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DPRK luxury good import data

Saturday, January 7th, 2012

Picture above via Wall Street Journal. Click image for larger version.

Quoting from the article:

An examination of U.N. and Chinese trade data reveals that exports to North Korea of products including cars, tobacco, laptops, cellphones and domestic electrical appliances all increased significantly over the past five years. Most items crossed the border from China.

The data reveal glaring loopholes in the sanctions regime, demonstrating how China has stepped in as North Korea’s main supplier of goods considered luxuries as other countries have clamped down on such exports.

But the figures also hint at the emergence of a new entrepreneurial class in North Korea rich enough to buy imported goods. Some analysts say this group could represent the strongest impetus for economic reform, and potentially undermine the totalitarian grip of the Kim family dynasty.

Since 2007, North Korea’s imports of cars, laptops and air conditioners have each more than quadrupled, while imports of cellphones have risen by more than 4,200%, with the vast majority of items coming from China, according to the U.N. data. Chinese customs data show those trends continuing in 2011.

…

“The sanctions don’t work because as long as China allows the export of luxury goods, the North Korea elite will be paid with them to support the regime,” said Jiyoung Song, an associate fellow at London-based think tank Chatham House, who has studied North Korea since 1999.

At the same time, she added, “Things like DVDs and mobile devices will help to change North Korean society in a gradual manner by teaching them about the outside world, and showing them these things don’t just come through the benevolence of their leaders.” She said last year she interviewed a North Korean defector—the daughter of a trade official—who claimed she had been given an iPad and two laptops by the “Dear Leader,” as Kim Jong Il was known.

The growing demand for Chinese consumer goods is no longer confined to the political elite, according to Andrei Lankov, a leading expert on North Korea at Kookmin University in Seoul.

He estimated that the political elite consists of a few thousand key decision-makers and about a million people with midlevel or senior positions in the bureaucracy. Most of the rest of the population of 24 million receive an official monthly salary of $2 to $3 which they can top up to about $15 by selling things in private markets, he said.

More recently, though, a new entrepreneurial class of up to 1% of the population, or about 240,000 people, has emerged that is earning at least a few hundred dollars a month, said Prof. Lankov.

“This growing demand for luxury goods is being driven by the new bourgeoisie,” he said. He said he had met a defector who as early as 2008 claimed to have been earning $1,000 a month by importing tobacco from China and selling it in North Korea in fake packaging.

It is impossible to verify who precisely is driving the demand for Chinese consumer goods. North Korea does not publicize any kind of trade data, let alone allow independent market research. But other countries do report their exports to North Korea, and figures through the end of 2010 are compiled in the United Nations Commodity Trade Statistics Database, or UN Comtrade. China’s customs authorities provide data for its exports to North Korea through last November.

Among the exports of liquor to North Korea from Hong Kong in 2010 were 839 bottles of unidentified spirits, worth an average of $159 each, and 17 bottles of “spirits obtained by distilling grape wine or grape marc” worth $145 each, according to the U.N. figures.

In 2010, North Korea also imported 14 color video screens from the Netherlands—worth an average $8,147 each—and about 50,000 bottles of wine from Chile, France, South Africa and other countries, as well as 3,559 sets of videogames from China, the U.N. data show.

Some of this might have been to cater to the small number of tourists, diplomats and foreign businesspeople in the country. Many items, however, were clearly destined for North Koreans. Cars, for example, are one of the highest status symbols, and are often given as gifts by the state to loyal senior officials.

In 2010 alone, North Korea imported 3,191 cars, the vast majority from China—although one, valued at $59,976, placing it in the luxury category. came from Germany.

One of the most striking figures is a dramatic increase in imports of mobile telephones—ownership of which was once considered a crime. In 2010 alone, the country imported 433,183 mobile phones, almost all from China, and with an average value of $81 each. Egyptian telecoms company Orascom, which launched North Korea’s first and only mobile network in 2008, said that its North Korean network had 809,000 subscribers at the end of the third quarter of 2011.

Read the full story here:
Luxuries Flow Into North Korea
Wall Street Journal
Jeremy Page
2012-1-7

Posted in Alcohol, Cell phones, China, Communications, International trade, Statistics, Tobacco, Trade Statistics | Comments Closed

On the DPRK’s crab exports

Friday, December 23rd, 2011

The Financial Times indirectly brings up the impact of a basic economic lesson, the tragedy of the commons, in a recent story on the DPRK’s fisheries. According to the article:

Supply disruptions are a fact of life in doing business with North Korea. “They are always stopping work for different reasons, for the anniversaries of leaders’ birthdays or whatever,” said Sha Zhibiao, manager of a fish shop in Yanji, the biggest Chinese city near the north-eastern tip of North Korea.

The main transit point for the crabs is Hunchun, a bustling Chinese border town that is a few hours from the North Korean port of Rajin.

While the North Koreans queue for meagre state hand-outs of grain, the Chinese traders in Rajin eat at Chinese-run restaurants or cook for themselves with supplies they bring in.

Doing business with North Koreans is fraught with uncertainty, according to Lu Zhentie, Mr Gao’s partner. “We agree on a price and then at the last second if they find someone who will pay more they cancel the entire deal. We cannot trust them.”

Mr Lu said the North Korean fishermen operate individually – a sliver of private-sector enterprise in the state-run economy – and their crabs are sold in a grey market that local officials allow to exist. “We give them sometimes Rmb10,000 ($1,580) for a catch. Some have become rich, but I have no idea what they do with their money. Even those who are rich still wear clothes like this,” Mr Lu said, pointing at a tear in his trousers.

All three said that Chinese demand for North Korean crabs had boomed in recent years – and that the North Koreans were flirting with trouble in trying to satisfy it. Mr Lu pointed to small crabs in his tanks, saying that the North Koreans should have thrown these back into the sea to sustain their fishery. “If they keep taking all these out, I don’t know how much longer their resource will last,” Mr Lu said.

Although the bulk of the article deals with challenges to the DPRK business environment that result from a poor institutional environment (unannounced policy changes and unenforceable contracts) towards the end of the article another important idea is indirectly introduced: The tragedy of the commons. The tragedy of the commons occurs when multiple individuals, acting independently and rationally, will ultimately deplete a common-pool resource, even when everyone knows that it is not in anyone’s long-term interest for this to happen.

In the past, over-fishing was probably not a problem in the DPRK as all activity was coordinated through the Ministry of Fisheries. If anything, incentives in the socialist economic system probably resulted in fishing at levels below the sustainability threshold. Today, however, de-facto independent fishermen are able (and encouraged) to over-fish the DPRK’s waters so they can export their catch to earn hard currency. Over-fishing is probably not an outcome that anybody wants, however, in the absence of a credibly enforced fishing quota or private property rights in fisheries, rational individual fishermen (who are competing with each other) will be financially rewarded for catching more and increasingly smaller fish and crabs, because if they do not, the next guy (a competitor) will.

Read the full story here:
Crabs offer lifeline for North’s economy
Financial Times
2011-12-23

Posted in Agriculture, China, Food, International Governments, International trade | Comments Closed

Rason update

Thursday, December 22nd, 2011

Andray Abrahamin and John Kim worte a comprehensive summary of the current state of Rason. The article appears in The Diplomat:

In 1991, the North Korean government dubbed Rajin-Sonbong (Rason) a free trade zone to attract foreign capital. However, less than a decade later, the zone lost its free trade status. According to local businessmen, the party secretary of Rason, a relative of the late Kim Jong-il himself, was charged with corruption and eventually executed, a harbinger for the long period of isolation ahead. Since the end of 2009, signs of renewed commitment to Rason have sprouted. While it may be too early to say whether the region will succeed in drawing investment and reform, our recent trips to Rason lead us to believe that developments on the ground may eventually warrant a shift in foreign policy by governments around the globe.

China has long eyed Rason as a potential import/export center for the landlocked provinces of Jilin and Heilongjiang. However, from Rason’s inception, the Middle Kingdom held little influence or interest in the region’s success. In 2002, North Korea establishedanother special economic zone in Shinuiju and instated businessman Yang Bin, then China’s second richest man, as the SEZ’s Chief Executive. The Chinese authorities promptly placed Yang Bin under house arrest. Perhaps as a lesson learned from this episode, the North Koreans have made the Chinese government a major stakeholder in Rason’s development.

The Chinese have moved 80,000 metric tons of coal this year through a pier they leased at the Rajin port.They are also reportedly sending regular delegations of senior officials, including the Chairman of the China Development Bank, and they have invested $30 million to repave the road from the border town of Wonjong to the Rajin Port. This road was 60 percent paved during a visit in October, and recent reports from businessmen inside the region confirm that the road is now 95 percent paved, allowing for large trucks to pass through. The Chinese have also constructed a new road on their side of the border, part of the support this area has received after the Chinese central government designated it “The Changjitu Development Region” in November of 2009.Officials from the North explained that the Chinese will have a say in everything from zoning of real estate to port customs and investment policies.

Though Russia’s involvement doesn’t run as deep, it also maintains a keen interest in Rason’s ice-free port and has pledged an investment of $200 million to refurbish a railway from the border town of Khasan and to upgrade pier three at the Rajin port, which it has leased for 49 years. Rason’s third port at Oongsang was once a major exporter of lumber from the Soviet Union, and though Oongsang looks far from reviving the Soviet involvement of its heyday, Russia clearly has an interest in Rason’s success as well.

In addition to neighboring countries’ newfound interest in the zone’s success, the North Korean leadership has also shown a renewed desire in luring investment into the region. In December 2009, Kim Jong-il made a visit to the area, sent his former trade minister to run the region as party secretary, and reinstated Rason’s status as a special city, wresting it out of provincial control. Any potential investor who visits the SEZ would experience the thirst of the local government to develop the region, as reflected by the words of an official with the Rason Economic Cooperation Bureau, Rhee Sung Hye: “The future of my career depends on how much investment I can bring.”

At the national level there are also signs that the regime is increasing its focus on economic development as a source of legitimacy. In 2009, the Joint Venture Investment Commission was formed as a one stop shop for foreign investors, while the Taepung Group and State Development Bank were created to attract foreign investment. In the first half of 2011, Kim Jong-il made more appearances related to the economy and less related to defense than in prior years, and a focus on improving lives through focus on light industry and agriculture was emphasized in joint editorials that signaled policy direction at the beginning of 2010 and 2011.

The alignment of simultaneous commitment from North Korea, China, and Russia sets the scene for a North Korean special economic zone with higher chances of success than perhaps ever before. However, interest and desire may not necessarily translate into results without knowledge of markets and how to create a stable investment environment. After a recent tour of his 200MW fuel oil powered generation facility, the President of Songbong Power, Rhee Kang Chul, expressed that the reason for his plant’s inactivity and the subsequent blackouts in the region was the rise in feedstock costs. When asked about mechanisms for electricity pricing, Rhee responded that the government had set power prices at 6.5 euro cents/kwh, but he couldn’t provide further details on how the number was arrived at and when it might change again. Though Rhee was clearly an expert on the technical aspects of power generation, he hadn’t had the chance to consider that potential investors, after getting comfortable with country risk, would have little clarity on the revenue side of their equation. When this was expressed to the Vice Mayor of Rason, he replied, “We can change the price of electricity here. Rason is not under the same restrictions as the rest of the country.”

North Korea could theoretically piggyback off the market knowledge that their Chinese partners have gained over the last 30 years, but Rason’s neighbors are only likely to share when it suits their interests. In the case of Sonbong Power, Kang told us that every Chinese official who has visited stated that the most effective solution would be to pipe in power from the Chinese grid. “We plan to have a power line installed from the border by the end of 2013.” As power is as strategic asset like food or water, dependence on Chinese power clearly leaves the North Koreans in a vulnerable position.

China is clearly North Korea’s closest ally, but their relationship has a thorny history and Pyongyang is acutely aware of its reliance on big brother Beijing. With China’s rise, many other countries in the region are increasingly dependent on trade but increasingly cautious of dependence, welcoming a stronger presence from the United States, which is in the midst of a strategic pivot towards Asia.

In December 2009, the Asia Society and the Institute on Global Conflict and Cooperation published a report arguing that economic engagement of Pyongyang by the United States would result in creation of vested interests in continued reform, a changed perception of self-interest and a less confrontational foreign policy from North Korea. Against the backdrop of a more uncertain domestic environment after the death of Kim Jong-il, and the shifting dynamics in Asia generally, a North Korea that trades more and engages with the outside world may necessitate a change in foreign policy of governments around the world, most specifically the United States, South Korea, and Japan.

The Rajin-Sonbong SEZ has a checkered past and it would be naïve to say that North Korea is embarking on late 1970’s style Chinese economic reforms. However, we believe that the unprecedented alignment of interests in the region make it a likely starting point for any lasting directional change, which is why the world should watch Rason.

Read the full story here:
Why World Should Watch Rason
The Diplomat
John Kim & Andray Abrahamian
2011-12-22

Posted in Automobiles, China, Coal, Energy, International trade, Railways, Rason Economic and Trade Zone (Rajin-Sonbong), Rason International Trade Fair, Sea shipping, Special Economic Zones (Established before 2013), Transportation | Comments Closed

US – DPRK trade (aid) reaches $2.45m in 2011-10

Saturday, December 10th, 2011

According to Yonhap:

Trade between the United States and North Korea reached US$2.45 million in October, a U.S. report showed Saturday.

The bilateral trade volume was comprised completely of aid goods offered by the U.S. to the communist state, the Voice of America (VOA) reported citing data compiled by the U.S. Department of Commerce.

The VOA said the Department of Commerce did not give specifics on what kinds of goods were shipped to North Korea, but the goods traded are considered humanitarian aid products as the two countries are not engaged in commercial trade.

In the first 10 months of the year, the bilateral trade reached $6.24 million, compared with $1.90 million a year earlier, the report said.

Here is a list of DPRK/US engagement stories in 2011.

Read the full story here:
U.S.-N. Korea trade reaches US$2.45 mln in Oct.
Yonhap
2011-12-10

Posted in Foreign aid statistics, International trade, Statistics, Trade Statistics, USA | 1 Comment »

Syrian missile factory built with DPRK cooperation

Tuesday, November 29th, 2011

The German newspaper Die Welt published a story which claims North Korea supplied Syria with a maraging steel and technical support which it has used to upgrade an underground missile factory that produces M-600 missiles.

Maraging steel is on the the Nuclear Suppliers Group (NSG) and the Missile Technology Control Regime (MTCR) monitoring lists, and its export is prohibited to sanctioned countries. North Korea is also prohibited from such activities under UNSC resolutions 1718 and 1874.

The Syrian missile factory, as identified in Haaretz, can be seen on Google Earth at 35.006089°, 36.827331°, Google Maps, and Wikimapia, but below I have posted a couple of screen shots:

Above (left) is an overhead shot of the underground facility. Above (right) is a closeup of the facility entrance. Assuming the floor plan of the factory is a simple square, it could be 1,000m x 1,000m in area–and that is just one floor! The oldest Google Earth imagery of the facility is from 2003-7-12.

Additional information:
1. Joshua Pollack recently published a paper on the demand for conventional North Korean military output. If you have not read it, you should. Click here for a link to the paper.

2. The International Institute for Strategic Studies (IISS) published North Korean Security Challenges: A Net Assessment. It presents a thorough analysis of the range of threats emanating from the DPRK. In addition to an assessment of military hardware and posture, the 216-page book looks at state criminality and behaviour relating to human security.

3. Joeseph Bermudez wrote about a North Korean missile factory here.

4. Previous posts on the DPRK and Syria are here, including nuclear proliferation.

Read the full stories below:
Syrien rüstet Raketen mit Nordkoreas Hilfe auf
Die Welt
2011-11-24

North Korea supplying Syria, Iran with prohibited nuclear technology, report says
Haaretz
Yossi Melman
2011-11-28

Posted in Arms shipment, Illicit activities, International trade, Syria | Comments Closed

Anthracite export to China suspended temporarily

Monday, November 28th, 2011

Institute for Far Eastern Studies (IFES)
2011-11-23

North Korea has reportedly stopped coal export temporarily to manage fuel shortage during the winter season.

According to Chinese traders from Shenyang, their North Korean trade counterparts informed them that they recently received official orders from the government to stop exporting coal. Except for those orders previously received, coal from North Korea will not be leaving the country for the time being.

The export volume of coal has continuously increased this year, consequently causing a domestic shortfall in the supply of coal. In fear of power and fuel shortages for the winter season, North Korea is believed to be taking precautionary measures to preserve energy supply, especially with hydroelectric power generators not in operation.

From this year, North Korea has drastically increased coal export to China. From January to July, China has imported about 816,700 tons of North Korean anthracites, nine times more than the previous year. Anthracites made up 46.3 percent of the all the exports to China.

The amount of North Korean anthracites that entered China via Donggang Port (located in Dandong City, Liaoning Province) reached over 77.7 million USD. The city of Dandong is located across from Sinuiju. Separated by the Amnok River (Yalu River), it is the trade hub between China and the DPRK, with over 70 percent of total bilateral trade taking place in the city, as anthracite coal as the main object of trade.

With the international price of coal on the rise and operation of hydroelectric power plants in decline, dependence on thermoelectricity is growing, which explains the recent climb in China’s anthracite import.

Toughened international sanctions and halted trade with South Korea has made North Korea turn to natural resource trading with China to bring in hard currency.

In August 2009, North Korea halted coal exports when it was faced with extreme power shortage. However, coal trade was resumed the following April.

Massive amounts of coal were exported to China to earn foreign currency, but this has created serious energy shortage affecting the operations of factories and other industrial facilities.

During the field guidance visit to the February 8 Vinalon Complex, Kim Jong Il emphasized that “Raw materials must be adequately supplied to normalize the production of factories.”

However, most North Korean traders agreed that such suspension would not be prolonged for a lengthy period, since North Korea, who is heavily dependent on mined resource exports including coal and steel, cannot afford to enforce a trade embargo for long. Many expect the trade to resume by next spring.

Posted in China, Coal, Energy, International trade, Mining/Minerals, Statistics, Trade Statistics | 2 Comments »

Dutch stamp dealer accused of being a spy in North Korea

Sunday, November 27th, 2011

By Michael Rank

A Dutch stamp dealer who was arrested in North Korea this summer has told how he was held in solitary confinement for two weeks and threatened with spending 15 years in prison for spying.

Willem Van der Bijl said in a telephone interview that he had visited North Korea about 24 times since 1998 in order to buy stamps, postal stationery and propaganda posters, and that three of his business contacts were arrested with him last August. Although he was freed after a highly unpleasant two weeks during which he was held in a two-by-three metre cell, he has no idea what has happened to his North Korean colleagues, but fears they will be severely punished.

He said he had been “intimidated” by his interrogators but not physically mistreated during his detention. “They yelled at me but did not hit me”, he said, adding that he was accused of being a spy apparently because of the large number of photographs he had taken of the North Korean countryside during trips to factories outside Pyongyang to discuss possible joint ventures.

He was released after signing a confession to his alleged crimes, and said the North Koreans confiscated his laptop and camera as well as a Kim Il Sung badge that had been given to him, but his money was returned to him. “I was happy to leave,” he said, adding that “There was nothing really wrong in what I did…All I did in North Korea was fairly correct”.

Van der Bijl, 60, photographed here with an interview in Dutch, said his North Korean colleagues were held in the same interrogation centre as he was and that he was deeply concerned that “They will have to face trial, and I will never see them again.”

Although mainly a stamp dealer with a stamp shop in Utrecht, he said he had become interested in collecting propaganda posters during his last few visits, and had a collection of thousands of posters.

He said North Korean officials seemed divided in their attitude as to whether such posters should be sold to foreigners. “The ‘doves’ say this art is popular in the west and should be sold; the ‘hawks’ do not want to export secret paintings, they are meant for the Korean people,” Van der Bijl said.

He said his hopes mounted every Tuesday and Saturday that he would be released as there are flights from Pyongyang to Beijing on those days, and as time progressed he became more worried that he would be sentenced to spending up to 15 years in jail for espionage. When he was freed he was told he could apply for a visa to visit North Korea again, but he told NKEW said he had no wish to do so as long as the current regime remains in power.

He said he had taken car journeys about 120 km outside Pyongyang nominally to visit companies to discuss joint ventures, but he was more interested in taking photographs of the impoverished countryside, and that North Korean factories were too dilapidated for there to be any serious chance of doing business with them.

Somewhat surprisingly, Van der Bijl is quoted on two official North Korean websites here and here before his arrest concerning local elections in North Korea in July. He visited a polling station during the elections and was quoted as saying, “Looking round the poll, I have been greatly impressed by the free and democratic elections and I have had a better understanding of the DPRK’s reality.

“In the DPRK every citizen is eligible to vote and to be elected. Those who have worked a lot for the people are elected as deputies. The popular election system of the DPRK is really excellent.”

He confirmed he had spoken to North Korean reporters at a Pyongyang polling station, but said all he had told them was that he had never seen elections run in such a way before, and strongly denied praising the elections as free and fair

Also surprisingly, Van der Bijl is shown wearing a Kim badge in two photographs of him on the Pyongyang Times websites. It’s rare for foreigners to be given a Kim badge and still rarer for them to be shown wearing one in the official North Korean media. Van der Bijl said he was unsure where the photos were taken. One of the websites shows Van der Bijl’s signature, copied from his passport.

Posted in Domestic publication, Foreign direct investment, International trade, Korea Today, Political economy | Comments Closed

DPRK makes discreet investor plea to French students

Thursday, November 24th, 2011

Pictured above (Google Earth): The University of Toulouse, France. See in Google Maps here.

According to AlertNet (Reuters):

Secretive and isolated North Korea is searching for economic allies in the unlikeliest of ways: showing videos of happy North Korean tourists to young French university students in a 13th century convent.

The reclusive communist state has no official diplomatic relations with France, one of only two European Union countries to cut ties with North Korea until it abandons its nuclear weapons programme and improves its human rights record.

But just weeks after Paris decided to open a cooperation office in the North Korean capital, its ambassador to Paris-based UNESCO accepted an invitation to address students from the University of Toulouse within the gothic surroundings of the Franciscan convent’s capitular chamber.

The meeting marked Ambassador Yun Yong Il’s first public appearance in France.

“They are the future,” said Yun, when asked by Reuters why he picked Toulouse to talk. “I’m here for the students who have been waiting to hear from a North Korean official for a year.”

Tensions have gradually eased on the Korean peninsula since the sinking of a South Korean warship 20 months ago and the North’s revelation of a uranium enrichment facility that opens a second route to make an atomic programme.

North Korea and the United States have also held a series of bilateral meetings geared at restarting broader regional de-nuclearisation talks, giving the North a window of opportunity to raise its diplomatic efforts around the world.

Yun, a former political director at the Foreign Ministry, faced about 100 students.

At times, the future political science graduates looked on bemused and surprised as the four-hour presentation cut from a hazy tourism video of the 1980s showing rolling mountains, happy North Koreans on holiday and copious seafood platters to a well structured monologue about the country’s woes and potential.

“Our country is open to everybody who wants to come. You just have to ask for a visa in Paris!” said Yun, who speaks fluent French, but opted to talk in his native language and let his deputy translate into English.

Pyongyang has slowly opened its doors under strict conditions to foreign tour groups, mostly Chinese as a way of earning hard currency.

Yun, who wears a lapel pin of President Kim Jong-il on his suit, said the country’s lack of hard currency as a result of tighter sanctions has made it turn to foreign investors on the “basis of mutual respect and interests”.

“We are looking forward to multilateral and multifaceted economic co-operation with other countries,” he said.

“We are definitely opposed to monopolistic investment of a single country,” said Yun, adding that the country’s natural resources provided opportunities for investors to tap.

CHINESE MODEL, CHINA TRAP

Michel-Louis Martin, director of Toulouse University’s security and globalisation research group said the event was not just propaganda.

“They are trying to go beyond what they usually have to say about North Korea. Don’t forget in France, North Korea is not very well known,” said Martin.

The country’s desire to diversify its economy has echoes of China when it began to allow foreign investment and gave permission for entrepreneurs to start up businesses in the 1970s.

Yun’s presentation attempted to steer clear of its frictions with the United States, South Korea and even its relationship with China, focusing instead on his country’s economic problems.

But by the end he stepped up the rhetoric, firmly laying the blame for Pyongyang’s “misfortune” on the United States.

Michel Dusclaud, a researcher at the University of Toulouse who convinced Yun to speak, said it was normal for ancestral hatreds to come out. Despite this, he said, it was clear the North was beginning to accept that if it did not diversify, it would be engulfed either by its souther neighbour or China, which still has territorial claims to it.

“They have to open up for international cooperation otherwise they will be eaten up by South Korea or China,” Dusclaud said. “It’s imperative, but it’s not because they like us.”

With his speech finished, Yun was quick to shuffle out of the Gothic chapel, declining to speak to Reuters, but also telling a student who attempted to pose a question on whether North Korea’s political system could last:

“I’ll see you in Paris and then we’ll talk.”

Read the full story here:
N.Korea makes discreet investor plea to French students
AlertNet (Reuters)
John Irish
2011-11-24

Posted in China, Economic reform, Education, Foreign direct investment, France, International trade, Mining/Minerals, Ministry of foreign Affairs | Comments Closed

DPRK-South Sudan diplomatic ties established

Friday, November 18th, 2011

Pyongyang, November 18 (KCNA) — The governments of the DPRK and South Sudan established diplomatic ties at an ambassadorial level.

A joint communique on the establishment of bilateral diplomatic relations was made public in Ethiopia on Nov. 16.

The communique was signed by Kim Hyok Chol and Arop Kuol Deng, ambassadors of the DPRK and South Sudan to Ethiopia, upon authorization of the governments of their countries.

The two countries agreed to open their diplomatic ties from the very day of their signature to the joint communique, on the basis of the principle of respect for sovereignty, equality, reciprocity and non-interference and in line with the April 18, 1961, Vienna Convention on Diplomatic Relations.

Since all North Korean embassies must self-finance their operations, it is not likely that they will open an embassy in South Sudan until there are sufficient business contracts to maintain the office overhead. In the meantime, many of their diplomatic and consular functions will probably be held out of the Ethiopian embassy.

What kind of business opportunities await the DPRK in South Sudan? South Sudan is the world’s newest oil-producing nation, so it is likely that the DPRK will try to pursue oil contracts there. As a new nation, South Sudan also has an interest in building up its military capabilities. The DPRK has long supplied military equipment to the African continent, so they will probably look for opportunities in this new nation as well.

To date, the DPRK maintains embassies in the following African countries: Benin, Burundi, Cape Verde, DR Congo, Côte d’Ivoire, Equatorial Guinea, Ethiopia, Ghana, Guinea, Guinea-Bissau, Libya, Madagascar, Mali, Niger, Nigeria, Rwanda, Somalia, South Africa, Tanzania, Uganda, and Zimbabwe.

Posted in Arms shipment, Illicit activities, International trade, Oil | Comments Closed

China – DPRK tourism and trade stats

Sunday, October 30th, 2011

Visits: According to the Daily NK, 116,400 North Koreans have visited China this year:

116,400 North Koreans visited China officially between January and September, 2011, according to new statistics released by the National Tourism Administration of China.

The statistics reveal that 55,000 of them visited to find work; 27,000 for a business trip; 3,000 were tourists; and 100 were visiting relatives. 24,000 did not record the purpose of their visit.

45,000 of them traveled by boat; 24,900 by airplane; 14,300 by train and 3,700 entered on foot.

The largest proportion was between the ages of 45 and 64 (52,000); 47,000 were between 24 and 44. 95,000 were men, and 14,900 were women.

According to the same statistics, the highest number of visitors to China in the same period came from South Korea (3.2 million trips), followed by Japan (2.6 million trips). Overall, North Korea ranks 11th out of the 15 countries in Asia.

Trade: According to the Associated Press:

China’s trade with its close ally North Korea nearly doubled in the first seven months of the year compared with the same period in 2010, state media reported Sunday.

The 87 percent increase to $3.1 billion was announced at the start of a visit to the North by Chinese Vice Premier Li Keqiang that reaffirms strong ties between the communist neighbors.

…

North Korea relies heavily on China for food and fuel aid and many consumer products. Chinese companies are the main investors in North Korean mining, and the sides recently signed agreements on road building and jointly developing an industrial park on an island near the Chinese city of Dandong.

“The economic and trade cooperation between the two countries has shown great potential, with bilateral trade and investment volume reaching new highs,” Xinhua said, citing the Chinese ambassador to Pyongyang, Liu Hongcai.

Bilateral trade between China and North Korea still is dwarfed by economic ties between China and South Korea. China is South Korea’s largest trade partner.

Trade between Beijing and Seoul rose more than 20 percent in the first eight months of the year to $159 billion and is expected to hit about $250 billion for all of 2011.

It should go without saying that officially reported merchandise trade between the PRC and DPRK understates the economic relationship between the two nations. What goes unreported is illicit border trade, aid, military assistance and other forms of financial support.

Read the full stories here:
China says trade with NKorea has nearly doubled
Associated Press
2011-10-22

Posted in China, International trade, Statistics, Tourism, Trade Statistics | 1 Comment »

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