and threaten a deadly pandemic.

There are suspected cases of the virus being passed between humans.

Seoul offers N Korea bird flu aid
BBC
3/28/2005

South Korea has said it is ready to help the North combat bird flu, after the isolated state publicly admitted on Sunday that it was fighting the virus.

Pyongyang has not asked Seoul for assistance, but a South Korean official said the official announcement appeared to indicate the North would accept aid.

The North says no people have been infected but hundreds of thousands of chickens have been culled.

Analysts warn that the virus could wipe out its fledgling chicken industry.

“North Korea, plagued by food shortages, has struggled to modernise and build facilities for the breeding and processing of chicken, a main source of animal protein,” Kwon Tae-jin, an expert on North Korean agriculture based in Seoul, told the South Korean Munhwa Ilbo newspaper.

The North has not specified the type of bird flu virus it is battling. The H5N1 virus has killed almost 50 people since its resurgence in South East Asia in December 2003.

The state Korean Central News Agency only said that the outbreak was “recent” and occurred at “two or three” chicken farms.

The World Health Organization (WHO), which has an office in Pyongyang, said it had been contacted by the North, and would co-ordinate counter-measures.

South Korea was to hold several meetings on Monday to decide on a strategy to help the North.

It has already put in place measures to prevent the spread of bird flu into the South, as rumours first surfaced of an outbreak in the North earlier this month.

South Korea has itself suffered several outbreaks of bird flu, but no human infections.

Experts fear the H5N1 virus could eventually combine with human flu and threaten a deadly pandemic.

There are suspected cases of the virus being passed between humans. So far, Vietnam has been the country hardest hit by this year’s outbreak of bird flu.

UN bird flu expert visits N Korea
BBC
3/30/2005

A senior United Nations bird flu expert has gone to North Korea to try to prevent the spread of the virus.

North Korea confirmed on Saturday that bird flu had been detected in several farms near the capital, Pyongyang.

State media said hundreds of thousands of chickens had been destroyed to prevent the virus from spreading, and no humans had been affected.

The UN has also sent diagnostic kits to help the North Koreans determine if the birds died from the deadly H5N1 strain.

This strain of bird flu has killed almost 50 people since its resurgence in South East Asia in December 2003.

Hans Wagner, a senior official from the UN’s Food and Agriculture Organization, flew to Pyongyang on Tuesday, and will be joined by two other experts from China and Australia in the coming days.

Survivor’s story

“They will look at the strategies being set up by the government and also bring some supplies,” FAO spokesman Diderik de Vleeschauwer told Reuters news agency.

South Korea’s Yonhap news agency reported on Tuesday that the North Korean authorities were struggling to control the outbreak, and the disease was spreading quickly.

Analysts warn that the virus could wipe out the poverty-stricken country’s chicken industry.

Before the bird flu outbreak, poultry production was one of the few growing sectors in North Korea. The number of poultry was estimated at 25.5m in 2004, about two times higher than in 1997.

N Korean bird flu ‘different’
BBC
4/5/2005

A strain of bird flu infecting poultry in North Korea is different from that which killed scores of people in other parts of Asia, a UN expert has said.

Hans Wagner, an official for the Food and Agriculture Organization, said the birds were infected with the H7 strain.

The strain that has decimated poultry stocks and caused recent human deaths in Cambodia, Thailand and Vietnam is the more virulent H5N1 strain.

North Korea has culled 219,000 birds to tackle the outbreak, Mr Wagner said.

“We have a new situation, because H7 has so far not occurred in Asia,” he told reporters.

“We don’t know where the virus came from,” he said, adding that UN experts would now try to trace the source of the infection, to prevent future outbreaks.

H7 can cause illness in humans, but outbreaks of the strain have not been as severe as those caused by H5N1.

H5N1 has killed almost 50 people since its resurgence in South East Asia in December 2003.

When North Korea first announced that three of its farms had been infected with bird flu last month, analysts warned that the virus could wipe out the poverty-stricken country’s chicken industry.

Poultry production is one of the few growing sectors in North Korea, which has relied on foreign aid to feed its people since the mid-1990s.

Posted in Agriculture, Avain Flu, Health care, International Aid, South Korea, UN Food and Agriculture Organization | Comments Closed

Kaesong regulations finalized

Monday, October 11th, 2004

From KCNA:

Regulations of Insurance in Kaesong Industrial Zone Adopted

Pyongyang, October 11 (KCNA) — Decision No. 35 of the Presidium of the DPRK Supreme People’s Assembly “On the Adoption of the Regulations of Insurance in the Kaesong Industrial Zone” dated September 21, Juche 93 (2004) has been published. The decision says the regulations were adopted and the Cabinet and organs concerned of the DPRK are to take working measures for their implementation.

The regulations consist of 28 articles.

The mission of the regulations is to strictly establish the system and order in the work of insurance in the Kaesong industrial zone so as to help toward stabilizing the business activities and life of those who reside and stay there.

The regulations are applied to the enterprises, branches and offices established in the Kaesong industrial zone.

They are applied also to the south Koreans, overseas Koreans and foreigners who stay and reside in the industrial zone.

Posted in Foreign direct investment, Insurance, Kaesong Industrial Complex (KIC), South Korea | Comments Closed

DPRK’s “Morning” firm produces Pentium IV chips

Thursday, August 26th, 2004

From Asia Times:

North Korea has mass-produced computers with Pentium IV processors since 2002, a Russian journalist says in a new book. The confirmation came at a time when the United States and North Korea are in a war of nerves over US and international export control regulations that would ban 15 South Korean firms selected to operate in an industrial complex in the North’s city of Kaesong from bringing in “strategic materials,” including computers.

The South Korean companies said they must be permitted to bring computers with at least Pentium IV chips, which are essential for normal office work, citing earlier unconfirmed reports that the North already began to produce those kinds of computers.

“North Korea has produced computers with Pentium IV processors since 2002, which I saw during my visit to an electric appliance factory in Pyongyang,” Olga PMaltseva, a Vladivostok-based journalist, said in her new book about the North Korean leader, Kim Jong-il.

The Korean translation of the book, titled “A Waltz with Kim Jong Il” was published here on Monday.

“Seven hundred workers and technicians made 14,000 Pentium IV computers in 2002,” she said.

“The factory has produced tens of thousands of computers since 1986 and half of them were exported to Germany.”

There was a similar report by the Choson Sinbo, organ of the pro-Pyongyang General Association of Korean Residents in Japan, in May last year.

The newspaper reported at the time that a North Korean electronic appliance developer has been selling computers with Pentium IV processors in a joint venture with China’s Nanjing Panda Electronics Co since September 2002.

South Korea’s Korea Trade-Investment Promotion Agency (KOTRA) confirmed the report in August last year, citing data from its North Korean counterpart, the International Trade Promotion Committee.

The KOTRA said the North’s electronics firm “Achim (Morning)” and China’s Nanjing Panda have produced three types of Pentium IV computers.

The Russian author is believed to have visited the joint venture factory.

North Korea is classified as a “dangerous country” under the Wassenaar Arrangement, which replaced the Cold War era’s Coordinating Committee for Export Control to Communist Areas in 1996, and thus signatory countries cannot export items classified as “strategic materials” to the communist state.

The items include computers, various metal machinery, laser equipment, high-tech materials and electronic appliances with US-produced parts.

South Korea is among the 33 signatory nations.

An earlier report said the South Korean government is studying ways for the 15 domestic companies to use production equipment, materials and office supplies in Kaesong without conflicts with the U.S.

The Kaesong industrial complex, being built by the Korea Land Corp and Hyundai Asan Corp, a South Korea firm, is one of the most prominent symbols of inter-Korean reconciliation set in motion by the first-ever summit of the leaders of the two countries in 2000.

The developers are scheduled to open Kaesong’s main complex to hundreds of South Korean manufacturers in the first half of next year.

Posted in China, Computing/IT, International trade, Kaesong Industrial Complex (KIC), South Korea, USA | Comments Closed

Summary of DPRK technological efforts

Monday, December 1st, 2003

From the Office of the National Counterintelligence Executive:

North Korea: Channeling Foreign Information Technology, Information to Regime Goals Pyongyang is working with Koreans abroad and other foreign partners in information technology (IT) ventures, sending software developers overseas for exposure to international trends, granting scientists access to foreign data, and developing new sources of overseas information in a bid to develop the economy. Cellular telephones and Web pages are accessible to some North Koreans, while foreigners in Pyongyang have access to foreign television news and an Internet café. While such steps are opening windows on the world, however, Democratic People’s Republic of Korea (DPRK) oficials are largely limiting such exposure to areas required for economic development. Moreover, they are applying IT tools to develop new means of indoctrinating the public in North Korea and reaching audiences overseas.

Working With Foreign Partners in IT Ventures
North Korea is promoting cooperative ventures with foreign partners to develop IT, which DPRK media have repeatedly described as a priority area in science and technology. An editorial in the 10 November 2003 issue of the party newspaper Nodong Sinmun, for example, named IT as the first of three technical fields, along with nanotechnology and bioengineering, to which “primary efforts should be directed.”

North Korean media suggest that officials have grasped the potential of leveraging IT for national development. A recent article in the government’s newspaper asserted that (1) “IT trade surpasses the automobile and crude oil industries” and (2) “IT goods are more favorable in developing countries than they are in the developed nations” (Minju Choson, 7 March).

ROK analysts, such as those who compiled a survey of Pyongyang’s IT industry (Puhkan-ui IT Hyonhwang-mit Nambuk Kyoryu Hyomnyok Pangan, 1 January), have suggested that DPRK policies for promoting a domestic IT industry reflect the nation’s lack of capital, dearth of natural resources, and relative abundance of technical talent. Hoonnet.com CEO Kim Pom-hun, whose extensive experience in North Korea includes residence in Pyongyang from December 2001 to October 2002, has assessed North Korean IT manpower as resembling “an open mine with the world’s best reserves of high-quality ore” ( Wolgan Choson, 1 January).

Pyongyang is partnering with Koreans in South Korea, Japan, and China, as well as Chinese, in ventures to develop both software and hardware, including:

The Morning-Panda Joint Venture Company in Pyongyang, a partnership between North Korea’s Electronic Products Development Company and China’s Panda Electronic Group, which began making computers in late 2002.
The Pyongyang Informatics Center (PIC) and South Korea’s Pohang University of Science and Technology (PUST), which are cooperating to develop virtual reality technology. In addition:
The ROK’s Hanabiz.com and PIC launched the Hana Program Center in Dandong, China, in August 2001 (http://hanabiz.com/history.html) for joint software development and training of DPRK programmers.
IMRI—ROK manufacturer of computer peripherals—and CGS—a Tokyo-based software company affiliated with the pro-Pyongyang General Association of Korean Residents in Japan (GAKRJ, a.k.a. Chosen Soren)—joined hands in July 2000 to form UNIKOTECH (Unification of Korea Technologies) to develop and market software. Both partners maintain links to North Korean IT enterprises.
The ROK’s Samsung Electronics and the DPRK’s Korea Computer Center (KCC) have been developing software together at a Samsung research center in Beijing since March 2000 (Chonja Sinmun, 15 October).

Venturing Overseas To acquire information on foreign IT trends and to promote their domestic industry, North Koreans have begun venturing overseas in recent years.

State Software Industry General Bureau Director Han U-ch’ol led a DPRK delegation in late September 2003 to the China International Software and Information Service Fair in Dalian. The North Koreans joined specialists from China and South Korea in describing conditions in their respective IT industries and calling for mutual cooperation. Participants from China and the two Koreas expanded on the theme of cooperation at the IT Exchange Symposium, sponsored by the Dalian Information Industry Association, Pyongyang’s State Software Industry General Bureau, and Seoul’s Korea Advanced Institute of Science and Technology (KAIST). Dalian Alios Technical Consulting, a company run by Chinese Korean Yi Sung-nam, hosted the exchange (www.kotra.or.kr, 15 October, http://hanabiz.com, 9 October).
Pyongyang opened, in April 2002 in Beijing, its first foreign exhibition of DPRK software products developed by Kim Il-song University, Korea Computer Center (KCC), PIC, and other centers of software development (DPRK Korea Infobank, 16 May 2002).
KCC Deputy Chief Technician Kim Ki-ch’ol led a delegation of DPRK computer technicians to the World PC Expo 2001, held in September 2001 outside Tokyo. KCC has worked with Digiko Soft—a company run by a Korean resident of Japan—to develop commercial software. Through Digiko Soft, the expo was the first show in Japan “of computer software developed in [North] Korea” (Choson Sinbo, 22 October, 1 October 2001).
KCC computer programmers Chong Song-hwa and Sim Song-ho won first place in August 2003 in a world championship software competition of go—an Asian game of strategy—held in Japan. KCC teams have visited Japan and China on at least eight occasions since 1997 to compete in program contests for go, taking first prize three times.

Gaining Access to Foreign Data North Korea has been acquiring foreign technical information from a variety of sources in recent years, benefiting from developments in technology, warming ties between the Koreas, and longstanding sympathies of many Korean residents in Japan.

Authorities have held the annual Pyongyang International Scientific and Technological Book Exhibition since 2001, bringing foreign vendors and organizations related to S&T publications to North Korea (KCNA, 18 August).
The Trade and Economy Institute, advertised as North Korea’s “sole consulting service provider” on international trade, has been exchanging information with “many countries via Internet” since September 2002 (Foreign Trade of the Democratic People’s Republic of Korea, 1 April).
According to PUST President Pak Ch’an-mo, who has extensive DPRK contacts in academic and scientific circles, North Korea has been purchasing technical books from amazon.com and from South Korea (Kwahak-kwa Kisul, 1 April).
Pro-Pyongyang Korean residents of Japan have long sent technical literature to North Korea.
ROK organizations, including PUST and IT publisher youngjin.com, have been donating technical publications on IT in recent years to DPRK counterparts as a means of earning good will and contributing to the eventual unification of Korea (Chonja Sinmun, 11 August).

Cell Phones, Web Pages, and NHK
Within North Korea, the advance of IT technology has been suggested by a number of recent developments:

Approximately 3,000 residents of Pyongyang and Nason have reportedly purchased cell phone service since November 2002 (The People’s Korea, 1 March).
Installation of a nationwide optical-fiber cable network in 2000, launch of the Kwangmyong 2000 Intranet the same year, and establishment of computer networks have made available domestic access to extensive technical databases maintained by the Central Scientific and Technological Information Agency, the Grand People’s Study House, and other repositories of technical information.
Via North Korea’s Silibank Web site (www.silibank.com), established in Shenyang, China, in September 2001, registered foreign users can exchange e-mails with DPRK members.
In August 2002, Kim Pom-hun, CEO of the ROK IT company Hoonnet.com, opened an Internet café in Pyongyang, the only place in North Korea for the public to access the Internet. Most customers of the service, which uses an optical cable linking Pyongyang and Shanghai via Sinuiju, are foreign diplomatic officials or international agency staffers; steep fees reportedly keep most Koreans from going on line (Wolgan Choson, 1 January).
Foreign guests in Pyongyang hotels have had access to foreign news broadcasts of Britain’s BBC and Japan’s NHK since May 2003, according to a Japanese television report (TBS Television, 2 September).

Limiting Information to Technical Areas, Harnessing IT for Domestic Indoctrination and Foreign Propaganda Development of the nation, rather than empowerment of the individual, appears to be driving DPRK efforts to develop domestic IT infrastructure and industry. Officials, scientists, and traders can now access and exchange information pertinent to their duties within the domestic Kwangmyong Intranet. Those with a “need to know” can even surf the worldwide Web for the latest foreign data. While Kim Chong-il reportedly watches CNN and NHK satellite broadcasts (Kin Seinichi no Ryorinin, 30 June) and supposedly surfs the Internet, the public has no such freedom to learn of the outside world without the filter of official propaganda.

Indeed, Pyongyang is using IT to indoctrinate the public and put its propaganda before foreign audiences. In addition to studying the party line through regular group reading of Nodong Sinmun in hard copy, a practice for indoctrinating members of work units throughout North Korea, the installation of computer networks now brings the newspaper to some workplaces on line, as the photograph below shows:

Moreover, Pyongyang has put its propaganda on the Internet.

KCNA offers Pyongyang’s line in English, Korean, and Spanish at a Web site in Japan at www.kcna.co.jp.
News and views of the General Association of Korean Residents in Japan and its affiliated organizations appear on the group’s site at www.chongryon.com.
DPRK media, including newspapers Minju Choson and Nodong Sinmun, have appeared on sites originating in China, such as www.dprkorea.com and www.uriminzokkiri.com.

Posted in Biotech, Cell phones, China, Chongryun, Communications, Domestic publication, Electronic Products Development Company, Foreign direct investment, International trade, Internet, Japan, Korea Computer Center (KCC), Pyongyang Informatics Center (PIC), Silibank, South Korea, State Software Industry General Bureau | Comments Closed

S&P Highlights Costs of Korean Reunification

Monday, November 3rd, 2003

According to the Financial Times:

John Chambers, managing director for sovereign ratings at S&P, told reporters in Seoul that state collapse in North Korea was just a matter of time and could cause a bigger shock to the South’s economy than the 1997 Asian financial crisis. He urged South Korea to build financial reserves to cope with the cost of reunification.

North Korea has started to reform its rigid command economy in recent months by liberalizing prices and wages but S&P said the regime was too rigid to emulate the market openings adopted by communist governments in China and Vietnam.

“Although some other Asian nations that used to have centrally planned economies have successfully moved to a market-based system, the North Korean leadership probably lacks the flexibility and the vision to undertake such a change,” said S&P in a statement. “Unless South Korea has substantially built up fiscal reserves in the meantime, its [credit] ratings would fall from their current level upon sudden reunification of the peninsula.”

Analysts have been predicting collapse of the North Korean regime since 1989, when communist states started to fail in eastern Europe. The state has proved more resilient than many expected, surviving a famine in the mid-1990s that killed at least 1 million people and recording modest economic growth over the past three years. However, dwindling international food aid to the country and U.S. attempts to block some of the regime’s most important sources of cash, such as exports of arms and drugs, has prompted fresh doubts about the durability of the world’s last Stalinist state.

Mr. Chambers said reunification with the North could cost South Korea up to 300 percent of its annual gross domestic product, considering the reconstruction and welfare provisions that would be necessary.

South Korea’s policy of engagement with its neighbor – including humanitarian aid and economic co-operation – is designed to prevent economic failure in the North and encourage gradual reform of its economy and political system.

In a recent report, Dominique Dwor-Frecaut, economist at Barclays Capital, said state failure in North Korea need not lead to credit rating downgrades in the South. She said the cost of reconstruction would be spread over many years and would be offset by the economic benefits of reunification.

“The Korean peninsula could become a new Asian economic powerhouse if it could associate Chinese-level labor costs in the North with OECD-level financial and legal systems and R&D in the South,” she said.

Posted in Banking, Economic reform, Finance, Foreign direct investment, International trade, South Korea | Comments Closed

Call for Kaesong investors

Wednesday, October 1st, 2003

From the BBC:

North Korea has unveiled the terms under which foreign investors will be lured to a ground-breaking industrial zone near the tense border with South Korea.

Two South Korean companies – Korean Land and an arm of the Hyundai conglomerate – are developing an international business park in Kaesong, part of a package of cautious economic reforms in the Stalinist country.

So far, more than 1,000 South Korean firms have enquired about setting up shop in Kaesong, where labour costs will be a tiny fraction of those south of the border.

The North Korean Government now promises investors favourable tax rates, but there are still considerable concerns over whether it will allow businesses much economic freedom.

Most of the companies so far interested in Kaesong are in light manufacturing, particularly textiles.

Depending on their line of business, these firms will be taxed at up to 14%, less than half the rate levied in the South.

Pyongyang is, however, especially keen to lure hi-tech firms, which will be subject to a tax rate of just 10%.

Investors will have to pay a number of other smaller levies, and must adhere to a minimum monthly wage of $50.

Such incentives have sparked a flurry of interest in the South, but many companies remain wary.

They will be forced to hire workers through a North Korean state agency whose powers and attitude remain unclear.

And there is still little confidence in the fundamental stability of North Korea, which has turned to economic reform in recent years, but which remains virulently opposed to most forms of foreign influence.

The Kaesong development does, however, seem to be a relatively permanent arrangement.

It forms part of a large-scale construction project in the region, which is just 50 kilometres northwest of Seoul.

Elsewhere the focus is on tourism, especially scenic Mount Kumgang on the country’s east coast, which Hyundai has been trying to develop for five years, with mixed success.

There is also a Unification Park, which will be the venue for reunions of families split by the country’s division.

Most significant are major road and rail developments which mark the first time the two rival countries have re-established transport links since the end of the Korean war in 1953.

Posted in Foreign direct investment, International trade, Kaesong Industrial Complex (KIC), Labor conditions/wages, South Korea | Comments Closed

S Koreans charged over summit cash

Wednesday, June 25th, 2003

BBC
6/25/2003

Two top aides to South Korean former President Kim Dae-jung have been charged following an inquiry into a cash for summit scandal which preceded an historic inter-Korean meeting three years ago.

Park Jie-won, Mr Kim’s presidential chief of staff, and Lim Dong-won, the former head of South Korea’s spy agency, were among more than eight people charged as a result of a 70-day probe by independent counsel Song Doo-hwan.

Mr Song’s investigation found that $100m of the $500m transferred by Seoul to North Korea ahead of the 2000 summit was government money.

The inquiry was ordered by incumbent South Korean President, Roh Moo-hyun, after the scandal first surfaced during last year’s presidential election.

Kim Dae-jung has already apologised to the nation for the advance payment to the North, but denied the government itself had made any payments.

Mr Song said that while $400m of the money belonged to Hyundai, and was intended for legitimate business investment in North Korea, $100m was sent by Seoul as “politically motivated government aid”.

He stopped short of saying the government money was a bribe, but said the donation was clearly related to the summit and had been sent secretly through improper channels.

Mr Kim, who left office this February after a five-year tenure, was given the Nobel Peace Prize largely as a result of the historic inter-Korean summit.

He has argued that the money transfers “facilitated peace on the Korean Peninsula”.

But opposition politicians have continued to demand a more thorough enquiry into the matter.

Charges

One of the officials charged in connection with the scandal, former Culture and Tourism Minister Park Jie-won, met North Korean officials in April 2000 to arrange the June summit, according to Mr Song’s inquiry.

During the meeting, Mr Park pledged $100m to Pyongyang, which he later persuaded Hyundai to transfer, Mr Song said.

Lim Dong-won, former director of the National Intelligence Service, is accused of violating laws on foreign exchange transactions.

Chung Mong-hun, the chairman of Hyundai Asan, has also been charged in connection with the falsification of financial documents in order to cover up the payments to Pyongyang.

At least five others have been charged in connection with the case – some of whom could face up to five years in jail, according to the Associated Press news agency.

Mr Roh has vetoed a call by the South Korean opposition that the probe be extended to investigate the role of former President Kim Dae-jung himself.

Posted in Finance, Fiscal & monetary policy, International Aid, Political economy, South Korea | Comments Closed

Infiltrators of North Korea: Tiny Radios

Monday, March 3rd, 2003

From the New York Times
James Brooke
March 3, 2003

As the Pentagon studies moving tons of military hardware within striking range of North Korea, some say the weapon most feared by the Stalinist government there may be a disposable radio the size of a cigarette pack.

“Little throwaway radios, you listen, you throw away — the smaller the better, the more disposable, the better,” said Pastor Douglas E. Shin, a Korean-American human rights activist who advocates smuggling thousands of tiny radios capable of receiving foreign broadcasts into the North.

The radio smuggling is part of a growing public and private effort, including foreign radio broadcasts, to crack an information monopoly in the North that has helped keep the Kim family in power for nearly 60 years. So tight is the information blackout that defectors report that they believed that their country — one of the world’s poorest — was wealthier than South Korea and that the United States donated rice as a form of tribute to the powerful Communist state.

In January, in a bid to emulate the experience of East Europeans in the cold war, Radio Free Asia and Voice of America doubled their hours of Korean-language broadcasting into North Korea. In February, Radio Free Asia joined Voice of America in broadcasting into North Korea on medium wave, a bandwidth accessible with cheap AM radios.

But the first challenge, skeptics note, is that few people in the North have the radios — or the courage — to listen to foreign broadcasts, something that advocates of the tiny disposable radio say they are determined to change.

Under threat of severe penalties, the vast majority of North Korea’s 22 million people are not allowed any contact with the outside world — letters, telephone calls, travel, radio or television programs.

All citizens are required to register their radios with the local police. On registration, foreign-made radios are tuned to the state radio frequency, soldered into place, and sealed. The police then make unannounced inspections of households with foreign-made radios to verify that they have not been tampered with.

“A lot of people in the White House believe the Iron Curtain came down because U.S. government radio supplied the information that created the Velvet Revolution,” said an American diplomat here, referring to Czechoslovakia’s revolt against Communism. “But in the case of North Korea, is it the sound of one hand clapping? Is it getting in there?”

Advocates of smuggling radios into the North, mostly human rights and Christian church groups, say their effort is aimed at ensuring that someone is indeed listening. Even if only a tiny elite tune in, they say, the effect can be powerful.

“The populace will suffer a kind of psychological collapse when they learn what has been done to them and what the real world is really like,” predicted Radek Sikorski, who grew up listening to Voice of America and Radio Free Europe in communist Poland and now works at the American Enterprise Institute.

“Control of information,” he said, “is absolutely crucial to the survival of this regime because the system is based on lies.”

In a recent manifesto , Mr. Sikorski joined 16 American policy makers in demanding that the Bush administration tie talks with North Korea over its nuclear weapons program to an opening on human rights, including freer information.

Citing the impact of the Helsinki Agreement of 1975 in undermining the Soviet Union and its East European allies, the group called for “significantly expanding the current, scandalously inadequate Korean-language Radio Free Asia broadcasts.”

Already, in a small office rented on the seventh floor of a Seoul newspaper building, Radio Free Asia broadcasters try to bring to North Koreans four hours of news a day.

“North Korean people are not told the truth, so somehow we have to be surrogates, to tell them what is going on,” said Ahn Jae Hoon, who was born in Pyongyang, North Korea, and became director of the Korean branch of Radio Free Asia in 1997, after 26 years at The Washington Post.

The reports are clearly aimed at undermining the leadership of Kim Jong Il. Some broadcasts report on food and power shortages, others on the image of North Korea as isolated and weak abroad. Still other reports discuss military dissatisfaction and coup attempts in the 1990’s, and the fact that Mr. Kim insists that all soldiers be disarmed before he visits a military unit.

The radio also gives practical information for defectors — how to contact missionary groups in northern China, how to dress and behave to escape arrest and deportation to North Korea.

In contrast, under Seoul’s “sunshine policy” of reconciliation, South Korea’s state-owned Korean Broadcasting Service increasingly airs programs intended not to provoke the North and to promote peaceful coexistence on the peninsula.

On Saturday at a national park near Kosung, North Korea, two park guides spoke dismissively of foreign broadcasts. “Why would we want to listen to radio from the South? No one is stopping us from listening, but we don’t want to anyway,” said Kim Dong Chul, 31. “The music is not our style and the news is not for us. It’s for the people in Seoul.” Another guide, a 26-year-old man who declined to be identified, said, “I don’t have enough time in a day to listen to our radio, and then to listen to radio meant for other people.”

The guides are largely chosen for their political loyalties, because they come in contact with large numbers of South Korean tourists.

Backers of foreign broadcasts, however, say more and more North Koreans are finding ways to tune in.

As trade with China increases and radio prices fall, some North Koreans now buy two radios, but register only one with the police, defectors say. In a country wracked by power shortages, government jamming is spotty. Also, some North Koreans dare to tinker with state-supplied radios, defectors add.

Still, for now, foreign broadcasting is largely limited to North Korea’s elite.

In 1999, Mr. Ahn said, a survey commissioned by Radio Free Asia found that one of 12 “elite” defectors polled had listened to Radio Free Asia. A similar survey in 2001 found that the proportion had risen to 6 of 12.

Posted in Radio, South Korea, USA | Comments Closed

First busses make overland treck to Kumgang

Tuesday, February 18th, 2003

from the BBC:

The BBC’s Kevin Kim joined the first overland tourist trip to North Korea, and reflects on his journey to the other side of the border.

“I was on board one of 20 buses that crossed the DMZ for the first time.

As a South Korean it felt really strange, because up to now we were strictly forbidden from getting near to the DMZ.

The mountains on the North Korean side looked totally different from the mountains on the South Korean side.

It was very barren. There were hardly any trees.

North Korea is in an energy crisis right now and every single tree is put to good use, for heating.

The South Korean guide told us that while travelling through the DMZ we must not take pictures, wave outside, or show any South Korean newspapers or magazines through the window.

I guess that is why everyone on the bus was talking in a very soft voice.

Every few hundred metres there were North Korean soldiers with their rifles just looking on as the buses went by.

I was really tempted to just open the window and say “hello” or “nice to see you”.

But I had been told by my South Korean guide that I could open the window but I could not say anything to them.

Like the words of the South Korean song, “Longing for Mount Kumgang”, getting to North Korea and seeing its natural beauty has been something that people in the South could only long for until now.

Unification, too, is something that Koreans have only dreamed about.

But having travelled through the most heavily fortified border in the world, I began to think that while unification in the Korean peninsula may seem impossible right away, it does not have to stay as a dream.

Who knows, in 20 years time we might actually be seeing the fences coming down.

It is wishful thinking. But Koreans are natural born optimists. ”

Also from the BBC:

The overland border between the two Koreas has opened for the first time since the Korean war ended half a century ago. The BBC’s Seoul correspondent Caroline Gluck was among the first to cross.

Fanfare, fireworks and balloons greeted us at a ceremony on the South Korean border, as we prepared to journey through the world’s most heavily fortified road border to the North.

This is the first land route for civilians since the end of the Korean war half a century ago.

The pilot journey is due to pave the way for regular overland tourist trips to the North’s scenic resort of Mount Kumgang, or Diamond Mountain – which has been developed by the South Korean company Hyundai Asan.

Hyundai Asan’s president, Kim Yoon-Kyu, described the trip as a historic moment.

“I can compare it to breaking the wall between East and West Germany,” he said.

Opening the border was also one of the ways to reduce tensions between North and South Korea, he said.

“I’m going to persuade (the North Koreans) not to have any nuclear power. We need money. Money is better than nuclear power,” he said.

At the demilitarized zone, there was a razor wire fence on either side, and signs warning that landmines were present.

When we reached the military demarcation line, I could see the first North Korean soldiers watch the convoy – around 20 buses in all.

All around me I could see the mountains covered in snow.

It is a barren landscape but quite beautiful. Many believe that if the two Koreas reunify, it should be turned into an ecological zone.

On the North Korean side, a welcoming committee with a female brass band was waiting for us, playing the North Korean song Pangap-sumnida, or Nice to Meet You.

Around 150 North Koreans took part in the ceremony to welcome their southern counterparts.

Ro Chang hyup, a North Korean tourist official, said it was an important step forward in inter-Korean exchanges.

“This is a first step towards unification. It is helping to break the ice and I really welcome our south Korean brothers.”

Ri Jong-hyok, deputy head of the North’s Asia-Pacific Peace Committee which handles the North’s joint ventures with South Korea, said: “People are here for tourism. Why are you talking about nuclear issues? I get a headache when people talk about that”.

Bang Jong-Sam, head of the Mount Kumgang international tourism company, had a similar message.

“We don’t have nuclear weapons. Let the crazy people say whatever they want. All we have to do is to continue tourism,” he said.

Since 1988, when tours by cruise boat to Diamond Mountain began, around half a million South Koreans have travelled to the area.

For most, it is their only chance to visit the Communist North. They come to explore the peaks of the fabled mountain – immortalised in songs, paintings and poetry.

Fenced-in resort

But contacts between the two Koreans at the resort is limited.

The Hyundai-built tourism site is fenced in, and North Korean guides are on hand to monitor all movements.

You can catch glimpses of North Korean villages and people travelling on roads only allowed for locals – but most visible are the soldiers.

A group of around 40 soldiers marched by our tour group, singing the praises of their leader, Kim Jong-il.

He’s our great commander, they said.

“His love is like the sun, reaching out to every corner.”

If the project is aimed at breaking down barriers between the two Koreas, there is clearly a long way to go.

But some ventures, like a locally run restaurant open only to South Koreans, at least help to allow more contact between the two sides.

“I’m sure unification will come,” said my waitress.

“It’s really good that so many South Koreans are coming here. I’m proud to work here – and I welcome them.”

Projects like this and the opening of the cross-border road between the two Koreas are full of symbolism.

But, in practice, it is clear that there is still a long way to go before the two sides can freely mingle.

Posted in Asia-Pacific Peace Committee, Automobiles, Mt. Kumgang Tourist Special Zone, South Korea | Comments Closed

North Korean Economy Watch