Archive for the ‘Cabinet’ Category

The North Korean gov’t tightens the screws on foreign trade

Wednesday, June 8th, 2022

By: Benjamin Katzeff Silberstein

Over the past year, Daily NK (and primarily its stellar reporter Seulkee Jang) has reported on what seems to be a fairly consistent effort by the North Korean regime to strengthen its controls over foreign trade permits. The Covid-19 border lockdown has made this, as other repressive measures of economic policy, a much easier task than it otherwise would have been. The purpose of this post is to summarize the development to date by gathering the reports in one place, hopefully generating a somewhat holistic picture of what’s been happening.

Tight government regulation of foreign trade is, of course, nothing new in North Korea. Trade has always occurred at the mercy of the state, making it a fertile ground for corruption. From May 2019:

The continuing international sanctions on North Korea are causing difficulties for the country’s traders, who are having trouble finding items not on the sanctions list to sell as well as having to pay “loyalty payments” to the state and bribes to government officials.

“Traders are saying that the business environment in North Korea is poor and that they have a lot of difficulty importing materials from China that don’t violate the sanctions. Even if products clear Chinese customs without a problem, traders face issues in North Korea […] North Korean customs agents demand bribes and the traders say they’re left with nothing,” a source in North Hamgyong Province told Daily NK.

“The customs officials demand bribes and justify their demands with excuses like ‘The state is building this or that project so be a patriot and hand over the money’ […] Traders don’t have much choice, so they just pay the bribes.”

[…]

Traders are faced with being branded “anti-socialist” and punished if they refuse to contribute money for so-called state construction projects.

Government officials ultimately decide whether such payments really go to state construction projects or are accepted as personal bribes. Some of the customs officials may be sending some of the money to state coffers while keeping the rest for themselves.

It is not only imports of contract-manufactured materials imported from China that are facing difficulties. Traders who manufacture products in North Korea and export them to China also face demands from customs officials for bribes.

(Mun Dong Hui, “North Korean customs officials continue to demand bribes from traders,” May 5th, 2019.)

In November 2020, the Supreme People’s Assembly revised the country’s enterprise law to strengthen state control over firms engaging in foreign trade. Late that month, a source for the Daily NK claimed that the revision reduced what private traders have to pay to the state while strengthening control over these units:

According to a Daily NK source in Pyongyang, the bill to revise and supplement the Enterprise Act includes provisions that reduce what private “kiji” pay to the state and encourage foreign exchange earning and trading activities.

A kiji is a small private business organization of about seven people that is nominally attached to a trading company.

The act has permitted payments to the state (in cash or kind) to be cut by a third and private business operators are now allowed to take a greater share. The relevant cadres have been ordered to encourage the establishment of enterprises by telling prospective entrepreneurs that they “may pay just 10% of their profits.” It remains unconfirmed, however, whether this has been clearly included in the legislation.

“Since the (individual’s) take has been increased, it could also be read as an instruction to do more private business or earn more foreign currency,” the source said, speaking on condition of anonymity.

In particular, the authorities reportedly prepared the legal basis to reinvigorate trade through the latest revision to the Enterprise Act.

(Seulkee Jang, “N. Korea’s recent revision of Enterprise Act appears aimed at increasing trade,” November 25th, 2020.)

Some five months later, in April the following year, DNK reported that the state had ordered trading agencies to apply for new waku or trading permits, meaning that they would be required to submit a wide range of documents for scrutiny:

The agencies that will begin conducting trade on Apr. 20 received direct orders from the party to continue trade even after the border was closed at the end of January 2020. As companies belonging to powerful North Korean institutions, these agencies will simply have to undergo an inspection to confirm their activities. As soon as this is complete, they will be permitted to participate in official trade.

The authorities reportedly shortlisted trading companies that are a part of the Central Committee or the Munitions Industry Department (MID) to receive permission to resume trade.

Meanwhile, the authorities ordered that individual traders working for non-priority trading companies or agencies apply for new waku.

The Ministry of External Economic Relations gave each trading agency written instructions to reapply for new waku during the three days between Apr. 12 and Apr. 14. Trading agencies and companies reportedly submitted their applications and authentication materials via the North Korean intranet per the guidelines.

Even agencies and individuals who have been issued waku in the past must apply again for a new permit. If there are no issues, the firms will receive their newly-issued waku after an evaluation period of three to four weeks and be able to participate in official trade from the beginning of May.

Materials needed for the waku application reportedly include certificates regarding partner companies in China, records of previous imports and exports, and plans for future trade.

(Seulkee Jang, “N. Korea hands down order regarding issuance of trade certificates,” April 20th, 2021.)

Around the same time, the authorities reportedly began to more thoroughly investigate traders to crack down on smuggling, partially as a result of the above-mentioned scrutiny:

A Daily NK source recently reported that the authorities have been ferreting out and punishing traders involved in smuggling. This crackdown could be an attempt to encourage trade workers to be cautious until the authorities open the border.

“From the beginning of this month until recently, the authorities have been arresting anyone who engaged in smuggling and those who did not submit their ‘loyalty fees’ to the party on time. [The authorities] have exiled some of them to remote areas, or sentenced them to re-education through labor or even death,” a source in North Pyongan Province said on May 18. “They are being punished because they misappropriated trade profits for their own personal gain and not for the benefit of the country.”

The hunt for those who participated in or abetted smuggling and those who failed to pay party “loyalty fees” reportedly came to a close in late April. North Korean authorities also investigated traders and firms applying for new waku (trade certificates) during the same period.

North Korean authorities accepted new waku applications from Apr. 12 and Apr. 14. After receiving the applications, the Central Committee’s Department of Economic Affairs, the Ministry of Foreign Trade, and the Ministry of State Security began screening them.

“Twenty people ended up being targeted for punishment,” the source said. “[The authorities] arrested all of them at the same time and their punishments were meted out immediately.”

(Seulkee Jang, “North Korean authorities ferret out traders involved in smuggling,” May 24th, 2021.)

These increasingly intense investigations targeting “unauthorized trade” continued through the summer, as DNK reported in June and July:

The KPW-USD rate broke past KPW 7,000 on May 18, just before the new waku were issued. The renminbi was also going beyond KPW 1,000.

Daily NK has found that the exchange rates – which had been climbing continuously on the back of expectations surrounding the reopening of trade, and the issuance of new waku – suddenly collapsed because of new trade controls recently enacted by the North Korean authorities.

According to a high-ranking source, the Central Committee issued an order on June 3 telling recipients of new waku that their certificates did not mean they could participate in trade “right away.” If they do participate in trade without Workers’ Party approval, warned the order, it would be regarded as smuggling and subject to severe punishment.

(Seulkee Jang, “US dollar and Chinese reminbi plummet against North Korean won once again,” June 9th, 2021.)

And the report from July:

North Korean authorities are conducting large-scale inspections aimed at cracking down on unauthorized trade. This has led some North Korean trading companies involved in the trade of “unauthorized items” to cancel their transactions with Chinese traders.

According to a Daily NK source in China on Sunday, an unnamed North Korean trading company recently requested its Chinese partner suspend a transaction. The Chinese partner found this absurd as it was already prepared to ship the construction materials, paper, soap, and other sundries that had been ordered.

[…]

A Daily NK investigation – based on information from multiple sources in North Korea – has determined that the Ministry of State Security, Ministry of Social Security, and disease control authorities launched a joint inspection into illegal trading activity last month.

On June 3, North Korean authorities issued an order that warned traders against engaging in trade without prior approval from the Workers’ Party, regardless of whether they received a new waku (trade certificate). According to the order, unauthorized trade will be regarded as “smuggling” and subject to punishment.

The authorities subsequently formed inspection teams, which are now scrutinizing recent transactions by the country’s trading companies.

Trading companies that tried to import unauthorized goods along with authorized items now appear to be “scrambling” to cancel their deals with Chinese traders or are simply refusing to accept the cargo.

“North Koreans say you can trade only if you’ve gotten permission from that person [North Korean leader Kim Jong Un] – even if you’ve got a waku,” one of the sources in China told Daily NK. “Instead of trade returning to [pre-pandemic] levels, it’s getting harder [for Chinese traders] to conclude deals with North Korea.”

(Seulkee Jang, “North Korea conducts large-scale inspections aimed at ending unauthorized trade,” July 6th, 2021.)

Only days later, DNK reported that approximately 20 trading company heads had been arrested in the crackdown against unauthorized trade. The reference to quarantine procedures is a clear example of how anti-epidemic measures have often intertwined with enhanced state controls:

According to a Daily NK source in North Korea on Thursday, the authorities arrested around 20 heads of trading companies during a “joint inspection” of trade-related entities that began last month. Hundreds of trade workers have also been arrested and are undergoing questioning.

The ruling party’s Organization and Guidance Department is reportedly taking overall command of the joint inspection.

Those arrested are being charged with either importing items outside their approved import lists or distributing imported items that have not gone through proper quarantine procedures.

North Korean authorities are reportedly applying heavy punishments on importers who circumvent quarantine procedures, rather than focusing on just the import of unapproved items.

Daily NK understands that the items imported by companies busted in the latest inspection include consumer goods scarce in most of the country’s markets, including seasonings, soybean oil, sesame seeds, and sugar.

Based on Daily NK’s information, the authorities have confiscated all of the unapproved imported items. They have also confiscated the waku (trade certificates) of the relevant trading companies.

[…]

Daily NK’s source, speaking on condition of anonymity, said that the authorities are making no exemptions in this latest crackdown – not even for trading companies attached to Bureau 39, which handles the ruling Kim family’s slush funds. If companies are caught engaging in illegal trade, they apparently face severe and “merciless” punishment.

North Korean leader Kim Jong Un has reportedly ordered that individuals caught in the inspection face criminal proceedings rather than “party-related punishments”; that busted cadre-level trade officials be stripped of their party credentials; and that the authorities apply the same criteria in their crackdown to companies affiliated with “special institutions.”

Given that North Korean authorities regard illegal trade by trading companies as “political activity,” offenders apparently face the severest of punishments — including death or confinement in a political prison camp — depending on the severity of their crimes.

“At the very least, nobody will get away with a mere slap on the wrist, like time in a forced labor or reeducation camp,” the source said.

(Seulkee Jang, “North Korea arrests around 20 trading company heads in latest crackdown on unauthorized trade,” July 16th, 2021.)

The crackdown continued even in the face of food shortages that underscored the need for more imports, fast:

The source said the committee also pointed to blocked provisions of raw materials and supplies in all areas of economic activity and serious energy shortages. The committee said discussions of trade must focus on these problems, essentially calling for traders to resolve food shortages and normalize enterprise operations by promptly restarting trade.

However, the source said the committee focused more on “system compliance.” It told traders that they must abandon rushed “campaigns” and deeply analyze trade as it involves the import and export of the state’s foreign exchange.

Moreover, it criticized officials in higher-level work units for personal and institutional selfishness, bragging about their “special” status. This well worn practice must be “uprooted,” it said.

The committee targeted corruption as well. Officials said they would show no forgiveness for traders collaborating with certain individuals to “mix goods” that have nothing to do with the national economy into their imports. It warned that “non-socialist and anti-socialist behavior” would face punishment by the party, administrative organs, or through the legal system.

(Jong So Yong, “Yanggang Province’s provincial party committee discusses China-North Korea trade,” December 31st, 2021.)

For some months, DNK reports on the issue took a pause, suggesting that the campaign may have ceased to grow in intensity for some time. In early April 2022, however, Jang Seulkee reported that a large-scale restructuring appears to be going on in the foreign trade sector, strengthening cabinet control:

North Korean authorities are disbanding trading firms that fail to produce results, and restructuring the trade sector to give the Cabinet direct supervision over the import and export details of all trading companies, as well as their profits.

According to multiple Daily NK sources in North Korea on Friday, the authorities have been placing trading companies across the nation under the direct control of the Cabinet. Trading companies that have failed to take part in import or export activity over the last couple of years are being merged out of existence, even if they are under the jurisdiction of “special bodies” like the security services.

The authorities have also created a report system that allows the Cabinet to manage or supervise trading companies’ accounting records and cash flow.

[…]

North Korea has apparently started to structurally readjust the trade sector as part of efforts to restore the state’s “unitary trading system.”

In a report on economic affairs to the Supreme People’s Assembly in February, Premier Kim Tok Hun said he would continue to push activities to restore the state’s unitary trading system in the external economic relations sector.

North Korean authorities have granted enterprises some degree of trade autonomy since North Korean leader Kim Jong Un took power, but the premier’s comment could be seen as a declaration that the state would be the sole trading actor going forward.

North Korean authorities have begun merging trading companies and bringing them under Cabinet supervision as their first effort to restore the state’s unitary trading system in an apparent bid to resolve the problem of bloated trading companies making illicit gains.

(Seulkee Jang, “North Korea restructures trade sector to give Cabinet more direct supervision over imports/exports,” April 4th, 2022.)

Ten days later, Jang reported that trade certificates of several trading companies of significant size had been confiscated by the authorities, who also arrested some ten trade officials:

According to a Daily NK source in North Korea on Wednesday, the Central Public Prosecutor’s Office arrested about 10 trade officials this month, confiscating the waku of their trading companies as well.

During North Korea’s efforts over the last month to merge trading companies, the authorities have discovered cases where companies have taken on excessive debt. The government has taken issue with officials of these companies for poor accounting practices and filing false financial reports.

Daily NK recently reported that North Korean authorities have started restructuring the country’s trade sector as the first step to restoring the state’s “unitary trade system.” These efforts have included merging and disbanding trading companies and making companies directly report their trading and sales details to the country’s Cabinet.

The individuals arrested in the latest round-up include officials with trading companies attached to major state institutions, including the Supreme Guard Command, Ministry of State Security, and External Construction Guidance Bureau. North Korea has apparently punished individuals and companies when their financial audits have turned up problems, regardless of the company’s size or parent organization.

However, trading companies that had their waku confiscated are crying foul. They say it is wrong for prosecutors to take away their waku simply because “rash financial audits” turned up “excessive debts” or missing numbers when the prosecutors themselves know nothing about the companies’ trade transactions.

(Seulkee Jang, “N. Korea confiscates the trade certificates of several mid- to large-sized trading companies,” April 14th, 2022.)

All of this was, naturally, related to the state effort to collect more foreign currency in the face of what must be depleting supplies:

North Korean authorities are reviewing how well provincial trade bureaus have met their foreign currency quotas in the first quarter of the year and are auditing bureaus that failed to meet their quotas, Daily NK has learned.

“The government has assigned officials from the State Planning Commission and the Ministry of External Economic Relations to audit the provinces that failed to provide the state with the planned amount of foreign currency funds in the first quarter of the year. The auditors are supposed to review the results and correct what went wrong,” a source in North Hamgyong Province told Daily NK on Wednesday.

[…]

“The current objective of the audit is to figure out how persistently and energetically provincial trade bureaus have been in delivering foreign currency to the state. But another objective is to pressure the bureaus to unconditionally meet the state’s foreign currency quota in the future,” the source said.

The auditors have mostly been examining documents provided by managers, bookkeepers, and statisticians at trade companies in North Hamgyong Province. After marking problem areas in red, they are meeting with the people involved to check on their work processes and outcomes, the source explained.

According to him, the auditors in North Hamgyong Province have looked through all the documents not only from the first quarter of the year but from the last two years as well. They are asking hard questions about the province’s failure to meet the foreign currency quota. The auditors reportedly believe that low-level trade organizations did not make a serious effort to meet the quota.

Trade organizations did manage to get permission in Sinuiju for sending imports and exports through the Uiju quarantine center. However, the auditors were greatly disappointed by the fact that these organizations, thinking they had no way of meeting the quota, attempted to shirk responsibility for not sending any foreign currency to the government over more than two years.

(Jong So Yong, “N. Korea conducts audits on how well provincial trade bureaus met foreign currency quotas,” April 29th, 2022.)

As is often the case, provincial administration incentives appear to be misaligned with the central government’s orders:

North Hamgyong Province’s trade bureau is working hard to ensure the survival of as many trade companies as possible following orders by the central government to merge or close companies deemed ineffective.

“The provincial trade bureau is under a great deal of stress due to the government’s instructions regarding the merger and closure of trade companies,” a source in the province told Daily NK on Monday.

North Korea is carrying out several measures to either combine trade companies or eliminate them altogether as part of broader efforts to restore a system in which all trade is administered by the state, he explained.

With trade companies facing the very real prospect of elimination, many are making every effort to survive, with the hope that trade will resume in earnest once the country’s borders are reopened, the source added.

The source said that the North Korean government believes that it does not need trade companies that focus solely on either imports or imports. During the trade company registration process, the government is setting precise figures for imports and exports and emphasizing that only trade companies that can actively pursue both activities serve the state’s economic interest.

(Jong So Yong, N. Hamgyong Province’s trade bureau under stress to save as many trade companies as possible,” May 4th, 2022.)

As of last month, the process to tighten trade administration was still ongoing. The aforementioned state surveys of trading companies revealed that all of them carry substantial amounts of debt:

North Korean authorities are pushing the dissolution and merging of trading companies as the first stage of the restoration of the unitary state-led trading system. However, things are reportedly moving slowly due to debt problems with the trading companies.

According to a high-ranking Daily NK source in North Korea on Thursday, North Korean authorities started dissolving and merging trading companies to build a state-led trading system in March, making the Cabinet responsible for managing all import and export breakdowns. They have yet to complete the process, however.

This is because financial surveys conducted to dissolve and merge the companies revealed that every firm carried significant debt.

[…]

The source said the most likely plan is for the North Korean authorities and trading companies to split the debts 50/50.

The problem is that North Korean authorities lack the financial wherewithal to assume 50% of the debts. Another Daily NK source familiar with North Korea’s trade situation said no trading officials believe the authorities will take care of 50% of the debts, even if they say they will.

North Korean authorities currently set the official exchange rate at a very low KPW 150 to the dollar. Compared to the rate of KPW 6,500 to the dollar at a market in Pyongyang on May 1, the government currently sells the dollar at a price over 40 times lower than market value.

Because of this, if the North Korean authorities assume the debt using the official exchange rate, the high-level trade agencies will assume virtually all the debt.

This being the case, both the subordinate trading companies and the superordinate ones that will absorb them are complaining.

(Seulkee Jang, “N. Korea’s efforts to dissolve and merge trading companies are hitting snags,” May 16th, 2022.)

It seems fairly clear that the state intends to fully subordinate foreign trade under cabinet control, drastically tightening the screws on companies that engage in foreign commerce. It is an ambitious project given that foreign trade was relatively decentralized for some years, but it is an ambition that the state has held since at least 2018. We may see some limited measures of retreat but the overall goal will likely persist for some time.

Share

North Korea’s 2020 parliamentary session and the budget: the main points

Tuesday, April 14th, 2020

By: Benjamin Katzeff Silberstein

This past Sunday, the 12th of April, the North Korean Supreme People’s Assembly met at Mansudae Assembly Hall, the grand, majestic room where the assembly sits. Out of the six items on the SPA’s agenda, at least three – half – dealt in some shape or form with the economy, and arguably, some others could also fit into that category:

The agenda items of the Third Session of the 14th SPA of the DPRK were decided at the session:

1. On adoption of the law of the DPRK on recycling resources

2. On adoption of the law of the DPRK on tele-education

3. On adoption of the law of the DPRK on providing living conditions for discharged officers

4. On the work of the Cabinet of the DPRK for Juche 108 (2019) and its tasks of Juche 109 (2020)

5. On implementation of the state budget for Juche 108 (2019) and the state budget for Juche 109 (2020).

6. Organizational matter.

(Source: “Third Session of 14th SPA of DPRK Held,” Korean Central News Agency, April 13, 2020.)

I include the Cabinet report given the strong emphasis over the past years of the cabinet’s leading role in economic management. A separate KCNA-report from the same day, “Report on Work of DPRK Cabinet for Juche 108 (2019) and Its Tasks for Juche 109 (2020),” summarized this report of the cabinet’s work. I paste it here with some annotating comments. Yes, the whole first paragraph below is one sentence:

According to the report on the work of the Cabinet delivered at the Third Session of the 14th Supreme People’s Assembly(SPA) of the Democratic People’s Republic of Korea (DPRK), last year the Cabinet organized a drive of putting the overall national economy on a new higher stage with a main emphasis put on accomplishing the sustained economic development, ensuring the local production of equipment, raw and other materials and revitalizing production by boosting the capability of independent development of the country, true to the important tasks set forth by Supreme Leader Kim Jong Un in his report at the Fourth Plenary Meeting of the Seventh Central Committee of the Workers’ Party of Korea and in his historic policy speech at the First Session of the 14th SPA.

None of these phrases (“local production of equipment” etc) are new or surprising, and the most notable fact is perhaps the absence of anything unusual in such an unusual time (coronavirus, sanctions).

The report said that last year all sectors and units of the national economy carried out the gross yearly industrial production value at 108 percent, and ministries, national institutions, the city and county people’s committees and industrial establishments over-fulfilled their national economic plan.

The electrical power industrial sector carried out the hydraulic power generation plan at 103 percent and made sure that production was increased by properly carrying on the repair and readjustment of generating equipment.

Now this is interesting – repairing and readjusting could either mean a claim that the industry is doing fine even without imports of Chinese machine parts and the like, because it can simply repair and readjust what’s already there. Or, it’s a claim that in fact, despite sanctions, the country’s industries are able to replenish whatever equipment it needs to stay afloat.

The thermal power plants provided a guarantee for stabilizing the electric power production without relying on heavy oil.

The coal industrial field respectively showed 23 percent and 22 percent increases in the coal production and the supply of coal for thermal power generation over last year, and the large-scale coal mines rich in deposits and with favorable mining conditions provided a foundation to increase coal production.

In the field of the metallurgical industry the Kim Chaek Iron and Steel Complex has shown 22 percent, 2 percent and 37 percent increases in the production of pig iron, steel and rolled steel over last year. The chemical industry achieved large growth in the production of chemical fertilizer, carbide and caustic soda.

Of course, any claims of over-fulfillment of quotas and the like should be taken with a grain of salt, as such claims are classical in North Korean propaganda regardless of their foundation in reality (the genre was born in the Soviet Union). Still, trying out a charitable reading, there are theoretical ways in which claims over over-fulfillment could technically be true, particularly in these sectors. We know nothing about the revenue of these products, for example, and mines and factories could churn out production in great magnitudes but with questionable value when the products can’t be exported or sold at a profit at all. Because coal prices have dropped so much under sanctions, industry could well be powered at a lower cost, but the value of this is, again, questionable.

[…]

On the agricultural front the peak-year level was exceeded in the grain production even under unfavorable weather conditions.

A repetition of the claim of a bumper harvest last year, which remains highly unlikely, as I argued here.

A fishing campaign for supplying more fish to the people was launched in the fishery sector, and the fishing was put on a higher scientific level with the help of the updated aid system for detecting fishing ground.

Again, the sector may certainly produce and supply more, but its incomes will still be lower than they would be without sanctions.

The field of the land and environment protection turned the important projects including the Wonsan Kalma coastal tourist area and the Yangdok Hot Spring Resort into thick woodland and greenery and face-lifted all roads including Pyongyang-Hyangsan and Pyongyang-Wonsan Motorways.

A hint that investment continued in the tourism industry, and that the state expects this industry to blossom in the future, despite the currently dire situation. By extension, perhaps also a suggestion of expected solid economic ties and exchange with China.

The report contains a great deal of interesting detail, but in the interest of time, I’ll skip ahead to the most central parts (my own emphasis):

The report emphasized that all the achievements made last year clearly proved once again that as long as there is the wise guidance provided by the Party, we can live on our own and open up the road of our own development and prosperity no matter how desperately the enemies may try.

The report also said that serious mistakes were found in the work of the Cabinet last year.

They taught a serious lesson that if the officials in charge of providing economic guidance fail to fulfill their duty, it would be impossible to successfully attain the goals of economic construction set forth by the Party, the report said.

It clarified that we face heavy yet responsible tasks to unconditionally and thoroughly carry out the economic construction tasks set forth at the 5th Plenary Meeting of the 7th Central Committee of the WPK under the uplifted slogan “Let’s Break through Head-on All Barriers to Our Advance!”

It went on:

The Cabinet will put a main emphasis on organizing the economic work on the principle of subordinating everything to the health and safety of the people, conducting courageous head-on breakthrough in the spirit of achieving prosperity by dint of self-reliance, and fully meeting the needs for the national economy and for the people’s living by readjusting the economic foundation of the country and by fully tapping the production potential, in order to thoroughly carry out the tasks set forth in the joint resolution of the WPK Central Committee, State Affairs Commission and the Cabinet.

The Cabinet will rationally readjust the economic work system and order and boost its role as the organizer of the state economy.

It will put efforts into holding full control of the resources and fund sources of the state, and securing financial ability and execution power capable of managing and operating the country’s economy in a unified manner.

There are some key phrases below as well, but these two paragraphs are especially noteworthy. The message seems fairly clear that the state’s role in the economy needs to get stronger, and that while independent management methods may certainly be encouraged, the state is in charge. This message is familiar from Kim Jong-un’s December CC Plenum speech.

It will establish a strict discipline for the state development and use of the underground natural resources that are of strategic significance in the state economic development, and also take strong measures to protect and multiply aquatic resources.

It will bring about innovation in the work system, order and method on the principle of ensuring smooth transaction in the overall trade, and thoroughly guarantee the economic benefits of the country through the application of strict discipline and order in the import and export.

Perhaps both a reference to easing some rules and regulations for trade, while also combatting the rampant trade deficit?

[…]

The coal industrial sector will fully meet the demand for coal from several fields of the national economy including electricity, metal and chemical industries.

Note the absence here of any reference to coal exports.

[..]

The light industrial field will expand the variety of daily necessities and boost their quality. It, regarding the local production of raw and other materials as the lifeline, will rely on the locally available raw and other materials as much as possible for the production of consumer goods, put efforts into the development of local industry and contribute to the improvement of people’s standard of living.

Making consumer goods production and supply more local, and less reliant on imports, has been one of the chief goals through Kim Jong-un’s tenure. Judging by, for example, this recent report about consumer choice in kitchen items, it seems to be going quite well.

The Cabinet, corresponding to its position and duty as the economic command, will ensure the definite provision of unified operation and command for implementing the economic policies of the Party, and guarantee the meticulous economic organization and persevering practices and thus fulfill its responsibility and duty in glorifying this year marking the 75th founding anniversary of the Party as a year of victory to be specially recorded in the history of the country, the report stressed.

The report ends with one final emphasis on the Cabinet, and thus, the state, and not grassroots, independent actors, as the main holders of power in the economic realm. “The economic command” is about as clear of an expression as you could imagine. This doesn’t necessarily mean that the state will try to curb the market system anytime soon, but it will continue to subvert market forces into its own institutions where they can be more easily controlled and generate cash to the state.

The above is just a brief overview and quick read of the budget report. For more on the proportions and overall economic conditions that the report speaks of, check out Ruediger Frank’s recent 38 North article on the SPA session as a whole.

Share

Politburo meets, but SPA postponed (till following Sunday)

Sunday, April 12th, 2020

Benjamin Katzeff Silberstein

The SPA was expected to meet this past Friday. It didn’t. (Update 13/4/: it instead met on the following Sunday.) Instead, the politburo held a meeting to discuss measures the SPA would be adopting. There were scant but clear references to economic affairs (highlighted below), though the KCNA report is very vague. NK News suggests the SPA may instead convene Monday.

It adopted the joint resolution of the Central Committee of the WPK, the State Affairs Commission of the DPRK and the Cabinet of the DPRK “On more thoroughly taking national measures for protecting the life and safety of our people from the worldwide epidemic disease”.

The joint resolution detailed the goals of continuously intensifying the nationwide emergency anti-epidemic services and pushing ahead with the economic construction, increasing national defence capability and stabilizing the people’s livelihood this year, and indicated the tasks facing every field and every unit including Party and government organs and working people’s organizations and armed forces organs and ways of carrying them out.

It studied and approved “On the execution of the state budget for Juche 108 (2019) and the state budget for Juche 109 (2020)”, the second agenda which is to be presented to the Third Session of the 14th Supreme People’s Assembly.

(Source: Political Bureau of C.C., WPK Meets under Guidance of Supreme Leader Kim Jong Un, Korean Central News Agency,” 12/4/2020.)

Update 13/4/2020: the SPA was held on Sunday instead. KCNA:

The third Session of the 14th Supreme People’s Assembly (SPA) of the Democratic People’s Republic of Korea (DPRK) was held at the Mansudae Assembly Hall on Sunday.

The SPA deputies attended the session.

Seen on the platform were Choe Ryong Hae, member of the Presidium of the Political Bureau of the Central Committee of the Workers’ Party of Korea (WPK), first vice-chairman of the State Affairs Commission (SAC) of the DPRK and president of the Presidium of the SPA, and Pak Pong Ju, member of the Presidium of the Political Bureau of the WPK Central Committee, vice-chairman of the SAC of the DPRK and vice-chairman of the WPK Central Committee.

Also seen there was Kim Jae Ryong, member of the Political Bureau of the WPK Central Committee, member of the SAC of the DPRK and premier of the Cabinet.

The platform was also taken by Ri Il Hwan, Choe Hwi, Ri Pyong Chol, Kim Tok Hun, Kim Yong Chol and members of the SAC of the DPRK and the Presidium of the SPA.

The chairman and vice-chairpersons of the SPA took their seats.

The opening address was made by Chairman Pak Thae Song.

The agenda items of the Third Session of the 14th SPA of the DPRK were decided at the session:

1. On adoption of the law of the DPRK on recycling resources

2. On adoption of the law of the DPRK on tele-education

3. On adoption of the law of the DPRK on providing living conditions for discharged officers

4. On the work of the Cabinet of the DPRK for Juche 108 (2019) and its tasks of Juche 109 (2020)

5. On implementation of the state budget for Juche 108 (2019) and the state budget for Juche 109 (2020).

6. Organizational matter.

The first, second and third agenda items were discussed at the session.

Deputy Thae Hyong Chol, vice-president of the Presidium of the SPA, made a report on the three agenda items.

He referred to the importance and significance of the laws to be discussed and adopted at the session, and explained the chapters of the laws.

He laid the adoption of the three laws before the SPA.

Ordinance of the SPA of the DPRK “On adoption of the law of the DPRK on recycling resources “, “On adoption of the law of the DPRK on tele-education” and “On adoption of the law of the DPRK on providing living conditions for discharged officers” were adopted with unanimous approbation at the session.

There was a discussion on the basis of an in-depth study of the reports on the fourth and the fifth agenda items.

The speakers said that the work of the Cabinet and the execution of the state budget for last year were correctly summed up, and that the tasks of the Cabinet for this year were clearly set and the state budget was properly worked out in the direction of implementing the decisions adopted at the 5th Plenary Meeting of the 7th Central Committee of the WPK and the joint resolution adopted at the Meeting of the Political Bureau of the WPK Central Committee. They voiced full support and approval.

In their speeches they analyzed and reviewed the successes, experience, mistakes and lessons in the work of their fields and units last year and referred to the methods of opening a broad avenue to the socialist construction and propping up the self-supporting economic power.

There adopted decision of the SPA of the DPRK “Report on the work of the Cabinet of the DPRK and on approving the implementation of the state budget for Juche 108 (2019)” and ordinance of the SPA of the DPRK “On state budget of the DPRK for Juche 109 (2020)”.

The session discussed the sixth agenda item.

At the request of Deputy Choe Ryong Hae, first vice-chairman of the SAC and president of the Presidium of the SPA upon authorization of the Chairman of the State Affairs Commission of the DPRK, Deputy Choe Pu Il and Deputy No Kwang Chol were recalled from the membership of the SAC.

Also recalled were Ri Su Yong, Thae Jong Su and Ri Yong Ho.

Deputies Ri Pyong Chol, Kim Hyong Jun, Kim Jong Gwan, Ri Son Gwon and Kim Jong Ho were by-elected as members of the SAC.

Upon authorization of the Political Bureau of the WPK Central Committee, Deputy Ko Kil Son was by-elected as the secretary general of the Presidium of the SPA and Deputy Kim Yong Hwan as a member of the Presidium of the SPA.

Members of the Cabinet were newly appointed.

Upon authorization of the WPK Central Committee, Deputy Yang Sung Ho was appointed as vice-premier, Deputy Kim Chol Su as minister of Natural Resources Development, Kim Jong Nam as minister of Machine-building Industry, and Ri Song Hak as minister of Light Industry.

Chairmen of the Subcommittees of the SPA were recalled and by-elected.

Deputy Kim Jong Ho was by-elected as chairman of the Legislation Committee of the SPA, Deputy Kim Tok Hun as chairman of the Budget Committee and Deputy Kim Hyong Jun as chairman of the Foreign Affairs Committee.

Chairman Pak Thae Song made a closing address.

(Source: “Third Session of 14th SPA of DPRK Held,” Korean Central News Agency, 13/4/2020.)

Share

North Korea needs to counter the economic impacts of COVID19, but what can it really do?

Friday, April 10th, 2020

By: Benjamin Katzeff Silberstein

Many countries are adopting stimulus measures to counter the economic impacts of the drastic economic slowdown resulting from measures to counter the COVID19 outbreak. North Korea, too, badly needs to counter the likely devastating impacts of its border shutdown to China, but it has no funds to adopt measures even nearly comparable to ordinary stimulus measures. As Yonhap speculates here, the Supreme People’s Assembly today (Friday April 10th) are scheduled to meet and may announce policies to counter the economic impacts, but it’s unclear what they can really do:

North Korea’s rubber-stamp legislature was to hold a once-or-twice-a-year session on Friday, with economic and public health issues expected to take center stage amid its ongoing fight against the novel coronavirus.

The Supreme People’s Assembly (SPA) usually meets in April every year to address the state budget and Cabinet reshuffling, but it has been closely watched from outside for any glimpse into the reclusive state’s stance on foreign affairs, including its stance on denuclearization talks with the United States.

Friday’s meeting, however, is expected to center on discussions of major domestic issues, given that Pyongyang has been making all-out efforts to block the outbreak of COVID-19 on its soil.

North Korea is among just a few countries in the world that claim to have no coronavirus infections, generating speculation that it might be hushing up an outbreak.

Pyongyang has tightened control of its borders with China, where the coronavirus originated in late December. It has also toughened quarantine criteria and restricted the movement of people and goods.

In particular, the border closure with China could weigh on its already moribund economy long crippled by global sanctions, as it depends heavily on the neighboring ally for its trade.

It is unclear whether leader Kim Jong-un will attend the SPA meeting. Observers say that he is unlikely to be present as he was not among deputies elected in March last year to the parliament.

Kim attended last year’s meeting to give a policy speech at the session.

Earlier in the day, state media reported that Kim has supervised a mortar firing drill. It did not provide details on when and where the drill took place, but such military activity is usually reported a day after it happened.

But there have been no state media reports on a politburo and a plenary meeting of the ruling Workers’ Party, which used to be held with Kim in attendance ahead of an SPA session.

Experts say that the North could announce an increase in its budget to improve public health infrastructure and unveil measures aimed at cushioning the impact of its anti-virus campaign on its economy during the SPA meeting.

(Source: “N. Korea set to hold parliamentary meeting amid nationwide virus fight,” Yonhap News, April 10th, 2020.)

The North Korean government doesn’t entirely lack resources, but it doesn’t have the sort of budgetary flexibility that a government needs to launch serious stimulus programs. It could theoretically ease up on restrictions on economic activity, such as decrease fees for market traders (markets are themselves problematic given the risk of the virus spreading there), ease up on permit regimes for various sorts of economic activity, lower mandatory fees and taxes, and the like. This is unlikely to happen, since the state itself already faces serious economic woes, and local-level government institutions likely will not be content with having a crucial source of income curtailed. More to follow after the SPA meeting results are announced.

Share

Rodong Sinmun on state control of economy

Saturday, March 7th, 2020

Benjamin Katzeff Silberstein

A short article in Rodong Sinmun from earlier this month, emphasizing the importance of state (specifically cabinet) control over economic management:

Important Issues Arising in Putting the Economic Work System and Order
on the Right Track

What is important in straightening the economic work system and order at present is, first of all, to intensify the Cabinet-responsibility system and the Cabinet-centered system.

It is also important to adjust the state machinery as a whole to spur economic development and enhance the role of officials.

Besides, it is important to vigorously push ahead with the work of improving economic management.

Author: Ri Yong Nam, date of publication: March 7th, 2020.

 

Share

Kim Jong-un’s speech at the SPA in April 2019

Sunday, April 14th, 2019

Benjamin Katzeff Silberstein

Posting the speech here in full, from KCNA:

Pyongyang, April 14 (KCNA) — Supreme Leader Kim Jong Unmade the policy speech “On Socialist Construction and the Internal and External Policies of the Government of the Republic at the Present Stage” at the First Session of the 14th Supreme People’s Assembly of the Democratic People’s Republic of Korea on April 12.

Its full text is as follows:

Dear Deputies,

The First Session of the 14th Supreme People’s Assembly of the Democratic People’s Republic of Korea is convened at a time when the prestige and strength of our Republic advancing along the road of independence are being demonstrated to the full and its socialist construction has entered a very important period.

As the election to the 14th Supreme People’s Assembly was held successfully amid the high political enthusiasm of all the people and with their active participation and the government of the Republic was reorganized, our State power has been further consolidated and the revolutionary advance of our people, who, united with one mind and will around the Workers’ Party of Korea and the government of the Republic, are marching confidently towards a higher goal of socialism, will be further accelerated.

I extend my heartfelt thanks to all the Deputies for having placed, on behalf of all the people, great trust in me so that I would continue to lead the overall work of the State as Chairman of the State Affairs Commission of our glorious country, the Democratic People’s Republic of Korea; and I pledge myself to work with devotion for the development and prosperity of the Republic and the happiness of our people.

Comrades,

Accomplishing the socialist cause under the unfurled banner of modelling the whole society on Kimilsungism-Kimjongilism is a great and historic task facing the government of the Republic.

Modelling the whole society on Kimilsungism-Kimjongilism is the highest programme of our Party and the government of our Republic and the general direction and general goal of the construction of a socialist State.

It is only when we thoroughly apply Kimilsungism-Kimjongilism to State building and activities that we can develop our Republic into the State of the great Comrades Kim Il Sung and Kim Jong Ilfor ever and creditably satisfy our people’s demands for and ideals of independence true to the will and wishes of the great leaders.

The government of our Republic will achieve decisive victory in implementing the socialist cause by conducting more vigorously the struggle for modelling the whole society on Kimilsungism-Kimjongilism.

1

Comrades,

The major fighting task facing us in our efforts for modelling the whole society on Kimilsungism-Kimjongilism is to accomplish the cause of building a powerful socialist country.

Building a powerful socialist country is a historic stage in the struggle for achieving the final victory of socialism, and this can be accomplished with credit only by applying the Kimilsungist-Kimjongilist ideas of State building in a thoroughgoing way.

The Kimilsungist-Kimjongilist ideas of State building contain in a concentrated way the ideas of, and exploits in, State building of the great Comrades Kim Il Sung and Kim Jong Il, who developed our Republic into the most prestigious and strong socialist State in its history; these ideas also indicate clearly the ways and means for accomplishing the socialist cause with the State government as a political weapon.

With the great Kimilsungist-Kimjongilist ideas of State building as the immutable guiding principle, the government of the Republic should raise the country’s strategic position and national strength onto a new high and bring about a fundamental turn in accomplishing the Juche-oriented socialist cause.

The revolutionary line of independence should be carried out in State building and activities.

Independence is the political philosophy of our Republic, and it constitutes the core of the Kimilsungist-Kimjongilist ideas of State building. A socialist State can defend the country’s prestige and people’s destiny and build and perfect socialism as suited to its situation and by its own efforts, only when it maintains the principle of independence and the Juche-oriented stand definitely in all its activities. The great Comrades Kim Il Sung and Kim Jong Il raised independence as the life of the Korean revolution and the fundamental cornerstone for State building and advanced the revolution and construction in our own way while categorically rejecting worship of big countries, dogmatism and the high-handedness and pressure by outside forces. Under their wise leadership our Republic has been built and developed to be a socialist State, independent in politics, self-supporting in the economy and self-reliant in national defence, and it is still demonstrating to the world its prestige and might as a powerful independent country. Its strategic position and influence is being raised day by day as it recently achieved the historic cause of developing the two fronts simultaneously amid a do-or-die confrontation with the imperialists and is leading the trend of situation towards peace. Today the imperialists’ wilful violation of the sovereignty of other countries is growing more undisguised than ever before, and not a few countries are being forced into a miserable plight as they have no strength with which to defend themselves; in this world it is hard to find a country like our Republic that is steadfast in the principle of independence and assures the security of the State and the happiness of the people by its own efforts.

Holding fast to the revolutionary line of independence in State building and activities is a consistent and immutable stand of our Republic.

Geographically, Korea is sandwiched between big countries and its territory remains divided. Our Republic is conducting socialist construction as the hostile forces are resorting to more vicious schemes in trying to contain, undermine and stifle it. On the other hand, the contradictions and confrontations among great powers in their pursuit of hegemony are worsening on a regional and worldwide scale.

Given the special circumstances of our revolution and the complexity of the present world situation, our Republic should build up its own strength from the firm standpoint of independence and seek independent development to defend its sovereignty and dignity and achieve true prosperity. In the past, too, when the world socialist camp existed and the countries concerned maintained cooperative relations to varying degrees, our Republic adhered to self-determination and independence in carrying on the revolution and construction, and promoted socialist construction on the principle of self-reliance. Building socialism by its own efforts according to the revolutionary line of independence is the basic principle our Republic must invariably maintain in State building.

Whatever wind may blow and whatever challenges and difficulties may lie ahead, our Republic will, in the future, too, make no concession or compromise over the issues concerning the fundamental interests of our State and people. It will resolve everything on the strength of self-reliance and self-development, stepping up the building of a powerful socialist country in our own way and by our own efforts.

A crucial factor in applying the revolutionary line of independence to the building and activities of our State is to strengthen the motive force of our revolution and develop all fields of social life in our own way. We should consolidate the country’s politico-ideological position rock-solid by fully equipping the people with the great Juche idea and the spirit of national independence and rallying them firmly behind the Party and the government of our Republic. The government will develop all realms of the economy, defence and culture from the steadfast Juche-oriented stand and in our own way, and it will never tolerate others’ way, others’ fashion, in the slightest.

Our Republic has a bright, promising future ahead, as it is steadily developing on the strong basis of independence, self-sufficiency and self-reliant defence, with the Party and the people achieving solid unity to form the powerful motive force of the revolution.

It is important to apply the people-first principle to the letter in all aspects of State activities and social life.

This principle is a political ideal of regarding the masses of the people as masters of the revolution and construction, relying on them and making selfless, devoted efforts for their interests. It embodies the Juche-oriented revolutionary philosophy that the people are the most precious and powerful beings in the world; it reflects the unwavering commitment of our Party and the government of our Republic to love the people dearly and satisfy their demands and interests.

The people are the roots of our socialist State and its foundation; they are responsible for developing it. All the activities of Party and government organs should be thoroughly oriented and subordinated to safeguarding and realizing the people’s demands and interests and faithfully serving them-this is just the way to promote the revolution and construction with success and bring the viability and advantages of socialism into full play.

Maintaining the viewpoint and attitude of prioritizing the people in the activities of the State presents itself as an important matter, in view of the fact that abuses of power, bureaucratism and other violations of their interests may appear among officials in the course of socialist construction. The impertinent practices of lording it over the people and abusing the authority vested by them will impair the prestige of socialism and its people-oriented character, and weaken the people’s support for and trust in the Party and the State. They may end up threatening the very existence of our socialist system.

With a view to carrying forward and holding up the ennobling ideas and intentions of the great leaders, who believed in the people as in heaven and devoted their lives to their interests, our Party defined the essence of Kimilsungism-Kimjongilism, the guiding ideology of our revolution, as the people-first principle and set it as the greatest priority to apply the Juche-oriented view on the people, a people-oriented philosophy, in the activities of the Party and the State.

The slogan “Everything for the people and everything by relying on them!” encapsulates the people-first principle maintained by our Party and the government of our Republic. In all spheres of State and social life we have given top and absolute priority to what are oriented to the people and popular among them, unsparingly investing everything for their wellbeing. Over recent years our State has implemented gigantic construction projects in a bold manner. This is not because there is a surplus of funds in the country’s coffers; those projects are aimed at providing our people, who are the best in the world, with better conditions for a happy, cultured life.

Our Party and the government of our Republic have resolutely declared a war against abuses of power, bureaucratism and corruption, which are infringing upon the people’s interests, and waged an intensive struggle against such practices, taking it as a matter with a vital bearing on the existence of our State.

In the course of the endeavour to apply the people-first principle in all the activities of the Party and the State and in all fields of social life, the Party, the State and the people have formed a community in which they share the same destiny with one another; our Republic has advanced dynamically along the orbit of its development, never flinching in the face of unprecedented trials and difficulties.

As socialist construction is progressing, we should direct closer attention to applying the people-first principle. Then we can double the dynamic for the advancement of our revolution and continue to demonstrate the advantages peculiar to our style of socialism, those which other countries cannot imitate.

The Party and the State make selfless, devoted efforts for the good of the people, and the people support their Party and State whole-heartedly, entrusting their destiny and future entirely to the latter-these are the genuine features of our State embodying the people-first principle.

The government of the Republic will invariably hold fast to the people-first principle as the core of its mainstay, and strive to hasten the bright future of socialism aspired after by the people by relying on their strength.

Party leadership over the overall affairs of the State should be provided in every way possible.

Party leadership is the intrinsic requirement of the building of a socialist State and lifeline of its activities. Only under the leadership of a party, the incarnation of the demands and interests of the masses, can the socialist State perform its mission as their servant with credit and properly organize and undertake unified guidance over all realms of social life and all regions and the overall socialist construction. A socialist government, not led by a revolutionary party, will lose its intrinsic nature and fall prey to the reactionaries and plotters, with the result that its people cannot escape the pitiful plight of a political orphan.

Our Party is the veteran and seasoned General Staff of the revolution, which has gained rich experience and outstanding leadership skills and abilities in the course of leading the several stages of social revolution and socialist construction. What instils boundless dignity and confidence in sure victory in our people is the leadership of our Party, which is bringing about world-startling, miraculous achievements one after another while leading the gigantic campaign of creation for building a powerful socialist country amid acute confrontation with the hostile forces.

Party leadership over State activities should be consistently based on political guidance, policy-oriented guidance. The Party is the guiding force that provides guidelines to be followed by the socialist government and guides all State activities so that they are properly conducted; the State is the executor and performer of the Party’s lines and policies. Proceeding from these interrelations between the Party and the government, our Party has shown close concern over encouraging its organizations to exercise unified control over the affairs of their sectors and units and give political and policy-oriented guidance over them in the efforts to materialize its leadership over State activities. If the Party, a political leadership body, is involved in the administrative work and resorts to technical methods, it will not only deviate from its main principle but paralyse the functions of administrative organs and impair its authority, ending up making a mess of the revolution and construction.

At present, the government of our Republic is satisfactorily effecting unified leadership over the State and society by relying on the revolutionary guiding ideology and scientific strategy and tactics advanced by the Workers’ Party of Korea. In the future, too, it should remain faithful to the Party’s ideas and leadership, so as to perform its missions of representing the rights of the masses of the people to independence, organizing their creative abilities and activities, taking care of their lives and protecting their interests.

When it strictly adheres to the ideas and principles of building a socialist State elucidated by Kimilsungism-Kimjongilism, our Republic will be built more splendidly as an independent powerful State that no one can dare provoke, a people’s State in which the people’s ideals are fully realized and a great State that leads the world by giving full scope to its unlimited potential for development, and the victory of the socialist cause will be brought closer.

2

Comrades,

The central task facing our Republic at the present stage of the struggle to build a powerful socialist country is to solidify the material foundations of socialism by concentrating all national resources on economic construction.

Economic self-sufficiency is a material guarantee and prerequisite for building an independent State. Only by relying on independent and strong economic capability, it is possible to defend the dignity of a State and increase its political and military might on a steady basis.

The present political situation demands that our State hold higher the banner of self-sufficiency and self-reliance.

Recently, the United States has grown fearful of the threats posed by our rapidly-developing nuclear armed force to the security of its mainland. At the negotiating table, it has made much ado about improved relations and peace; on the other hand, it is resorting to all conceivable schemes in trying to prolong the economic sanctions, with the aim of preventing us from following the path of our own choice and disarming us first to create conditions for realizing its ambition of overthrowing our social system. Now that it is raising demands that run counter to the fundamental interests of our State, as a prerequisite for lifting the above sanctions, the confrontation between our country and the United States is bound to be drawn out and the hostile forces’ sanctions will persist. We have built socialism in the face of their constant sanctions, but we must neither become accustomed to this nor slacken the speed of advance of our revolution. To the forces who cannot thwart us by force, sanctions are a last resort. However, these are an intolerable challenge to us; we must never connive at or remain indifferent to them, but act resolutely to frustrate them. As we put an end to the prolonged nuclear threat by dint of nukes, we must frustrate the hostile forces’ sanctions on the strength of self-sufficiency and self-reliance.

We have the capabilities and foundations for independent development to revitalize the national economy and raise it to the advanced international level in the shortest possible period. The foundations of our self-supporting economy that have been laid for several decades, able scientific and technical personnel, and the creative strength of the heroic people who have made self-reliance part of their mental qualities and are brimming with patriotic enthusiasm-these constitute our valuable strategic resources. By making the most of these enormous and unlimited potentialities, we must create another legendary tale of world-startling, miraculous successes and go ahead of others by making a greater leap forward.

When we adhere to the line of building an independent national economy and give full play to the revolutionary spirit of self-reliance, we can achieve remarkable development with a strength that others can neither fathom nor imagine.

The strategic policy pursued by our Party and the government of our Republic in promoting socialist economic construction is to make the national economy Juche-oriented, modern, IT-based and scientific.

The independence and Juche character of the national economy should be consolidated in every way possible.

We must strive hard to achieve self-sufficiency in power, fuel and raw materials, which constitute the basic guarantee for independent economic development.

The electric-power industry should maintain and strengthen the existing bases to maximize the production of electricity, put power supply on a scientific and rational basis, and actively develop the hydraulic, tidal, atomic and other promising sources of energy so as to create greater generating capacity.

Coal and other mines, which are in charge of the primary front for economic development, should give precedence to prospecting and tunnelling, and concentrate their efforts on realizing mechanization of extracting and transport, thus extensively increasing the production of coal, the food of industry, and minerals.

The metallurgical industry should establish a new modern yet large-scale iron production system that suits our actual situation by solving the scientific and technological problems arising at the Juche-oriented iron production bases and operating them properly. The chemical industry should turn itself into a Juche-oriented, energy- and labour-saving industry that totally relies on locally available raw and other materials. By doing so, it should meet the domestic demands for fertilizer, chemical fibre, synthetic plastics and various other chemical goods.

The problems of food and consumer goods, which are of decisive importance in the improvement of the people’s living, should be solved in the earliest period.

The agricultural sector should pay special attention to solving the problems of seed, fertilizer and water and securing the land under cultivation, introduce scientific farming methods and raise the rate of mechanization of farm work, and thus attain without fail the grain production target set by the Party. The stockbreeding bases such as chicken and pig farms should be modernly built or renovated, domestic animals be raised in a scientific way, and a mass movement be launched to raise grass-eating animals perseveringly. Also, a turn should be made in the production and processing of seafood by consolidating the material and technical foundations of the fishing industry.

The light industry establishments should hold fast to recycling as one of their strategies, along with the strategy of relying on locally-available raw and other materials, step up modernization of their production lines and invest great efforts in developing new products. In this way, it should ensure that larger amounts and various kinds of quality consumer goods are supplied to the people.

We should carry on grand construction projects more vigorously to provide the people with more affluent and cultured living conditions. The construction sector should make innovations in architectural designing and construction method and improve the level of technical equipment of construction units to build world-class architectural structures in a larger number. The building-materials industry should build up the capacity of cement production and decisively raise the proportion of domestically-produced finishing materials.

The transport sector should adopt revolutionary measures for improving rail and water transport in conformity with the actual conditions in our country and resolve the problem of passenger transport in the capital city and provincial seats in our own way.

We should improve the structure of the national economy still further, develop all its branches in a harmonious way and secure the international competitive edge in the magnesia and graphite industries and other promising economic sectors.

We should make proactive efforts to put the national economy on a modern and IT footing so as to transform the country’s economy definitely into one that is knowledge-based.

We should work out strategies and targets for developing hi-tech industries including the machine-building, electronics, information, nanotechnology and biological industries, and concentrate investment on them. Every sector should build a parent, standard factory in which science and technology are integrated with production and all production lines are made remote-controlled, intelligent and fully automated and generalize its experiences, so as to raise the overall economy to the advanced level of the world.

We should develop the local economy and reenergize the external economic work.

Provinces, cities and counties should build and develop the economy with their own distinctiveness by giving full scope to their natural and geographical advantages and properly sustaining their economic, technical and traditional characteristics. The State should empower the local authorities to stand on their own feet and develop by themselves, and adopt relevant practical measures.

The external economic sector should conduct external economic cooperation, technical exchanges and trading activities in a multifarious, proactive and tactical way on the principle of strictly abiding by the line of building an independent national economy and in the direction of reinforcing the fields and links essential in strengthening the country’s economic foundations.

In order to give full play to the potentials of the self-supporting socialist economy, comprehensive measures should be taken to enlist all the human and material resources and potentialities of the country in a coordinated way and utilize the new elements and driving force for economic development.

The economic work of the country should be conducted under the State’s unified control and supervision, and in accordance with its strategic plan and command.

We should adopt a scientific and practical strategy and phased plans for the economic development of the State and execute them without fail. The structural and work system should be adjusted so that enterprises can arrange and conduct production and management activities smoothly while fully satisfying the needs of the State’s unified guidance over and strategic management of the economic work.

The State’s institutional and legal conditions and environment concerning economic affairs should be improved and an iron discipline be established so that the economic organs and enterprises give priority to the national interests and the promotion of the people’s wellbeing and observe the law and order strictly.

We should further improve planning in compliance with the essential requirements of the socialist economy and deal with pricing, monetary and financial matters-the important links in the whole chain of economic management-in accordance with the economic principles and laws and in such a way as to reap profit in reality. By so doing we can encourage the enterprises and producers to work with great interest and high enthusiasm. Measures should be taken to conduct the economic management on the basis of scientific calculation so that optimum results can be obtained. Raw and other materials, funds and manpower should be economized as much as possible and the expenditure be made cost-effective so that all the resources of the country may contribute to the development of the State to the maximum.

The main force that propels a self-supporting economy is the talented personnel and science and technology.

We should make it part of the national social practices to attach importance to the talented personnel and science and technology, identify and appoint the talented personnel to the appropriate posts so that they may lead production and the development of technology; and we should steadily increase State investment in the field of science and technology.

We should make proper decisions on major scientific and technological tasks and projects, strategic, pivotal, profitable and economically important, and concentrate our forces and funds on them to ensure that science and technology may render decisive services to reenergizing the overall economy and developing the hi-tech industry.

We should build up the political and military might of our Republic.

Our political and ideological might is based on the advantages and stability of the political system of our socialist State. We should substantially provide all the people with genuine political rights and dignity and give full play to the political and ideological advantages of our system, in which the whole country, united in ideology, purpose and moral obligation, makes uninterrupted progress.

The government of the Republic should regard the people’s interests as the absolute standard and give the first consideration to their will and desire in formulating and carrying out its policies; in this way, we can encourage the broad sections of the working masses including workers, farmers and intellectuals to take active part in the management of the State and society as befits the genuine masters of State administration.

The government should give definite precedence to the political and ideological work as required by the intrinsic nature of the socialist society, so as to train all members of society as true advocates of Kimilsungism-Kimjongilism and further consolidate the political and ideological unity and cohesion of our State.

The government of the Republic should perfect the legal system of the State and intensify the role of law in State and social life.

The laws of the Republic are powerful weapons for defending the gains of the revolution, consolidating and developing the socialist system and championing and guaranteeing the people’s rights and interests. In keeping with the intensification of the revolution and construction, the laws and regulations should be subdivided and specified on the basis of the requirements of the Party’s policies and in reflection of the prevailing realities so as to legislate and perfect them in a scientific way; they should be modified and supplemented in good time, so that they can reliably guarantee the administration of the people-oriented politics of the socialist State. It is necessary to thoroughly establish a habit of observing the socialist laws throughout society so that all the people respect the State laws with a noble sense of law observance and abide by them on a voluntary and obligatory basis; law-enforcement organs should enhance their role, never allow double standards of discipline in enforcing laws and strictly adhere to scientific accuracy, objectivity, impartiality and prudence in applying laws; in this way, we should turn ours into the most advantageous socialist law-governed State in which laws safeguard the people and the latter observe the former.

The self-reliant defence capability is a powerful and valuable weapon for defending the sovereignty of our Republic.

The peace-oriented atmosphere that has begun to be created on the Korean peninsula is not stable, and the hostile forces have not given up their attempt to invade our Republic. Always keeping in mind the iron truth that peace can be guaranteed only by powerful military strength, we should hold fast to the principle of self-reliant defence and keep building up the country’s defence capability.

The government of the Republic will provide, on a preferential basis and in full, the human and material resources necessary for strengthening the People’s Army, arming all the people and fortifying the whole country, and steadily raise the national defence capability by putting the defence industry on a highly Juche-oriented and modern footing.

Socialist culture should be developed in our own way.

It is important to create a climate of giving top priority to education throughout the country and bring about a radical improvement in education in our own way so as to overtake the developed countries in the educational level. The educational sector should strengthen the ranks of teachers, improve the quality of education as demanded by the trend of developing modern education, and thus train larger numbers of talented personnel who will shoulder the scientific and technological development of the country and socialist construction.

Upholding the slogan of making all the people well versed in science and technology, we should enrol all the working people in the study-while-you-work system and prepare them as intelligent workers.

The government of the Republic should give special attention to the socialist health service. It should further improve medical service, raise medical science and technology to the cutting-edge standard and consolidate the material and technical foundations of the health service sector, thereby bringing greater benefits of our country’s socialist healthcare system to the people.

The sector of culture and arts should create larger numbers of masterpieces that represent the demands of the times and aspirations of the people, and the sector of cinematic art, in particular, should kindle the flames of effecting an upsurge in film-making in the new century, thus playing the role of pacesetter in opening up a new heyday of the development of socialist culture.

Sports play a very important role in consolidating a nation’s strength and exalting its resourcefulness and prestige. A nationwide effort should be directed to developing sports science and specialized sporting techniques and organizing the mass-based sports activities on a wide scale. At the same time, sports facilities should be increased in number and the existing ones renovated with an eye to satisfactorily hosting even international games.

Establishing a socialist way of life and moral discipline is a severe political struggle and an acute class struggle to safeguard and add lustre to our ideology and system.

We should encourage all the members of society, with a high sense of pride and self-confidence that our culture, our way of life and our morality are the best, to give full play to the collectivist way of life and moral traits and actively create and fully enjoy the revolutionary and optimistic cultured way of life of our style as suited to the aesthetic sensibilities of today that aspire after cultural development. We should firmly defend the ideological and cultural position of our State by strictly guarding against any slightest expression of immoral and alien phenomena that poison the people spiritually and degenerate and debase society, improving ideological education and struggle and intensifying legal sanctions against them.

In order to successfully carry out the enormous revolutionary tasks facing the government of the Republic, people’s government organs should enhance their functions and roles.

They should further intensify their unified guidance over the whole society as required by the developing revolution.

They should consolidate and develop the socialist political system and carry on the work of accelerating economic and cultural construction. In particular, they should give precedence to economic work and concentrate their efforts on improving the people’s living standards. They should put every realm of social life and every region under their supervision and provide unified guidance over them while giving free rein to the creativity of individual sectors and units.

People’s government organs should establish the trait of making selfless, devoted efforts for the good of the people as appropriate to their basic duty.

They should always pay heed to the people’s opinions, plan and organize their work in reflection of their demands, find what can be done for them and carry it through to completion, and enlist them in carrying out the Party’s lines and policies. They should give top priority to the people’s interests and comfort and take responsible care of their living.

They should properly enforce the advantageous people-oriented policies including free compulsory education and free medical care, which General

Kim Jong Il pursued invariably even in the most trying days, so that the people can feel keenly the gratefulness of the socialist country in their daily life and turn out in the efforts for achieving its prosperity.

People’s government organs should maintain it as the iron rule to work only under the Party’s leadership.

They should organize and carry on all work with the Party’s ideas and policies as the yardstick, proactively defend the Party’s policies and implement with credit the revolutionary tasks advanced by the Party, thereby giving full play to the validity of our Party’s policies. Party organizations at all levels should intensify collective guidance over the activities of government organs in conformity with the demands of the developing revolution and actively encourage all their officials to perform their responsibilities and basic duties for the revolution.

Officials of people’s government organs at all levels should enhance their sense of responsibility and roles.

The present stirring realities urgently demand that our officials take the lead in the general offensive and wage a vigorous struggle in order to discharge their duties as befits the leading personnel of the revolution.

Officials of people’s government organs should possess a high degree of Party spirit and revolutionary principle and conduct their work in a daring and active manner with the attitude that they are fully responsible for it. Courage and activeness arise out of trust in the Party, whereas timidity and acts of basing their actions on how people look at them result from lack of trust in the Party. Officials of people’s government organs should definitely root out passive approaches of expediting their work only when the Party throws its full weight behind them, and cherish an unyielding revolutionary work style of carrying through the task set by the Party even though their bodies are torn to pieces. They should constantly cultivate abilities for conceiving, organizing, supervising, guiding and developing their work to become versatile workers who are capable of implementing any tasks with credit. They should acquire our Party’s methods of mass work, set personal examples in all undertakings and make tireless efforts for the good of the people. Cherishing deep in their hearts the true meaning of our Party’s affection for the people, they should be infinitely courteous to them and become their faithful servants, always sharing weal and woe with them and working with devotion for them.

3

Comrades,

At present, our historic struggle for national reunification, a long-cherished desire of the nation, has entered a new phase.

We have taken momentous measures in succession to improve inter-Korean relations and ensure peace on the Korean peninsula with a firm resolve to achieve without fail the cause of national reunification, into which the great Comrades Kim Il Sung and Kim Jong Il put their heart and soul all their life.

Last year we held three rounds of historic north-south summit meetings and talks and adopted inter-Korean declarations to bring about a dramatic turn in the relationship. They were events of great significance which turned around the grave situation that was teetering on the brink of war every moment and which heralded the start of a new journey to national reunification.

Now the entire nation ardently hopes that the historic Panmunjom Declaration and the September Pyongyang Joint Declaration will thoroughly be implemented so that the peaceful atmosphere on the Korean peninsula will continue and inter-Korean relations will improve uninterruptedly.

The south Korean conservative forces, however, are responding to the aspirations of the nation and the unanimous expectations of the international community with too perfidious words and behaviours, and are struggling to bring inter-Korean relations back to those in the period before the publication of the Panmunjom Declaration.

The United States openly forces “speed adjustment” on the south Korean authorities and tries in every way to subordinate the implementation of inter-Korean agreements to its anti-DPRK policy marked by sanctions and pressure.

As a result, a grave situation has been created for us to decide whether to ease the tension on the Korean peninsula and continuously carry on the atmosphere of inter-Korean rapprochement or to return to the past when the tension spiralled up towards a catastrophe with the danger of war looming larger.

We cannot look on with folded arms the current situation which causes serious concern over the destiny and future of the nation and peace and security in the region, but we have to take proactive measures without delay to straighten it out in line with the unanimous aspirations of all the fellow countrymen.

To this end, it is needed above all to take a proper stand and attitude with which to invariably adhere to and implement the inter-Korean declarations encapsulating the unanimous will of the nation, whatever difficulties and obstacles in the way.

I would like to make it clear once again that as I already declared, it is my firm determination to turn, together with the south Korean authorities, inter-Korean relations into a lasting and durable relationship of reconciliation and cooperation and write a new history of the nation that achieves peace and co-prosperity as desired by all the countrymen.

In order to untangle the prevailing unsavoury situation, heighten the good atmosphere for improved relations north and south created with much effort and make it bear meaningful fruit of peace and reunification, it is important to put an end to big-power worship marring the spirit of independence and to the policy of dependence on foreign forces encroaching upon the common interests of the nation, and subordinate everything to the improvement of the relations.

I think that if the south Korean authorities truly want improved relations, peace and reunification, they should come back to the original intention they had at the time of the Panmunjom summit and the September Pyongyang summit and fulfil the responsibility they have assumed before the nation through the sincere implementation of the north-south declarations.

They should not waver in their attitude as they see the tide nor pose as a meddlesome “mediator” and “facilitator” as they busy themselves with foreign trips, but be a responsible party that defends the interests of the nation speaking what they have to say squarely with the mind of their own as members of the nation.

It is our consistent assertion that it is imperative to smash the underhand schemes of the hostile anti-reunification and anti-peace forces within and without in order to sustain the atmosphere of improved inter-Korean relations.

It is needed to realize before it is too late that neither progress in inter-Korean relations nor any fruit of peace and prosperity can be expected if the hawkish forces in the south Korean military, who persist in veiled hostility as they resume the military exercises, which were agreed before to be discontinued, jointly with the United States by changing their names, continue to be allowed to make reckless moves, and unless the anachronistic arrogance and hostile policy of the United States, which is creating artificial obstacles in the way of improved relationship as it presents its arbitrary outrageous demand, are eradicated.

All the fellow countrymen in north and south and abroad should, staking the destiny and future of the nation, resolutely check and foil the moves of the United States and south Korean conservative forces that go against the historic current towards improved inter-Korean relations and peaceful reunification.

If they are truly willing to opt for the improvement of north-south relations, peace and reunification, the south Korean authorities should sympathize with our stand and will, keep pace with us and make a courageous decision to show their sincerity by practical action, not by words.

Our Party and the government of our Republic will continue to make sincere and persevering efforts to achieve the sustained development of north-south relations and peaceful reunification of the country, solemnly cherishing the aspirations and desires of the nation in the future, too.

Comrades,

The first-ever DPRK-US summit meeting and talks, which were held in Singapore in June last year under the world’s spotlight, were a momentous occasion that brought the hope of settlement of peace to the Korean peninsula where fire had been exchanged; and the June 12 DPRK-US Joint Statement was a historic declaration announcing to the world that the two countries which had been hostile to each other from one century into the next would write a new history of relationship, and therefore it won full support and approval of the international community aspiring to peace.

The DPRK voluntarily took crucial and significant measures including the discontinuation of nuclear test and test-fire of intercontinental ballistic missile, thereby taking the first step towards confidence-building which is the main key to the removal of bilateral hostile relations, and it also took the broadminded measure of realizing the repatriation of the remains of US soldiers, which had been requested by the US President, as a show of its will to sincerely implement the June 12 DPRK-US Joint Statement which serves as a milestone in the establishment of a new bilateral relationship.

However, the second DPRK-US summit talks held in Hanoi last February raised strong questions about whether the steps we took under our strategic, courageous decision were right, and they were an occasion that gave us a sense of caution about whether the United States is genuinely interested in improving the bilateral relations.

At the talks we expressed our resolve to set the essential stages and course to be followed without fail for the implementation of the June 12 DPRK-US Joint Statement in the interests of both sides and to take more prudent and trustworthy steps, and looked forward to a positive response of the United States.

But the United States came to the negotiating table after thinking only about completely unrealizable methods.

In other words, they were unprepared to solve problems with us at the table and they had no definite orientation or methodology.

By that sort of thinking, the United States will not be able to move us one iota nor get what it wants at all, even if it sits with us a hundred times, a thousand times.

It has recently conducted a test for simulated interception of our intercontinental ballistic missile and resumed military exercises the US President committed himself to suspending, while making other hostile moves contrary to the spirit of the June 12 Joint Statement in a more undisguised way. These seriously get on our nerves.

I am very displeased with such a trend.

As waves rise when wind blows, the more pronounced the US policy hostile towards the DPRK becomes, the tougher our counteraction will become.

Although it strongly hints at the settlement of issues through dialogue as it thinks about the third round of DPRK-US summit talks, the United States still looks away from the withdrawal of its hostile policy, the basic way for establishing a new bilateral relationship; rather it mistakenly believes that if it pressures us to the maximum, it can subdue us.

We, of course, attach importance to the settlement of issues through dialogue and negotiations, but the US-style dialogue of unilaterally pushing its demands does not fit us, nor are we interested in it.

Though the United States calls for a negotiated settlement of issues, it is stirring up hostility to us day after day, which is an act that is as foolish and risky as an attempt to put out fire with oil.

Given the deep-rooted animosity between the DPRK and the United States, in order to implement the June 12 Joint Statement both sides should give up their unilateral terms and seek a constructive solution that meets each other’s interests.

To this end, it is needed above all for the United States to approach us with a new way of calculation after putting aside the current one.

The United States is talking much about holding the third round of bilateral summit talks, but we are neither pleased nor willing to see summit talks like the Hanoi summit talks re-enacted.

However, as President Trump continuously observes, personal relations between he and I are not hostile like the relationship between the two countries, and we still maintain good relations, and if we want, we can send and receive letters asking for each other’s regards any time.

If the United States proposed holding the third round of summit talks after finding out with a proper attitude a methodology that can be shared with us, we would be willing to try one more time.

But in my opinion at this moment, it comes to my mind that there is no need for me to obsess over the summit talks with the United States out of thirst for the lifting of sanctions.

Anyway, we will be patient and wait till the end of this year to see whether the United States makes a courageous decision or not, but it will obviously be hard to get a good opportunity like the last time again.

In future, I will put my signature on an agreement without hesitation only when it contains fair clauses which conform to the interests of both sides and which are acceptable to them, and this depends entirely on the stand the United States takes and the way of calculation it comes up with.

What is obvious is that if it sticks to its current political way of calculation, the prospects for problem solving will be bleak and very dangerous.

At this crucial time, I hope that the United States will make a well-advised judgment and the second hand of the clock of the DPRK-US showdown which they stopped with so much difficulty will not move again for all ages.

The government of the Republic will strengthen and develop the bonds of friendship and cooperation with all the countries of the world that respect the sovereignty of our country and are friendly to it, and will advance hand in hand with all the peace-loving forces of the world to establish a lasting and durable peace mechanism on the Korean peninsula.

Comrades,

As I have just said, I will no longer set my heart on such a trivial issue as lifting sanctions by the hostile forces, but open up the way to prosperity by our own efforts.

Although the goal of our struggle is demanding and challenges and difficulties stand in the way of our socialist construction as ever, our Party and the government of our Republic are steadfast in their will to open a new phase of prosperity and achieve the ideal and goal of building a powerful country by their own efforts under the unfurled banner of Kimilsungism-Kimjongilism.

The road of independence leads to prosperity and victory. Nothing can reverse or stop the dynamic advance of our State and people that have unshakable faith and will to pave their own way by themselves with confidence in their own strength.

Let us all make a general advance to successfully accomplish the cause of building a powerful socialist country, holding higher the banner of the great Kimilsungism-Kimjongilism and firmly rallied behind the Party and the government of the Republic. -0-

Their website is being a little difficult at the moment — will add the Korean version as well when possible.

Share

Kim Jong-un’s 2018 new year address

Monday, January 1st, 2018

Below I have posted the economic section of Kim Jong-un’s 2018 new year speech in English and Korean:

Comrades,

동지들!

This year we will mark the 70th anniversary of the founding of the glorious Democratic People’s Republic of Korea. To mark the 70th anniversary of their state with splendour is of real significance for the great people, who have raised with dignity the status of their socialist country, the greatest patriotic legacy of the great Comrades Kim Il Sung and Kim Jong Il, to that of a strategic state recognized by the world. [Translation note: In the Korean version below, Kim Il-sung and Kim Jong-il are not mentioned by name, only by title]

올해에 우리는 영광스러운 조선민주주의인민공화국창건 일흔돐을 맞이하게 됩니다.위대한 수령님과 위대한 장군님의 최대의 애국유산인 사회주의 우리 국가를 세계가 공인하는 전략국가의 지위에 당당히 올려세운 위대한 인민이 자기 국가의 창건 일흔돐을 성대히 기념하게 되는것은 참으로 의의깊은 일입니다.

We should make constant innovations and continued progress until we win the final victory of the revolution by carrying on the tradition of heroic struggle and collective innovation which adorned the founding and course of development of Juche Korea. A revolutionary general offensive should be launched to achieve fresh victory on all fronts of building a powerful socialist country by taking the historic victory in the building of the DPRK’s nuclear forces as a springboard for fresh progress.

우리는 주체조선의 건국과 발전행로에 빛나는 영웅적투쟁과 집단적혁신의 전통을 이어 혁명의 최후승리를 이룩할 때까지 계속혁신,계속전진해나가야 합니다.공화국핵무력건설에서 이룩한 력사적승리를 새로운 발전의 도약대로 삼고 사회주의강국건설의 모든 전선에서 새로운 승리를 쟁취하기 위한 혁명적인 총공세를 벌려나가야 합니다.

“Let us launch a revolutionary general offensive to achieve fresh victory on all fronts of building a powerful socialist country!” This is the revolutionary slogan we should uphold. All officials, Party members and other working people should launch an all-people general offensive to frustrate the challenges of the hostile forces who are making last-ditch efforts and raise the overall strength of our Republic to a new stage of development as they brought about a great upsurge in socialist construction overcoming all difficulties through the great Chollima upswing after the war.

《혁명적인 총공세로 사회주의강국건설의 모든 전선에서 새로운 승리를 쟁취하자!》 이것이 우리가 들고나가야 할 혁명적구호입니다.모든 일군들과 당원들과 근로자들은 전후 천리마대고조로 난국을 뚫고 사회주의건설에서 일대 앙양을 일으킨것처럼 전인민적인 총공세를 벌려 최후발악하는 적대세력들의 도전을 짓부시고 공화국의 전반적국력을 새로운 발전단계에 올려세워야 합니다.

A breakthrough should be made in reenergizing the overall economic front this year, the third year of implementing the five-year strategy for national economic development.

국가경제발전 5개년전략수행의 세번째 해인 올해에 경제전선전반에서 활성화의 돌파구를 열어제껴야 하겠습니다.

The central task facing socialist economic construction this year is to enhance the independence and Juche character of the national economy and improve the people’s standard of living as required by the revolutionary counter-strategy put forward by the Second Plenary Meeting of the Seventh Central Committee of the Party.

올해 사회주의경제건설에서 나서는 중심과업은 당중앙위원회 제7기 제2차전원회의가 제시한 혁명적대응전략의 요구대로 인민경제의 자립성과 주체성을 강화하고 인민생활을 개선향상시키는것입니다.

We should concentrate all efforts on consolidating the independence and Juche character of the national economy.

인민경제의 자립성과 주체성을 강화하는데 총력을 집중하여야 합니다.

The electric-power industry should maintain and reinforce the self-supporting power generation bases, and direct a great deal of efforts to developing new power sources. A dynamic campaign should be conducted to drastically increase thermal power generation, and lower the loss of electric power and increase its production as much as possible by maintaining and reinforcing imperfect generating facilitates. Provinces should build power generation bases to suit their local features and put power generation at the existing medium and small-sized power stations on a normal footing to satisfy the needs of electric power for local industry by themselves. Alternated production should be organized scrupulously throughout the country, and a vigorous struggle waged against the practices of wasting electric power to make effective use of generated electric power.

전력공업부문에서는 자립적동력기지들을 정비보강하고 새로운 동력자원개발에 큰 힘을 넣어야 합니다.화력에 의한 전력생산을 결정적으로 늘이며 불비한 발전설비들을 정비보강하여 전력손실을 줄이고 최대한 증산하기 위한 투쟁을 힘있게 벌려야 합니다.도들에서 자기 지방의 특성에 맞는 전력생산기지들을 일떠세우며 이미 건설된 중소형수력발전소들에서 전력생산을 정상화하여 지방공업부문의 전력을 자체로 보장하도록 하여야 합니다.전국가적인 교차생산조직을 짜고들며 전력랑비현상과의 투쟁을 힘있게 벌려 생산된 전력을 효과적으로 리용하기 위한 된바람을 일으키도록 하여야 합니다.

The metallurgical industry should further improve the Juche-oriented iron- and steel-making technologies, increase the iron production capacity and drastically raise the quality of metallic materials in order to satisfy the needs of the national economy for iron and steel. It is necessary to ensure a preferential, planned and timely supply of electricity, concentrated iron ore, anthracite, lignite, freight wagons, locomotives and funds for the metallurgical industry. By doing so, we can fulfil next year’s iron and steel production plans and make the industry Juche-oriented without fail.

금속공업부문에서는 주체적인 제철,제강기술을 더욱 완성하고 철생산능력을 확장하며 금속재료의 질을 결정적으로 높여 인민경제의 철강재수요를 충족시켜야 합니다.금속공업부문에 필요한 전력,철정광,무연탄,갈탄,화차와 기관차,자금을 다른 부문에 앞세워 계획대로 어김없이 보장하여 다음해 철강재생산목표를 무조건 수행하며 금속공업의 주체화를 기어이 완성하도록 하여야 하겠습니다.

The chemical industry should step up the establishment of the C1 chemical industry, push the projects for catalyst production base and phosphatic fertilizer factory as scheduled, and renovate and perfect the sodium carbonate production line whose starting material is glauberite.

화학공업부문에서 탄소하나화학공업창설을 다그치고 촉매생산기지와 린비료공장건설을 계획대로 추진하며 회망초를 출발원료로 하는 탄산소다생산공정을 개건완비하여야 합니다.

The machine-building industry should modernize the Kumsong Tractor Factory, Sungri Motor Complex and other factories to develop and produce world-level machinery in our style.

기계공업부문에서는 금성뜨락또르공장과 승리자동차련합기업소를 비롯한 기계공장들을 현대화하고 세계적수준의 기계제품들을 우리 식으로 개발생산하여야 합니다.

The coal and mineral production and rail transport sectors should make concerted efforts to make the country’s self-reliant economic foundations prove their effectiveness.

나라의 자립적경제토대가 은을 낼수 있게 석탄과 광물생산,철도수송에서 련대적혁신을 일으켜야 합니다.

Notably, the rail transport sector should make the best use of the existing transport capacity by making transport organization and control more scientific and rational, and maintain discipline and order in the railways as rigid as in the army, so as to ensure an accident-free, on-schedule rail traffic.

특히 철도운수부문에서 수송조직과 지휘를 과학화,합리화하여 현존수송능력을 최대한 효과있게 리용하며 철도에 군대와 같은 강한 규률과 질서를 세워 렬차의 무사고정시운행을 보장하도록 하여야 합니다.

A turn should be brought about this year in improving the people’s standard of living.

올해에 인민생활향상에서 전환을 가져와야 합니다.

Light-industry factories need to transform their equipment and production lines into labour- and electricity-saving ones and produce and supply more diversified and quality consumer goods with domestic raw and other materials, and provinces, cities and counties should develop the local economy in a characteristic way by relying on their own raw material resources.

경공업공장들의 설비와 생산공정을 로력절약형,전기절약형으로 개조하고 국내원료와 자재로 다양하고 질좋은 소비품들을 더 많이 생산공급하며 도,시,군들에서 자체의 원료원천에 의거하여 지방경제를 특색있게 발전시켜야 합니다.

The agricultural and fishing fronts should effect an upswing. We should introduce seeds of superior strains, high-yield farming methods and high-performance farm machines on an extensive scale, do farming scientifically and technologically so as to fulfil the cereals production plan without fail, and boost the production of livestock products, fruits, greenhouse vegetables and mushrooms. We should enhance our ship building and repair capacities, launch scientific fishing campaigns, and reenergize aquatic farming.

농업과 수산전선에서 앙양을 일으켜야 하겠습니다.우량종자와 다수확농법,능률적인 농기계들을 대대적으로 받아들이고 농사를 과학기술적으로 지어 알곡생산목표를 반드시 점령하며 축산물과 과일,온실남새와 버섯생산을 늘여야 합니다.배무이와 배수리능력을 높이고 과학적인 어로전을 전개하며 양어와 양식을 활성화하여야 하겠습니다.

This year the service personnel and people should join efforts to complete the construction of the Wonsan-Kalma coastal tourist area in the shortest period of time, push ahead with major construction projects including the renovation of Samjiyon County, the construction of the Tanchon Power Station and the second-stage waterway project of South Hwanghae Province, and channel steady efforts into the construction of houses.

올해에 군민이 힘을 합쳐 원산갈마해안관광지구건설을 최단기간내에 완공하고 삼지연군꾸리기와 단천발전소건설,황해남도물길 2단계 공사를 비롯한 중요대상건설을 다그치며 살림집건설에 계속 힘을 넣어야 합니다.

Building on the success we achieved in the forest restoration campaign, we should properly protect and manage the forests that have already been created, improve the technical conditions of roads, conduct river improvement on a regular basis, and protect environment in a scientific and responsible manner.

산림복구전투성과를 더욱 확대하면서 이미 조성된 산림에 대한 보호관리를 잘하는것과 함께 도로의 기술상태를 개선하고 강하천정리를 정상화하며 환경보호사업을 과학적으로,책임적으로 하여야 합니다.

Every sector and every unit of the national economy should enlist their own technical forces and economic potential to the maximum and launch a dynamic struggle to increase production and practise economy, so as to create a greater amount of material wealth.

인민경제 모든 부문과 단위들에서 자체의 기술력량과 경제적잠재력을 총동원하고 증산절약투쟁을 힘있게 벌려 더 많은 물질적재부를 창조하여야 합니다.

A shortcut to developing the self-sufficient economy is to give precedence to science and technology and make innovations in economic planning and guidance.

자립경제발전의 지름길은 과학기술을 앞세우고 경제작전과 지휘를 혁신하는데 있습니다.

The scientific research sector should solve on a preferential basis the scientific and technological problems arising in establishing Juche-oriented production lines of our own style, ensuring domestic production of raw and other materials and equipment, and perfecting the structure of the self-supporting economy. Every sector and every unit of the national economy should make a contribution to achieving production growth by intensifying the dissemination of science and technology and waging a brisk technological innovation drive.

과학연구부문에서는 우리 식의 주체적인 생산공정들을 확립하고 원료와 자재,설비를 국산화하며 자립적경제구조를 완비하는데서 제기되는 과학기술적문제들을 우선적으로 풀어나가야 합니다.인민경제 모든 부문과 단위들에서 과학기술보급사업을 강화하며 기술혁신운동을 활발히 벌려 생산장성에 이바지하여야 하겠습니다.

The Cabinet and other economic guidance organs should work out a realistic operational plan to carry out the national economic plan for this year and push forward the work for its implementation responsibly and persistently. Positive measures should be taken by the state to ensure that the socialist system of responsible business operation proves its worth in factories, enterprises and cooperative organizations.

내각을 비롯한 경제지도기관들은 올해 인민경제계획을 수행하기 위한 작전안을 현실성있게 세우며 그 집행을 위한 사업을 책임적으로 완강하게 내밀어야 합니다.국가적으로 사회주의기업책임관리제가 공장,기업소,협동단체들에서 실지 은을 낼수 있도록 적극적인 대책을 세워야 합니다.

Share

Joint conference of officials of party, state, economic and armed forces organs held

Monday, January 9th, 2017

According to KCNA (2017-1-9):

A joint conference of officials of the party, state, economic and armed forces organs took place in Pyongyang on Saturday and Sunday to discuss ways for carrying through the tasks set forth by respected Supreme Leader Kim Jong Un in his New Year Address.

Attending it were Premier Pak Pong Ju, member of the Presidium of the Political Bureau of the Central Committee of the Workers’ Party of Korea and vice-chairman of the DPRK State Affairs Commission, Kim Ki Nam, Choe Thae Bok, Pak Yong Sik, Ri Man Gon, O Su Yong, Kwak Pom Gi, Choe Pu Il, Jo Yon Jun and other senior party, state and army officials, officials of party and armed forces organs, the Cabinet, working people’s organizations, ministries and national institutions, and officials of local party and power organs and major industrial establishments.

Pak Pong Ju made a report.

He said that Kim Jong Un in his historic New Year Address, full of his will to devote himself to the country and people and warm love for them, proudly reviewed the successes made last year and showed an avenue for this year’s march.

The miraculous achievements in all fields of the revolution and construction last year are precious fruition of the wise leadership of Kim Jong Un, the reporter stressed.

He put forward the goals on important items to be carried out by the sectors of the national economy this year and referred to the issues arising in attaining them.

He stressed the need to attain earlier the goals for this year, a year of important significance in implementing the five-year strategy for national economic development, and further glorify the prosperous Kim Jong Un era.

Then inter-sector meetings of the national economy were held.

The meetings worked out the realistic and scientific militant goals in all sectors of the national economy and discussed the measures for hitting them.

The meetings discussed in depth the concrete orientation and ways for implementing the militant goals of all fields and units by dynamically waging a drive for producing and economizing as much as possible upholding the slogan of self-reliance and self-sufficiency.

Speakers at the meetings expressed their will to fully discharge the missions and duties as vanguard fighters in the new era of the Juche revolution in the all-out general offensive this year in order to attain the height of the five-year strategy for national economic development, true to the Party’s idea and intention.

KCTV footage of the meeting can be seen here. It took place in the new auditorium built for the premier’s office.

Here are some translation notes from the video:

Pak Pong Ju said:

-Following the 7th Party Congress, NK has strengthened its self-defensive military power and become a nuclear power in the East.

-Proud achievement on the economic front after 70-day and 200-day combats

Following sector-focused meetings:

– should find ways to normalize the production of electricity and steel

– should guarantee that coal, minerals and logs are produced at the right time

– should find ways to make sure coal mine products daily, monthly, and quarterly — in any conditions

– should make trains available for the use of power plants, mineral plants, and chemical plants first

– should improve the grain and rice industry to make people’s lives better….as well as the combat to catch plenty of fish

– regarding land management, they said that overseas economic cooperation should impove and expand

– should focus on finishing the construction of Ryo Myong street (여명거리). building Tanchon (단천) power plant and others and on modernizing Kim Jong Tae electric locomotive associated enterprise (김정태 전기기관차 연합기업소)

– as it is the season of construction booming, should increae the production of cements and localize and diversify the production of construction materials.

– should domestically produce raw materials, fuel, and equipment

 

Share

9th Plenary Meeting of 13th SPA Presidium Held

Wednesday, March 30th, 2016

According to KCNA (2016-3-30):

The 9th plenary meeting of the 13th Presidium of the Supreme People’s Assembly (SPA) of the DPRK took place at the Mansudae Assembly Hall Wednesday.

The plenary meeting was attended by members of the SPA Presidium.

Officials concerned were present there as observers.

Discussed at the meeting were review of the implementation of the state budget for Juche 104 (2015) of the DPRK and the state budget for Juche 105 (2016).

A report was made at the meeting.

According to the report, the state budget for last year was correctly carried out.

The plan for state budgetary revenue was over-fulfilled 1.3 percent or an increase of 5 percent over the previous year.

The plan for local budgetary revenue was fulfilled at 113.8 percent while that for state budgetary expenditure was carried out at 99.9 percent.

15.9 percent of the total expenditure was allocated for national defence while 47.5 percent for building an economic power and the improvement of the standard of people’s living.

Investment in the fields of science and technology showed a 4.7 percent increase over that last year.

36.6 percent of the total expenditure was earmarked for cultural construction including education, public health, sports and literature and arts.

The state budgetary revenue for this year is expected to go up 4.1 percent out of which transaction revenue will hold 3.3 percent, the revenue from the profits of state enterprises 4.5 percent, the revenue from the profits of cooperative enterprises 1.5 percent, that from real estate rent 4 percent, that from social insurance 1.1 percent, that from the sale of properties and price difference 2.5 percent and other revenue 1.3 percent. The revenue from economic trade zone is expected to grow 4.1 percent.

Out of the state budgetary revenue the national budgetary revenue will account for 76.8 percent while that from local areas 23.2 percent.

The state budgetary expenditure is expected to go up 5.6 percent over last year out of which 4.8 percent will go to industries, 4.3 percent to agriculture, 6.9 percent to fisheries, 13.7 percent to capital construction and 7.5 percent to forestry.

It was decided to increase expenditure in the field of science and technology 5.2 percent, the field of education 8.1 percent, the field of public health 3.8 percent, the field of sports 4.1 percent and the field of culture 7.4 percent.

15.8 percent of the total expenditure will be spent for national defence.

A large amount of educational aid fund and stipends will be sent for the education of Korean children in Japan.

A decision of the Presidium of the SPA “On approving the review of the fulfillment of the Juche 104 (2015) state budget of the DPRK” and a decree of the Presidium of the SPA “On the Juche 105 (2016) state budget of the DPRK” were adopted at the meeting.

Share

Insurance products promoted to target foreign investment enterprises

Tuesday, January 26th, 2016

Institute for Far Eastern Studies (IFES)

North Korea is promoting insurance products targeted at foreign-investment companies with increasing efforts to attract foreign capital through special economic zones.

On January 19, 2016, the state-run Korea National Insurance Corporation (KNIC) made an official announcement on its website on new insurance products for the economic development zones. It announced that KNIC is promoting various insurance products to protect life and property for foreign investment companies, including fire insurance and accident liability insurance for gas accidents, third party automobile liability insurance, and third party construction liability insurance.

In addition, KNIC announced that it will offer a variety of insurance products according to personal and business demands. The website elaborated, “in order to meet the growing insurance need in the economic development zones, KNIC is introducing development of various insurance products and to realize the international insurance trends and the diversification of the insurance sector to ensure the prompt insurance coverage to remain as credible institution among foreign companies.”

The KNIC first began to operate fire, automobile, gas accident liability insurances to tenant companies in the Kaesong Industrial Complex from 2005.

Meanwhile, North Korea’s Presidium of the Supreme People’s Assembly (SPA) adopted the insurance regulation along with property regulation for the Economic Development Zone (EDZ) last July. The insurance regulation consisted of four chapters and 52 articles, but specific details were not disclosed. However, details on insurance contracts, insurance offices, as well as installation and operation of the insurance office were revealed.

Previously, North Korea enacted new EDZ laws in May 29, 2013 which guaranteed special privileges for economic activities conducted in special economic zones as specified in the law. On November 6, 2013, three EDZ Operational Regulations were adopted (management institutional regulations, establishment regulations, and business establishment and operational regulations) by the Presidium of the SPA.

This new property insurance policies and regulations appear as a new measure to ensure added legal protection to improve investment environment of foreign capital from the three existing operating regulations.

In February 2015, Ri Sun Hak, department director of the Ministry of External Economic Relations, stated in an interview with the KCNA, “Our country is fully equipped with the legal environment to protect the legitimate rights and interests of investors.” The news also depicted ‘foreign investment law,’ ‘economic development law,’ and ‘external economic arbitration law’ were newly enacted or revised. The foreign investment laws was revised to streamline investment formalities and to provide various services for foreign-investment companies.

However, the question still remains as to gauge the effectiveness of North Korea’s insurance operations. As the international community, including the UN Security Council, is likely to impose stronger sanctions to condemn North Korea’s fourth nuclear test, the solvency of North Korea’s insurance companies remains uncertain and unreliable.

In addition, the KNIC’s Germany branch and President So Tong Myong (Seo Dong-Myung) are both on the EU’s list of sanctions, which is likely to act as an impeding factor for smooth insurance operations. The EU listed six KNIC senior employees to the sanctions list subject to an EU-wide asset freeze and travel ban.

Share