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ROK vows economic cooperation with DPRK despite prob. nuclear test

Thursday, September 14th, 2006

From Yonhap:
9/14/2006

South Korea’s vice unification minister on Thursday said his country would continue its economic cooperation with North Korea, adding that increased cooperation between the divided Koreas is the key to peace and stability on the Korean Peninsula.

“Economic cooperation between the North and the South is playing a key role in various ways to manage the situation on the Korean Peninsula stably,” Vice Unification Minister Shin Un-sang said.

The remarks came as part of a congratulatory speech at the opening of a symposium here on inter-Korean economic cooperation, co-hosted by the Citizens’ Coalition for Economic Justice and the National Unification Advisory Council.

Shin said inter-Korean economic cooperation has significantly reduced tension on the Korean Peninsula by replacing, or removing, the North’s heavy artillery unit in the border town of Kaesong with a joint industrial complex for South Korean firms.

He also claimed the North would now have to think twice before performing any acts that could heighten or cause tension on the Korean Peninsula as increased economic cooperation gives it a greater interest in pursuing peace and stability.

“Inter-Korean economic cooperation is playing a role in preventing additional tension (on the Korean Peninsula). Various forms of economic cooperation between the two, including the Kaesong industrial complex, are helping the North and South Korea to move toward (promoting their) mutual interests,” Shin said.

Relations between the Koreas improved significantly after their leaders met in an historic summit in Pyongyang in 2000. The amount of inter-Korean trade increased to over US$1 billion last year from $290 million in 1995, according to Kim Chun-sig, director of the ministry’s inter-Korean economic cooperation bureau, who also joined Thursday’s symposium.

The government believes that economic cooperation with the North also helps open the reclusive state to the outside world by offering chances for its people to meet with South Korean officials and businesspeole, as well as being an opportunity to witness the South’s advanced economy.

Posted in International trade, Kaesong Industrial Complex (KIC), Mt. Kumgang Tourist Special Zone, South Korea, Trade Statistics | Comments Closed

DPRK-made Baduk Game

Thursday, September 7th, 2006

From the Korea Liberator and Sunday Morning Herald:

You can download the game here.

9/7/2006

South Koreans will be able to enjoy one of their favorite games on computer using a program written in communist North Korea released here Thursday.

“Silver Star 2006” –a North Korean-made computer program of the chesslike board game called Baduk in South Korea and more widely known as GO–was launched in South Korea as part of an agreement reached with the North in July, said ForOneBiz, the South Korean distributor.

The program can be downloaded for 33,000 won (US$35; euro27), part of which will be paid to the North as royalties, ForOneBiz said.

The company said it also plans to share its technology know-how with the North to improve the software.

The level of technology development in the impoverished North is a far cry from the neighboring capitalist South, which boasts the world’s highest per capita broadband connections.

As part of North Korean government controls on outside information reaching its people, outside Internet access is provided only to high-ranking officials and elite.

The game released this week isn’t the first time for a North Korean computer program to go on sale in the South. In March, North Korean software was launched here for the first time to help with input of repetitive words and provide various symbols and sound effects when people use word processors or send e-mail.

The two Koreas remain divided since the 1950-53 Korean War ended in a cease-fire, not a peace treaty. However, relations have warmed in recent years since a 2000 summit between leaders of the North and South, and the two sides are involved in a number of joint projects.

Posted in Computing/IT, International trade, South Korea | Comments Closed

NK Baduk Software to Hit Seoul

Wednesday, September 6th, 2006

Korea Times
9/6/2006
Kim Tae-gyu

Starting today, a South Korean venture start-up will market a North Korean paduk computer game, Silver Star 2006, here that is arguably the most advanced program for paduk, also known as go.

ForOneBiz yesterday announced the scheme to launch Silver Star 2006 that has won the FOST Cup, the annual computer paduk championship participated in by global contenders, for the past three consecutive years.

“In June, we reached an agreement with the North’s Samcholli General Corp. to debut Silver Star 2006 here,” ForOneBiz chief executive officer Kim Byung-su said.

“We inked a commission-based deal, not the conventional lump sum-based ones. We will take roughly 90 percent of sales income while the remaining 10 percent will go to Samcholli,” he added.

The price of the program, which can be downloaded at the Web site of ForOneBiz (www.i-silverstar.com) or ordered by calling (02) 2115-6035, is 33,000 won ($34.5).

The Silver Star series, called Unbyol in Korean, was developed by the North’s state-run Korea Computer Center in the 1990s. Experts say it has the most outstanding algorithm for baduk.

“We plan to improve Silver Star 2006 further by cooperating with North Korea. It will work because the North has a competitive edge in software while the South today leads the world in offline baduk techniques,” Kim said.

This is not the first time for North Korean software to go on sale in the South.

Earlier in March, the Seoul-headquartered BH Partners began selling the Speed-K4.0, a computer program developed by the North Korean agency, at its Web site (www.bhpartners.co.kr).

People can download the input software, which helps them easily type in sentences from a word processor or e-mail, at 5,500 won.

Posted in Computing/IT, International trade, Samcholli General Corp., South Korea | 1 Comment »

DPRK selling goods to Chinese trade fair

Monday, September 4th, 2006

From the Daily NK:
NK, A Pitiable Medicine Peddler at aTrade Exhibition
9/4/2006
Kim Young Jin

The Second China Jilin Northeast Asia Investment and Trade Expo commenced on September 2nd in Changchun, Jilin province where North Korea dispatched 100 people from economic and trade groups to set up 36 booths promoting and consulting trade and goods.

North Korea elected Kim Dong Myeong director of Chosun International Exhibition Co. to coordinate the North Korean booths at the trade event, and director in second department of Ministry of Foreign Trade Jeon Hyeong Jeong, vice secretary of Chosun Chamber of Commerce Yoon Young Suk, Chosun Manyeon Health Co. Lee Yong as department representatives. About 100 people were allocated to various booths in addition to 30 Chinese university students who acted as translating helpers.

‘Wooden spatulas’ and ‘Dried ferns?’

The exhibition was divided into categories such as food, cars, electronic goods, petrochemicals, metal goods, construction materials and medical machinery of which North Korea exceeded technicalities and opened 32 booths related to ‘food.’

In the division of construction materials, the Chosun Chongjin Metal Corporation Company had not organized their booth even after people began to enter the exhibition hall much to the embarrassment of sponsors. Clients passed by confused as in the next booth, ‘Inpung Trade Company’ from the Trade Department in Jagang province had set up a display of wooden spatulas, chopsticks and dried ferns totally unrelated to construction.

North Korean booths categorized as ‘foods,’ health and medical products were the focus of retail sale. Each booth stationed 1~2 consultants wearing a dress shirt and pants, 1~2 sales assistants wearing the traditional Korean costume and a Chinese translator sponsored by the event.

Rather than directly advising clients on product queries, the male consultants seem to sit clustered at the back of the booth supervising the female sales assistants and translating helper. As the translating helpers were all Chinese university students and partly inexperienced in English or Korean, it was obvious that they were having difficulty trying to explain product information to foreign clients.

Abundant medical products, chili paste and sesame oil unverified

Excluding Chosun Mansudae Overseas Project Group of Companies of D.P.R.K. (MOP), Chosun Minye Corporation and Chosun Suyangsa Trade Company which sold North Korean paintings, porcelain and handicrafts, the majority of booths sold ‘food’ or ‘medical’ products.

A spokesperson for ‘Tosung Korea Medicine Export Department of Pyongyang Trading Public Corporation’ drew the attention of clients by stating “The ‘Tosung 1 injection’ developed by our company is the leading panacea of this generation. This injection is known to have outstanding effect on various illnesses such as cancer, leukemia, diabetes and tuberculosis.”

In reply to a reporter’s question “If 1,000 injections are ordered, how many days it will take for delivery?” the assistant answered “It is difficult for me to give you a definite answer. However, if equipment is offered for a large-scale order, delivery should be made possible within 3 months.”

Of the North Korean sales assistant met by the reporter, the majority of workers knew only of the cost of products on display and when questioned of large-scale orders, delivery, North Korea’s proof of inspection, ‘clinical effectiveness’ and ‘medical approval’ assistants could not give any definite answers.

However a common scene amongst North Korean booths were appeals to clients “Although economic conditions nor equipment do not yet support mass production, not only has a new medical product has been successfully created but we ensure that the world’s best ingredients, effectiveness and skills are used.”

North Korean assistants asserted by showing ‘An innovative wonder drug’ developed by ‘Chosun Dongbang Drugs Center’ as an impotent drug ‘neo-viagra-Y.R,’ the bird flu antidote ‘Kumdang-2 injection’ by ‘Chosun Pugang Pharmaceutics Company’ and longevity foods ‘Angungwoohwangan’ developed by Korea Myongsung Health Food Pharmaceutical Factory.

According to a speech by a sponsor, various Northeast Asian countries such as South Korea, China, Japan, Mongolia, North Korea and 46 other countries participated in The Second China-Jilin Northeast Asia Investment and Trade Expo. Of 500 corporations in the world, 71 corporations participated in the event and promoted products in 2,200 booths.

Posted in China, International trade, Ministry of Foreign Trade | Comments Closed

DPRK moves accounts to Russia

Sunday, September 3rd, 2006

From AFX News on Yahoo:
9/3/2006
NKorea opens bank accounts in Russia to dodge US sanctions – report

TOKYO (XFN-ASIA) – North Korea has opened about 10 bank accounts at Russian financial institutions in an effort to secure fund flows now blocked by US financial sanctions, the Sankei Shimbun here reported at the weekend.

The newspaper, quoting sources who it described as being close to North Korean affairs, said senior North Korean officials were transferring their funds through the accounts.

Thi is part of Pyongyang’s efforts to escape pressure from the US, which has moved to freeze North Korean funds it claims are the profits of drug trafficking, money laundering and other illegal activities.

Washington is aware of North Korea’s money flows through the Russian banks and it may step up pressure on the Russian authorities to abandon such support for North Korea, the newspaper said.

North Korea has warned the United States it will take ‘all necessary counter-measures’ against Washington for increasing the the pressure on North Korea through financial sanctions.

In November, Pyongyang walked out of six-way talks on its nuclear ambitions after Washington accused a Macau-based bank of helping Pyongyang launder earnings from fake US currency, and told US financial institutions to stop dealing with the bank.

Posted in Banking, Finance, Fiscal & monetary policy, International trade, Russia | Comments Closed

DPRK exports to Japan halved amid economic sanctions

Wednesday, August 30th, 2006

From Yonhap:
8/30/2006

North Korean exports to Japan dropped by nearly 50 percent last month from June amid Tokyo’s economic sanctions against the communist state for its test-firing of missiles early last month, a report by Japan’s Finance Ministry released on Wednesday showed.

The total amount of North Korea’s exports to Japan last month dropped to some 440 million yen (US$3.75 million), a 44.2 percent decrease from that of June, the report said. The amount is also down 42.2 percent from that of the same period in 2005.

The report failed to provide specific reasons for the drop, but observers believed it was mainly due to the country’s economic sanctions against the impoverished North, which followed Pyongyang’s test-firing of seven ballistic missiles on July 5.

The observers also said trade between the two is likely to further shrink amid Tokyo’s strong reaction to North Korea’s missile tests and the communist state’s alleged preparations to test a nuclear bomb.

The United Nations Security Council unanimously adopted a resolution on July 15, condemning the North Korean missile tests and prohibiting any missile-related dealings with the North. But Tokyo has been taking additional steps to cut off any cash inflow to North Korea from its country.

The country has banned a major North Korean ferry, Mankyongbong-ho, from its ports at least for the next six months, cutting off the largest and almost the only direct means of transportation between the two for North Koreans and some 200,000 pro-Pyongyang Korean residents in Japan.

Posted in Chongryun, International trade, Japan, Trade Statistics | Comments Closed

Growth of N. Korea-China trade tumbles to five-year low

Monday, August 28th, 2006

From Yonhap:
Byun Duk-kun

The increase in the first-half trade between North Korea and China fell to the smallest volume in five years, South Korea’s Unification Ministry said Monday.

Ministry officials said the slowdown did not appear to be linked to North Korea’s recent provocations, such as the test-firing of seven ballistic missiles in early July.

The amount of North Korea-China trade only increased 4.7 percent on-year to US$780 million in the January-June period, Kim Nam-sik, head of the ministry’s information and analysis bureau, told reporters.

This marked the smallest, as well as the first slowdown of, increase in trade between the close allies since 2002 when trade volume increased by 6.2 percent for the same period from a year before.

The year-on-year growth in the first-half Sino-North Korea trade reached 16.2 percent in 2003, 37 percent in 2004 and 43 percent last year, according to Kim.

The report comes amid reported signs that Beijing may have begun taking measures to reduce or limit its economic cooperation with Pyongyang as a way of expressing its dismay or anger at the North for its test-firing of seven ballistic missiles on July 5.

The ministry official, however, cautioned against interpreting the slowdown as signs of a possible disruption in relations between the communist allies, saying the reason for the slowdown appears to be economic rather than political.

“Many experts believe it (the slowdown) is more due to economic than political reasons,” Kim said.

The amount of North Korea’s exports to China for the first six months of the year decreased by more than 14 percent to some $200 million, also marking the first decline since 2000, according to a report by the information bureau.

Kim said this, too, was mainly because of economic reasons, such as the reduced price of North Korean exports to China “while the amount of exports remains the same” from that of last year.

Analysts here believe China may completely halt its economic and political relations with the North if Pyongyang decides to conduct a nuclear test.

The ministry official said there were no immediate signs of China taking such measures to punish North Korea.

Posted in China, International trade, Trade Statistics | Comments Closed

Inter-Korean trade tops US$600 mln until July

Sunday, August 27th, 2006

Yonhap
8/27/2006

Trade between South and North Korea in the first seven months of this year topped US$600 millio this year due to increasing trade of agricultural products and corporate products, a local trade promotion agency said Sunday.

The inter-Korean trade reached $668 million in the January-July period, up 14.7 percent from a year earlier, according to the Korea International Trade Association (KITA).

Corporate-related trade, including the trading related to inter-Korean industrial complex in Kaesong, increased 31.9 percent to $489 million worth, while non-corporate trade such as government and private aids fell 15.3 percent to $178.5 million.

South Korea sent $446.6 million worth of goods to the North, down 2.2 percent, from the same period last year while the value of products coming to South Korea reached $263.2 million, up 56.8 percent, the association said.

Posted in International trade, South Korea, Trade Statistics | Comments Closed

On Searching Hualian Warehouse, a North Korea-China Trade Base in Dandong

Friday, August 25th, 2006

Daily NK
By Shin Joo Hyun
8/25/2006

“No changes to trade after the financial sanctions to North Korea”

In response to North Korea’s illegal trade of currency, the U.S. passed the North Korea sanctions in which China agreed to participate. However, it has been confirmed that little changes have been made to North Korea-China trade.

On 28th July, I went to Dandong, China where North Korea-China trade is most active. It was here that I met a tradesman ‘K’ who said that there has been little change to the amount of goods going from Dandong to Shinuiju. He said that the restraints on trade outlined in the press after the missile launch, is in fact different to reality.

In order to see the amount of trade between North Korea and China for myself, I headed for Hualian warehouse. The size of this warehouse and parking lot is as big as a school playground and numerous cargo trucks were on stand-by to be loaded and shipped.

Goods that pass the route from Dandong to Shinuiju are all contained at this warehouse and then are shipped over the boarder in large cargo containers. It appears that it is a goods warehouse to promote North Korea exports. On the 25th at 3PM, I snuck into the warehouse by a small truck.

On entering the premises ‘K’ who accompanied me to the warehouse did not have to undergo thorough inspection as he was a regular tradesman with North Korea. This location is restricted for foreigners to enter, in particular South Koreans who are unquestionably prohibited from entering the grounds. Undoubtedly photography and collection of data is also prohibited.

While riding the truck we circled the warehouse once and I was able to witness goods busily loaded onto containers. The busiest part of the day is around 1-2PM. At present the height of the day has passed and rather containers sent to Shinuiju customs are visible.

The warehouse seems quiet, maybe because the busiest part of the day has passed. I can see everyday warehouse workers taking orders from drivers and loading goods onto trucks such as sugar, flour and confectionary. On one side are boxes of fans and beer going to North Korea. As always, the majority of goods transported to North Korea is food and clothes.

Amongst the goods, Chinese noodles and clothes with floral prints are most popular. Until recently, the most popular and expensive item was the VCD however it has now become a prohibited import. According to ‘K’ a large warning is written at the entrance of North Korea’s customs house saying ‘Import of VCD’s prohibited.’

‘K’ said “Lately, capitalist ideologies are entering North Korea, hence authorities are trying to destroy republicanism by prohibiting the import of VCD’s. This means we are to watch ‘Bocheonbo Band’ videos made in North Korea, however it’s easier said than done. We are lucky that they have not yet confiscated what we already have.”

To a passing North Korean trade director, ‘K’ asks whether or not a lot of goods were loaded onto containers today. The director replied “There are so many goods that the warehouse is overflowing” and added a snarl remark that “The workers (Chinese staff) are inefficient with their hands” and returned to his truck.

The director had an imposing built body rare for North Koreans. ‘K’ said that although the people of North Korea may be living a hard life, the North Korean people trading here live a relative abundant life. With the image of an imposing director in my mind, I left the warehouse.

Posted in China, International trade | Comments Closed

Kaesong products covered under ASEAN agreement

Thursday, August 24th, 2006

From the Joong Ang:

Asean agrees to accept Kaesong goods in FTA
8/25/2006

Members of the Association of South East Asian Nations agreed to accept South Korea’s request to recognize some products from a North Korean industrial park as South Korean as part of plans for a free trade pact, officials here said yesterday.

Under the agreement, reached yesterday at a meeting of finance officials in Kuala Lumpur, nine out of the 10 Asean member nations will give preferential tariffs on 100 items made in the inter-Korean business complex in the North Korean border city of Kaesong, the Ministry of Foreign Affairs and Trade said in a statement. In May, South Korea and Asean agreed on the liberalization of trade between the two sides by 2010.

“We feel this is an important step in integrating North Korea into the international community and I would like to express my gratitude to Asean,” AFP quoted South Korean Trade Minister Kim Hyun-chong as saying at a press conference in Kuala Lumpur yesterday.

The agreement allows Asean countries to choose 100 Kaesong-made goods each for preferential tariff treatment, the Korean ministry said. Thailand, the Asean member country that stayed out of the agreement in May due to differences over the rice market opening, didn’t sign the agreement, the ministry said.

Still, to finalize the proposed free trade accord, South Korea and Asean have to have open talks on other deals regarding trade and investment.

South Korea is also engaging in talks for a proposed free trade accord with the United States, and the issue of Kaesong has been a key stumbling block.

Seoul demands Washington recognize the Kaesong-made goods as originating from South Korea, as part of its efforts to boost inter-Korean trade and bring a market economy to the communist neighbor.

Washington’s trade officials have been cool about the idea, saying the agreement should only cover goods from South Korea and the United States.

Posted in ASEAN, International trade, Kaesong Industrial Complex (KIC) | Comments Closed

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