Archive for the ‘Food’ Category

New facts about the DPRK’s informal economy

Wednesday, September 21st, 2011

Pictured above (Google Earth): An unofficial street market in Sinchon (신천) is bustling while the nearby official marketplace is closed.  See in Google Maps here.

The Choson Ilbo posted a few factoids about the official and unofficial economies of the DPRK:

The rationing system, the backbone of the socialist planned economy, has nearly collapsed. Some 4 million people still live on rations — 2.6 million in Pyongyang and 1.2 million soldiers.

But a senior South Korean government official said 20 million North Koreans rely absolutely on the underground economy.

“A North Korean family needs 90,000-100,000 North Korean won for living costs per month, but workers at state-run factories or enterprises earn a mere 2,000-8,000 won,” the source said. “So North Koreans have no choice but to become market traders, cottage industrialists or transport entrepreneurs to make up for shortages.”

Many stores, restaurants, and beauty parlors are privately owned. Private tutors teach music or foreign languages. Carpenters have evolved as quasi-manufacturers who receive orders and make furniture on a massive scale. They earn 80,000-90,000 won per month on average.

It is common to find people in front of railway stations or in markets who wait to earn a few extra won by carrying luggage or purchases in their handcarts. Like taxis, their fees are calculated on a basic fee and the distance covered.

In the countryside, people earn money by selling corn or beans grown in their own vegetable gardens in the back yard or in the hills. They can harvest 700 kg of corn a year from a 1,600 sq.m. lot. And by selling 50 kg of corn a month they make 30,000-40,000 won on top of their daily living costs.

“Ordinary North Koreans have become so dependent on the private economy that they get 80-90 percent of daily necessities and 60-70 percent of food from the markets,” the security official said.

Noland and Haggard’s recent book, Witness to Transformation, contains thorough and revealing data on market utilization in the PDRK. More here.

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DPRK to rent farmland in Russia

Thursday, September 1st, 2011

Over the last couple of decades, Pyongyang has shown a callous reluctance to part with its foreign currency reserves to acquire the necessary amount of food needed to sustain its population.  The DPRK government has, however, promoted a number of domestic initiatives, some financed locally and others with international assistance, intended to boost regional food security (and decrease individual mobility) which have cost it little in the way of scarce foreign currency. Some of these projects have been previously documented on this web page: The construction of regional fish and fruit farms, as well as large-scale land rezoning, land-reclamation (and here), and sea-scaping projects.

Today the Russian media reports yet another clever idea the North Koreans are pursuing to increase domestic food production: renting farmland in Eastern Russia.  According to RIA Novosti:

A delegation from North Korea, which is facing severe food shortages, has held talks with authorities of the Amur region in Russia’s Far East on leasing land to grow vegetables and grain, a regional official said on Thursday.

North Korea plans to rent several hundred thousand hectares of land in the Amur region, which has about 200,000 hectares of idle land in regional, municipal or private ownership.

“The North Korean authorities are planning an unprecedented agricultural project – to create a farm in the Far East to grow soybeans, potatoes, corn and other crops. Everything that Korean citizens need, because the issue of food shortages there are acute from time to time due to land shortages,” the official told RIA Novosti.

North Korean state media said the country’s chronic food problems have been exacerbated by heavy rains in June and July. A tropical storm washed away or inundated 60,000 hectares of land in farm regions.

Amur region minister of foreign economic relations Igor Gorevoi said the land must not be abandoned.

“We are also interested in investment in farm machinery and equipment. Another key condition is that the newly-formed Korean company must be registered in the Amur region, which means tax revenue for the budget,” he said.

The initial lease of the land, which is to be auctioned off, amounts to 50 rubles ($1.70) a year per hectare.

The Korean delegation plans to consider the terms of the lease next week.

North Korean leader Kim Jong-il, whose country faces increasing international isolation because of its nuclear program, visited Russia in August in his own armored train on a rare foreign trip and had talks with Russian President Dmitry Medvedev. Russia then promised to send 50,000 tons of grain to Pyongyang.

It will be interesting to see if this project can be realized.

Additional Information:

Kim Jong-il recently met Russian president Medvedev in this area.

Russia is sending 50,000 tons of grain to the DPRK in flood relief.

Read the full story here:
North Korea to rent farm land in Russia’s Far East
RIA Novosti
2011-9-1

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Charity aims to feed DPRK children

Wednesday, August 17th, 2011

Pictured Above: Love North Korean Children Bakery (Sonbong, DPRK)

According to the Korea Herald:

When Seoul votes on whether to provide free lunches for school kids here on Aug. 24, many of the 50,000 children living in the North Korean city of Sariwon will likely be skipping their midday meal.

That’s what they are obliged to do most days, says George Rhee, the South Korean minister trying to raise 500 million won ($466,500) to feed them. Rhee, whose father fled the North during the Korean War, already runs three bakeries in the impoverished country, feeding 10,000 children a day through his charity Love for North Korean Children (LINK).

“I have thought of my family in North Korea so many times,” said Rhee, who is now a minister for a South Korean church in London.

“When I got British citizenship in 2002, I visited North Korea for the first time. It was very shocking. There were many children around me begging uncle, uncle give me some food. I am so hungry. I was thinking ‘how can I help such poor children?’

“First of all I was thinking of building an orphanage in North Korea but they said that there are no orphans there because Kim Il-sung is the father of all the children. They disagreed with an orphanage but they suggested a bakery.”

The traditional steamed wheat flour rolls now made at Rhee’s three successful bread factories, located in Pyongyang, Ranjin and Hyangsan, are a perfect product to feed children in a country where even food aid is often suspected to be misappropriated.

“The bread has a very short shelf life compared to baked rolls so they have to be eaten straight away. They cannot be stored and sold on,” he said.

“I have been to North Korea many times and I know that the bread in my bakeries is going straight to the children’s mouths at lunchtimes. I am very proud of that fact.”

On his last trip to the North in June, Rhee visited Sariwon city, around 100 kilometers south of Pyongyang, to view a disused building he wants to turn into his next bread-making project.

The communist country’s Korea Education Fund, called a “non-profit non-governmental funding association” by officials there, has asked Rhee to open the bakery in the city of 200,000 people in Hwanghaebuk Province, requesting a facility big enough to feed all 50,000 children living there.

While he cannot foresee producing so much bread in the near future, he does think he could supply materials for a 250 million won project to transform the derelict site. His charity would then raise 250 million won a year to provide flour to make the 5,000 rolls a day, providing a school meal for all children aged four to seven there.

“We are trying to help them develop the food infrastructure in these small communities. They don’t have anything to feed their ordinary children. We are trying to help them,” said Rhee.

“We can use this 60-year-old building that was used to provide some sweets and milk for children until about 10 years ago, but that work has been stopped now. They are using old buildings for a lot of different purposes, for example they are trying to extract sugar from seaweed they are doing a lot of different things.

“They wanted our ministry to be able to establish a bakery providing their own people with work and help their economy.”

As with the other bakeries LINK has already established in the country, the facility would have flour delivered from China and employ around 15 local staff.

International sponsorship manager Dr. Shirley Vander Schaaf said: “In a lot of ways it is very good because they are trying to decentralize the distribution of food, bringing it down to a community level.

“This would be a change from having it administered from Pyongyang. They seem to be putting the ownership and responsibility back into the communities, which makes sense. They are utilizing the funding and their resources from the NGOS to help them do this.”

The charity which has been registered in the U.K. since 2003 and in Korea since 2006 already has many regular international donors, but is far short of its 500 million won fundraising target to get Rhee’s Sariwon project off the ground and running for one year.

The charity is hoping to hold an 80 km bikeathon from Seoul to the DMZ in October and is asking anyone who is interested in taking part and raising sponsorship to get in touch.

“I think there are a lot of foreigners here who want to do something to help North Korea but don’t know what to do. If they come to us with ideas for fund raising we can work with them to get their ideas off the ground,” Vander Schaaf said.

She is looking to create a fundraising team to help the charity meet its goal to eventually open a bakery in every province in North Korea, making sure fewer children there will have to go without lunch each day.

Michael Rank wrote a story about the Love North Korean Children Bakery in Rason.  See it here.

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KCNA and the Taedonggang Fruit Farm

Monday, August 15th, 2011

Pictured Above (Google Earth ): The initial phase of the Taedonggang Fruit Farm (대동강과일종합가공공장) in Samsok-guyok, Pyongyang.  See in Google Maps here.

KCNA recently published the following article on the fruit farm (2011-8-12):

The Taedonggang Combined Fruit Farm in Pyongyang attracts admiration from foreign visitors.

After visiting the farm, Martin Lotscher, chairman of the Switzerland-Korea Committee, said the farm is associated with benevolent politics pursued by leader Kim Jong Il and that such an amazing farm can never be found in other countries.

Anders Karlsson, chairman of the Communist Party of Sweden, said the farm offers a glimpse of Kim Jong Il’s strenuous effort for providing the people with a happy life, as well as advantages of the socialist economy.

It is incredible that this large and wonderful fruit farm was built in only three years.

Mamoru Kitahara, chairman of the Fukuoka Prefectural Association for Japan-DPRK Friendship, said he deemed it a great honor to visit the fruit farm at a time when the Korean people were striving hard to build a thriving nation.

He congratulated the Korean people on the tremendous achievements they made under the leadership of Kim Jong Il.

The North Korean media has reported on this farm dozens of times, but it has never mentioned that the apple trees in the Taedonggang Fruit Farm were supplied by a European company.  This same firm may have also supplied apple trees to similar new fruit farms in the DPRK (Kosan and Toksong fruit farms), though I am unsure of their direct involvement beyond the Taedonggang fruit farm.

Some other interesting gossip about the area:

1. The farm is probably the best-defended in the world.  It is surrounded on all sides by dozens of KPA units, HARTs, and anti-aircraft positions.  Looking at the level-1 roads in Pyongyang, it is also likely that Kim Jong-il drives through the farm every time he commutes from downtown Pyongyang to his Kangdong residence.

2. The farm is located just north of Wonhung-ri (원흥리).  There are some villas hidden back in the woods (to the south of the farm) and I believe that Shin Sang-ok and  Choi Eun-hee spent some time here.  If a reader in South Korea could get Ms. Choi to confirm, I would appreciate it!

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On DPRK naming conventions

Monday, August 15th, 2011

Pictured Above (Google Earth): WPK Building No. 3 compound (Third Building) mentioned below.  See in Google Maps here.

Andrei Lankov has a great article in the Korea Times on the WPK’s naming conventions. I have attached the article below and supplemented it with related material taken from Helen-Louise Hunter’s Kim Il-Song’s North Korea and the Yonhap North Korea Handbook.

Lankov writes in the Korea Times:

Anybody who has ever dealt with North Korean officials or documents is aware that the nation’s bureaucracy loves number-based names and titles.

To a very large extent this is related to the deeply militaristic nature of the country’s culture. The military usually numbers units and often gives top secret armaments or projects numerical names. In North Korea, the same practice is applied to the society at large. The resulting names sound mysterious and this is probably part of its objective.

More or less every North Korean knows what the term ‘number-one event’ means. This is the name of all events in which the “Dear Leader,” Marshall Kim Jong-il, is expected to participate. When inhabitants of a town see their streets swamped with plain-clothes police, and when they are ordered to paint all fences anew, they understand: A number-one event is expected.

Everything related to the Kim family is “number one.” For example, painters who have a license to depict the members of the Kim family are known as number-one painters (and such a license is not easy to obtain). Predictably, an actor who is playing a member of the ruling family is known as a number-one actor.

Numbers are everywhere. If you need permission to go outside your native city or country, you should apply for a travel permit at Department 2 of the local municipal office. Of late, affluent North Koreans have become annoyed by the activities of Department 27. This department is responsible for the control of privately-owned electronic equipment. Now, as electric equipment is becoming increasingly common in North Korean homes, the officials of Department 27 are expected to conduct random checks of privately-owned computers. They are to ensure that no improper content is kept on hard-drives, and nowadays such visits must be time-consuming and stressful.

At the same time, North Koreans are (or at least used to be) quite happy to be number 65 distribution targets. North Korea, until the early 1990s, was a country of total rationing, where the government decided how much food and basic daily provisions were to be distributed to each citizen, depending on their perceived worth (admittedly food and goods were heavily subsidized and were essentially provided free). This is clearly an egalitarian approach, but, as Orwell once wrote, some are more equal than others. Members of the elite were given better rations and issued goods and services beyond the reach of the common people. They were referred to as number 65 distribution targets.

The place where they were issued special rations of pork and beer (luxuries by North Korean standards) were known as number 65 distribution centers.

Rations are long gone, so access to special distribution quotas is far less important than it was in the 1960s or 1970s. Money talks nowadays, so one should not be surprised that it is extremely prestigious to work for Bureau 38 or Bureau 39, the money-earning branches of the ruling ― and for all practical purposes, only ― party. The task of these bureaus is to earn hard currency which is then used to keep the Kim family and the upper crust of the regime sufficiently comfortable. There are some differences in their functions, but it’s not known exactly how these two agencies differ.

Another part of the central committee bureaucracy is the “Third Building.” This is a common name used to refer to all agencies that deal with South Korea. Actually the name is historic since, once upon a time, all South Korea related agencies and departments were once housed together in a building with the above designation.

Within the Third Building bureaucracy, a special role is played by Bureau 35. The bureau is essentially the intelligence-gathering branch of the ruling Korean Workers Party. Most countries worldwide have two intelligence services, one serving the military and the other gathering political intelligence. On top of that, North Korea also had a party intelligence service.

The initial role of Bureau 35 was to bring about revolution in the South. But with no revolution in sight, it gradually became just another intelligence bureaucracy. Recently North Korea conducted a major reshuffle of its spy agencies, and according to reports, Bureau 35 has had its functions either acquired by another agency or was at least downsized.

It was glamorous to work at Bureau 35 and/or be a number 65 distribution target. It is far less glamorous to be a “target 49.” This is what mentally handicapped people are called in the North. The “49 centers” are the agencies that take care of the needs of people with mental and psychiatric problems.

The list of North Korea’s mysterious numbers has many more interesting entries. Sometimes it seems that numbers are more frequently used there than real names. But what can we expect from a state which unabashedly models itself after the military?

On a related note, Helen-Louise Hunter wrote in Kim Il-song’s North Korea (p. 14–Order at AmazonGoogle Books):

The numerical identification of a factory or collective farm is derived from the date of Kim’s first visit . For Example, the 18 September Nursery School in Pyongyang is named for the day when Kim [Il-sung] visited it. Although this name for the most prestigious nursery school in North Korea, which caters to the crème de la crème in Pyongyang, seems unimaginative and unimpressive, it establishes Kim’s personal connection with the school.  In North Korea that is all-important.

Additionally, North Korean organizations are named after important political dates.  According to the Yonhap North Korean Handbook (p.675–Order at AmazonGoogle Book):

North Korea had declared the People’s Army Founding on February 8, 1948, and February 8 was commemorated as the People’s Army Fonding Day before 1978.  In February 1978, North Korea changed it to April 25 while arguing that “the People’s Army is the direct heir of Choson People’s Revolutionary Army” and the former president Kim Il-sung had organized Choson People’s Revolutionary Army (anti-Japan guerilla corps) on April 25, 1932.

Perhaps you have heard of the February 8 Vinalon Complex (2.8 Vinalon Complex) or the April 25th House of Culture?

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DPRK grain imports from China in first half of 2011

Sunday, August 14th, 2011

According to Yonhap:

North Korea imported more corn and less rice from China in the first half of this year than in the same period a year ago apparently due to a lack of foreign cash, a study showed Sunday.

North Korea’s grain imports from the neighboring country in the six-month period consisted of 38.2 percent corn, 37.5 percent flour, 16.9 percent rice and 7.2 percent beans, according to an analysis of the two countries’ trade by Kwon Tae-jin, vice president of the Korea Rural Economic Institute.

Last year, the figures stood at 34.2 percent flour, 28.8 percent corn, 19.3 percent rice and 16.4 percent beans, indicating an overall increase in imports of cheaper grains such as corn and flour this year, according to the study based on data from the Korea International Trade Association. Imports of rice and beans, meanwhile, fell from the same period last year.

This year, imports of beans cost $661 per ton on average, while a ton of rice, flour and corn sold for $538, $395 and $304, respectively.

The total amount of grain imports rose 5.5 percent to 149,173 tons, up from 141,395 tons in the first half of last year, apparently reflecting food shortages in the impoverished nation, the study said. Grain imports cost US$404 per ton on average, up 8.6 percent from $372 last year, bringing the total cost to $60.3 million, or 14.4 percent more than last year.

“The amount of grain imports last year was larger than in most years, but the fact that (North Korea) imported even more this year seems to indicate a shortage of food,” Kwon said in his study. “The larger imports of corn than beans or rice appears to be the result of a lack of foreign currency.”

Meanwhile, North Korea also boosted its imports of fertilizers by 91 percent in the first half of this year, buying a total of 190,396 tons compared with 99,588 tons in the same period last year. The country bought more than 164,000 tons of ammonium sulfate, which is sold at $188 per ton, while only importing some 25,000 tons of urea for $346 per ton.

“It seems like either fertilizer production in North Korea has dropped significantly, or they are aiming to boost their food production by a large amount,” Kwon said.

The Daily NK also published a story on these findings.

Read the full story here:
Lack of foreign cash forces N. Korea to buy more corn, less rice
Yonhap
2011-8-14

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DPRK seeking Myanmar rice deal

Wednesday, August 10th, 2011

According to Reuters:

North Korean trade officials visited Myanmar this week to discuss a possible deal to import Burmese rice to ease major food shortages at home, a government official said on Wednesday.

A meeting was held on Tuesday in the country’s biggest city, Yangon, but the terms of the agreement and how North Korea planned to pay for the rice were not known, the official told Reuters, requesting anonymity.

A North Korea-flagged cargo ship named Tumangang has been docked in the port city since Monday. Witnesses and a Reuters photographer said the vessel appeared empty and no cargo was seen being loaded or unloaded.

Myanmar was once the world’s biggest rice exporter and has shipped 450,000 tonnes of the grain so far this year, up from 440,000 tonnes for the whole of 2010. It exported 1.1 million tonnes in 2009, mostly to markets in Africa and the Middle East.

The Burmese official said the North Koreans who visited Yangon on Tuesday dealt directly with the military-owned Myanma Economic Holding Ltd (MEHL), one of the country’s biggest firms. MEHL enjoys a monopoly of many of the country’s most lucrative import and export produce.

A senior member of from the Myanmar Chambers of Federation of Commerce and Industry said it was likely North Korea would try to import more than just rice, noting that it previously bought Burmese rubber.

Ties between the two reclusive countries were restored in 2007 after a 24-year freeze that followed the failed assassination attempt by North Korea agents on then South Korean President Chun Doo-hwan during a visit to Myanmar.

The revived ties have worried the United States, which believes Myanmar’s military has sought to develop its own nuclear weapons technology using North Korean expertise.

The DPRK recently engaged Cambodia for a barter food deal.

Here is a compendium of stories related to the DPRK’s alleged food shortage this year.

Read the full story here:
North Korea seeking rice deal with Myanmar
Reuters
Aung Hla Tun
2011-8-10

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Millions under threat as hunger stalks North Korea, says visitor

Thursday, August 4th, 2011

By Michael Rank

North Korea’s orphanages are full of malnourished children and food shortages in the isolated nation look set to get much worse, said a recent visitor who knows the country well.

Former member of the European Parliament Glyn Ford said shortages of food were affecting “tens of thousands of children, not just orphans, and there may be millions of people under threat of malnutrition” in North Korea.

Ford visited two orphanages in Hamhŭng (Hamheung), the country’s second largest city, where he was shown children who were extremely thin and clearly malnourished, and this had been confirmed by a European Union aid team. Each orphanage had about 300 children.

Ford said he had been encouraged by an EU pledge last month to provide emergency food aid worth 10 million euros ($14.3 million) to more than half a million people at risk of dying from serious malnutrition in North Korea, and that France and Germany had since added to this, making the assistance worth 14-16 million euros ($20-$22.8 million).

But at one of the orphanages he was told they had run out of EU food in June, and the children were suffering as a result.

The European Commission said the objective of the aid package was to lift around 650,000 people, mainly in northern and eastern provinces of the country, out of the hunger zone during the most difficult period of the worst year for food production in recent times. Food assistance will reach children under five who have already been hospitalised with severe acute malnutrition. Children in residential care will also be fed, as well as pregnant and breastfeeding women, hospital patients and the elderly.

An EU mission found in June that state-distributed food rations, upon which two thirds of the North Korean population depend, had been severely cut in recent months from 400g of cereals per person per day in early April to 150g in June: less than 400kCal – a fifth of the daily average nutritional requirement and equivalent to a small bowl of rice.

Ford told NKEW in a telephone interview that while there were clear signs of widespread hunger there was no sign, so far at least, of mass starvation, as happened in the 1990s, when hundreds of thousands, possibly millions, of people died.

He also said that despite the food shortages there were also signs that economic reforms of recent years were having a strong impact, and that in all populated areas roads were lined with rows of private stalls. “These blue plastic stalls are everywhere,” Ford said, adding that they were giving rise to

“kiosk capitalists” who were bucking the traditional, Stalinist economic system.

“This is a society where there are rich North Koreans. There are new cars and expensive consumer items in the shops. There is an economic elite rather than a Party elite,” he added.

Ford also visited the Kaesong (Gaeseong) Industrial Complex just north of the Demilitarised Zone, which he said consisted of large areas of waste land where plans for expansion had come to nought due to increased tension between North and South Korea.

The complex looked “a little bit sad”, he said, and the optimism that prevailed when he last visited it two or three years had dissipated. He said the zone continued to employ about 45,000 North Koreans, little changed from his previous visit, and hopes that it would employ 400,000 by 2015 now seemed highly unrealistic. “It was new then but the shining glow has gone off a bit,” he said, adding, “I noticed the gaps between the factories more than the factories themselves.” (Ford cited a goal of 400,000 workers eventually employed in the zone, but in 2006 a target of 700,000 was mentioned on the BBC’s Newsnight programme).

The complex, in operation since 2004, has around 120 factories, all South Korean-run, processing food and assembling clothing and machinery for export to the South.

Ford also said it seemed likely that the North Korea would open an embassy to the EU in Brussels before long, with a reciprocal EU embassy in Pyongyang. Although Pyongyang and the EU established diplomatic relations in 2001, embassies have not been opened due to French resistance, as France and Estonia are the only EU countries that do not have full diplomatic ties with North Korea.

France has cited human rights violations in its refusal to open an embassy in North Korea, but it has recently softened its line and has announced plans to open a “cooperation bureau” in Pyongyang. Ford said North Korea had long wanted to set up an embassy in Brussels and this now finally seemed likely, possibly by the middle of next year.

Ford, a British Labour Party MEP until 2009, spent about 12 days in North Korea, returning last Saturday. He has almost certainly visited North Korea more often than any other western politician, having been almost 20 times over the last 15-16 years. He was a member of the European Parliament’s Korean Peninsula delegation and in 2008 has published a book, North Korea on the Brink: Struggle for Survival.

Addendum: In January 2009 Ford hosted the first ever delegation from the Workers’ Party of Korea (WPK) delegation to visit Britain, when he pressed them to agree to reopen the dialogue that was  broken off in 2005.

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DPRK offers barter for rice deal to Cambodia

Wednesday, July 27th, 2011

Pictured above (Google Earth): Kumsong Tractor Plant (금성뜨락또르공장).  See in Google Maps here.

According to Reuters:

North Korea wants to import Cambodian rice to try to ease food shortages and has offered in return to provide machinery and expertise to develop Cambodia’s fledgling mining and energy sectors, a Cambodian official said on Wednesday.

A North Korean delegation led by Deputy Trade Minister Ri Myong-san visited Cambodia this week and the country is keen to import rice as soon as possible, said Ouch Borith, Cambodia’s secretary of state for foreign affairs.

It would help Cambodia develop its mining sector and invest in hydropower dams.

The amount of rice North Korea wanted to import was not disclosed, he said. Further specific details, such as how North Korea would fund its purchases and investments, were not available.

Cambodia is the world’s 15th biggest producer of rice and has set a target of exporting 1 million tonnes of the grain within the next four years.

According to the Economic Institute of Cambodia (EIC), an independent think tank, the country is expected to ship about 100,000 tonnes of milled rice this year, up from 50,000 tonnes in 2010. More goes to Vietnam to be milled and shipped from there.

North Korea is one of the world’s poorest countries and it rarely produces enough food to feed its 24 million people, often as a result of bad weather affecting harvests.

International sanctions over its nuclear weapons programme combined with neighbouring South Korea’s refusal to provide help have led to a substantial decline in food aid from its traditional donors.

Although Cambodia and North Korea have no trade ties, they have a diplomatic relationship. Cambodia’s former King Norodom Sihanouk has a house in North Korea and was once a special guest of the country’s late ruler, Kim Il-sung.

Ouch Borith said North Korea had offered to sell agricultural machinery to Cambodia, such as tractors, at cheaper prices than Western countries and wanted to provide expertise in developing mines.

“We have only small and medium-sized enterprises, not big industries, but Cambodia’s natural resources are huge, such as minerals, gold, iron and aluminum,” he told reporters.

“Our friends the Koreans said they would do studies and use their experience to help Cambodia make an industry from these natural resources.”

Agriculture forms the biggest part of Cambodia’s $10 billion economy, followed by tourism and garment manufacturing, but it is also trying to develop its energy and mining sectors.

Read the full story here:
N. Korea wants to buy Cambodian rice, invest in mining
Reuters
2011-7-27

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Kangdong market prices

Tuesday, July 26th, 2011

Pictured above (Google Earth): The Kangdong Market (39.134801°, 126.109387°)

According to the Daily NK:

It has been revealed that the cost of living in Pyongyang has more or less held steady over the past month, despite a modest decrease in rice prices.

According to sources in Pyongyang, one kilogram of rice is trading for about 1,900 North Korean won, which represents a fall of about 100 won on June prices. It is thought that a modest easing of the exchange rate of North Korean Won against Chinese Yuan and the importation of a large amount of rice from China are partially responsible for the change.

“Chinese rice is currently selling for roughly 200-300 won less than Chosun (North Korea) rice,” one source said, explaining, “Chinese merchants and the like brought the rice into the country en masse at the start of the year when the price of rice was rising, but now it’s not selling so well. The price of rice has fallen across the broad and is fluctuating at around the 2,000 won mark.”

At the end of January, the price of a kilogram of rice temporarily soared past the 3,000 won mark. There was some speculation at the time that wholesalers were colluding to raise prices. After the price went up, a natural increase in market supply and a drop in purchasing power from currency redenomination kicked in to force prices back down. Since then it has more or less stabilized at around the 2,000 won per kilogram mark again.

The price for corn, which usually trades for about half the price of rice, has also recorded a small fall to 850 won per kilogram, down 130 won on last month’s prices. Pork prices are stable at 5,800 won per kilogram, which is the same price as last month.

Moreover, second-hand clothes are showing brisk trade on the market. One source attributed their popularity to the fact that they sell for less than half the price of new clothes.

Additionally, the source claimed that the warmer weather is encouraging more people to purchase sleeveless and short-sleeve shirts, as well as shorts and skirts. “Sleeveless shirts are prohibited by the authorities, so people only wear them at home. Mostly young people are doing this,” he said.

“Short-sleeve shirts, shorts and skirts are selling like hotcakes as well, but it is required that the latter two items go down past the knees.”

The cost of living in North Korea has more or less returned to the levels they were at before the currency redenomination. It is business as usual at the jangmadang, but with trade volume well down from what it was before. The source explained that, while people are not holding onto cash as a result of the currency revaluation, it is only food items and lifestyle goods that are selling relatively well, while sales of high-ticket electronic goods have actually decreased.

Here is the price data collected from the Kangdong Market on the outskirts of Pyongyang (JPG):

Left: June 2011, Right: July 2011

Links to the discussion of North Korea’s food crisis can be found here.

Read the full story here:
Market Prices Stable, Sleeveless Shirts Popular
Daily NK
Choi Cheong Ho and Park Sung Kook
2011-7-20

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