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New N.Korean Currency Sees Runaway Inflation

Tuesday, January 5th, 2010

North Korea’s currency reform has apparently failed to tame inflation. The state has paid the first salaries since the shock currency reform late last year, with the State Security Department and the Ministry of Public Security, the frontline agencies dedicated to protection of the regime, paying soldiers 6,000 won each — 3,000 won in average monthly pay plus a 3,000 won bonus.

Soldiers usually received about 3,000 won in the old currency. That this effectively doubled means the currency reform, which exchanged old won for new at a rate of 100:1, has not been able to stop inflation.

Money is also apparently being distributed to workers on collective farms, who had a hard time last year because they failed to raise vegetables and other produce from their own patches to scrape a living for their families due to the “150-day struggle,” a campaign aimed at spurring them to work harder at farms.

According to recent defectors, cooperative farms distributed more than 100,000 won to each household in the new currency late last year to settle accounts and distribute profits. Workers at state-run enterprises were also given 1,000 to 2,000 won each, even though most of their operations are suspended.

One Korean Chinese, who visited Pyongyang recently, said, “Department store shelves are stacked with goods that the state confiscated from market traders in return for nothing on Jan. 1, and they are selling those goods at prices readjusted at the exchange rate of 100 old won for one new won. Huge crowds rushed to buy them, so they ran out of stock immediately.”

But commodity prices skyrocketed. Inflation is soaring as market traders are hoarding goods, anticipating that the real value of the new currency will plummet. According to a North Korean source, 1 kg of rice cost about 30 won right after the currency reform but is now closing in on 1,000 won. The U.S. dollar was exchanged at the rate of 75 won to the greenback right after the currency reform but soared to 400 won in late December. There is speculation that it is now only a matter of time before the rate will reach 3,000 won, the same as the unofficial exchange rate of the old won.

Market traders are angry as they have realized that they were robbed of nearly everything they earned. A former senior North Korean official said, “The latest currency reform is more cruel than the previous reform in 1992. It’s tantamount to the state confiscating 99 percent of people’s money.”

Authorities have been handing out food rations in Pyongyang and other regions since December, but North Koreans already know that the food cannot last them more than a month or two. Urban residents are experiencing particular hardship.

Posted in Black markets, Fiscal & monetary policy, General markets (FMR: Farmers Market), Labor conditions/wages, Ministry of State Security (MPSS, NSA, SSD), Public Distribiution System (PDS) | Comments Closed

No more “communism” in DPRK “constitution”

Sunday, October 11th, 2009

UPDATE 5: Dr. Petrov has some great commentary on the new constitution:

A rough English translation as offered by Northeast Asia Matters in their report here but it mistranslates Article 8 of the Constitution, calling “근로인민의 리익” or “the interests of the workers” as “human rights”, which is not the same.

As for dropping the word 공산주의 or “communism”, indeed is happened in Articles 29 and 40 (Economy and Culture respectively). The mystery is in why Naenara keeps the old English version, where the sensational new Section 2 of Chapter VI “Chairman of the National Defence Commission” is missing?

UPDATE 3: Northeast Asia Matters has posted a copy of the DPRK constitution in English. Click here to read.

UPDATE 2: A reader has posted the new constitution (in Korean) in the comments section below. Click here to read.

UPDATE 1: From the Wall Street Journal:

The average North Korean doesn’t know the country’s national constitution well, but at least he has a solid excuse: Kim Jong Il keeps the working masses ignorant of the rights that are formally granted them, which include freedom of speech and demonstration. But just because Pyongyang’s constitution is hardly worth the paper it is written on does not mean that alterations to it are beneath notice. For the ruling elite, its preamble and first few articles serve as a broad indication of the regime’s ideological direction.

ORIGINAL POST: According to Reuters:

North Korea has revised its constitution to give even more power to leader Kim Jong-il, ditch communism and elevate his “military first” [Songun] ideology, South Korea’s Unification Ministry said on Monday.

Though there is little doubt over the 67-year-old Kim’s power, secured by his role as chairman of the National Defence Commission, the new constitution removes any risk of ambiguity.

“The chairman is the highest general of the entire military and commands the entire country,” according to a text of the constitution enacted by the reclusive North in April and only now released by the South Korean government.

The chairman is now the country’s “supreme leader”. Though the position had become the seat of power under Kim, the previous constitution in 1998 simply said the chairman oversees matters of state.

But the Unification Ministry said the new charter removes all reference to communism, the guiding ideology when Kim’s father Kim Il-sung founded North Korea — of which since his death in 1994 he has been eternal president.

Often in its place is “songun”, the policy of placing the military first and which has been Kim junior’s ruling principle.

South Korean media quoted an official from the North as saying that it made the change because it felt the ideals of communism are “hard to fulfil”.

The new constitution adds assurances for protecting human rights, even though North Korea has one of the world’s worst records.

Experts on the North’s state propaganda said the military first ideology has helped Kim dodge responsibility for the country’s sharp economic decline by arguing that heavy defence spending was needed to overcome threats posed by the United States.

It has also meant that the bulk of the North’s limited resources have gone into beefing up a million-strong military at the expense of the rest of the population who make up one of Asia’s poorest societies.

According to the Associated Press:

Yang Moo-jin, a professor at Seoul’s University of North Korean Studies, says it is the first time the North’s constitution has mentioned human rights.

“I think they created this clause, mindful of international criticism of their human rights record,” Yang said. “It lacks details, such as how they will respect and protect human rights. I think it’s just a formality.”

The new constitution also defined Kim Jong Il as the country’s highest leader in a clearer term, saying that the chairman of the all-powerful National Defense Commission — Kim’s title — is the nation’s “supreme leader.”

The previous version only said the commission is the country’s highest organization.

The new constitution also dropped references to communism and only mentions socialism.

But Yang said the change does not mean much because the charter of the North’s ruling Workers’ Party, which is considered higher than the constitution, still says its goal is to build a communist nation.

New York Times:

…Analysts saw the changes as signs that one of the last holdouts from the former Communist bloc was trying to improve its international image in an effort to engage the United States and that the ailing Mr. Kim was trying to burnish his legacy.

North Korea revised its Constitution in April when its rubber-stamp Parliament re-elected Mr. Kim as chairman of the National Defense Commission amid uncertainty over his health. But the outside world was kept in the dark about the details of the amendment until Monday, when South Korea released what it called the text of the North Korean Constitution.

The new Constitution defined one of several titles Mr. Kim holds, chairman of the National Defense Commission, as “supreme leader” of the country. Though Mr. Kim has ruled the country as an undisputed leader, the Constitution revision is the first time he has acquired such an official designation since the death of his father, Kim Il-sung, in 1994.

The chairman “oversees the entire national business,” appointing important military figures, ratifying or abrogating treaties with foreign nations, appointing special envoys and declaring states of emergency or war, the new Constitution said.

The government of South Korea declined to comment, saying it was still scrutinizing the changes. But analysts said Mr. Kim was reasserting his rule by stamping his imprint on the Constitution at a time when doubt persisted at home and abroad about his health and his grip on power.

“After he overcame his health crisis, Kim Jong-il revised the Constitution to show that he was in control and was the person the United States must deal with,” said Kim Yong-hyun, a North Korea analyst at Dongguk University in Seoul. “By mentioning human rights and giving up communism, which sounded hollow to his people after the collapse of the Eastern bloc, he is also trying to show that he is a flexible leader sensitive to the changing world order.”

The constitutional revision does little to add to his already absolute grip on power, said Cheong Seong-chang, a senior analyst at Sejong Institute in South Korea. Mr. Kim is already head of the ruling Workers’ Party and the People’s Army. The new Constitution stuck to a socialist system, though it abandoned communism.

But by bringing more portfolios under his National Defense Commission, “Kim Jong-il showed an intention to focus more on the military and foreign affairs” while leaving party matters to Kim Jong-un, the youngest of his three sons, who is reportedly being groomed as his successor, Mr. Cheong said.

North Korea is now ruled by a “Kim Jong-il and Kim Jong-un coalition,” he added.

In 1998, four years after the death of Kim Jong-il’s father, North Korea revised its Constitution to leave the senior Kim’s title, president, “eternally vacant,” dispersing the roles of the presidency to different agencies. That left outside analysts wondering who officially represented the country, though few disputed Mr. Kim’s authority. With the April revision, Mr. Kim has now left no doubt where the power resides both in reality and in document, analysts said.

Read the full stories below:
North Korea drops communism, boosts “Dear Leader”
Reuters
Jon Herskovitz and Christine Kim
9/28/2009

North Korea’s new constitution calls for respecting human rights for first time
Associated Press
9/28/2009

New Constitution Bolsters Kim’s Power
New York Times
Choe Sang-hun
9/28/2009

Posted in Korean People's Army, National Defense Commission, Political economy, Worker's Party | 5 Comments »

DPRK government goes after informal lenders

Sunday, September 20th, 2009

PSA Cracks Down on Loan Sharks
Daily NK
Jung Kwon Ho
9/20/2009

North Korea’s police, the People’s Safety Agency (PSA), have launched a special investigation into the behavior of loan sharks, or “usurers,” in light of the high numbers of people taking out high interest loans but being unable to keep up repayments and ending up as “kotjebi.”

A source from Shinuiju told Daily NK on Friday, “A decree declaring all-out war against predatory usurers has been handed down to the provincial People’s Safety Agency. They are investigating Korean-Chinese traders and North Koreans repatriated from Japan.”

Loan sharks in North Korea are generally Korean-Chinese with relatives in China or those who have returned from Japan but whose relatives remain there.

The story was confirmed by a source from Hoiryeong in North Hamkyung Province. The source explained to Daily NK on Thursday, “The People’s Safety Agency issued a decree exposing the usury, and conveyed it to every office of the provincial and municipal National Security Agency (NSA) and the PSA. Thereafter, NSA officials attended People’s Unit meetings and gave lectures about harshly sanctioning the practice of earning money through high interest loans.”

According to the Hoiryeong source, the decree, “Map out measures to uproot usury,” was delivered to all NSA officials on September 2.

The decree apparently says, “Although national measures have been adopted to root out usury, this social phenomenon has not been eradicated.”

The Shinuiju source said that the authorities’ new hard-line has come about because the numbers of people who are being turned into “kotjebi” by these predatory loans is increasing.

He noted, “Since 2000, new kotjebi have been people who have gone to ruin and lost their homes to loan sharks. These days their numbers are drastically increasing, so the authorities cannot stand by indifferently.”

According to one source, a Korean-Chinese loan shark called Cho Jung Cheol was recently caught by the PSA on suspicion of taking a total of seven houses from defaulters.

North Korean people usually offer their house as security on a loan. Cho lent money at 30% interest for two weeks to a month, and used gangsters to take houses from those who couldn’t pay.

Those who lose their houses in this way roam the streets with their family members, the family splits up, or sometimes they escape from North Korea. After 2005, this became a common social phenomenon.

The loan sharks have other unethical ways to turn a profit, “Some of these loan sharks hoard up food during the harvest season and earn undue profits from selling it in the difficult spring season,” the source explained.

Sources all agreed that the people unanimously welcome the authorities’ measures.

Posted in Banking, Finance, Ministry of People’s Security (Criminal Police), Real estate | Comments Closed

The trial of US journalists and North Korean criminal law

Tuesday, August 18th, 2009

Institute for Far Eastern Studies (IFES)
IFES Forum No. 09-8-18-1
Choi Eun-suk, Research Professor, IFES, Kyungnam University
8/18/2009

Detention of U.S. Journalists

Korean-American Euna Lee (Lee Seung-eun) and Chinese-American Laura Ling, reporters for the U.S.-based Current TV, were detained by North Korean soldiers on March 17, 2009 while near the Tuman River border between North Korea and China. On June 8, the Central Court, the highest court in North Korea, sentenced each of the two to an unprecedented 12 years of ‘Reform through Labour.’ However, after less than two months, a visit by former U.S. President Bill Clinton on August 4 led to the ‘special pardon’ of the two women, bringing a relatively swift conclusion to their plight.

What laws were enforced against the two American reporters? North Korean criminal code article 69 (Jo-seon-min-jok-Jeok-dae-joi, or literally, Korean Nation Antagonism Crime) states, “If a foreign person resides abroad with the intention of antagonizing Korea or injuring the body or assets of a sojourning Korean, or if national discord arises, they shall be faced with a sentence of more than 5 and less than 10 years of Reform through Labour (Ro-dong-Ky-ohwa-hyeong). In serious circumstances, [the person] faces a sentence of more than 10 years Reform through Labour.” Criminal Law article 233 (Illegal Border Crossing) dictates that “A person illegally crossing the national border faces less than 2 years of labor discipline (Ro-dong-dan-ryeon-hyeong). In serious circumstances, [the person] faces less than 3 years of reform through labour (Rodong Kyohwa-hyeong).

North Korea’s Criminal Procedures and the Accused’s Right to Council

The North Korean legal system maintains a 3-tier, 2-trial system. That is, the courts are divided into three levels, but actually, trials may only be heard twice. However, in the case of the two reporters, the trial was directly handled by the Central Court, meaning that only one trial would be held, and there was, of course, no chance to appeal.

Examining the North’s judicial system and criminal law, one can see that the DPRK constitution divides power among the Central Court, Provincial Courts, People’s Courts, and Special Courts (Constitutional Law, article 153). In addition, according to North Korea’s Criminal Procedure Law, the Central Court was established in order to handle appeals when verdicts handed out by lower courts were challenged (Criminal Procedure Law, article 129, clause 1), and it was designated the supreme court in the North Korea (Constitutional Law, article 161). The law also allows for the direct intervention of the Central Court, or for a case to be sent to a court on the same level or of the same kind as the court giving the initial verdict (Criminal Procedure Law, article 129, clause 2). Furthermore, according to the system established by these codes, after a case is opened in one of these courts, it must be completed within 25 days (Criminal Procedure Law, article 287). In the case of the two American reporters, the prosecution received notice of their charges on May 14, meaning that if they were to be prosecuted, the trial would have to have been completed by June 7.

When the Central Court holds the initial hearing in a prosecution, there are two possibilities for retrial. Only “in the event that it becomes known that the evidence upon which a decision is based was false,” or, “facts become known that could influence a decision and that were not known at the time of the trial,” can a Central Court case be reheard (Criminal Procedure Law, article 409). The decision to retry is in the hands of the North’s judicial authorities, meaning that it would have been difficult to find a route to appeal or retrial for the two reporters.

The verdict in an initial trial is decided by a judge and two civilian jurors, although in special cases a panel of three judges is allowed (court organization law, article 9). Any North Korean citizen with the right to vote can be a judge or civilian juror (Court Organization Law, article 6), and judges and jurors are chosen through democratic elections (Court Organization Law, article 4). A criminal case in North Korea follows a process of investigation, pretrial hearing, indictment, and trial (in that order). A detention order must be signed by a public prosecutor within 48 hours of a suspect’s arrest, and charges must be filed within 10 days (Criminal Procedure Law, article 144, clause 1).

The two reporters were apprehended March 17, and were not transferred to the court until May 14, almost two months later. According to North Korean law, a preliminary hearing must be held within two months of opening a pre-trial investigation (Criminal Procedure Law, article 151, clause 1). If investigators want to extend the investigation period, they must receive permission from a public prosecutor, and then can only extend the investigation for an additional two months (Criminal Procedure Law, article 152). Charges of crimes against the state or against the nation are investigated by the State Security Department (Criminal Procedure Law, article 124). In the case of Lee and Ling, investigators did not apply for an extension, and handed the case over to the courts within the allowed two-month period.

The North Korean constitution guarantees a public trial and the guaranteed the right of defense, although in some cases courtrooms are allowed to be closed (Constitutional Law, article 158). The constitution also guarantees that a foreigner will be able to speak in their native tongue during a hearing (Constitutional Law, article 159). A defendant has the right to choose their legal counsel, and that choice can include family members or a representative from work (Criminal Procedure Law, article 108), as well as the freedom to waive their right to council (Criminal Procedure Law, article 109). The right to choose one’s lawyer is directly related to one’s basic freedoms. In the case of the two American reporters, Laura Ling retained council, while Euna Lee chose not to be represented or give any statement.

The North Korean Central Court sentenced Lee and Ling to ten years of reform through labour for ‘Korean Nation Antagonism Crime’ (Criminal Law, article 69) and an additional four years for illegally crossing into the country (Criminal Law, article 233). However, in the North, in the case of multiple charges, the sentence for the more minor charge is halved, then added to the sentence of the more serious offence, meaning a 12-year sentence for the two reporters. This sentence was to begin within 10 days of the verdict. North Korean law dictates that reform through labour be carried out in reform institution (Judicial Conduct Law, article 25). When a defendant is sentenced, they are to be sent to a reform institution within 10 days, along with a copy of the court’s decision, detention orders, and all other relevant paperwork (judicial conduct law, article 33). This, in a nutshell, is the North Korean legal system, from arrest to starting to serve a sentence.

Kim Jong Il’s Power of Pardon and the Release of U.S. Journalists

When North Korea released the two U.S. reporters, the government claimed to do so based on its “humanitarian and peace-loving policy,” and stated that former President Clinton’s visit deepened understanding and helped to build trust between Washington and Pyongyang. This was an interesting use of Kim Jong Il’s power of pardon. It appears that last April, at the first session of the 12th Supreme People’s Assembly, there was a constitutional revision that transferred the ability to grant pardons from the SPA Presidium to the Chairman of the National Defense Commission (NDC). According to a ‘report’ of Clinton’s visit released by North Korean authorities on August 5, “In accordance with the Socialist Constitution Article 103, pardon is granted to two U.S. reporters sentenced to reform through labour; the Chairman of the National Defense Commission of the Democratic People’s Republic of Korea passed down the order for [their] release.”

After the previous constitutional revision, coinciding with the launch of the Kim Jong Il regime in September 1998, article 103 clause 5 specified the duties and powers of the chairman of the NDC, but there was no mention of the ability to pardon. However, article 110, clause 17, which defines the duties and powers of the SPA Presidium, states that it “exercises the right to grant general amnesties or special pardon.” In the past, when pardons were granted on national holidays or in conjunction with other important events, they were done so in the name of the SPA Presidium. North Korea has yet to publicize what constitutional changes were made in April, but with the release of the two Americans in the name of Kim Jong Il, it can be seen that the ability to grant general amnesty has been transferred to the NDC chairman. Earlier, on May 22, the Japanese newspaper Nikkei (日本經濟新聞) quoted members of a delegation from the Economic Research Institute for North East Asia (ERINA) as saying that their North Korean counterparts had explained that the power to ratify and nullify treaties, to grant amnesty, and to issue announcements in times of emergency had been transferred to the chairman of the NDC.

After 142 days, Euna Lee and Laura Ling have finally returned to their families.

Posted in Cabinet, DPRK Policies, National Defense Commission, Statutes, Supreme Peoples Assembly | 1 Comment »

Jang moves to NDC

Thursday, April 16th, 2009

A couple of weeks ago, the DPRK anounced that Jang Song taek had been appointed to the National Defense Commission.

Today, Michael Madden sent me a biography (CV) of Jang he put together. You may download it here in PDF format.

Also, the Los Angeles Times published an article about Jang. You can read the LA Times piece here.

Posted in National Defense Commission | Comments Closed

Last week in North Korea’s government

Sunday, April 12th, 2009

Jang Song-taek, Kim Jong il’s brother in law, and his senior aid were promoted to the DPRK’s top governing body the National Defense Commission. Jang was recently elected to the Supreme People’s Assembly last month.

Of slightly less interest was the fact that Kim Jong il was reappointed to the National Defense Commission as well.

According to Yonhap, the Supreme People’s Assembly, which formally “elected” Kim and Jang to the NDC also unanimously voted to revise the DPRK’s constitution for the first time in 11 years. They did not announce what those changes were intended to be.

This session of the Supreme People’s Assembly saw the first video appearance by Kim Jong il since last summer when he is reported to have suffered a stroke.

And according to IFES, the SPA approved the state budget:

DPRK sets 2009 budget at USD$3.45 billion
Institute for Far Eastern Studies (IFES)
NK Brief No. 09-4-13-1
2009-04-13

On April 9, North Korea opened the first session of the 12th Supreme People’s Committee, at which this year’s budget, 5.2 percent larger than that of last year, was passed. Pyongyang set the 2009 budget at 482.6 billion Won (1 USD=140 Won).

At this meeting, North Korea’s newly appointed Minister of Finance Kim Whan-su reported on last year’s budget and introduced the spending plan for 2009. While details were not revealed, it was noted that the overall budget had grown by 5.2 percent, with expenditures up 7 percent. The 2008 budget had been set at 451.5 billion won. It was also reported that last year’s spending was 1.6 percent over-budget, but that 99.9 percent of budgeted expenditures had been carried out.

Minister Kim reported that taxes from Chinese enterprises and related national businesses had grown by 5.8 percent, and that cooperative organizations were up 3.1 percent, production earnings were up 6.1 percent, real estate income had grown 3.6 percent, and social insurance had brought in an addition 1.6 percent.

As for the expenditure plan, city administration was allotted an additional 11.5 percent, while mining of metal, coal, steal, and other natural resources was boosted by 8.7 percent, education received an additional 8.2 percent, public health care grew by 8 percent, farming was bumped by 6.9 percent, physical education by 5.8 percent, light industry by 5.6 percent, and cultural activities by 3.2 percent. National defense accounted for 15.8 percent of the overall budget, just as it did last year, meaning that 545 million USD will be put toward the military.

Kim explained that the 2009 budget was based on the idea of “reducing unproductive expenditures in order to find the utmost source of revenue to ensure perfect support for the funds necessary to strengthen national security, improve the lives of the people, and build an economically strong nation.”

At this meeting, Kim Jong Il was reappointed to the post of chairman of the national defense commission, and Kim Yong Nam was reaffirmed as the head of the Cabinet.

Posted in Cabinet, Fiscal & monetary policy, National Defense Commission, Supreme Peoples Assembly | 3 Comments »

DPRK announces military personnel changes

Thursday, February 12th, 2009

UPDATE 2: According to Yonhap:

North Korean leader Kim Jong-il appointed his loyal aide to the No. 2 post in the National Defense Commission on Friday, state media said, another sign of the aging leader consolidating his circle.

O Kuk-ryol was named the commission’s vice chairman, second only to Kim, said the North’s Korean Central News Agency.

North Korean media have said little about O, considered to be a combat-savvy veteran who served as the North’s air force commander and chief of the operational department of the ruling Workers’ Party.

Baek Seung-joo, a Seoul-based analyst, said O helped Kim Jong-il win support from the military in the early 1980s after he was tapped as successor of his father and North Korean founder Kim Il-sung.

“O is a senior military figure whom Kim Jong-il trusts,” Baek said.

O, 78, replaces Kim Yong-chun, who was recently promoted as minister of the People’s Armed Forces, the counterpart of South Korea’s Defense Ministry.

N. Korean leader promotes loyal aide in military shakeup
Yonhap
2/20/2009

UPDATE: A short biography of Kim Yong Chun (Big h/t again to Mike):

Born 1936, Kangwon Province

Education
Mangyongdae Revolutionary School
Kim Il Sung University

Positions Held
1960: Secretary, South Phyongan Provincial Committee
1980: Alternate Member, CCKWP (October)
1982: Lieutenant General, Korean People’s Army (year presumed)
1986: Director-General, Strategy Department, delegate to 8th SPA (November), and member of CCKWP (6th term, 12th plenary session, December)
1987: Order of Kim il Sung Award (April)
1990: Delegate, 9th SPA, representing Solbong, Kangwon (April)
1992: Appointed General, KPA (April)
1993: Director-General, General Munitions Mobilization Bureau, KPA (October)
1994: Commanding Officer, KPA Sixth Army Corps (March) and member of Kim il Sung Funeral Committee (July)
1995: Member of O Jin-u Funeral Committee (February), appointed Vice-Marshal and Chief of Staff, KPA (October)
1998: Delegate, 10th SPA (July), appointed to the NDC (September)
2007: Elected Vice Chairman of the NDC, at the ninth session of the 11th SPA (April)
2009: Appointed as Minister of People’s Armed Forces (February)

Ongoing: Member of the CCKWP and the State Funeral Committee

According to KCNA, Ri Young ho was last promoted in 2002:

Pyongyang, April 14 (KCNA) — Kim Jong Il, Supreme Commander of the Korean People’s Army, issued order no.00152 to raise the military ranks of KPA commanding officers on the occasion of the Day of the Sun. According to the order dated April 13, Kim Yun Sim, Kim Jong Gak and Ryo Cyun Sok were promoted to generals.

The military rank of colonel general was conferred on Paek Sang Ho, Kang Yong Ho, Ri Thae Il, Kim Yang Jom and Pak Sung Won and that of lieut. General on Ri Yong Ho, Ri Yong Gil, Hwang Hong Sik, Pak Su Chol and Pang Kuk Hwan. Ri Yong Rae and 39 others were promoted to major generals.

Coincidentally, on that same day in 2002 KCNA announces that Jang Song Taek’s brother was given a military promotion:

Military rank of KPA vice marshal conferred on Jang Song U

Pyongyang, April 14 (KCNA) — The military rank of vice marshal of the Korean People’s Army was conferred on Jang Song U, according to the April 13 joint decision of the Central Military Commission of the Workers’ Party of Korea and the DPRK National Defence Commission.

ORIGINAL POST:
According to KCNA yesterday:

Minister of People’s Armed Forces and Chief of General Staff Newly Appointed in DPRK

Pyongyang, February 11 (KCNA) — A decision of the DPRK National Defence Commission and the Central Military Commission of the Workers’ Party of Korea was released on February 11 in the name of Kim Jong Il, chairman of the DPRK National Defence Commission and chairman of the WPK Central Military Commission.

Vice Marshal of the Korean People’s Army Kim Yong Chun was appointed as minister of the People’s Armed Forces of the National Defence Commission of the DPRK and KPA General Ri Yong Ho as chief of the KPA General Staff, according to the decision.

Former Defense Minister, Kim il Chol, was 70 when he was appointed to the post in 1998. According to the media at the time:

North Korean leader Kim Jong Il has picked Vice Marshal Kim Il Chol, a close confidant, as defense minister, virtually completing a reorganization of the military, the official Korean Central News Agency (KCNA) reported Tuesday.

The KCNA report monitored in Tokyo said Kim Il Chol, about 70 years old, was promoted from first vice minister to minister of the People’s Armed Forces.

The post of defense minister had been vacant since the death of Choe Kwang in February 1997.

Kim Jong Il issued the order Monday in his capacity as chairman of the National Defense Commission (NDC), a post which makes him North Korea’s head of state under the revised Constitution.

The Supreme People’s Assembly, the North’s parliament, revised the country’s 1972 Constitution on Saturday, abolishing the state presidency.

Kim Il Chol was a frequent companion of Kim Jong Il, the supreme commander of the North Korean army.

These changes come at the same time as other personnel changes are announced. See related posts here and here.

Hat tip to Mike.

Posted in Korean People's Army, Military, Ministry of People’s Armed Forces, National Defense Commission | 3 Comments »

Kim Jong il nominated to run for SPA

Friday, February 6th, 2009

UPDATE: From the Institute for Far Eastern Studies:

The 12th election of representatives for the North Korean Supreme People’s Assembly, scheduled for March 8, and the opening of the session of the 12th SPA, expected to occur in late March or early April, will mark the launch of the third government under Kim Jong Il

Kim Jong Il was elected to his current position of NDC chairman by 10th SPA in 1998, and was reelected in 2003 by the 12th SPA. In those cases, as well, the Constituency No. 333 announced his nomination. It is expected that all other election constituencies across the country will begin holding celebratory events for Kim soon in order to disseminate propaganda portraying Kim as the representative for all the North Korean people.

Over at One Free Korea, Joshua points out KCNA’s gushing coverage of Kim Jong il’s nomination as a candidate in the upcoming elections for the Supreme People’s Assembly :

Pyongyang, February 4 (KCNA) — Upon hearing the news that General Secretary Kim Jong Il was nominated as a candidate for deputy to the 12th Supreme People’s Assembly at Constituency No. 333, the entire army and people are full of great happiness and pride of having the peerlessly great man as the leader of the nation.

Anti-Japanese revolutionary fighter Hwang Sun Hui said that the anti-Japanese revolutionary fighters were very happy to hear the news. She went on:

A few days ago the officers and men of the People’s Army nominated Kim Jong Il as a candidate for deputy to the SPA with boundless reverence. This is the unanimous will and ardent desire of the entire people.

On receiving this happy news with the February 16, the greatest holiday of the nation, ahead, I can hardly repress the swelling emotion.

We anti-Japanese revolutionary fighters will uphold the leader’s plan of building a great, prosperous and powerful nation in the van of the people.

Vice-premier of the DPRK Cabinet Thae Jong Su, noting that having nominated Kim Jong Il as a candidate for deputy to the SPA this time again is the unanimous will of the entire army and people and a great auspicious event of the nation, said:

Kim Jong Il has been leading the Party and the revolution along one road of victory for scores of years, thus performing great feats which will remain immortal in the history of the country.

He is the peerlessly great man who has defended firmly and developed in depth President Kim Il Sung’s Juche-oriented idea and line on state building and demonstrated the dignity and might of the DPRK all over the world with his original Songun politics.

All the officers and men of the People’s Army and the people came to have as a firm faith through life that he is the destiny and future of our country and nation and the symbol of all the victories.

Needless to say, the coverage from Singapore is far more sober and satisfying:

NORTH Korean leader Kim Jong-Il was Sunday nominated to run in next month’s parliamentary elections, a requirement if he to stay on as supreme army commander, a South Korean official said.

Elections for the rubber-stamp Supreme People’s Assembly should have been held last year, but did not go ahead amid reports that the 66-year-old Mr Kim suffered a stroke in August. They are now set for March 8.

He is legally required to be a lawmaker in order to be eligible to serve as chairman of the powerful National Defence Commission, which runs North Korea’s 1.1-million-strong army. It is in this capacity that Kim rules the country.

South Korean unification ministry spokesman Kim Ho-Nyoun told AFP that the North’s state television reported that Kim had been nominated to run in the 333th district for the polls.

Candidates are picked by either the government or the ruling communist party, and it is common for only one candidate to run for each electoral seat.

In the last elections in 2003, the North Korean media boasted a 99.9-percent voter turnout and 100-percent support for every candidate.

A new assembly usually reaffirms his chairmanship of the National Defence Commission, and brings a reshuffle of the cabinet and military leadership, the officials say.

Some analysts in Seoul have forecast the elections also may bring changes to North Korea’s leadership, in preparation for a post-Kim era.

Read the full story here:
NKorea’s Kim to run in polls
AFP via Stratits Times
2/1/2009

Posted in Cabinet, Institute for Far Eastern Studies, National Defense Commission, Political economy, Supreme Peoples Assembly | 4 Comments »

CIA publishes 2008 “DPRK who’s who”

Wednesday, January 14th, 2009

UPDATE: The South Korean Ministry of Unifications offers a more comprehensive organization chart of North Korea’s various political organs. I should point out that this is a dejure (not defacto) organizational chart.

ORIGINAL POST:
(Hat tip to Mike Madden for the link)

After the ministerial shakeups in the DPRK were discovered last week, the US Central Intelligence Agency updated their list of DPRK VIPs. It will come as no surprise that Kim Jong il managed to maintain control of his three titles: General Secretary Korean Workers’ Party, Supreme Commander of the Korean People’s Army, and Chairman of the National Defence Commission.

The full list can be viewed on the CIA’s web page here.

Posted in Korean People's Army, National Defense Commission, Worker's Party | 10 Comments »

2008 Top Items in the Jangmadang

Thursday, January 1st, 2009

Daily NK
Park In Ho
1/1/2009

The marketplace has become an extremely important ground in North Korean people’s lives. 70 percent of North Korean households in the city live off trade, handicrafts and transportation businesses related to trade. If the jangmadang works well, people’s living situation is good, otherwise it is not. In the situation where the food distribution system has broken down, the whole economic existence of the populace is bound up in jangmadang trade.

Trade is bound to generate successful merchants but also failures, due to a lack of know-how or confiscation of products by the People’s Safety Agency (PSA), or simply because a competition system operates. These failures in the jangmadang do not have any second opportunity to rise again so they frequently choose extreme acts like defection, criminality or suicide. Failure is serious.

However, the revitalization of markets has caused great changes in North Korean people’s values. The individual-centered mentality among the people is expanding and the belief that money is the best tool is also spreading. Due to such effects, the North Korean communist authorities in 2008 made the regulation to prohibit women younger than 40 years old from doing business, but of course the people use all necessary means to maintain their survival.

Daily NK investigated the 2008 top ten items in the jangmadang, so as to observe developments in North Korean society.

1. Rice in artificial meat, the first instance of domestic handicraft

Since 2000, the most ubiquitous street food has been “rice in artificial meat,” which is made from fried tofu with seasoned rice filling. This food is found everywhere on North Korean streets. One can find women who sell this snack in alleys, at bus stops and around stations. It costs 100 to 150 North Korean Won.

Meanwhile, the most popular street food is fried long-twisted bread. Individuals make the fried bread at home and sell it on the street. The length of the fried bread is around 20 centimeters and it sells for 100 won.

In around 2005 corn noodles were popular on the streets, but now street-stands for noodles have largely disappeared due to the existence of a permanent store controlled by the state.

These days, if one can afford to eat corn noodles, at approximately 1,000 won for a meal, one can safely say that one is living comfortably.

2. Car battery lights North Korea

The reason why North Korean people like car batteries is that the authorities provide a reliable electricity supply during the daytime, when consumption is less than at night, but at night they don not offer it. The authorities shut down the circuit from around 8 PM to 9PM, and from 12 AM to 2 AM: when the people watch television the most.

As a result, the people charge their car batteries during daytime and use it at night. A 12V battery can run a television and 30-watt light bulb. If they utilize a converter, they can use a color television, which needs more electricity.

Ownership of batteries is a standard of wealth. Officials use electricity from batteries in each room. They usually draw thick curtains in their rooms, to prevent light shining through that might draw attention to their status.

3. The strong wind of South Korean brand’ rice-cooker, Cuckoo

A South Korean brand pressure rice-cooker called Cuckoo appeared as a new icon for evaluating financial power among North Korean elites.

It has spread from the three Chinese northeast provinces into North Korea. In North Korea, Chinese rice and third country aid rice, dry compared to Korean sticky rice, generally circulates, but if the lucky few use this rice-cooker, they can taste sticky rice the way Korean people like it.

There are Cuckoo rice-cookers from South Korean factories that arrive through Korean-Chinese merchants, and surely other Cuckoo products from Chinese factories. These two kinds of rice-cookers, despite having the same brand name, sell for different prices.

The Chinese-made Cuckoo sells for 400,000-700,000 North Korean Won (approximately USD114-200), while the South Korean variety costs 800,000-1,200,000 (approximately USD229-343). A Cuckoo rice-cooker tallies with the price of a house in rural areas of North Korea. According to inside sources, they are selling like wildfire.

4. An electric shaver only for trips

The electric shaver is another symbol of wealth.

It is not that they use electric shavers normally, because one cannot provide durability. At home, North Korean men generally use disposable shavers with two blades made in China or a conventional razor. However, when they take a business trip or have to take part in remote activities, they bring the electric shaver.

There are North Korean-made shavers but most are imported from China. Among Chinese products, you can see “Motorola” products and fake-South Korean products with fake labels in Korean. A Chinese-made electric shaver is around 20,000-40,000 North Korean Won.

5. Chosun men’s fancy shoes

Dress shoes are one of the most important items for Chosun men when they have to participate in diverse political events, loyalty vows or greeting events at Kim Il Sung statues on holidays. Right after the famine in the late 1990s, it was considered a symbol of the wealth, but now general workers, farmers and students are wearing dress shoes.

The shiny enameled leather shoes with a hard heel cannot be produced in North Korea because of a lack of leather. The North Korean authorities provide the National Security Agency (NSA) and officers of the People’s Army with dress shoes, which are durable but too hard and uncomfortable.

Shoes for general citizens and students are mostly made in China and some are produced in joint enterprises in Rajin-Sunbong. The price of shoes ranges from 30,000 to 100,000 Won depending upon the quality.

6. Cosmetics prosper despite the economic crisis

Cosmetics and accessories for women are getting more varied. Lately, false eyelashes have appeared in the jangmadang in major cities. Chinese cosmetics are mainly sold, alongside fake South Korean brands. In Pyongyang, Nampo, Wonsan and Shinuiju Chinese and even European cosmetics are on sale.

“Spring Fragrance,” a North Korean luxury cosmetics brand, is famous for being Kim Jong Il’s gift that he presents to women soldiers or artists when he visits military units or cultural performances. It costs more than 200,000 North Korean won.

Lotions for women, made in China, are approximately 2,000-4,000 won, foundation cream is 3,000-5,000 won, and lipstick is from 500 won to 2,000 won. Hand cream is 3,000-5,000 won.

7. Hana Electronics recorder, the biggest state-monopoly production

“Hana Electronics” was originally set up to produce CDs and DVDs of North Korean gymnastic performances or other artistic performances, so as to export them foreign countries. The company has been producing DVD players since 2005.

Due to the state monopoly, the DVD player of the Hana Electronics dominates the market. North Korean people call a VCR and a DVD player a “recorder.” Since around 2005, after the booming interest in South Korean movies and dramas, the players have been selling very well.

At the beginning, North Korean visitors to China brought the DVD or CD players into North Korea, but as they got popular among the people, Chinese-made players were imported from China and since 2006 they have been really popular in every jangmadang.

Accordingly, since 2006, the authorities have started blocking the importation of the Chinese player and are selling the Hana Electronics players, which sell for around a 20 or 30 percent higher price than Chinese players in state-run stores. Now, they can be sold in the jangmadang by private merchants and comparatively free from inspection by the PSA. The prices are 130,000-150,000 won.

8. Bicycles are basic, the motorcycle era is here now

In major cities, numbers of motorcycles are increasing. Especially in border regions where smuggling with China is easier than in other cities, motorcycles are common.

The motorcycles are ordinarily used for mid or long distance business. Most motorcycles are made in China and some are Japanese second-handed products, which sell for 1.5-2.5 million won. 125cc new products are over 5 million won. The cheapest second-handed motorcycle is 500,000 won.

9. Vinyl floor covering for the middle class and vinyl for the poor

Demand for vinyl floor coverings and vinyl has been increasing since the late 1990s, when residential conditions improved. In the late-1990s people had to use sacks of cement or Rodong Shinmun (newspaper) as a floor covering, but now they are using vinyl floor coverings.

Uses for vinyl are unimaginably diverse: from a basic protection against wind and cold to when people take a shower at home in the vinyl tunnel hung on the ceiling of the bathroom.

Depending on the thickness and width, there are four or five kinds of vinyl in the jangmadang for from 150 to 500 won. Vinyl floor covering is a Chinese product selling for from 3,000 to 10,000 won.

Posted in Agriculture, Black markets, Clothing, Cosmetics, Economic reform, Electricity, Energy, Food, General markets (FMR: Farmers Market), Manufacturing, Ministry of People’s Security (Criminal Police), Ministry of State Security (MPSS, NSA, SSD), Price liberalization, Television | Comments Closed

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