North Korean Economy Watch

According to Yonhap:

North Korea has recently promoted its vice forestry minister, Kim Kwang-yong, to the post of minister, according to the country’s state media on Wednesday.

Radio Pyongyang referred to Kim as forestry minister, rather than his previous title of vice minister, while carrying his comments on a recently broadcast statement from North Korean leader Kim Jong-il.

Little is known about the new minister. He visited Russia a year ago while leading the ministry’s delegation as vice minister, according to North Korean media reports.

Kim’s predecessor, Sok Kun-su, was reportedly named to the post in October 2004.

On October 18, KCNA published the following story (this is the only mention of his name in KCNA online archives):

Delegation of Ministry of Forestry Leaves for Russia

Pyongyang, October 18 (KCNA) — A delegation of the DPRK Ministry of Forestry headed by Vice-Minister Kim Kwang Yong left Pyongyang Thursday to participate in the 12th meeting of the forestry sub-committee of the inter-governmental committee for cooperation in trade, economy and science and technology between the DPRK and Russia to be held in Russia.

Many North Korea watchers will remember that North Korean laborers are felling forests in Siberia (background here and here).  It looks like these business ventures are now part of Mr. Kim’s portfolio.

Read the full article here:
N. Korea names new forestry minister
Yonhap
10/29/2008

An advanced copy of the 2007 US Geological Survey of North Korea has been published. 

Here is the outlook from the author, John C. Wu:

For the next 3 to 4 years, the North Korean mining sector is likely to continue to be dominated by the production of coal, iron ore, limestone, magnesite, and zinc. Because of the continuing strong demand for minerals by China, its investments in North Korea’s mining sector are expected to continue to increase beyond its current investments in coal, copper, gold, iron ore, and molybdenum into other mineral commodities, such as nickel, crude petroleum, steel, and zinc. North Korea’s economy is expected to recover slowly but its real GDP is expected to grow at less than 1% during the next 2 years.

The whole report is fairly brief and worth reading in full.  You can download it here: usgs-dprk.pdf or read it on line here.

Daily NK
Choi Choel Hee
10/21/2008

With Kim Jong Il’s condition an issue, there has been a lot of talk about North Korea’s government system in the post-Kim Jong Il era.

Due to the strengthened military influence caused by the military-first policy, one prediction is that a military-based collective leadership system may take power after Kim Jong Il.

However, a defector who used to be a high-ranking official in North Korea pointed out that this prediction comes from an incorrect understanding about the relationship between the Party and the military.

Hwang Jang Yop, who is a former Secretary of International Affairs of the Workers’ Party, has said that not military authorities but the Party would likely grasp power after Kim Jong Il’s death.

I. Chosun (North Korea) People’s Army Is the Army of the Party

According to the Regulations of the Workers’ Party, the Chosun People’s Army is defined as “the revolutionary military power of the Workers’ Party.” Separate from the regular chain of command in the Army, Party members are assigned to each unit to command them. That is, there are two command structures: a military chain of command and the Party’s organizational system.

The People’s Army is controlled by the Party Committee of the Chosun People’s Army under the Military Committee of the Central Committee of the Workers’ Party. The chief secretary of the Party Committee of the Chosun People’s Army is Cho Myung Rok, who also holds the position of Director of the General Political Bureau of the Ministry of the People’s Armed Forces. His roles are to inform the Army of the Party’s instructions and regulations and to monitor and supervise the Army to make sure it adheres to the Party’s will and regulations.

At the same time, the highest political apparatus in the military, the General Political Bureau, is under surveillance of the Guidance Department of the Central Committee of the Party. Therefore, a Vice-Director of the Guidance Department of the Central Committee presides over the military while the military command system is always subordinate to the Party command system.

Regarding this relationship between the Party and the military, Hwang Jang Yop, the former Secretary of International Affairs of the Party, gave as an example “the Sixth Corps’ Coup d’état case,” and said that, “The suspected leaders of the coup were shot at once in a hall. The figure who ordered and carried out the massacre of the conspirators was Kim Young Choon, the Vice-Director of the National Defense Commission, but the political manager behind everything was Jang Sung Tae, Director of the Ministry of Administration, one of the departments under the Central Committee of the Party. This implies that there are different management systems overseeing the military — those of the military itself and those of the Party.”

II. The Right of Personnel Management and of Inspection Over the Military

The reason why the Director of the Guidance Department holds such a powerful influence is that the Director has the right to manage personnel and inspect the military.

Even the right to implement personnel management within the Army goes to the Secretariat of the Central Committee of the Party. The members of the Secretariat are the Director of the Ministry of the People’s Armed Forces, the Army Chief of Staff, the Director of the General Political Department, the Director of the Operations Department, and, in some cases, the commander of the Defense Security Command of the Army is included.

The Guidance Department of the Party maintains the right to inspect the Army. The scariest inspections for the military are the ones by the Guidance Department. On a rumor that the Guidance Department is coming, a few military officials are usually purged.

The fact is well known that Kim Jong Il himself also holds power over the military through controlling the Guidance Department.

The posts in charge of the military within the Guidance Department are the No. 13 Life Guidance Department and the No. 4 Cadre Department. Department #13 directly controls and instructs the operations of the Army Committee of the Central Committee of the Party and General Political Department of the Party.

III. Department #13 and Department #4 of the Guidance Department

The roles of these two departments are to monitor how well the Army follows the ideology and the leadership of Kim Jong Il, and whether or not party organizations and political organizations within the Army are operated well by the Party leadership. The Army Committee of the Party and the General Political Bureau doesn’t have the authority to make decisions, so it has to consult with Department #13 before taking action.

The Vice-Director of the Guidance Department is in charge of Department #13. The offices of Department #13 are located in the building of the Ministry of the People’s Armed Forces due to its association with the General Political Department of the People’s Army.

It also oversees the Army Committee of the Central Committee, the General Political Department, and the Army Committee. Department #13 participates in the major military meetings including the ideological struggle meeting. It hosts an annual fifteen-day-long Guidance Department lecture of the Party for military officials.

The No. 4 cadre department has the final say over personnel matters regarding high military officials. Officials whose rank is higher than brigadier general must be approved by the Guidance Department. After the Guidance Department signs off, posts and military title can be granted by the order of the supreme commander of the People’s Army. Therefore, the Guidance Department of the Party holds absolute control over the Army through exercising its right of personnel management of the officials.

Daily NK
Namgung Min
10/8/2008

As rumors regarding Kim Jong Il’s illness surfaced during North Korea’s 60th anniversary celebrations, opinion was divided on whether the military or the Party will rise in power post-Kim Jong Il.

It is true that the power of the military rose post-Kim Il Sung, according to the “military-first” political line. The National Defense Commission (NDC) began leading various agencies and councils, and came to hold greater power because Kim Jong Il was introduced as the National Defense Commission Chairman during North-South Summits.

Thus, the National Defense Commission under military-first politics began to appear to be North Korea’s sole power base, as news on general-level promotions was released publicly by the National Defense Commission.

However, despite military-first politics, it remains the Chosun (North Korea) Workers’ Party that fundamentally controls the North Korean regime. Therefore, in order to understand the North Korean regime, one must understand the Chosun Workers’ Party.

Upcoming October 10th is the founding anniversary of this most important of organizations. The eyes of the world are focused on whether Kim Jong Il will appear on this day or not.

Therefore, it is time to closely examine what the Chosun Workers’ Party does and how it controls the North Korean regime.

The Korean Workers’ Party claims to be the direct heir to the North Korean Branch of the Chosun Communist Party that was established during “The Chosun Communist Party Convention of Leaders and Devotees of the 5 Northwest Provincial Party Committees” held on October 10th, 1945. Hence the founding date is October 10th. In April, 1946 the name was changed to the North Chosun Communist Party, which then became the Chosun (North Korean) Workers’ Party after being merged with Chosun New People’s Party in August of the same year.

North Korea is operated under the leadership of the Chosun Workers’ Party, as previously seen in other socialist countries; the nation’s power is concentrated in the Party. This implies that as the Party controls the country, the country is evolving into a socialist society and from there into a communist society.

The Workers’ Party, venerable as it is, not only holds the highest position of authority in North Korea but thus stands above other national agencies, organizations or the military.

I. The positions and roles of the Chosun Workers’ Party

The positions and roles of the Workers’ Party are described in detail in the “Rules and Regulations of the KWP,” “Ten Principals for the Party’s Unique Ideological System” and the “Socialist Constitution of North Korea.”

It is written in Article 11 of the Socialist Constitution, amended in 1998, that “The DPRK shall conduct all activities under the leadership of the Workers’ Party.” Furthermore, the Workers’ Party is stated to be an organ that controls other agencies and organizations as the highest revolutionary organization leading all other working organs.

However, the socialist constitution and the rules of the Party are only for the purpose of propagating the notion of the rationality and legitimacy of North Korea abroad while concealing a dictatorship. The reality within North Korea is completely different from the actual contents of the constitution.

In actuality, the socialist constitution and the rules and regulations of the Party defines that all sectors such as government, military, administration, judiciary, and even public prosecutor’s office are led by the Party, while being utilized as the apparatus for Kim Jong Il’s Stalinist dictatorship. That is, the regulations recognize the Party’s leadership of the country and simultaneously state that the Party can only be operated and led by Kim Il Sung and Kim Jong Il.

The Workers’ Party in legal terms is an organ that guides North Koreans, but in reality it is only an organ under the iron command of the supreme Leader. Therefore, the Leader stands in the highest position, above the Party, nation and sovereign organs.

II. The structure and functions of the Chosun Workers’ Party

The utmost decision-making organ of the Workers’ Party is the National Party Congress.

According to the rules and regulations of the Party, all decision making of the Party regarding policies, strategies, and tactics should be passed through the National Party Congress. However, in actuality the Party Congress only rubber stamps the decisions that were already made by the Central Committee of the Party.

It is theoretically a ground rule that the Party Congress meets once every 5 years. The first congressional meeting was held in August 1946, the Congress met for the 6th time in October 1980, but has failed to meet since; 28 years. The fact that the Congress is not meeting regularly signifies that the regime system is not operating according to accepted principles of socialist states in the past.

If the Congress fails to meet, the Central Committee of the Party functions as the highest decision-making organ. The Central Committee should meet and discuss issues once every 6 months.

During these meetings, the General Secretary, committee members and the Presidium of the Politburo and committee members of the Central Committee of the Party should be elected. The Central Committee also has the authority to organize the Secretariat and the Central Military Commission.

However, even these twice annual meetings have not been held since the 21st meeting of the 6th cohort in 1993. When the meetings are not held, then the Politburo needs to take authority. However, the Secretariat of the Central Committee, whose General Secretary is currently Kim Jong Il, currently does so.

The highest organ in a communist society is officially the Presidium of the Politburo. In North Korea, Kim Jong Il is the only left in the presidium after the deaths of Kim Il Sung and Oh Jin Woo. This is why North Korea is sometimes called a totalitarian state. In the Chinese government, the Politburo presidium is properly functioning and decisions are made here. From a “democratic” perspective, the Chinese Communist Party and the Chosun Workers’ Party are completely different.

In any case, within the Secretariat of the Central Committee there are specialty departments such as the Guidance Department, Propaganda and Agitation Departments, and the United Front Department, and it also includes departments that supply secret funding to Kim Jong Il such as the 38th and 39th Departments.

The provincial organs of the Party consist of party committees of provinces, cities and counties that even include the most basic low-level party committees such as elementary party committees and sector party committees.

The structure of the Workers’ Party can also be divided into permanent party organs and temporary collective leadership groups. The permanent party organs include all members who work in any specialty departments, from the Central Committee down to low-level provincial party organs. Temporary collective leadership groups signify councils of high-level or low-level leaders of the central and provincial organs, made to implant permanent authority within the society through various meetings.

There are approximately 4,000,000 members of the Workers’ Party, including Kim Jong Il, high-level officials to low-level members, and figures from the legislature, judiciary, and the administration.

III. Main Departments and Their Roles

The main government complex of the Central Committee of the Worker’s Party is located in Changkwang-dong, Joong-district of Pyongyang. There are many buildings in the complex which include Kim Jong Il’s personal office and most of the Central Committee departments.

The second government complex is located in Junseung-dong, Moranbong-district of Pyongyang. The Social Culture Department, United Front Department and Operations Department are included in this complex.

The Workers’ Party has placed all specialty departments under the authority of the Secretariat, to function as restriction and guidance on all areas of the party members, citizens and North Korea. There is a Guidance Department that observes party members then there are other departments that exercise political functions.

The Guidance Department actualizes party guidance and restraint within communities. The department functions as Kim Jong Il’s right hand and as the core department by restraining the lives of all officials, members and citizens within the party.

The Guidance Department sub-divides into the inspection department, official department, party-member registration department, administration department and a communication department that allows direct reports regarding any incident or accident. The Guidance Department also manages the judiciary and the public prosecutor’s office.

The inspection department is responsible for inspecting any anti-party, non-party, undisciplined or unreasonable activities that develop within the regime or leadership of the Party and report to Kim Jong Il. The Guidance Department inspection section is strictly separated from other departments and North Korean party members or officials are all fearful of it.

There are approximately 20 specialty departments such as the Propaganda and Agility Department, the 38th and 39th Departments to supply fund to Kim Jong Il, the United Front Department dealing with South Korea, the International Department, the Science Education Department, and the Operations Department that carry out political activities.

Currently the Korean Workers’ Party is in the middle of the process of replacing 1st or 2nd generation leaders with 3rd or 4th generation, often more practical, personnel.

UPDATE (2009-10-12): Last September (2008), Barbara Demick at the LA Times became the first US journalist to report on Pyongyang’s housing boom.  Yonhap now provides some additional information on Pyongyang’s current housing ambitions:

The Chosun Sinbo, which usually conveys Pyongyang’s views, described the housing construction as an “unprecedented national project” and a “core project” in the country’s campaign looking to 2012.

The paper reported that the North was in the process of building 65,000 new houses in the city’s western district of Mangyeongdae, where Kim Il-sung’s birth home is located, 15,000 houses in central Pyongyang and 20,000 houses along the railroad spanning between the southern district of Ryokpo and Ryongsong district in the capital’s northern region.

Each home will be approximately 100 square meters in size, according to the report.

The North Korean capital, despite a strict control on the entry of people from rural areas, has reportedly been going through a major housing shortage. The paper said that the completion of the housing project will solve the problem plaguing the citizens of Pyongyang.

In the past, Pyongyang has built 50,000 new apartments each in the 1980s and the 1990s.

In 2001, North Korea sought to develop a satellite city of some 1 million households near the Mangyeongdae district, but failed due to the nation’s economic woes.

You can read additional DPRK real estate posts here.

Read the full Yonhap story here:
N. Korea building new housing districts in Pyongyang: report
Yonhap
Tony Chang
10/12/2009

ORIGINAL POST (2008-9-27): Los Angeles Times reporter Barbara Demick recently visited the DPRK (with the Committee for Cultural Relations with Foreign Countries) and noticed that Pyongyang is experienceing a bit of a construction boom:

Except for the monuments glorifying leader Kim Jong Il and his father, Kim Il Sung, the founder of North Korea, hardly anything new has gone up in decades. By night, the city is so quiet you can hear a baby crying from far across the Taedong River, which cuts through the center of town.

Yet these days, high-rise apartments in shades of pink are taking shape near the Pueblo, the American spy ship captured in 1968 and still anchored in the river. A tangle of construction cranes juts into the skyline near Pothong Gate, a re-creation of the old city wall. About 100,000 units are to be built over the next four years.

A modernistic silver-sided box of a conference center is already complete. Theaters and hotels are being renovated. Streets have been repaved and buildings repainted.

Even North Korea’s most notorious clunker, an unfinished 105-story hotel that looms vacant over the city, is under construction again after sitting idle for nearly two decades.

All are slated for completion by 2012, the 100th anniversary of the birth of Kim Il Sung. The deadline appears to have taken on new urgency for the appearance-conscious North Koreans, who fret that their capital has become a laughingstock.

“We know we need to modernize. We want to make the city comfortable for the people who live here and for tourists,” said Choe Jong Hun, an official with the Committee for Cultural Relations With Foreign Countries.

North Korean officials insist that they’re funding the building spree on their own, in keeping with an underlying ideology that emphasizes self-reliance.

“If we rely on others, our dreams won’t be realized by 2012. It is all built with our own technology, our own material, our own labor, our own strength,” Choe said.

But analysts are skeptical of such claims, given the nation’s economy and the regime’s secretive nature and often deceptive pronouncements.

“This is a puzzle,” said Yoon Deok-ryong, a South Korean economist who recently visited Pyongyang. “The North Koreans are trying to show the outside world that they are not starving, that they are strong, but we know it is not true, so we wonder where the money is coming from.”

Ms. Demick also speculates on a political reason why Kim Jong il might be financing the construction (beyond the stated policy goal of achieving economic success by 2012):

Expatriate businesspeople in Pyongyang say Kim might also be investing some of his own stash with an eye toward maintaining the loyalty of his Workers’ Party cadres. Apartments under construction look to be aimed at the elite.

Read the full story here:
North Korea in the midst of a mysterious building boom
Los Angeles Times
Barbara Demick
9/27/2008

According to Yonhap:

North Koreans received special rations of liquor, cookies, blankets and sports shoes earlier this week in honor of the communist country’s 60th founding anniversary, a mouthpiece for a pro-Pyongyang group in Japan reported Thursday.

“Holiday rations were distributed across the country to mark the 60th anniversary of the Democratic People’s Republic of Korea,” said Choson Sinbo, organ of Chongryon, or the pro-Pyongyang General Association of Korean Residents in Japan. “Concerned bodies had prepared for the distribution well before the holiday to ensure that all households enjoy the day,” it added.

Although the practice of giving out commemorative rations is pretty much a tradition in the DPRK, tastes have changed, and citizens do not hold them in the esteem they once did.

The most authoritative map of North Korea on Google Earth
Download it here

This map covers North Korea’s agriculture, aviation, cultural locations, markets, manufacturing facilities, railroad, energy infrastructure, politics, sports venues, military establishments, religious facilities, leisure destinations, and national parks. It is continually expanding and undergoing revisions. This is the eleventh version.

Additions include: Mt. Paegun’s Ryonghung Temple and resort homes, Pyongyang’s Chongryu Restaurant, Swiss Development Agency (former UNDP office), Iranian Embassy, White Tiger Art Studio, KITC Store, Kumgangsan Store, Pyongyang Fried Chicken Restaurant, Kilju’s Pulp Factory (Paper), Kim Chaek Steel Mill, Chongjin Munitions Factory, Poogin Coal Mine, Ryongwun-ri cooperative farm, Thonggun Pavilion (Uiju), Chinju Temple (Yongbyon), Kim il Sung Revolutionary Museum (Pyongsong), Hamhung Zoo, Rajin electrified perimeter fence, Pyongsong market (North Korea’s largest), Sakju Recreation Center, Hoeryong Maternity Hospital, Sariwon Suwon reservoir (alleged site of US massacre), Sinpyong Resting Place, 700 Ridges Pavilion, Academy of Science, Hamhung Museum of the Revolutionary Activities of Comrade Kim Il Sung, South Hamgyong House of Culture, Hamhung Royal Villa, Pork Chop Hill, and Pyongyang’s Olympic torch route. Additional thanks go to Martyn Williams for expanding the electricity grid, particularly in Samjiyon, and various others who have contributed time improving this project since its launch.

Disclaimer: I cannot vouch for the authenticity of many locations since I have not seen or been to them, but great efforts have been made to check for authenticity. These efforts include pouring over books, maps, conducting interviews, and keeping up with other peoples’ discoveries. In many cases, I have posted sources, though not for all. This is a thorough compilation of lots of material, but I will leave it up to the reader to make up their own minds as to what they see. I cannot catch everything and I welcome contributions.  Additionally, this file is getting large and may take some time to load.

Institute for Far Eastern Studies (IFES)
NK Brief No. 08-8-8-1
08/08/08

According to Choi Hyun-soo, vice director of the DPRK Department of Agriculture, “The issue of increasing agricultural production is related to the serious political issue of the fate of the construction of a strong and prosperous socialist nation, and even moreso, the fate of our style of socialism,” rather than simply an issue of economic affairs.

In an interview published in the latest issue (July 24) of the DPRK Cabinet publication, “Democratic Chosun”, Vice Director Choi stressed that several years of natural disasters had prevented last year’s grain production from reaching a satisfactory level, making increased grain production this year an even more important issue. While Choi recognized the impact of the natural disasters, he also blamed the “villainous isolation and oppression machinations of the imperialists” for causing the North’s scant grain production. He also pointed out that the sudden jump in rice, corn, wheat and other grain prices around the world has been cause for concern, and “these days, there are no countries offering food or in a position to provide it.”

He went on to state, “If countermeasures to prevent damage during the monsoon season cannot be implemented, farmland and crops could be severely damaged,” and the lack of heavy rains is no reason for complacency, but rather, efforts to prevent flood damage need to continue. The (North) Korean Central Broadcasting Station also reported on July 24, “Good agricultural cultivation is an important political task,” and, “Good agricultural cultivation and easing of the eating problem is precisely the utmost important matter for the success of socialism and the protection of our system and ideology.”

Choson Ilbo
8/7/2008

It seems likely that North Korea will finally join the worldwide web and provide Internet service from next year. Kim Sang-myung, the chief of the North Korea Intellectuals Solidarity, a group of former North Korean professionals, at a symposium in the National Assembly on Wednesday said, “According to the Internet Access Roadmap it launched in 2002, North Korea will begin providing Internet service for special agencies and authorized individuals as early as next year.”

Kim defected from North Korea in 2004, when he was a professor of computer engineering at Communist University. An expert on North Korea’s information technology, he is currently an adjunct professor at Kyonggi University and a fellow at the Institute of North Korea Studies.

Implementation of the roadmap, which major agencies such as the Workers’ Party, the Ministry of Post and Telecommunications, the Ministry of Electronic Industry, and the North Korea Academy of Sciences have pushed for under the instructions of North Korean leader Kim Jong-il since 2002, is now at its final stage, he said.

First of all, North Korea will establish infrastructure for a super-speed Internet service network by laying optical cables between Pyongyang and Hamhung and extending them to Chongjin and Shinuiju this year. North Korea has recently succeeded in consolidating security solutions for the prevention of online leaks of data to foreign countries and of online intrusions, and in enhancing service stability.

It has also recently finished necessary consultations with the Internet Corporation for Assigned Names and Numbers (ICANN) for the Internet service in North Korea. In this situation, North Korea can begin providing Internet service any time provided equipment for server and Internet-based relay systems is supplied, Kim said.

“North Korea is strongly determined to be part of the global community through the Internet,” he said. “After watching China and Vietnam control the Internet effectively although these countries have opened up Internet wireless networks since the early days of their opening, the North has concluded that it can now introduce the Internet service.”

Currently, North Korea provides only a limited service via a kind of Intranet called Kwangmyong, through which it is possible to access databases on scientific and technological information at North Korean central government agencies.

NKeconWatch blogged earlier about the US-based organizations permitted to enter the DPRK and distribute US humanitarian relief.  A list of those organizations can be found here.

Number three on the list, Samaritan’s Purse, is headed by “US religionist” Franklin Graham, son of Rev. Billy Graham, who just arrived in Pyongyang for a 4-day humanitarian relief tour.  Franklin visited the DPRK once before, in 2000 according to KCNA, and met with Kang Yong Sop, chairman of the central committee of the Korean Christian Federation, Paek Nam Sun, Minister of Foreign Affairs, Kim Kye Gwan, vice-Minister of Foreign Affairs, and Kim Yong Dae, vice-president of the presidium of the Supreme People’s Assembly, and delivered a sermon at Pyongyang’s Pongsu Protestant Church. 

Since Franklin’s mother spent 1934 living in Pyongyang, the family seems to have taken a special interest in the DPRK.  In addition to the relief they are distributing now, Samaritan’s Purse chartered a 747 cargo jet from Charlotte to deliver $8.3 million in medicine and other emergency supplies in August of 2007. It was the first private flight directly from the U.S. to North Korea since the Korean War.

Graham’s organization has been posting information on his trip here and here.  Greta Van Sustern has been posting video here: hospital visit (the most informative), monument 1, monument 2, Grand People’s Study House, Mass Games (most inaccurate), Mr. Graham’s work, taking off from Sunan Airport (interesting), Franklin Graham video 1, Video 2, and interview transcript.

Read more here:
Evangelist Franklin Graham to preach in North Korea
McClatchy Newspapers
Tim Funk
7/31/2008