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South Korean dramas “permitted” in Sinuiju

Friday, June 2nd, 2006

From the Daily NK:

In North Korea, South Korean dramas are confidentially distributed through VCDs(‘Flat eggs’, as the Cds are known). Previously, North Koreans were only allowed to watch films from the DPRK, China and USSR. Posessing VCDs was also illegal.

According to Mr. Lee, a Chinese-North Korean who often visits Shinuiju, “Recently, Kim Jong Il has allowed North Koreans to see films only on the flat eggs(CDs) produced by Hana Electronic [the state-owned production monopoly]”. He added “Hana Electronics VCDs are all North Korean movies, Chinese movies featuring fighting with Japanese soldiers, and the Soviet Union movies”.

However, North Koreans are enthusiastic about South Korean dramas such as Love Song in Winter and Autumn Story and obsolete Western movies Rambo and ‘Bruce Lee’.

Mr. Lee said that “Recently South Korean dramas have been distributed widely, and because North Koreans see religious activities and adult materials through the flat eggs(CDs), the North Korean government dispatched an extensive censors group to crack down them”.

In North Korea, every kind of VCD was prohibited. However, realizing that North Koreans took pleasure in secretly watching the widely distributed VCDs, the North Korean government changed its policy and “partially” allowed its people to watch.

Mr. Lee said that, “These days, the punishment for [watching videos] has lightened, so watching VCDs except religious materials is just fined or orally warned”, adding, “The government does not take violators to political prison camps, but maybe Nodon Danryeondae (Labor facility), or Gyohwaso (long-term labor camp)”. Subsequently, he said that, “Because all officials of the National Security Agency and officials of the People’s Safety Agency see the dramas, the government can not unconditionally prevent from watching like the past”.

He said that, “Recently, the numbers of religious people have increased, and because of it, some people were caught watching religious films”, and “It is hard to survive in the religious cases”.

Meanwhile, shortwave radios are illegally traded at around 2,000 won($0.67) at Jangmadangs. Until 3 or 4 years ago, the government had carried out the reporting system about the illegal trades, but after the news that South Korea and the U.S sent radios, the trades at Jangmadangs were officially inhibited.

Now it was known that the small radios sold in secret are carried in through smuggling vessels generally in Jagangdo province, North Korea. financial problems are resolved, a broker is introduced and guidance to an exile route is given.

Posted in Film, General markets (FMR: Farmers Market), Radio, South Korea | Comments Closed

‘Yellow Spring’ in North Korea…Similiar To The Food Shortage in 1998

Sunday, May 28th, 2006

Daily NK
Kim Young Jin
5/28/2006

North Korea is facing the hardest “yellow spring” right now. ‘Yellow Spring’ means the hardest time of the year in North Korea. “Yellow spring” originates from how the sky looks yellow because of starvation.

Mr. Lee Hyun Soo (46) who crossed the Tumen River on 15 May said, “It is hard to endure day by day”.

Mr. Lee, head of a household of four said, “Rumors of people going to China and South Korea go around. I tried not to cross the border, but I did because of my family members who are starving”. He complained, “The government have been acting like they would give us food for a long time, but they deceived us”.

Recently, North Koreans who cannot make their ends meet like Mr. Lee started to cross the Tumen River again. The reporter met 5 North Koreans including Mr. Lee. They met with the reporter at a secret place in Yanji, and expressed strong discontents about the situation of food shortage in North Korea and the policy regarding food distribution system.

Mr. Choi Young Nam (37) said, “I have been waiting since the 1st of April. I know that there are even less rice in spring, so where would the rice come from? They cannot deceive us like this”. Mr. Choi said. “In January and February, rice for 2~3 days were given to the old and supporting families. After that, we bought the rice at Jangmadang price at the distribution center”.

The official price of rice is 45won($0.015) for rice and 25won($0.0083) for corn. After North Korea resumed its food distribution system, the government regulated the rice transaction at Jangmadang while selling rice at 950 won($0.32) and corn at 350 won($0.12), which is same as Jangmadang price. Recently, price at Jangmadang went over 1300 won($0.433) and the price at distribution center went up accordingly.
“Similar To The Situation At The End Of Food Shortage In 1998”

They say, “Family of those who work at the government, police and national security agency store up food for one year. People who work at powerful organizations such as Office #5 (foreign currency earning office under office #39 under the Party, loocated at each city and province) receive food, but other workplaces do not distribute food anymore”.

After the 7.1 Economic Management Improvement Measure in 2002, policy which orders each organization to provide for their workers has been adopted; workplaces with power can feed the workers, while poor factories cannot. People generally have an attitude that does not care if others can eat or not.

Mr. Park who was involved in ‘suitcase business’ with Chinese said, “Everyone is involved in trade, and I could not even break even because I could not sell the goods at fair price”.

Mr. Park who is employed at a steel factory in Hoeryong has three family members to support. Mr. Park crossed theTumen River to earn money by farming in China, because it seemed hopeless and difficult to live in North Korea. Following is what Mr. Park said.

“The situation is similar to the situation at the end of food shortage in 1998. The number of people who come to China will increase soon. People at the border area know that why they are so poor because they are involved in trade with Chineses. All they have in their heart is anger”.

“Living By Grassroots and Porridge, The Old and The Sick Are Dying Of Starvation”

Mr. Hyun Joo Hoon (50) who sold goods in Pyongan and Hwanghae Province says, “People in Pyongan Province are worse off than those in border area”.

People in Pyongan Province and at border area both do not receive food from distribution system, but people in provinces without the capital to start business began to eat grassroots and porridge for meals. Mr. Hyun said, “I ate corn porridge because I only received five day worth of food”. Mr. Hyun said, he had seen the sick and the old dying of starvation at Soonchun and Dukchun in South Pyongan Province.

Mr. Hyun said, “It is because the government regulated the outflow of food to other provinces as the government ordered the regional governments to distribute food on their own”. In the fall of last year, North Korean government has regulated the outflow of food by placing posts at highways connecting different cities and districts.

Mr. Lee added, “People in the inner provinces believe the propaganda of the North Korean government that the reason for the poverty is the economic sanction by imperialists, even when they are dying. Unless their thoughts change, they cannot even resist”.

Posted in Agriculture, Black markets, China, Economic reform, Emigration, General markets (FMR: Farmers Market), Price liberalization | Comments Closed

Price of Rice Rises Sharply in May

Friday, May 26th, 2006

Daily NK
Kwon Jeong Hyun
5/26/2006

In North Korea, domestic rice prices are showing a sharp rise. In mid May, the price of rice in North Pyongan province was 1,300W ($0.43)/1kg. Compared to the price in May 2005, it rose 500W ($0.17). In Jangmadang, there is a rumor that rice will rise to 2,000 won ($0.67), so it seems that it’s just a matter of time before rice becomes more expensive.

The reason for the rising cost of rice is simple: a lack of rice. The rice stored in Autumn has begun to run out and there are not enough edible plants to go around. North Korea calls this period the Spring Austerity Season. This period is the hardest season for North Koreans.

The average wage of North Koreans is 3,000W($1). To be more exact, it means that 4 family members have to live off of 1.5kg of rice a month. Everybody struggles to survive by doing business, digging up edible plants, getting help from relatives living in China, and selling scrap iron.

The following is March prices from North Pyongan province. This shows the great difference from this year’s price. Except for food and groceries, the price does not vary much:

Groceries
Rice	1kg 800won – March 7 / 1,300 won in May
	1kg 700won(730won by wholesale) – May 21~31
Corn	450 ~ 500won
Pork	1kg – 4,000won
Beef	1kg – 6,500won
Duck meat	1kg – 4,500won
Goat meat	1kg – 4,500won
Mutton	1kg – 4,000won
Egg	Per one – 150won
Edible oil	White	1kg – 2300won
	Yellow(bean oil)	1kg – 2,650won
Seasoning	Ajinomoto made in Japan : 450g-2,400won(2,260won by wholesale)
	Gaedan made in China : 450g 2,150won(2,050won by wholesale)

Clothes
Underwear	Minye, for woman, made in China – 17yuan
	Bosuk, for woman, made in China – 21yuan
	Gyeongpum, for man, made in china – 26yuan
	Soanda, for man, made in China – 31yuan
Socks	Nanais, one pair – 1,050won
	Bubu made in China, one pair – 1,250won
Shoes	Man’s hide shoes, fair average quality, made in China – 60yuan
	Man’s hide shoes, lower-grade quality, made in China – 50yuan

Goods related with a Computer
Monitor 17″	Retail price – 110~120 dollars, Wholesale price – 90 dollars
Printer	65~70 dollars
diskette	5,000won per ten
Keyboard	20dollars
Mouse	5dollars

Snacks or Side dishes(March 28 ~31)
Roasted chicken	6,500won~8,000won per one	Potato	1kg – 400won
Roasted duck	9,000won~12,000won per one	Beans	1kg – 700won
Noodle	1Box – 6,750won	Flour	1kg – 750won(690won by wholesale)
Confectionery	1 box – 4,700won	Butter powder	1kg – 5,000won
Rice cake	1box – 8,000won	Chinese noodle	1kg – 2,000won
Dry squid	1kg – 8,800won	Wild walnut powder	25g – 400won
Sweet potato	1kg – 300won	Milk powder	400g – 5,000won
Korean noodle	750g – 2,400won

Fruits (March 28 ~ 31)
Mandarin	1kg – 1,800won	Water melon	3kg – 9,000won
Tomato	1kg – 2,000won	Strawberry	1 box – 9,000won
Banana	1 cluster – 5,500won	Pear	1kg – 1,200won
Apple	1kg – 1,200won

Leisure (March 28 ~ 31)
Movie	50won	Karaoke	1 hour – 5,000won
Internet cafe	1 hour – 1,000won	Admission fee for Sauna	2,500won
Pool	1 person – 70won	Film	9,000won ~ 15,000won
Mangyeongdae Playground	Adult – 50won, Child – 20won	Print of a photograph	10 ~ 18cm : 800won
A comic book	1,500won (lending – 100won)

Taxes and Exchange Rate (March 7 ~ 31)
Exchange Rate	100dollars	March 13	310,000won
		March 18	298,000won
		March 19	297,000won
		March 31	299,500won
	100yuan	March 19	37,100won
		March 31	37,500won
		The present	37,600won
Electronic fee : using for 4 light bulb, a TV, a refrigerator, a recorder(3months) – 600won
Water fee – 10won per capital(3months)

Medicines and Medical Instruments
Anodyne	1 pill – 75won	Sphygmomanometer, Stethoscope	25,000won
Aspirin	12 pills – 140won	1 bottle of 5% Glucose	580won
Antibiotics	1 pill 300won(Made in China-30won)	A acupuncture needles case	10won
Cold medicines	1 pill – 30~50won

School Things
Pencil	50won	Pencil case	500 ~ 700won
Ball pen	150 ~ 250won	Schoolbag	6,000won
Notebook	350won	Mechanical pencil	1,200won
Eraser	300won
Entrance fee for Shinuiju Medical college including bribe costs		200 ~300 dollars
Money due of private computer shop per meonth		200 ~ 300dollars

Housing Prices
Single story house with 2rooms, 1kitchen in a city	Monthly rent 20,000won	Middle quality apartment with 2rooms, 1kitchen	3,000 ~ 3,500dollars
Rent for a 110 square meters Karaoke	40,000won per month	High quality apartment with 3rooms, 1kitchen	70,000dollars
Single story house with 2rooms, 1kitchen	1,500dollars	Single story house with 3rooms, 1kitchen(660㎡)	3,000dollars

Others (March 28 ~ 31)
Sanitary napkin	500 ~ 1,000 per one	Cosmetics(Cream, Toner)	Made in S.Korea-10,000won, Made in China-35,000won
3 kinds of toner set	42,000won	Small size gas range	27,000won(25,000won by wholesale)
3 kinds of Aloe set	42000won	Auto bike	150 ~ 200dollars
TV	Sony, used, made in Japan – 680yuan
TV	Gukhwa, used, made in China – 350yuan

Posted in Agriculture, Computing/IT, Economic reform, Education, Fiscal & monetary policy, General markets (FMR: Farmers Market), Health care, International trade, Labor conditions/wages, Price liberalization, Real estate, Sports | Comments Closed

World Food Program back to DPRK

Friday, May 12th, 2006

From the Washington Post:

After a government-imposed shutdown of more than four months, the World Food Program announced Thursday that it would resume food aid to hungry North Koreans, but on a sharply reduced scale.

Tony Banbury, the U.N. agency’s regional director for Asia, said he signed an accord with the government in Pyongyang that will allow 10 staff members to operate a $102 million feeding program, helping 1.9 million of the neediest North Koreans over the next two years.

The accord, reached Wednesday after prolonged negotiations, ended the uncertainty that has prevailed since the DPRK government announced in August that it would accept development aid but no longer wanted food aid. That forced the World Food Program, which runs North Korea’s main feeding operation, to halt work at the end of December.

Banbury called the new agreement “an important breakthrough” for North Korea’s undernourished poor. But he said the number of people receiving food would drop considerably under restrictions laid down by North Korean officials — from 6 million in 163 counties under last year’s $200 million-plus program to 1.9 million in 30 counties under the new program.

“They explained this by saying they needed less food, that their crops were getting better and that they did not want to create a culture of dependency,” Banbury told reporters during a stop in Beijing.

Because Kim’s government is highly secretive, its assertion that more food aid was unnecessary could not be verified, Banbury said. But he expressed skepticism, noting that North Korea recently sought 500,000 tons of grain from South Korea and in recent years has consistently produced nearly 1 million tons less than its annual requirement of 5.3 million tons.

Economic reforms that began in 2002 have gradually loosened North Korea’s rigidly Stalinist system and injected some life into the economy, according to reports from Pyongyang. In particular, private food markets have been allowed in recent years, providing previously unheard-of choices for those with money. Food prices soared, however, prompting farmers to sell their crops in the private sector rather than to the public distribution system at controlled state prices. This in turn made life harder for the poorest among North Korea’s 23 million people, who rely on public rations.

In response, the government announced recently that the public distribution system would resume its monopoly on food grains. How this step ties in with the economic reforms was not explained. But Banbury said the agreement to resume U.N. food aid suggested that North Korean officials realized the public distribution system could not get food to everyone who needed it despite their earlier assertion that it was time to move on to development aid.

Production and distribution of U.N. food aid will resume immediately, he said, but it will take several weeks to get operations up to speed. As it was previously, most of the food aid will be in the form of vitamin-enriched biscuits for children, enriched porridge mixes for infants and supplements for pregnant women and the elderly.

Although the number of staff members has been shaved from 48 to 10, Banbury said U.N. officials would be able to verify that the food was going to the poor and not government officials or the military. Diversion of food has been a major concern of the United States and other U.N. donor countries since Kim proclaimed that soldiers and other officials have priority in North Korea.

“We will not be providing food to any areas of the country where our staff does not have full access,” Banbury said.

Posted in Agriculture, General markets (FMR: Farmers Market), Public Distribiution System (PDS), UN World Food Program | Comments Closed

Medical Shortage in DPRK

Thursday, May 11th, 2006

From the Daily NK:

Dependency of North Korea on foreign medical supplies is very high. Most of the medical supplies delivered by international medical organizations are first provided to the Pyongyang Central Hospitals and military hospitals. For this reason, city and district hospitals always lack medicines.

Also, after the 7.1 Economic Management Improvement Measure, self-supporting accounting system has removed free supply of medicines, and patients need to purchase medicine themselves.

For example, Doctor A at a hospital does not provide medicine after the treatment. Doctor A only directs the patients to Mr.B who has the medicine. The patient purchases the medicine from Mr. B and asks Doctor A how to use them. It is no different from private drug store.

Mr. Chun (53) who used to sell drugs at Hamheung before he defected said, “Hospitals don’t have medicine while there are hundreds of different kinds of medicines at Jangmadang. District hospitals use salt water as sanitizer for emergency treatments, and papers are used because they do not have bandage and cotton balls.

Posted in General markets (FMR: Farmers Market), Health care | Comments Closed

Rumors continue to surface on the Sinuiju SAR

Wednesday, May 3rd, 2006

According to the Daily NK (2006-5-3):

Lee Jeong Gil (44), a Chinese-North Korean trader who recently returned from Shinuiju in late April, said that, “It would be hard for Shinuiju to be a special region. However, it is likely that an international market would be formed in the outskirts of Shinuiju.”

Mr. Lee stated, “As far as I know, besides that of Shinuiju, international market plans would be carried out in the outskirts of Nampo and Wonsan as well.” He went on to explain, “This was already determined at the Central Committee level,” something he noted hearing directly from a high-ranking official living in Shinuiju.

Mr. Lee explained, “Because of the huge removal of residents and the great impact on outside areas caused by the special region plan, the government regards the Shinuiju special region plan as complicated.” He noted as well, that, “It seems that the government pursues this in the same manner as the previously constructed Onsung and Nasun international markets.”

The special region plan is to develop a particular region by dividing it into a concerned area and an outskirt. The goal would then be to introduce into the concerned area such aspects of a market economy as financial industries, manufacturing industries, accommodation industries, and free trade zones. Like special regions, international markets could attract foreign investments. Yet, because special regions are controlled by international markets that are not yet mature – most only at a stage where foreigners rent stores to do business – the effects that international markets can bring are meager.

Mr. Lee said, “It seems reasonable to assume that the government will permit commuting since it has allowed daily visa-free commutes to and from China since July… So, it requires a look into the news that North Korean customs moved from Ryeokjeon-dong, the present area, to Minpo-dong where the second NK-China Yalu River iron bridge plan is being constructed.”

He went on to explain, “I heard that the government will construct new buildings for foreign traders to do business in, in the outskirts of Shinuiju, and that they will give leasing rights to investors who invest more than 100,000 dollars.”

On the other hand, on the 23rd, Mr. Kim (51) noted, “The internal policy direction for Shinuiju and Nampo was already set to make special regions within the year to overcome the economic crisis [North Korea] has faced recently.” It is likely that what the high-ranking official testified about is not about special regions, but about international markets.

Read the full story here:
Shinuiju Development, Not a Special Region But an ‘International Market?’
Daily NK
Kwon Jeong Hyun
2006-5-3

Posted in Economic reform, General markets (FMR: Farmers Market), International trade, Sinuiju Special Administrative Region | Comments Closed

Some info on the Tongil Market

Wednesday, April 5th, 2006

The Tongil (Reunification) Market is the most famous in the west. It made a cameo appearance in the wonderful documentary A State of Mind, and is fairly easy to spot on google earth.

Here are its origins (innacuracies listed at bottom), according to the Nautilus Institute:

Following DPRK leader Kim Jong Il’s instruction in March 2003, which allowed for the transformation of farmers’ markets into consolidated markets, the Unification Market opened as the largest market in Pyongyang on September 1st of the same year. With 1,500 booths spanning over 6000 sq. meters, the market is divided into three zones — agriculture produce and fish products, food and clothing, and metal utensils and appliances — with each zone housing a management office, money changer, and a food court, which offer a variety of conveniences to the customer.

What kinds of goods can be found for sale in Pyongyang? Towards the end of last February, one Chinese reporter introduced us to merchants selling luxurious Chinese clothing and flower-pattern dresses at the ‘Unification Market’, North Korea’s representative market located near Pyongyang’s Rakrangku Station.

These days, the Unification Market is jam-packed with people looking for quality designer clothes and shoes, which are mostly made and brought in from China. Also abundant are the peddlers: mainly North Korean women in their forties who (to this reporter) were not distinguishable from the average middle-aged Chinese woman. Despite being a whirlwind of activity, these colorfully dressed women — white hats, pink clothes, and floral-print aprons — still managed to radiate grace.

According to the reporter, “Through recent investments by Chinese retailers, China is introducing modern fashion lines, designs, and dyeing technology, and this is having a huge effect on the clothing worn by North Koreans as well. These days, North Korean clothes are reflecting current fashion trends.”

A look around the market revealed that although vegetables were 20 percent more expensive than in China, seafood and clothing was 20 percent cheaper. Take into account, however, that the average monthly income of a North Korean farmer is 3,000 – 10,000 DPRK won (approx. 20 – 70 USD), and goods in the Unification Market are not particularly cheap. Be that as it may, after observing not just a few people coming and going with goods in hand and full shopping baskets, it was surmised that “the lives of ordinary North Korean citizens” — or at least those residing in Pyongyang — “are definitely improving.”

As economic recovery continues, the demand for electrical appliances seems to be growing among ordinary households. The very first Chinese appliance to enter the North Korean market, the Sinbi refrigerator, now occupies 40 percent of the market share, and can be easily found even in government facilities.

Innacuracies:

The North Korean Won trades officially at about 100W to US$1. In the Tongil Market and in markets throughout the country the exchange rate is closer to 3,000W/US$1.

Additions:

The DPRK does not allow people to take pictures of the market. I am not sure why. There are plenty of official photos on line. Prices are freely bargained and transactions are conducted in Won. Venders pay a flat fee to set up shop in the market. They sell chinese knock-offs of fancy western colognes inside. Car Parking is not free…30W. The bike shed is.

Posted in Economic reform, General markets (FMR: Farmers Market), Price liberalization, Sports | Comments Closed

Price and wage data:

Wednesday, February 15th, 2006

Daily DK did a survey of prices in the DPRK this January, 2006.

Official Wages for a North Korean workers labor are 2,000 won to 3,000 won per month (about $1).

Exchange rate

Yuan 350:1 / Dollar 2,715:1 / 100Dollars: 85Euro

Groceries
Rice	750won	Millet	500won
Glutinous	850won	Barley	450won
Annam rice	700won	Pork	3,000won
Chicken	3,000~4,000won(it depends on size)	Egg	150won per one
Edible oil	Yellow-1,930won per kg	Seasoning	1,500won per 500g
Edible oil	White – 1,660won	Corn	380won

Clothes and Shoes
Underwear	panties	500~1,000won	Sneakers	Home handcraft	6,000won
	Brassiere	4,000~5,000won		Private products	3,000won
Socks	500~1,000won			Made in China	12,000~17,000won
Shoes	15,000~20,000won		Handy shoes(for women)	2,000won

Housing Prices
Rental	60won per menth / Paying quarterly
Luxurious apatment	4,000~5,000dollars(99m²)	Quality apartment	3,000dollars(82.5m²)
General apartment	1,500~2,000dollars(66m²)	Small apartment	1,000~1,500dollars(49.5m²)
General single story house	800dollars	Inferior single story house	450~500dollars

Medicines
Cold remedy	20won(1pill)	Vitamin B1 injection	20won(once)
Aspirin	20won(1pill)	Amoxicillin (Antibiotics)	28won(250mm)
Anthelmintics	60won(1pill)	Santonin	120won (1pack)
Obstruent	15won(1pill)	Painkillers	15won(1pill)

– When examined, bribery is not necessary
– When getting a medical certificate or medicines, bribery is necessary
– Bribery: one box of tobacco/ as for medicines for 1,000 won, 7000 won

Stationery
Pencil	General lead pencil	25won	Notebook	Big one	25won
	Mechanical pencil	200won	Notebook	Small one	15won
	Ball pen	50~100won	School Uniform	Elementary school	1,500won
School Bag	10,000won		School Uniform	Mid and High schools	2,500won

– Every month, the following costs should be paid to schools: kindergartens – 1,000 won/ elementary schools- 2,5000 won/ middle and high schools- 4,000 won
– Every month, the following stuffs should be provided to schools: scrap irons, glass 15kg and 40 bundles of timbers
– In an irregular basis, the following stuffs should be provided to school: vinyl, wastepaper, paints and gasoline

Railroad Fares
Shinuiju – Pyongyang	High class – 650won	Shinuiju – Chongjin	1,000won
	Low class – 450won
Shinuiju – Gaesung	1,000won	Shinuiju – Nampo	600won
Shinuiju – Ryongcheon	200won	Sariwon – Pyongyang	200won (low class)
Pyongyang – Dandong(Pyongyang-Beijing international train)		About 10yuan(3,300won)
Dandong – Pyongyang		400yuan

Fares of Cars and Buses
Shinuiju – Pyongsung	8,000won	Shinuiju – Jeongju	5,000won
Shinuiju – Yeomju	3,000won	Shinuiju – Wonsan	10,000won
Sariwon – Wonsan	8,000~10,000won	Sariwon – Pyongyang	1,000won
Sariwon – Pyongsung	8,000~10,000won	Sariwon – Haeju	6,000won

Accommodation Fee
Hotels	Usually 100 dollars, at minimum 60 dollars
Inns	50~100won
Private-owned inns	Less than 100~200 won / The most decent room is 500won

Fees for Travel Documents
Safeguard certificate	in a province	3,000won	Crossing-river certificate	100dollars
Safeguard certificate	Outside of a province	4,000~5,000won	Passport and visa	40,000won

Selling Stand in a Market
Depending on size, place and kinds of business	15,000~50,000won

Appliances
White-black TV	50,000~60,000won	Computer	Pentium 3	170~190dollars
Color TV	200,000won(new one)	Computer	Pentium 4	300~400dollars
Radio	Made in China – 20,000~30,000won(about 100yuan)

Prices and Phone Bills of Telephone and Mobile Phone
Telephone	Installation fee(per one)	40,000won(about $200)	Using in a postal office	Local	2won
Telephone	Rental per month	1,500won	Using in a postal office	distance	40~50won

Posted in Agriculture, Finance, General markets (FMR: Farmers Market), Labor conditions/wages, Price liberalization, UN World Food Program | Comments Closed

Private business in Hamheung province

Tuesday, January 24th, 2006

According to the Daily NK:

Recent testimonies came out stating that 90% of the families in Hamheung City of South Hamkyung province maintain their living by running private businesses and due to the given reality, distribution of phones has been rapidly on the rise. It is a well known fact that the North Korean factories in work are still below 20% and it is the women who are the main breadwinners of the North Korean homes. This is the first time the testimony came out saying that 90% of women in Hamheung City run businesses. Lee said that although she does not sell at a stall in a jangmadang, she does have a business of providing necessary items to a number of regulars. She started this medication business in 1995, when her relatives(Korean-Chinese) living in China helped her by providing 500,000 Won ($250).

Lee said that instead of going to the workplace, she pays 10,000 won ($5). Because she is not working, they do not give her food tickets, but they stamp her attendance card. If she neither works nor pays, she has to go to a labor detention facility (Nodong Danryeondae).

“Although state enterprises say they will give 10,000 won ($5) to the workers, after taking out fees for the People’s Army, savings, and other fees to the state, the money you end up with is only about 2,000 Won ($1). With this, you cannot live. This is why I started my own business,” said Lee.

Kim Jin Chul (male, age 26) from Shinuiju testified, “Most of the families I know of in my town, Dongsang-dong, Shiuiju, have their own businesses. They mostly sell manufactured goods such as shoes, hats, glasses, gloves and food such as candies, ramyun, and liquor.”

“More than 90% of the Dongsang-dong residents live by running their own businesses. They buy goods by making profits by exchanging foreign currency to the trade companies in China, and they sell them in jangmadang,” said Kim.

Posted in China, Economic reform, General markets (FMR: Farmers Market), International trade, Price liberalization, Private property | Comments Closed

Price information

Saturday, December 31st, 2005

Here is more commodity price information courtesy of Open Radio for North Korea:

Agricultural and houselhold commodities:
1) Rice
-Shin Eui Joo: The price rose from 850 won/kg (18th) to 900won/kg (31st)/ whole sale price: 620won/kg
-Bak Chun Gun: October: 1000won/kg, November 800won/kg (trading rice was banned in October with resumption of food distribution system, which caused the rising price.)
-Pyeongyang: Honammi 800won/kg Annammi 680won/kg

2) Corn
-Shin Eui Joo: 400won/kg (December)
-Bak Chun Gun: 350won/kg (November)

3) Pork
-Shin Eui Joo: 3,300won/kg (December)
-Bak Chun Gun: 3,500won/kg (November)

4) Beef: 7,000won/kg (Beef is seldom sold at markets, but was temporarily out in the black market for new year’s holiday season.)

5) Cooking Oil
-Shin Eui Joo: 2,300 won/kg (November)/Yellow Oil
-Bak Chun Gun: 2,500won/kg (November)/Yellow Oil

6) Seasoning
-Same in the region of Shin Eui Joo, Sah Ree Won, Bak Chun Gun: 2000won/bag(200g)

7) Underwear
-Bak Chun Gun: Brassiere: 4,000~6,000won, Children’s underwear: 5,000~6,000won
-Shin Eui Joo : Underclothes: 10,000~15,000won/piece, 20,000~30,000won/set

8) Socks
-Bak Chun Gun: 500~2,000won/pair (socks for winter)

9) Shoes
– Bak Chun Gun: high quality: 15,000won, poor quality: 3,000~4,000won/ Handmade: 2,500won

10) T.V
-Shin Eui Joo: the same as November

11) Price of house and rent
-Shin Eui Joo: One storied house (1 Room, 1 Kitchen): $600, Apartment (2 Rooms, 1 Kitchen): $1,500, Well-located apartment (3 Rooms, 1 Kitchen): $10,000~15,000(able to bargain), 100 Sq.m- apartment: $12,500 (90,000~100,000 Chinese Yuan)
-Sa Ree Won: 100 Sq.m apartment $8,750 (70,000 Chinese Yuan)
-Bak Chun Gun: One storied house (2 Rooms, 1 Kitchen): around $100, Three storied apartment: around $150~200

Footnotes:
1. A middleman receives 10% of the purchase as compensation. If one moves to a purchased house, one needs to receive a certificate which records that you are allowed to live in the house from a police officer in charge of registration in the neighborhood, usually the payment is one mal(10du/15kg) of rice.
2. Expense for making Kimchi(Bak Chun Gun): Chinese cabbage 200won/head, Red pepper powder 2500won/kg, garlic 3,000won/100heads, ginger 300won/kg, salt 350won/kg, sugar 1,000won/kg, salted anchovies 1,500won/kg, scallion is raised at home. Approximately 40,000~45,000won is expended for making 150 heads of Kimchi (usually consumed with rice, and is made with pepper, scallion and salted anchovies), for family of four.

Local Fees and Markets:
1) Electricity- Bak Chun Gun: 10won/lightbulb, 70won for black and white TV (per quarter)

2) Water- Bak Chun Gun: flat rate of 200won per house (per quarter)

3) Tax on land – Bak Chun Gun: 200won/2.5 Sq.m (per month)

4) Payment for spot at markets (Bak Chun Gun)

5) Exchange rate for Renminbi and US dollar
Shin Eui Joo: 2,900won/$ (November 1: 2,715)/ Rinminbi 360won/yuan (November 1:320)/ 3600won/Euro

Footnotes:
1. No payment at markets, but general tax is imposed. 20won/day for agricultural products, and tax for industrial products vary according to the goods.
2. Spots in Markets are rarely traded. For people starting their business at the market, relationship with the manager is important. When business with the manager was successful, managers make a spot for them by making others’ spots smaller.

Health Care and clothing:
1) Medicine for cold and antibiotics (Bak Chun Gun)
-Medicine for cold: Chung Yeong Poong 10won/pill (Adults consume 2 pills)/ Antibiotics: Penicillin 100won per ampoule/ Distilled water: 30won
-Antibiotics: when one receives an injection of 1 ampoule of Penicillin mixed with distilled water, the doctor is paid 100won aside from the price of medicine.

2) Bribe paid for medical examination and basic treatment (Bak Chun Gun)
-5000won for releasing a medical certificate, 350won for 1 injection (ex, glucose 500g), 100won for Penicillin

3) Stationaries (Bak Chun Gun)
-Won Joo Pil( Ball Pen): 250won, Notebook (paper made of straw): 5won/20pieces, Hand-made bag in North Korea, 2,000~3,000won, Uniforms used to be purchased at a flat rate set by the government with a coupon, but uniform is seldom sold at a shop these days. People usually purchase fabrics of appropriate color and size, and hand made the uniforms. (official state rate for elementary school uniform used to be 1,500won)

Monthly tuition and expense (Bak Chun Gun) :
-No monthly tuition is officially required, but some parents give some money to the teachers privately and school requires the students to prepare various materials.
– Club activity: the students need to pay 5,000won every month. (If one participates in cell activity, he/she is exempted from external labor or social labor ).
– Monthly payment is 10 bundles of firewood/Iron 3kg/Vinyl 1kg/Rubber 1kg
– -Students who fail to bring the materials are returned home without being allowed into the class.

Electricity:
-Shin Eui Joo: same as November
-Bak Chun Gun: Electricity was provided throughtout all day despite frequent blackouts occurred in the summer. / Since the beginning of the winter, electricity was provided only between 10:30pm~ 4am due to poor supply. (Mostly, candles are used at night. Candles are 40won each).
– Pyeongyang: electricity is provided for 24 hours, but blackouts occur often. Sometimes, 3~4 hours of blackout occur.

Water Supply:
-In case of Bak Chun Gun downtown, water pipes freeze in the winter. People dig wells for water.
-In case of Pyongyang, peripheral area is provided with water only once or twice a week. (The time when water is supplied is not announced beforehand. People have to watch the faucet on all the time).

Railway system and transportation fee:
-The fare for train from Bak Chun~ Won San with a transfer at Gaema Highland (Where Pyong Buk Sun and Gang Won Sun meets) is 35won, but most of the officials at the station hide the tickets and sell them for 1,000won.
-In order to buy train tickets, one needs to make a reservation a day ahead and stand in line to buy the ticket on the day. However, honored soldiers, soldiers on service and school teachers have priority, and it is hard for common people to buy tickets.
-What is interesting is that a lot of people take the train without paying the fare when moving from Bak Chun Gun to Ahn Joo Gun by Shin Eui Joo-Gae Sung train. It is because no body checks the tickets in this block.

Cars, buses and car fare between major cities:
-Pyongyang: same fare of 5won for subway, train without track
-Bus between Bak Chun ~ Shin Eui Joo runs once a day, and the fare is 2,500~2,800won. Additional 1,000won needs to be paid for one luggage.
-Shin Eui Joo~Nampo/ Roundtrip, once a day, 10,000won
-Shin Eui Joo~Won San/ Roundtrip, once a day/ 12,000won (10,000won possible after bargaining)
-Shin Eui Joo~Sa Ree Won/ Roundtrip, once a day/ 12,000won (10,000won possible after bargaining)
Footnote: No departure time is designated. The train leaves when the train is full.

Lodging:
-Shin Eui Joo: Same as before. Some of the private inns are as well organized as hotel. Chinese Koreans usually use them, and it costs 5,000won per night.
-Bak Chun Gun: State owned inns lacked heating system and was filled with lice, which is why they rarely exist now. Individuals run lodging facilities now (similar to lodging at a private residence)/ they come out to the station in order to invite guests, and it costs 100won per night.

Expense for obtaining travel document:
-Travel document: it costs 10,000won to travel from Bak Chun to Pyeongyang (ten box of cigarettes branded “Cat”)/ if using other ways, 6,000won~8,000won (Jagangdo 7,000won/Chungjin 8,000won/Pyeongsung 6,000won)/ 500won from Bakchun to Shin Eui Joo (Within a province)
-Travel document is not supposed to cost any money, but Municipal adminisrative committee, county administrative committee and officials in charge of the process publicly asks for money/ Only expense for travel documents to Pyongyang is flat rate of 10,000won, and expense for other provinces differ by person.
-Travel document to cross the river: Valid for one month, and cannot be extended/ costs around $100~200, which is not much more than passport or visa. (more money paid, the document is more quickly issued)/ Fee for travel document to cross the river is set for 20,000won by the government.
-When Chinese citizen visited North Korea with the document, extension is only available with a cost of $100 a day. (When one has good relationship with people of National Security Agency or any other relevant organizations, he/she can pay $50 a day) Because of the fee, they rarely extend the document.
-Passport and visa: DPRK passport is valid for 2 months and Chinese visa is valid for 90 days (In North Korea, expiration date on DPRK passport is more important than that on Chinese visa)/ Extension can be made twice, but extension is rarely requested by anyone (Specific reason for extension needs to be provided, which is a lot of work)/ Also, certificate of health is only valid for 4 months, which means that the passport cannot be extended twice/ fee for issuance of passport is set by the government for 40,000won (Some people say 150,000won). But actual expense is $100~500, and the expense varies depending on the region, person (interpersonal skills, ability, relationship with others) and the waiting time to get the passport (1 month~1year)/ Passport is issued in 1~2 months with a payment of $500 for Pyongyang, and 2~3months with a payment of $300 for other regions. / DPRK passport is valid for 2 months, but it is actually issued 1 month after the issue date.
-When visiting China to visit relatives, applicants for passport and travel document to cross the river are classified separately. In case of crossing Yalu River, if the applicant intends to stay in Dandong Province (Dandong, Bongsung, Donggang, Gwanjun) they need to apply for travel document, and if they intends to go farther than Dandong Province and for example, visit relatives in Shenyang and Fushun, they need to apply for passport.
-A case of procedure to obtain travel documents to cross the river and visa (with purpose of visiting the relatives)
-Application and procedure -> Mid March, Fill out the application (Hand $200 to officials at the office of foreign works: Confirmation of the relatives at the office of foreign works, military security office, and military police office, confirmation by a chair of women’s committee, Approval from Provincial Police Office and National Security Agency) -> Issuance of travel documents to cross the river in the beginning of November -> Two-day education in the beginning of November (First day: Exhibition on battle against espionage/ Second day: special education by the deputy of military security offic / Lastly, write out the oath) -> entered China on 23 November

Price of a business spot at the market (Bak Chun Gun)
-In case of the market at Bak Chung Eup, they don’t have the price of business spots.

Food Distribution System
-Bak Chun Gun: Distribution was carried out twice in the beginning and the end of October/ Distribution was halted in November/ The amount distributed was 15kg and did not meet the assigned amount of 57kg/ Official amount: 700g for workers, 300g for housewives, 500g for 15 year old child, 400g for 13 year old child/ rice/other crops ratio is 3:7
-Pyongyang: Food distribution was not halted except for the three months period of April~June 2005./ The amount distributed is 485g(official: 700g) for workers, 300g for housewives, 200g for students (official amount 300~500g)/ ratio of rice and other crops was 5:5. The ratio was sometimes 7:3 when things are better than the usual/ The price was 36won for Annammi, 54won for Honam rice (received from South Korea)/ Price at Yangjungso(Place where rice is gathered) was 20won less than market price/ Everyone is supposed to purchase rice from Yangjungso, but because of poor quality of rice, some well-off people buy rice at market.
-Shin Eui Joo and Sa Ree Won is similar to Bak Chun Gun.

Events, accidents, things to pay attention to

1) Penalty for listening to foreign broadcasting or watching illegal recordings
Case1> There was a public trial and punishment in July~August 2004 for 5 people for watching illegal recordings at a conference room of Gun Management Committee of Bak Chun Gun, located in downtown. / The penalty was expulsion of the family of the involved party to the mountains.
Case 2> A person who sold and showed VCD in Pyongyang in November 2005 was arrested. During investigation, the person committed suicide using a string on his bag while the investigator was absent. Reason for the suicide was not to harm the rest of his/her family/In Pyongyang as well, when one gets caught while watching illegal recordings, the penalty is usually an expulsion.

2) Wire telephone and charge for phone calls
– Installation of wire telephone: $200 at Sa Ree Won and Bak Chun Eup, $300 at Shin Eui Joo for obtaining a phone number as well/ customer needs to purchase the wire separately
-User of private wire telephone: There are relatively a lot of users of private wire telephone at Bak Chun Eup because there are a lot of Returnees from Japan and traders. Among 120 households, there are 11 households with telephone./ When somebody want to use wire telephone in a neighborhood, around 500won is paid.
-Common people use telegram for communication. 10won is charged for one page, and .5won is charged for each additional word.

3) Others
-Bak Chun Gun: There was a rumor that private cultivation would be allowed starting from this year, but instead of private cultivation, a group farming was adopted. Each group pay the assigned amount to the government, and the rest was left for the individuals to take care of. However, the groups needed to take care of fertilizer and pesticides which caused decline of the yield/ Phrase including “Communism” is gradually decreasing (example, “Communist Ethics” was replaced with “Socialist Ethics” in textbooks for elementary, middle and high school. “Rice is Communism” was replaced with “Rice is Socialism” as well/General atmosphere is that people do not believe what government and the party says.

-Pyongyang: Broadcasting criticized the resolution on situation of human rights in DPRK at the UN, but it is heard that the criticism has caused side effects/ Many of the people think that the resolution must have been adopted because there is a problem of human rights in DPRK/People in Pyongyang are known to be unhappy with Kim’s regime but have no way to change it. So they try to be patient and endure.

Posted in Agriculture, China, Communications, Emigration, Energy, General markets (FMR: Farmers Market), Hoteling, Price liberalization, Public Distribiution System (PDS), Transportation, UN World Food Program | Comments Closed

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