North Korean Economy Watch

Institute for Far Easter Studies
NK Brief No. 07-8-14-1

The second inter-Korean summit meeting is coming up soon, scheduled to open on August 28 in Pyongyang, and interest is building regarding discussion on economic cooperation. It is true that the North is prioritizing political and military issues in order to shore up its government by normalizing relations with the United States. However, considering its serious economic woes, the ability of South Korea to offer a ‘gift package’ can significantly influence the success or failure of this summit.

It is not yet clear how economic cooperation will fit into the agenda, but Seoul and Pyongyang have been constantly discussing this issue, so some insight has been given. In particular, the ‘consumer’ North has been referring to domestic and international cooperation, and through Pyongyang’s requests, some clarity has been added to what goals could unfold during the upcoming meeting.

Energy Sector

The North Korean economy is saddled with severe shortages of electricity and fuel oil, causing production to slow and therefore stagnating consumption, putting the country into an ongoing vicious circle of economic depression. North Korea possesses facilities to produce 7.7 million kW of steam- and hydro-electric power, but in reality is incapable of operating these facilities at more than 30%.

The opinion that expansion of North Korea’s electrical infrastructure is necessary, not only for the North, but also for South Korea, is gaining strength. South Korean projects to develop North Korean mines and import its coal have been delayed due to a lack of electrical power. In the future, enterprises looking to set up in North Korea will also require a steady supply of electricity.

In what way the two Koreas will cooperate on energy is not yet known, but North Korea is sticking to its demand for light-water nuclear reactors. If construction were restarted on the reactors begun by the now-defunct Korean Peninsula Energy Development Organization (KEDO), North Korea could quickly have not only the energy production amount currently available, but an additional 2 million kW, as well.

North Korea’s power facilities are in a state of deterioration, but the number of facilities in the North are adequate for the current state of the economy, so a plan for the restoration of generation and transmission facilities, or the 2 million kW of electrical power offered by the South Korean government two years ago could be considered sufficient.

Natural Resource and Infrastructure Development

One other highly probable agenda item on inter-Korean economic cooperation will be development of natural resources. This is because a model in which North Korea’s relatively abundant underground natural resources are developed, and in which these resources being used by South Korean businesses, would create a ‘win-win’ result for both Seoul and Pyongyang.

According to a report given by the Korea Resources Corporation at a conference last year, North Korea possesses upward of forty different valuable minerals, including iron-ore. Analysis of these North Korean resources shows that a considerable amount of South Korea’s 40 trillion won (430 billion USD) worth of mineral imports per year could be brought in from North Korea instead.

As development projects in North Korea’s graphite mines are already underway, and the import of North Korean anthracite is being considered in order to meet quickly growing demand for charcoal in the South, cooperation in the natural resource sector appears to be one of the core points to inter-Korean economic cooperation.

As for North Korea’s railways, the heart of the country’s distribution infrastructure, completion of the section of track on the Kyungui Line between Kaesong Station and Moonsan Station, as well as the section of the East Sea Line between Mt. Kumgang Station and Jejin Station, means that the infrastructure for regular service between the two countries is now in place, although talks regarding the details of such regular service are not being held.

If regular service on these two lines between North and South Korea can be achieved, expensive transportation costs can be reduced, and of course, in the future, connection of the railway with continental rail networks such as the Trans-Siberian Rail and the Trans-China Rail would help to enable the Korean Peninsula to emerge as the hub of North East Asian distribution.

Furthermore, considering the fact that North Korea’s mining facilities and technology, as well as its ports, loading facilities, and other transportation infrastructure, are severely lacking, a plan linking development of natural resources to projects developing infrastructure also appears viable. It is also already known, to some extent, the nature of North Korean needs in its infrastructure sector, and if this upcoming summit closes successfully, it is expected that an inventory of these needs will become more concrete.

Vitalizing Kaesong Industrial Complex

The Kaesong Industrial Complex (KIC) is also an important undertaking. At the moment, a problem has arisen concerning the construction of a second KIC, but even if only the originally planned 26.4 million square-meter complex is built, the fact is that currently the first 3.3 million square-meter stage is complete, and considering that it employs North Korean labor, this is no easy feat. Companies moving into the KIC are asking that easy communication with South Korea and simplified import procedures be prioritized.

Daily NK
8/9/2007
Kim Yong Hun

Results from recent surveys conducted by the Korea Federation of Small and Medium Business’ regarding South Korean companies in the Kaesung Industrial Complex show that among the 24 companies, just five companies recorded a profit for the first time in 3 years.

Kaesung Industrial Complex Committee of Enterprises said, “Recently, companies that have finished investment from the last 3 years have started to make profit”. They predicted, “From now on, Kaesung Industrial Complex businesses will start to be resilient.”

Following, the committee added, “It is expected that as the five companies start to collect their investments funds, there will be an increase in companies that experience net profit.”

However, there are also criticisms that premature optimistic hope could bring a reserve effect. Currently, the remaining 19 companies (80%) are still seeing a loss and considering the technical learning ability of the North Korea laborers and low productivity of companies, it is too early to be optimistic of the Kaesung Industrial Complex businesses.

Experts especially worry that reflecting the fact that the Kaesung Industrial Complex is proceeding successfully, it can send a negative sign to the North.

“Premature Hopes Can Bring Failure to the Kaesung Industrial Complex Business.”

Dong Yong-seung, director of Economic Security Department of Samsung Economic Research Institute, gave a positive evaluation in a phone conversation with DailyNK and said, “The break-even point for ordinary companies is 5 years, but the fact that the Kaesung Industrial Complex businesses saw a net profit in 3 years means that the businesses are that successful.”

However, Mr. Dong also said, “If it looks to North Korea that the Kaesung Industrial Complex is going too well, a flawed message can be sent and problems can occur. To solve such problems, there needs to be a definite principle kept about direct payment of wages and wage increase that was agreed between the South and the North.”

Kaesung Industrial Complex Committee of Enterprises’ chief Lee Im Dong pointed to the fact that, “Due to the results from the survey, there may be a misunderstanding to the North that the Kaesung Industrial Complex’ situation is the ideal place. Although a problem of manpower supply and demand, laborers’ ability problems and other problems are piled, but North Korean staffs of Kaesung complex can be content with the result of that research and intent to stay in this state.”

Chairman Lee especially added that, “Extreme optimism towards the Kasung Industrial Complex will only add to the desire to form a union to increase the North’s wages and completion fee and cause an overall negative effect to the Kaesung Industrial Complex business.”

North Korea actually ignored the labor regulations of the Kaesung Industrial Complex that stated, “You cannot raise wages to exceed 5% from the previous year” and demanded a 15% wage increase to South Korean companies last month. North Korea claimed that it would refuse overtime work and special work from the 1st if this was not accepted but the South and the North conclusively agreed to a 5% increase at the start of the month.

“Kaesung Industrial Complex optimism can cause failure to businesses”

As a result of a survey, aside from 5 companies that have converted to a profit, 19 companies are still in a loss and the average productivities of these companies are lower than the productivity of domestic factories at a 53.7%.

From one side, the criticism is that the low productivity with the problem of Northern laborers learning technical skills is the key to solving the Kaesung Industrial Complex business.

Kim Kyu Chul, Representative of the North-South Forum had asserted previously that most of the Kaesung Industrial Complex businesses have been experiencing financial difficulty. He says, “The fact that most businesses are still experiencing a loss must be paid attention to.”

Representative Kim said, “Among the 5 companies that made net profit, 3 companies made 200mn won (USD215,000) and the remaining 2 companies made a lower profit. Compared to the tens of millions of invested funds, the net profit is at an unnoticeable level and thus, although there is a symbolic significance it is premature to say that there is actual administrative profit.”

He especially asserted that, “Aside from companies related to fiber and clothing, most companies in electronics and telecommunication parts production have been experiencing a loss. To state that it is a success just because a minority of companies experienced a net profit can actually obstruct the course of the Kaesung Industrial Complex business.”

He also added, “The fact that 19 Kaesung Industrial Complex companies have plans to additionally invest means that rather than a positive sign that the business running well, it is to secure a plot for ordinary investment plans. Even though a company is having a difficult time administrating, it obtains factory plot to prepare for additional investments.”

There is also the point that there is a weak incentive for Northern laborers to want to work.

Chief of the Committee Lee said, “The speed of learning skills thus the laborers’ development speed is slow and because there is no economic incentive to work hard like democratic societies, the productivity is low compared to domestic companies.”

He added, “The result that 19 companies will continue to invest does not mean that the business is running well. Because the speed of reforming business environments is heading in a positive direction, companies have been investing and in the future, technical problems and customs clearance will need to be solved”.

Yonhap
8/6/2007

Most South Korean companies operating at an inter-Korean industrial zone in North Korea plan to increase their facility investment there, a survey showed Monday.

The survey, conducted by the Korea Federation of Small and Medium Business, found that 87.8 percent, or 19 out of 24 companies operating at the North Korean border city of Kaesong, said they plan to boost investment levels.

South Korea began building the industrial park, located just 70 kilometers north of Seoul, in 2003 on a trial basis with the hope of creating a model for an eventual reunification of the Korean Peninsula. Currently, 26 South Korean plants employ about 16,000 North Korean workers who produce garments, kitchenware and a number of other goods.

If the industrial zone becomes fully operational by 2012, more than 350,000 North Korean workers will work there, according to the South’s Unification Ministry.

Last week, officials from the Koreas agreed to increase the minimum salary of North Korean workers at the Kaesong industrial complex by five percent to US$52.50 a month, marking the first pay raise since the complex’s launch.

The industrial park is one of the prominent symbols of inter-Korean reconciliation efforts following a landmark summit in 2000 between then South Korean President Kim Dae-jung and North Korean leader Kim Jong-il.

Daily NK
Han Hee Yoen
8/5/2007

With the lack of construction of the infrastructure which supports cell phones and internet usage inside the Kaesung Industrial Complex, business management is increasingly becoming difficult.

At the “Inter-Korean Economic Cooperation and US-Korea FTA” conference held at the National Library on the 2nd by the Civil-Headquarters for Activating the South-North Economic Cooperation in Korea and 21st Century North-East Asia Peace Forum, Lee Im Dong, the secretary general of the Kaesung Industrial Complex Committee of Enterprises exposed difficulty, “The Kaesung Complex is facing a lot of hardship due to insufficiency of infrastructure needed for business and political influences at home and abroad.”

Lee revealed, “There are a lot of problems, such as the transportation and customs process, communications issue, labor power, absence of employment flexibility, and effectiveness. These problems should definitely be resolved, but these are impossible problems for the individual enterprises, so the government has to step forward.”

He said, “Cell phones and internet cannot be used inside the Kaesung Complex, so it takes significant amount of time and effort because the products that the buyers want can only be understood over fax and phone.”

Kim Joong Tae, the team manager of the Inter-Korean Economic Cooperation Team under the Ministry of Unification, revealed, “We are improving domestic laws, strengthening communication with enterprises, realizing transportation of joint economic commodities by pursuing formal rail operations, and expanding systematical apparatus at the level of the state.”

Kim also explained, “As for private investment into North Korea, the government and conservative media have upheld an emphasis of self-responsibility of businesses based strictly on market economic principles. The critical point in the government’s aid policy is the agreement issue with principles of the market economy, constraints in financial resources, or North Korea’s lack of understanding of the market economy.”

On one hand, Professor Kwon Young Kyung from the Education Center for Unification said, “Various efforts from the Kaesung Complex (stated during the FTA) is needed to satisfy the standard of establishment of the Committee on Outward Processing Zones on the Korean Peninsula. Most of all, the roadmap for resolving the North Korean nuclear issue, according to the February 13 Agreement, needs to progress smoothly, so that the denuclearization of the peninsula can actively take place.”

Korea Herald
Kim Yoon Mi
8.3.2007

Hyundai Asan, the South Korean operator of tour programs to North Korea, said yesterday it plans to spend $3 billion by 2025 to develop an area on the North’s east coast as a new tourist destination.

“We have submitted the final plan to the North in late June. The plan will be reviewed by the North by September,” Yoon Man-joon, Hyundai Asan’s chief executive officer, said at a press meeting in Seoul.

According to the company’s plan, Hyundai Asan will develop the area from Haegeumgang near Mount Geumgang to Wonsan, an eastern port city in the North.

As Hyundai’s relationship with North Korea has recently shown signs of recovery, Hyundai chairwoman Hyun Jeong-eun, widow of the late Chung Mong-hun, will visit Pyongyang as early as late August, Yoon said.

“I’m not sure whether she will be able to meet Kim Jong-il but I’m sure she will visit Pyongyang.”

Hyun will meet North Korean senior officials to discuss new inter-Korean commerce and the tour business to Gaeseong, Yoon said.

Meanwhile, the CEO hinted at legal action against former Hyundai vice chairman Kim Yoon-kyu. Yoon pointed to the possibility of Kim using confidential corporate information acquired by Hyundai to further the latter’s own inter-Korean trade corporation.

Kim, who was a key player in Hyundai’s inter-Korean business promoted by the late Hyundai Group founder Chung Ju-yung and his late son Mong-hun, was fired by the Hyundai Group in October 2005 for allegedly illegal use of corporate funds.

Recently, Kim has started his own business dealing with North Korea through his company, Acheon Global Corp., and announced last month that the company will trade agricultural and processed food products with the communist country.

“When I look into what businesses he is doing, I can say that he is doing exactly the same thing while he was working for Hyundai. Legal experts tell me that it could be a violation of confidential corporate information,” Yoon said.

Asked if he was willing to take legal action, Yoon did not directly reply but said he does not think Kim’s business is legitimate.

“I am closely watching over (what activities he is making). I hope he doesn’t do such business anymore,” Yoon said.

Hyundai to Spend $3 Bil.on NK Tourism Project
Korea Times
8/2/2007

A South Korean company operating businesses in North Korea said Thursday it plans to spend $3 billion by 2025 to develop an area on the North’s east coast as a new tourist destination.

Yoon Man-joon, chief executive officer of Hyundai Asan, the North Korean business arm of Hyundai Group, said the company submitted the proposal to the North’s authorities in June and that North Korea is expected to make a final decision as early as next month.

The new project calls for Hyundai Asan to develop the costal area from the North’s eastern port city of Wonsan to Haegeumgang near Mt. Geumgang, where the South Korean company built a mountain resort in 1998.

If North Korea approves the proposal, it would be Hyundai Asan’s third major economic project in the North, following the mountain resort and an industrial complex in the city of Kaesong near the inter-Korean border.

Hyundai Group Chairwoman Hyun Jeong-eun, who met North Korean leader Kim Jong-il two years ago, is preparing to visit the North as early as late this month to discuss the group’s North Korean businesses, including the new project, Yoon said.

“Hyun’s visit to Pyongyang is already confirmed,” Yoon told reporters.

It was uncertain whether Hyun will be allowed to meet the North Korean leader during the planned visit, Yoon said.

North Korea’s environmental experts are reviewing the new development proposal by Hyundai Asan, the executive said.

Mount Geumgang, located just north of the border between the two Koreas near the east coast, has attracted more than 1.5 million visitors since 1998, Yoon said.

In the first seven months of this year, some 150,000, mostly South Korean guests, visited the scenic mountain.

Yoon said the company will make efforts to meet this year’s target of 400,000 visitors as the North recently opened an inner side of the mountain.

The North’s approval to open a wider part of Mount Geumgang and its surrounding area to tourists “indicated a normalization in relations between Hyundai and North Korea,” Yoon said.

Hyundai’s business with North Korea was started by its late founder, Chung Ju-yung, in the early 1990s.

Hyun took the helm of Hyundai in 2003 after her husband, Chung Mong-hun, the late founder’s son, committed suicide by jumping from the window of his high-rise office in Seoul, apparently under pressure from a lobbying scandal involving the North Korean mountain project.

Korea Herald
5/3/2007

South and North Korea on Friday agreed on a 5 percent pay raise for North Korean workers employed by South Korean companies in an industrial complex just north of the border, officials were quoted as saying by Yonhap News Agency.

Last month, the North notified South Korea that North Korean workers will refuse to work extra hours or on weekends and holidays starting from August unless they get a 15 percent raise in their basic wages.

In a new deal, North Korean workers working in the Gaeseong industrial complex are to earn about $60.375 in basic pay, including insurance, which accounts for 5 percent of the total.

This is the first time that North Korean workers have received a pay raise since the complex began operations in late 2004, in spite of such demands being made several times.

N. Korean workers in Kaesong complex to receive 5 percent pay raise
Yonhap
8/3/2007

South and North Korea on Friday agreed on a 5 percent pay raise for North Korean workers employed by South Korean companies in an industrial complex just north of the border, officials said.

Last month, the North notified South Korea that North Korean workers will refuse to work extra hours or on weekends and holidays starting from August unless they get a 15 percent raise in their basic wages.

In a new deal, North Korean workers working in the Kaesong industrial complex are to earn about US$60.375 in basic pay, including insurance, which accounts for 5 percent of the total.

This is the first time that North Korean workers have received a pay raise since the complex began operations in late 2004, in spite of such demands being made several times.

Currently, 26 South Korean companies employ about 15,000 North Korean workers in Kaesong, including construction and office workers, at the site developed on a trial basis.

The number of North Korean workers is expected to increase to more than 350,000 when the complex becomes fully operational by 2012. Monthly production in the complex exceeds $10 million.

The industrial complex, the crowning achievement of a landmark summit between the leaders of the two Koreas in 2000, is one of the two major cross-border projects that South Korea has kept afloat in spite of United Nations sanctions on the the North following its nuclear weapon test in October. The two Koreas also run a joint tourism project at the North’s scenic Mount Geumgang.

Joong Ang Daily
Seo Ji-eun
8/3/2007

Hyundai Group Chairwoman Hyun Jeong-eun, who has been spearheading inter-Korean commerce, will visit Pyongyang for business talks with high-ranking North Korean officials. The visit, scheduled for as early as late this month, comes two years after she met with North Korean leader Kim Jong-il in Pyongyang.

Yoon Man-joon, president and chief executive of Hyundai Asan, which owns exclusive rights to inter-Korean investment, said in a press conference yesterday, “Chairwoman Hyun will be talking about pending business deals, including launching tourism in the Kaesong Industrial Complex.”

Yoon said the company submitted a proposal to the North two months ago for further development of Mount Kumgang, as the relationship between the two is now in “pretty good shape, although there have been misunderstandings and difficulties.”

Hyundai Asan’s inter-Korean business was previously led by former Vice Chairman Kim Yoon-kyu, who had the trust of late Hyundai Group founder Chung Ju-yung and his late son Mong-hun, the former president of Hyundai Asan. Chung Mong-hun, Hyun’s late husband, committed suicide in 2003 amid a prosecution investigation into the company’s secret transfer of money to the North. Hyun took the helm from her deceased husband. Kim was forced to step down in late 2005 over allegations of diverting corporate funds. North Korea, which had built strong ties with Kim, threatened to sever business with the firm in protest.

According to Yoon, Hyundai Asan plans to spend $3 billion to develop land between the Hageum River and the city of Weonsan, and North Korea is expected to respond to the proposal in late September. He added that the recent launch of tours of the inner part of the Mount Kumgang resort area has been positively received, and will help the company meet its annual goal of 400,000 visitors this year.

Hyundai Asan and North Korea are also in talks regarding opening up Birobong, the highest peak on the mountain, to South Korean tourists, Yoon said.

Daily NK
Kim Yong Hun
8/3/2007

As August 1st was the deadline that North Korea placed for a 15% increase in the wages of the Kaesung Industrial Complex laborers, companies have raised their guards on the changes of this situation.

North Korea had claimed before that if South Korean companies wouldn’t raise the wages by 15%, it would refuse to work overtime or work on special duties. If North Korea carries out such policies, it is predicted that there will be a setback for companies entering the Kaesung Industrial Complex.

The labor regulations that North Korea and South Korea agreed on limit the range of annual wage increase to 5%. If wages are raised to North Korea’s requests, minimum wage will increase from $57.50 to $66.00 and overtime (4 hours X 26 days) and special work (4 times a month) will near $118 per month.

Companies have decided to negotiate with the North by preparing a guideline through which they could compromise between both sides.

Kim Kyu Chul, Representative of the Forum for Inter-Korea Relations, a citizens group for economic cooperation between South and North Korea expressed his concern stating, “An overwhelming wage increase will be a great burden to companies and thus it is inevitable to control the amount of output and there is a good possibility that start-up companies will put their businesses on hold or give up.”

According to the Forum, the productivity of the Kaesung Industrial Complex remains at a mere 50% that is less than factories of China or Southeast Asia. The assertion is that the payability will worsen if wages are drastically increased with conditions of low productivity.

On the other hand, North Korea also requested the construction of a child care facility along with the wage increase and thus the Kaesung Industrial Complex Committee of Enterprises (Chairman Kim Ki Moon, Central Chairman of SME’s) opened a temporary hearing on July 26th and decided to implement a policy of an 8-month unpaid child care leave instead of a child care service.

Institute for Far Eastern Studies (IFES)
8/1/2007

INTER-KOREAN RELATIONS

Following two days of talks between economic representatives of the two Koreas at the Kaesong Industrial Complex, South Korea announced on July 7 that it would begin shipping raw materials to the North in exchange for DPRK natural resources. South Korea shipped 800,000 USD of polyester fabric on July 25, and is set to send the rest of the materials by the end of November. North Korea accepted South Korean prices for the goods, and will pay transportation, cargo working, and demurrage costs, as well. South Korea will pay for shipping, insurance, and the use of port facilities. On 28 July, a South Korean delegation left for the North in order to conduct on-site surveys of three zinc and magnesite mines. The team will spend two weeks in North Korea.

It was reported on 17 July that North Korea proposed a joint fishing zone north of the ‘Northern Limit Line’ dividing North and South territorial waters to the west of the peninsula. Seoul turned down the offer.

Inter-Korean military talks broke down early on 26 July after only three days of negotiations as North Korea insisted on the redrawing of the Northern Limit Line.

North Korea demanded on 27 July that workers in the Kaesong Industrial Complex be given a 15 percent pay raise. The North Korean workers will not work overtime, weekends or holidays beginning in August unless the raise is granted.

It was reported by the Korea International Trade Association on 26 July that inter-Korean trade was up 28.6 percent in the first six months of 2007, totaling 720 million USD.

RUSSIA-DPRK INVESTMENT

It was reported on 19 July that Russia and North Korea have agreed to connect Khasan and Najin by rail, enlisting investment from Russian oil companies interested in an inactive refinery at Najin Port capable of processing up to 120,000 barrels per day. The project is estimated to cost over two billion USD.

MONGOLIA-DPRK RELATIONS

During a four-day visit to Mongolia by Kim Yong-nam beginning on 20 July, the two countries signed protocols on cooperation on health and science, trade and sea transport, and labor exchange issues. This follows on the heals of an agreement to allow South Korean trains to travel through North Korean territory on to Mongolia in route to Russia and Europe.

JAPAN-DPRK PROPAGANDA

Japan took one step further to recover abductees in North Korea this month when the government began broadcasting propaganda into the DPRK intended for Japanese citizens. The broadcasts are made in Korean and Japanese (30 minutes each) daily, and updated once per week.

U.S.-DPRK PEACE PROSPECTS

U.S. Ambassador to the ROK Alexander Vershbow stated that Washington was prepared to negotiate a permanent peace regime on the Korean Peninsula by the end of the year if North Korea were to completely abandon its nuclear ambitions.

EGYPT-DPRK INVESTMENT

The Egyptian company Orascom Construction Industries announced a 115 million USD deal with North Korea’s state-owned Pyongyang Myongdang Trading Corporation to purchase a 50 percent state in Sangwon Cement. To put this in perspective, the deal in worth more than four times the amount of frozen DPRK funds that had caused six-party talks to break down and delayed the implementation of the February 13 agreement.

NORTH KOREAN SOCIETY

The Economist reported on 7 July that, according to foreigners living in the North’s capital, concern for petty law appears to be weakening. Citizens are reportedly smoking in smoke-free zones, sitting on escalator rails, and even blocking traffic by selling wares on the streets.

It was reported on July 11 that a letter sent earlier in the year by the North Korean Red Cross indicated severe shortages of medical supplies. The letter stated that North Korea would accept any medicine, even if it was past expiration, and accept all consequences for any problems that arose from using outdated supplies. The (South) Korea Pharmaceutical Manufacturers Association had no choice but to reject the request.

Events were held on July 11 in North Korea in order to promote women’s health and well-being issues. Marking World Population Day, a North Korean official stated that the DPRK has cooperated with the UN Population Fund since 1986, and is now in the fourth phase of cooperation.

Seeing entertainment venues as a “threat to society”, North Korean security forces have been implementing a shutdown of karaoke bars and Internet cafes. These venues mainly cater to traders in the northern regions of the country.

It was reported on July 13 that construction of North Korea’s first all-English language university was nearing completion. The Pyongyang University of Science and Technology, funded largely by ROK and U.S. Christian evangelical groups, will hold 2600 students and offer undergraduate and post-graduate degrees in business administration, information technology, and agriculture.

Local elections were held on 29 July for DPRK provincial, city, and country People’s Assemblies. 100 percent of 27,390 candidates were approved with a 99.82 percent turnout reported.

Now available on Google Earth! 
(click above to download to your own Google Earth)

North Korea Uncovered v.3

Google Earth added a high-resolution overlay of the area between Pyongyang and Nampo.  In it, most of the Koguryo tombs listed with UNESCO are now distinguishable.  In addition, viewers can see the latest Kim Jong Il palace (including a yacht), the DPRK’s premier golf course, and the Chinese-built Taean Glass factory.  I have also made some progress in mapping out the DPRK electricity grid.

This is the most authoritative map of North Korea that exists publicly today.  Agriculture, aviation, cultural institutions, manufacturing, railroad, energy, politics, sports, military, religion, leisure, national parks…they are all here, and will captivate anyone interested in North Korea for hours.

Naturally, 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. 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 on the more “controversial” locations. In time, I hope to expand this further by adding canal and road networks.

I hope this post will launch a new interest in North Korea. There is still plenty more to learn, and I look forward to hearing about improvements that can be made.