Archive for the ‘Light Industry’ Category

North Korea’s 2020 parliamentary session and the budget: the main points

Tuesday, April 14th, 2020

By: Benjamin Katzeff Silberstein

This past Sunday, the 12th of April, the North Korean Supreme People’s Assembly met at Mansudae Assembly Hall, the grand, majestic room where the assembly sits. Out of the six items on the SPA’s agenda, at least three – half – dealt in some shape or form with the economy, and arguably, some others could also fit into that category:

The agenda items of the Third Session of the 14th SPA of the DPRK were decided at the session:

1. On adoption of the law of the DPRK on recycling resources

2. On adoption of the law of the DPRK on tele-education

3. On adoption of the law of the DPRK on providing living conditions for discharged officers

4. On the work of the Cabinet of the DPRK for Juche 108 (2019) and its tasks of Juche 109 (2020)

5. On implementation of the state budget for Juche 108 (2019) and the state budget for Juche 109 (2020).

6. Organizational matter.

(Source: “Third Session of 14th SPA of DPRK Held,” Korean Central News Agency, April 13, 2020.)

I include the Cabinet report given the strong emphasis over the past years of the cabinet’s leading role in economic management. A separate KCNA-report from the same day, “Report on Work of DPRK Cabinet for Juche 108 (2019) and Its Tasks for Juche 109 (2020),” summarized this report of the cabinet’s work. I paste it here with some annotating comments. Yes, the whole first paragraph below is one sentence:

According to the report on the work of the Cabinet delivered at the Third Session of the 14th Supreme People’s Assembly(SPA) of the Democratic People’s Republic of Korea (DPRK), last year the Cabinet organized a drive of putting the overall national economy on a new higher stage with a main emphasis put on accomplishing the sustained economic development, ensuring the local production of equipment, raw and other materials and revitalizing production by boosting the capability of independent development of the country, true to the important tasks set forth by Supreme Leader Kim Jong Un in his report at the Fourth Plenary Meeting of the Seventh Central Committee of the Workers’ Party of Korea and in his historic policy speech at the First Session of the 14th SPA.

None of these phrases (“local production of equipment” etc) are new or surprising, and the most notable fact is perhaps the absence of anything unusual in such an unusual time (coronavirus, sanctions).

The report said that last year all sectors and units of the national economy carried out the gross yearly industrial production value at 108 percent, and ministries, national institutions, the city and county people’s committees and industrial establishments over-fulfilled their national economic plan.

The electrical power industrial sector carried out the hydraulic power generation plan at 103 percent and made sure that production was increased by properly carrying on the repair and readjustment of generating equipment.

Now this is interesting – repairing and readjusting could either mean a claim that the industry is doing fine even without imports of Chinese machine parts and the like, because it can simply repair and readjust what’s already there. Or, it’s a claim that in fact, despite sanctions, the country’s industries are able to replenish whatever equipment it needs to stay afloat.

The thermal power plants provided a guarantee for stabilizing the electric power production without relying on heavy oil.

The coal industrial field respectively showed 23 percent and 22 percent increases in the coal production and the supply of coal for thermal power generation over last year, and the large-scale coal mines rich in deposits and with favorable mining conditions provided a foundation to increase coal production.

In the field of the metallurgical industry the Kim Chaek Iron and Steel Complex has shown 22 percent, 2 percent and 37 percent increases in the production of pig iron, steel and rolled steel over last year. The chemical industry achieved large growth in the production of chemical fertilizer, carbide and caustic soda.

Of course, any claims of over-fulfillment of quotas and the like should be taken with a grain of salt, as such claims are classical in North Korean propaganda regardless of their foundation in reality (the genre was born in the Soviet Union). Still, trying out a charitable reading, there are theoretical ways in which claims over over-fulfillment could technically be true, particularly in these sectors. We know nothing about the revenue of these products, for example, and mines and factories could churn out production in great magnitudes but with questionable value when the products can’t be exported or sold at a profit at all. Because coal prices have dropped so much under sanctions, industry could well be powered at a lower cost, but the value of this is, again, questionable.

[…]

On the agricultural front the peak-year level was exceeded in the grain production even under unfavorable weather conditions.

A repetition of the claim of a bumper harvest last year, which remains highly unlikely, as I argued here.

A fishing campaign for supplying more fish to the people was launched in the fishery sector, and the fishing was put on a higher scientific level with the help of the updated aid system for detecting fishing ground.

Again, the sector may certainly produce and supply more, but its incomes will still be lower than they would be without sanctions.

The field of the land and environment protection turned the important projects including the Wonsan Kalma coastal tourist area and the Yangdok Hot Spring Resort into thick woodland and greenery and face-lifted all roads including Pyongyang-Hyangsan and Pyongyang-Wonsan Motorways.

A hint that investment continued in the tourism industry, and that the state expects this industry to blossom in the future, despite the currently dire situation. By extension, perhaps also a suggestion of expected solid economic ties and exchange with China.

The report contains a great deal of interesting detail, but in the interest of time, I’ll skip ahead to the most central parts (my own emphasis):

The report emphasized that all the achievements made last year clearly proved once again that as long as there is the wise guidance provided by the Party, we can live on our own and open up the road of our own development and prosperity no matter how desperately the enemies may try.

The report also said that serious mistakes were found in the work of the Cabinet last year.

They taught a serious lesson that if the officials in charge of providing economic guidance fail to fulfill their duty, it would be impossible to successfully attain the goals of economic construction set forth by the Party, the report said.

It clarified that we face heavy yet responsible tasks to unconditionally and thoroughly carry out the economic construction tasks set forth at the 5th Plenary Meeting of the 7th Central Committee of the WPK under the uplifted slogan “Let’s Break through Head-on All Barriers to Our Advance!”

It went on:

The Cabinet will put a main emphasis on organizing the economic work on the principle of subordinating everything to the health and safety of the people, conducting courageous head-on breakthrough in the spirit of achieving prosperity by dint of self-reliance, and fully meeting the needs for the national economy and for the people’s living by readjusting the economic foundation of the country and by fully tapping the production potential, in order to thoroughly carry out the tasks set forth in the joint resolution of the WPK Central Committee, State Affairs Commission and the Cabinet.

The Cabinet will rationally readjust the economic work system and order and boost its role as the organizer of the state economy.

It will put efforts into holding full control of the resources and fund sources of the state, and securing financial ability and execution power capable of managing and operating the country’s economy in a unified manner.

There are some key phrases below as well, but these two paragraphs are especially noteworthy. The message seems fairly clear that the state’s role in the economy needs to get stronger, and that while independent management methods may certainly be encouraged, the state is in charge. This message is familiar from Kim Jong-un’s December CC Plenum speech.

It will establish a strict discipline for the state development and use of the underground natural resources that are of strategic significance in the state economic development, and also take strong measures to protect and multiply aquatic resources.

It will bring about innovation in the work system, order and method on the principle of ensuring smooth transaction in the overall trade, and thoroughly guarantee the economic benefits of the country through the application of strict discipline and order in the import and export.

Perhaps both a reference to easing some rules and regulations for trade, while also combatting the rampant trade deficit?

[…]

The coal industrial sector will fully meet the demand for coal from several fields of the national economy including electricity, metal and chemical industries.

Note the absence here of any reference to coal exports.

[..]

The light industrial field will expand the variety of daily necessities and boost their quality. It, regarding the local production of raw and other materials as the lifeline, will rely on the locally available raw and other materials as much as possible for the production of consumer goods, put efforts into the development of local industry and contribute to the improvement of people’s standard of living.

Making consumer goods production and supply more local, and less reliant on imports, has been one of the chief goals through Kim Jong-un’s tenure. Judging by, for example, this recent report about consumer choice in kitchen items, it seems to be going quite well.

The Cabinet, corresponding to its position and duty as the economic command, will ensure the definite provision of unified operation and command for implementing the economic policies of the Party, and guarantee the meticulous economic organization and persevering practices and thus fulfill its responsibility and duty in glorifying this year marking the 75th founding anniversary of the Party as a year of victory to be specially recorded in the history of the country, the report stressed.

The report ends with one final emphasis on the Cabinet, and thus, the state, and not grassroots, independent actors, as the main holders of power in the economic realm. “The economic command” is about as clear of an expression as you could imagine. This doesn’t necessarily mean that the state will try to curb the market system anytime soon, but it will continue to subvert market forces into its own institutions where they can be more easily controlled and generate cash to the state.

The above is just a brief overview and quick read of the budget report. For more on the proportions and overall economic conditions that the report speaks of, check out Ruediger Frank’s recent 38 North article on the SPA session as a whole.

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North Korea announces “Naenara” brand vehicles

Monday, January 15th, 2018

UPDATE 1 (2018-1-15): Martin Weiser notified me that the Korean version of the article includes the company information (Note to readers: When doing research using the North Korean media, look for the original Korean article!).

The company that produces the Naenara vehicles is the Chongpung JVC (AKA 청풍합영회사/Chongphung)–and it looks like they have been around for a while. You can download a video of the 13th Pyongyang Spring Trade Fair (held in 2012) here, and in the video you can see Chongphung JVC participating.

You can download a video on Chongpung as well that shows a variety of vehicles and foodstuffs they produce. Martin Weiser also posted a picture of their vehicles on Twitter:

ORIGINAL POST: The North Korean news portal “Naenara” announced “Naenara” brand vehicles over the weekend.


The news portal does not reveal much information on the vehicles:

Naenara-brand Rolling Stock

Types: Cars, small- and medium-size buses and small trucks

Technical specifications:

− Fuel consumption: 42 – 50g/km (for cars and buses), 58g/km (for trucks)

− Maximum speed: 120 – 180km/h

− Maximum output: 55 – 80kW

The Naenara-brand rolling stock consumes low fuel, and has air-conditioner, servosteering function and motor-windows.

They are equipped with such control systems as motor-driven exterior rear view mirroring, start-stop, and backward alarm systems.

I did a quick check to see if these vehicles may simply be re-branded Pyeonghwa Motors vehicles,  but I could not find any matches.

I have not seen any new vehicle factories appear in the North Korean media, so I assume an existing vehicle factory has launched a new product line. It is possible that a military vehicle factory has launched a new product for the civilian economy.

Very little data as of now, however, so we will have to wait and see. If any tourists or visitors spot these cars, please take a picture of them (the marketing pics are all computer generated).

Fuel availability, especially for the civilian economy, has been a topic of interest by outside observers in the last year as UNSC resolutions have sought to restrict imports from abroad.

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Kim Jong-un’s 2018 new year address

Monday, January 1st, 2018

Below I have posted the economic section of Kim Jong-un’s 2018 new year speech in English and Korean:

Comrades,

동지들!

This year we will mark the 70th anniversary of the founding of the glorious Democratic People’s Republic of Korea. To mark the 70th anniversary of their state with splendour is of real significance for the great people, who have raised with dignity the status of their socialist country, the greatest patriotic legacy of the great Comrades Kim Il Sung and Kim Jong Il, to that of a strategic state recognized by the world. [Translation note: In the Korean version below, Kim Il-sung and Kim Jong-il are not mentioned by name, only by title]

올해에 우리는 영광스러운 조선민주주의인민공화국창건 일흔돐을 맞이하게 됩니다.위대한 수령님과 위대한 장군님의 최대의 애국유산인 사회주의 우리 국가를 세계가 공인하는 전략국가의 지위에 당당히 올려세운 위대한 인민이 자기 국가의 창건 일흔돐을 성대히 기념하게 되는것은 참으로 의의깊은 일입니다.

We should make constant innovations and continued progress until we win the final victory of the revolution by carrying on the tradition of heroic struggle and collective innovation which adorned the founding and course of development of Juche Korea. A revolutionary general offensive should be launched to achieve fresh victory on all fronts of building a powerful socialist country by taking the historic victory in the building of the DPRK’s nuclear forces as a springboard for fresh progress.

우리는 주체조선의 건국과 발전행로에 빛나는 영웅적투쟁과 집단적혁신의 전통을 이어 혁명의 최후승리를 이룩할 때까지 계속혁신,계속전진해나가야 합니다.공화국핵무력건설에서 이룩한 력사적승리를 새로운 발전의 도약대로 삼고 사회주의강국건설의 모든 전선에서 새로운 승리를 쟁취하기 위한 혁명적인 총공세를 벌려나가야 합니다.

“Let us launch a revolutionary general offensive to achieve fresh victory on all fronts of building a powerful socialist country!” This is the revolutionary slogan we should uphold. All officials, Party members and other working people should launch an all-people general offensive to frustrate the challenges of the hostile forces who are making last-ditch efforts and raise the overall strength of our Republic to a new stage of development as they brought about a great upsurge in socialist construction overcoming all difficulties through the great Chollima upswing after the war.

《혁명적인 총공세로 사회주의강국건설의 모든 전선에서 새로운 승리를 쟁취하자!》 이것이 우리가 들고나가야 할 혁명적구호입니다.모든 일군들과 당원들과 근로자들은 전후 천리마대고조로 난국을 뚫고 사회주의건설에서 일대 앙양을 일으킨것처럼 전인민적인 총공세를 벌려 최후발악하는 적대세력들의 도전을 짓부시고 공화국의 전반적국력을 새로운 발전단계에 올려세워야 합니다.

A breakthrough should be made in reenergizing the overall economic front this year, the third year of implementing the five-year strategy for national economic development.

국가경제발전 5개년전략수행의 세번째 해인 올해에 경제전선전반에서 활성화의 돌파구를 열어제껴야 하겠습니다.

The central task facing socialist economic construction this year is to enhance the independence and Juche character of the national economy and improve the people’s standard of living as required by the revolutionary counter-strategy put forward by the Second Plenary Meeting of the Seventh Central Committee of the Party.

올해 사회주의경제건설에서 나서는 중심과업은 당중앙위원회 제7기 제2차전원회의가 제시한 혁명적대응전략의 요구대로 인민경제의 자립성과 주체성을 강화하고 인민생활을 개선향상시키는것입니다.

We should concentrate all efforts on consolidating the independence and Juche character of the national economy.

인민경제의 자립성과 주체성을 강화하는데 총력을 집중하여야 합니다.

The electric-power industry should maintain and reinforce the self-supporting power generation bases, and direct a great deal of efforts to developing new power sources. A dynamic campaign should be conducted to drastically increase thermal power generation, and lower the loss of electric power and increase its production as much as possible by maintaining and reinforcing imperfect generating facilitates. Provinces should build power generation bases to suit their local features and put power generation at the existing medium and small-sized power stations on a normal footing to satisfy the needs of electric power for local industry by themselves. Alternated production should be organized scrupulously throughout the country, and a vigorous struggle waged against the practices of wasting electric power to make effective use of generated electric power.

전력공업부문에서는 자립적동력기지들을 정비보강하고 새로운 동력자원개발에 큰 힘을 넣어야 합니다.화력에 의한 전력생산을 결정적으로 늘이며 불비한 발전설비들을 정비보강하여 전력손실을 줄이고 최대한 증산하기 위한 투쟁을 힘있게 벌려야 합니다.도들에서 자기 지방의 특성에 맞는 전력생산기지들을 일떠세우며 이미 건설된 중소형수력발전소들에서 전력생산을 정상화하여 지방공업부문의 전력을 자체로 보장하도록 하여야 합니다.전국가적인 교차생산조직을 짜고들며 전력랑비현상과의 투쟁을 힘있게 벌려 생산된 전력을 효과적으로 리용하기 위한 된바람을 일으키도록 하여야 합니다.

The metallurgical industry should further improve the Juche-oriented iron- and steel-making technologies, increase the iron production capacity and drastically raise the quality of metallic materials in order to satisfy the needs of the national economy for iron and steel. It is necessary to ensure a preferential, planned and timely supply of electricity, concentrated iron ore, anthracite, lignite, freight wagons, locomotives and funds for the metallurgical industry. By doing so, we can fulfil next year’s iron and steel production plans and make the industry Juche-oriented without fail.

금속공업부문에서는 주체적인 제철,제강기술을 더욱 완성하고 철생산능력을 확장하며 금속재료의 질을 결정적으로 높여 인민경제의 철강재수요를 충족시켜야 합니다.금속공업부문에 필요한 전력,철정광,무연탄,갈탄,화차와 기관차,자금을 다른 부문에 앞세워 계획대로 어김없이 보장하여 다음해 철강재생산목표를 무조건 수행하며 금속공업의 주체화를 기어이 완성하도록 하여야 하겠습니다.

The chemical industry should step up the establishment of the C1 chemical industry, push the projects for catalyst production base and phosphatic fertilizer factory as scheduled, and renovate and perfect the sodium carbonate production line whose starting material is glauberite.

화학공업부문에서 탄소하나화학공업창설을 다그치고 촉매생산기지와 린비료공장건설을 계획대로 추진하며 회망초를 출발원료로 하는 탄산소다생산공정을 개건완비하여야 합니다.

The machine-building industry should modernize the Kumsong Tractor Factory, Sungri Motor Complex and other factories to develop and produce world-level machinery in our style.

기계공업부문에서는 금성뜨락또르공장과 승리자동차련합기업소를 비롯한 기계공장들을 현대화하고 세계적수준의 기계제품들을 우리 식으로 개발생산하여야 합니다.

The coal and mineral production and rail transport sectors should make concerted efforts to make the country’s self-reliant economic foundations prove their effectiveness.

나라의 자립적경제토대가 은을 낼수 있게 석탄과 광물생산,철도수송에서 련대적혁신을 일으켜야 합니다.

Notably, the rail transport sector should make the best use of the existing transport capacity by making transport organization and control more scientific and rational, and maintain discipline and order in the railways as rigid as in the army, so as to ensure an accident-free, on-schedule rail traffic.

특히 철도운수부문에서 수송조직과 지휘를 과학화,합리화하여 현존수송능력을 최대한 효과있게 리용하며 철도에 군대와 같은 강한 규률과 질서를 세워 렬차의 무사고정시운행을 보장하도록 하여야 합니다.

A turn should be brought about this year in improving the people’s standard of living.

올해에 인민생활향상에서 전환을 가져와야 합니다.

Light-industry factories need to transform their equipment and production lines into labour- and electricity-saving ones and produce and supply more diversified and quality consumer goods with domestic raw and other materials, and provinces, cities and counties should develop the local economy in a characteristic way by relying on their own raw material resources.

경공업공장들의 설비와 생산공정을 로력절약형,전기절약형으로 개조하고 국내원료와 자재로 다양하고 질좋은 소비품들을 더 많이 생산공급하며 도,시,군들에서 자체의 원료원천에 의거하여 지방경제를 특색있게 발전시켜야 합니다.

The agricultural and fishing fronts should effect an upswing. We should introduce seeds of superior strains, high-yield farming methods and high-performance farm machines on an extensive scale, do farming scientifically and technologically so as to fulfil the cereals production plan without fail, and boost the production of livestock products, fruits, greenhouse vegetables and mushrooms. We should enhance our ship building and repair capacities, launch scientific fishing campaigns, and reenergize aquatic farming.

농업과 수산전선에서 앙양을 일으켜야 하겠습니다.우량종자와 다수확농법,능률적인 농기계들을 대대적으로 받아들이고 농사를 과학기술적으로 지어 알곡생산목표를 반드시 점령하며 축산물과 과일,온실남새와 버섯생산을 늘여야 합니다.배무이와 배수리능력을 높이고 과학적인 어로전을 전개하며 양어와 양식을 활성화하여야 하겠습니다.

This year the service personnel and people should join efforts to complete the construction of the Wonsan-Kalma coastal tourist area in the shortest period of time, push ahead with major construction projects including the renovation of Samjiyon County, the construction of the Tanchon Power Station and the second-stage waterway project of South Hwanghae Province, and channel steady efforts into the construction of houses.

올해에 군민이 힘을 합쳐 원산갈마해안관광지구건설을 최단기간내에 완공하고 삼지연군꾸리기와 단천발전소건설,황해남도물길 2단계 공사를 비롯한 중요대상건설을 다그치며 살림집건설에 계속 힘을 넣어야 합니다.

Building on the success we achieved in the forest restoration campaign, we should properly protect and manage the forests that have already been created, improve the technical conditions of roads, conduct river improvement on a regular basis, and protect environment in a scientific and responsible manner.

산림복구전투성과를 더욱 확대하면서 이미 조성된 산림에 대한 보호관리를 잘하는것과 함께 도로의 기술상태를 개선하고 강하천정리를 정상화하며 환경보호사업을 과학적으로,책임적으로 하여야 합니다.

Every sector and every unit of the national economy should enlist their own technical forces and economic potential to the maximum and launch a dynamic struggle to increase production and practise economy, so as to create a greater amount of material wealth.

인민경제 모든 부문과 단위들에서 자체의 기술력량과 경제적잠재력을 총동원하고 증산절약투쟁을 힘있게 벌려 더 많은 물질적재부를 창조하여야 합니다.

A shortcut to developing the self-sufficient economy is to give precedence to science and technology and make innovations in economic planning and guidance.

자립경제발전의 지름길은 과학기술을 앞세우고 경제작전과 지휘를 혁신하는데 있습니다.

The scientific research sector should solve on a preferential basis the scientific and technological problems arising in establishing Juche-oriented production lines of our own style, ensuring domestic production of raw and other materials and equipment, and perfecting the structure of the self-supporting economy. Every sector and every unit of the national economy should make a contribution to achieving production growth by intensifying the dissemination of science and technology and waging a brisk technological innovation drive.

과학연구부문에서는 우리 식의 주체적인 생산공정들을 확립하고 원료와 자재,설비를 국산화하며 자립적경제구조를 완비하는데서 제기되는 과학기술적문제들을 우선적으로 풀어나가야 합니다.인민경제 모든 부문과 단위들에서 과학기술보급사업을 강화하며 기술혁신운동을 활발히 벌려 생산장성에 이바지하여야 하겠습니다.

The Cabinet and other economic guidance organs should work out a realistic operational plan to carry out the national economic plan for this year and push forward the work for its implementation responsibly and persistently. Positive measures should be taken by the state to ensure that the socialist system of responsible business operation proves its worth in factories, enterprises and cooperative organizations.

내각을 비롯한 경제지도기관들은 올해 인민경제계획을 수행하기 위한 작전안을 현실성있게 세우며 그 집행을 위한 사업을 책임적으로 완강하게 내밀어야 합니다.국가적으로 사회주의기업책임관리제가 공장,기업소,협동단체들에서 실지 은을 낼수 있도록 적극적인 대책을 세워야 합니다.

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New Construction and Refurbishment of Factories Producing Consumer Necessities

Tuesday, November 8th, 2016

Institute for Far Eastern Studies (IFES)

Seemingly taking an interest in the welfare of the public, Kim Jong Un, Chairman of the State Affairs Commission, before his visit to a soap factory, has spent the previous month visiting a medical device factory, spring water bottling facility, a ‘sovereign’ factory, and the Ryugyong Dental Hospital. On October 29, Korean Central News Agency (KCNA) reported that Kim Jong Un also toured the newly constructed Mount Ryongak Soap Factory. Of late, newly constructed or refurbished factories producing consumer necessities have featured prominently in the North Korean media.

According to the KCNA report, Kim Jong Un said while on his inspection tour that “our people must be provided with abundant and happy lives without envy. . . . Continuing to put much energy into areas that help in the creation of the material and technical foundations of industry that contribute to improving the lives of the people, the people must fully benefit from such efforts.” The KCNA report also stated that Kim said “in a few months that felt like just a couple of days ago I was here looking at a construction site, and now a large, modern, impressive facility has been fully built.”

Last June, Kim Jong Un visited the Mount Ryongak Soap factory construction site, gave it its name, and directed that it should be completed by the anniversary of the Worker’s Party foundation (October 10th). In addition, he visited the Mount Ryongak Spring Water Bottling Facility in September and ordered for normalizing increased production standards, delivering spring water produced at the right time, and standardizing and varying the color and shape of glass bottles. It was at the direction of Kim Jong Il that the Mount Ryongak Spring Water Bottling Facility opened in 2007, to supply the people of Pyongyang with water from the mountain, while Kim Jong Un is credited with having it refurbished and modernized.

Kim Jong Un also gave on-the-spot guidance at the Mangyongdae Revolutionary History Sovereign Factory. While there he said “I like the fact that we are using our own raw materials and products to make zippers. The Party’s directive to domesticate production has achieved great results.” Completed in December 1979, the factory’s products were praised by Kim Jong Il at the August 1984 Pyongyang Light Industrial Products Exhibit. In addition, KCNA reported that Kim had instructed that the factory be refurbished and modernized.

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Seventieth anniversary of ‘The Pyongyang Essential Foodstuff Factory’, symbol of nationalized industry

Monday, August 22nd, 2016

Institute for Far Eastern Studies (IFES)

The Pyongyang Essential Foodstuff Factory, important symbol of North Korea’s nationalized industrial sector, celebrated the 70th anniversary of its foundation on August 10, 2016. It was the first factory to come under state management following the adoption of the Major Industries Nationalization Law on the same day.

The official Workers Party of Korea (WPK) daily, Rodong Sinmun, reported on August 11 that “a commemorative briefing session was held on 10th August on the 70th anniversary of the foundation of the Pyongyang Essential Foodstuff Factory. . . . Loyally following the will of the Party, the factory has strengthened and developed itself into a comprehensive and modern essential foods production facility with massive productive potential and a robust physical-technical basis.”

In commemoration of the anniversary, the Central Committee of the WKP sent a congratulatory message, while Pyongyang City Party Secretary Kim Su Gil, head of the factory Ri Gun Il, chief engineer Son Hyon Chol, and shop floor head Rim Jin Myong were in attendance.

The future trajectory of the factory was set out in the aforementioned nationalization law: “it has been observed that under Japanese imperialism, the Korean economy was subjugated, and factories, power plants, railways, etc. were constructed with the blood and sweat of the Korean people. All of these facilities must become the property of the Korean people.”

In accordance with this, all property of Japanese companies and individuals, and national traitors, including factories, mines, power plants, railways, communications, banks, retail enterprises, and cultural institutions, were confiscated and nationalized.

The Pyongyang Essential Foodstuff Factory was originally the ‘National Foods and Soy Sauce Corporation’, formed by a Japanese Zaibatsu in September 1933. Following its nationalization in 1946, it became known as the Korean Soy Sauce Factory in 1947, and became the Korean Pyongyang Soy Sauce Factory in 1955 as it became affiliated with the Ministry of Light Industry. In 1960, its name changed to the Pyongyang Soy Sauce Factory, then the Pyongyang Sauce Factory in 1963, and in 1973, it was again changed to the Pyongyang Chemical Seasoning Factory. It acquired its current name in the year 2000. [NKeconWatch: It is now known as “Pyongyang Condiments Factory”]

Located in the Songyo District of Pyongyang, it began in late 1945 by producing soy sauce and soy bean paste. In January 1961, on the orders of Kim Il Sung, it merged with Songsin Oil Factory. It was further remodeled in 1967, and began to produce synthetic seasoning. In April 1982, at around the 27th anniversary of Chongryon, a patriotic fermentation soy sauce works was constructed.

In the Kim Jong Il era, the factory became equipped with a disinfecting, unmanned oil refining process, and an essential nutrients production facility. When Kim Jong Un gave on-the-spot guidance in June 2013, he judged “the factory to be a rare court of workers, a delicious place for the Worker’s Party generation, overflowing with patriotism.”

Remodeled in 2013, it takes up a total area of 102,000 square meters, with a floor space of 63,900 square meters. It produces a range of products including soy bean paste, soy sauce, cooking oil, seasonings, salt and vitamin E-related products.

As a recipient of the title of a 2nd Grade Twenty-sixth Exemplary Unit Movement Factory, it was described as having “been as loyal to Party and Leader as white jade, and accomplishing the dying wishes of the General [Kim Jong Il] in an exemplary fashion. It has actively contributed to the development of the country’s food industry and improvement of the people’s diet with revolutionary struggle and clear industrial success.”

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North Korean economic production and the 70-Day Campaign

Wednesday, May 18th, 2016

UPDATE 1 (2016-5-18): By Benjamin Katzeff Silberstein

A couple of weeks ago, KCNA carried another evaluation of production during the 70-Day Campaign. In the context of claims that the newly launched five-year plan (2016-2020) is the first one in decades, it is worth noting that economic planning as such has never fully ceased to be part and parcel of the official North Korean economy. As communist economies do, North Korea still measures economic success much in terms of mere output. The 70-Day Campaign is one example:

The Korean Central News Agency Thursday released a report on the successful conclusion of the 70-day campaign with a great victory to be specially recorded in the history of the Korean nation under the guidance of Marshal Kim Jong Un.

According to the report, the capabilities for self-defence including the capacity of nuclear attack of Juche Korea have been remarkably bolstered and the campaign plan has been over-fulfilled 44 percent in terms of industrial output value, and industrial production has grown 1.6 times as against the same period last year.

Signal successes have been achieved in the development of Korean-style smaller nuclear warhead, simulated test of atmospheric re-entry of a ballistic missile, test of high-power solid-fuel rocket engine and stage separation, test of high-power engine of inter-continental ballistic missile.

Workers in the four vanguard fields have performed labor feats in the van of day-and-night campaign.

Those in the field of power industry honored their 70-day campaign quotas at 110 percent.

I am not one to draw major conclusions from the order of mentions of areas in reports such as this one, but if the order says anything about priorities, it is worth noting that energy shows up first among other areas than missiles and nukes. Recall that energy has been emphasized by media tied to the North Korean regime.

The Ministry of Coal Industry carried out its coal production plan more than 10 days ahead of schedule and results of capital tunneling and preparatory tunneling have jumped several times as against those in the past.

Those in the steel field and miners hit the goals of production of Juche iron, rolled steel and iron ore.

The field of railway transport carried out the plan for the transport of major freight at 124 percent.

What economic value more transportation carries is unclear…

More than 70 farm machines of over 20 types have been invented and manufactured, typically potato harvester, self-propelled sprayer, combined plowing machine, combined soil governing machine, small multi-purpose farm machine and combined rice thresher.

Those in the fishery field built multi-purpose fishing boats of “Hwanggumhae” series by their own efforts and with indigenous technology in a brief span of time and put them into operation.

The plan for the production of machine tools has been over-fulfilled more than 60 percent and index-specific campaign plans have also been carried out in the machine-building industrial field.

Workers in the Namhung Youth Chemical Complex and Hungnam Fertilizer Complex produced 1.2 times as much fertilizers as before and the February 8 Vinalon Complex significantly increased the production of vinalon and various kinds of other basic chemical goods.

The nationwide cement production plan has been carried out at 141 percent and a boost has also been recorded in the production of varieties of building materials including glass.

Workers of forestry stations and mine pillars production stations honored timber production plan set by the Ministry of Forestry at 137 percent.

Agricultural workers across the country have made full preparations for farming by their devoted efforts.

But note that no numbers are given for farming output, or any agricultural output other than fishing and seaweed.

Officials and workers in the fishery field have over-fulfilled their plan for fishing and seaweed culture more than 10 percent when the results of the Ministry of Fisheries are taken as a whole.

The gross industrial output value in the field of light industry has been over-fulfilled 54 percent and the index-specific performance has shown a marked jump over the period before the campaign.

A number of consumption goods producers have hit their goals for the first half of the year or the yearly ones. Some of them even set a record by fulfilling two-year production quotas.

Those in the field of land and environment protection and workers and other people across the country including youths and students planted hundreds of millions of trees in mountains covering more than 100 000 hectares.

The Paektusan Hero Youth Power Station No. 3 and the Wonsan Army-People Power Station have been successfully completed.

In just one month after breaking the ground for the construction of Ryomyong Street, its builders finished ground excavation for dozens of blocks of apartment houses and are now pushing forward the ground concrete tamping in its final stage.

Baby homes, orphanages, orphans’ primary and secondary schools sprang up across the country and the Mindulle Notebook Factory was built.

New structures have been built one after another. They include Dyke No. 2 of Nunggumdo Tideland, Outdoor Sapling Cultivation Ground of the Central Nursery of the Ministry of Land and Environment Protection and Pyongyang Athletic Apparatus Factory.

Scientists and educators across the country registered three times as many research achievements as against the same period last year to be conducive to the economic development of the country and the betterment of the people’s living standard.

Unprecedented achievements have also been made in the fields of literature, arts, education, public health and sports.

The 70-day campaign of loyalty clearly showed the world how the great Kim Jong Un‘s Korea is advancing toward the eminence of the century.

The full article was published by KCNA on May 6th.

ORIGINAL POST (2016-4-30):

“Industrial establishments over-fulfill production targets as the 70-day campaign comes to an end” (Pyongyang Times: 2016-4-30)

The Hwanghae Iron and Steel Complex, one of the model units in the current 70-day campaign of loyalty, hit its steel and pig iron production targets 101 percent respectively as of April 20.

Smelters of the UHP electric arc furnace have so far reset the peak production record of molten iron per charge several times. They gave full play to the spirit of collectivism of helping and leading one another forward, while introducing advanced working methods to shorten the time of heating and increase the output of molten iron per charge.

The workers of the continuous ingot steel workshop carried out their daily production plan at 102 percent on average, 110 percent at maximum.

Those of the Sunchon Cement Complex drastically raised cement production on the first day of the campaign to renew the daily peak production record for the first time in 20 years. Without resting on their laurels, they worked hard and finally achieved their campaign goals.

The Ministry of Coal Industry carried out its highly-set campaign target ahead of schedule as of April 20 with the coal production plan 101 percent and major, preliminary and boring tunnelling 101.5, 105.5 and 106. 6 percent respectively.

Coal-mining machine factories across the country manufactured and repaired thousands of coal wagons and made over 1 800 wheels more than planned under the uplifted self-development-first banner. A great deal of achievements were also made in the production of coal-mining equipment and their parts.

The Chongchongang Thermal Power Station increased power generation to exceed its campaign plan by 2.2 percent as of April 25. The workers of the station repaired equipment and increased the number of boilers in operation to ensure uninterrupted power generation.

The February 8 Vinalon Complex gave priority to the supply of raw materials and fuel, staggered production and organized management of equipment and technology scrupulously to boost production, thereby surpassing the vinalon production goal by 50 percent.
Workers of the Wonsan Salt Works increased production 2.2 times over the same period of last year by fully storing seawater in reservoirs while introducing an advanced seawater freezing method which suits the conditions on the east coast throughout the winter.

Thousands of hectares of farmland have been rezoned in Kaesong and Jangphung County, with over 19 300 patches and paddies and more than 1 260-kilometre-long ridges between paddy and dry fields removed and hundreds of hectares of land brought under cultivation. This paved the way for comprehensive mechanization of farming on all fields and consequent increased cereals production.

Officials and workers of the Sinuiju Textile Mill have produced three times more cotton yarn and fabrics than before the campaign. Amidst the dynamic collective emulation drive between workteams, shifts and workshops, many workers and workteams have carried out the first half year and annual production plans as well as campaign plans and the number is growing.

More than 200 factories and enterprises in Pyongyang have hit their 70-day campaign goals and first half year plans ahead of schedule.

“Nation’s Industrial Production Rises 1.2 Times” (Pyongyang Times: 2016-3-16)

Industrial output grows rapidly thanks to the heightened revolutionary enthusiasm and creative spirit of selfreliance and self development of service personnel and people, who have risen up in the day and night march true to the call of the Central Committee of the Workers’ Party of Korea for launching a 70day campaign of loyalty for the Seventh Party Congress, according to a report of the Korean Central News Agency on March 12.

The nation’s industrial production increased 1.2 times in the first ten days of March over the same period of last year.

The Pukchang and Pyongyang thermal power complexes and other thermal and hydropower stations across the country pressed on with power generation as scheduled, far exceeding the tenday targets set by the Party.

Coal mines in the western areas including Tokchon and Sunchon cut thousands of tons of coal more every day.

The Ministry of Coal Industry overfulfilled the tenday production plan by 13 per cent and the results of major and preliminary tunnelling far surpassed the plan, securing hundreds of reserve coalcutting faces.

The workers of the Hwanghae Iron and Steel Complex doubled the Juche iron output over the same period of last year, and all metallurgical bases conducted a dynamic drive to increase iron and steel production.

Amidst the heated emulation and experiencesharing in iron ore mines in Musan, Unnyul, Thaethan and other areas, the Jaeryong Mine increased daily production over 1.5 times on average, thus taking the lead in the supply of concentrated iron ores to metallurgical factories.

The Ministry of Railways, all the railway bureaus and their branches commanded railway transport scrupulously and gave top priority to concentrated transport without accident to overfulfil the plan for main freight.

The increased production in the vanguard economic sectors injected a new lease of life into the overall major industrial sectors such as machinebuilding, chemical, building materials and mining industries and forestry.

The Taean Heavy Machine Complex completed the production of generating equipment till March 9 in a matter of two months and sent them to the construction site of Paektusan Hero Youth Power Station No. 3 on March 10.

The workers of the large machinebuilding bases in Ragwon and Ryongsong and the Sungni Motor Complex speeded up the processing of products and increased the production of spare parts including various kinds of gears and speed reducers, a great contribution to a 1.5 times rise in the production of thermal power generating equipment of the Ministry of Machine Building Industry.

The workers of the Hungnam Fertilizer Complex hit the Juche fertilizer production target for the first ten days of March.

Cement production is also growing in the Sangwon Cement Complex whose workers and technicians have turned out to break the production record again this year after last year.

Many forestry and prop production stations carried out their first quarterly and yearly timber production quotas.

Farming preparations were brisk on the agricultural front, resulting in a 1.7 and 2.8 times growth in the securing of hukposan and microbial fertilizers and an over 1.3 times increase in the acreage of field carpeted with humus soil.

Officials and fishermen carried out the plans of the Ministry of Fisheries for ten days 121 per cent.

Daily amount of catch increased rapidly and fishing results saw a leap in the fishery stations on the east and west coasts.

Hundreds of workers hit their targets for the first quarter and half of the year in the field of textile industry. Kumkhop, Pomhyanggi and Maebongsan and other popular brands saw a sharp rise in sales.

Many major construction projects progressed apace including those for Paektusan Hero Youth Power Station No. 3, reconstruction of Kim Il Sung Stadium, secondstage reconstruction of the Central Zoo, capacity builup of the Central Tree Nursery of the Ministry of Land and Environment Protection, the central class education hall and Wonsan Army People Power Station.

Many young people volunteered to work in labour consuming fields and hundreds of workers carried out their yearly plans.

“KCNA Reports about Signal Successes in Various Fields in Early March” (KCNA: 2016-3-13)

The Korean Central News Agency Saturday said in a report that the industrial production in the first ten days of March when the 70-day campaign of loyalty is under way grew 1.2 times as compared with the corresponding period of last year.

According to the report, production in the vanguard and basic industrial fields of the national economy including electric power, coal, metal and railway transport sharply rose.

Thermal power plants and hydro-power stations across the country have over-fulfilled their daily quotas.

The production plan of the Ministry of Coal Industry for ten days in March was over-fulfilled 13 percent.

The workers of the Chollima Steel Complex boosted the production of rolled steel 32 percent.

A dynamic drive for increased iron and steel production is under way in metallurgical bases across the country including the Hwanghae Iron and Steel Complex.

The Jaeryong Mine increased daily quotas over 1.5 times on an average, thus taking the lead among the iron ore mines in Musan, Unryul, Thaethan and other areas.

The Ministry of Railways, all the railway bureaus and sub-bureaus over-fulfilled main freight haulage plan.

The increased production in the vanguard sectors of the national economy injected vitality into major industrial fields such as machine-building, chemical, building material and mining industries and forestry.

The custom-built equipment for different fields of the national economy were turned out and the production of nonferrous metal ore, chemical fertilizers, cement, sheet glass, timber, etc. radically increased.

The Taean Heavy Machine Complex completed the production of generating equipment in a matter of two months and sent them to the construction site of the Paektusan Hero Youth Power Station No. 3 on Mar. 10.

The Ministry of Machine Industry increased the production of thermal power generating equipment 1.5 times.

Mines under the Phosphate Fertilizer Industry Management Bureau honored its plan at 150 percent.

The workers of the Hungnam Fertilizer Complex hit the goal for the production of Juche fertilizers.

The workers and technicians of the Sangwon Cement Complex are working hard to surpass the peak production year again this year.

The Sunchon Cement Complex, the Chonnaeri Cement Factory and the Sunghori Cement Factory boosted the production over 10 percent.

Many forestry stations and pit prop production stations also honored their first quarterly and yearly timber production quotas.

The production of homemade fertilizers and their transport, tractor overhauling and maintenance and other farming preparations are nearing completion thanks to the devoted drive of agricultural workers across the country.

The fishery officials and workers over-fulfilled their production plan of the Ministry of Fisheries for ten days 21 percent.

The field of light industry over-fulfilled the production plans for textiles, knitwear and shoes.

In the field of textile industry hundreds of workers honored the half yearly and first quarterly quotas and famous products and goods favored by the people are on the increase.

Many major construction projects are making rapid progress.

A lot of young people volunteer to work in the hard and labor-consuming fields.

Across the country hundreds of workers honored their yearly plans, at least 3,600 people carried out the first half yearly plans and more than 15,400 people hit the first quarterly goal.

A lot of members of the women’s union are giving helping hands to builders in power stations, workers of coal and ore mines. War veterans, honorary party members and pensioners have turned out in the 70-day campaign in South Phyongan Province and other parts of the country to fully demonstrate the noble traits of our society advancing with the might of single-minded unity.

“Rapid Economic Growth Witnessed in DPRK” (KCNA: 2016-4-8)

The DPRK has made a rapid progress in major construction or reconstruction projects and industrial production in recent 40 days after the start of the 70-day campaign.

In particular, Pyongyang, its capital city, showed an increase of twice in the tempo of construction or reconstruction projects and 1.6 times in industrial production.

The Aeguk Vegetable Processing Factory and the Mangyongdae Children’s Camp were rebuilt on a modern basis and the second-stage renovation of the Central Zoo is progressing apace at the final stage.

Besides, 80 percent of total work has been carried out in scores of construction and reconstruction projects, including the Ryuwon Shoes Factory, Pyongyang Cosmetics Factory and the Pyongyang Cornstarch Factory.

Electricity and coal outputs went up at thermal-power and hydro-power stations and coal mines.

The Pyongyang Steel Works and the Pyongyang Cast Iron Pipe Factory fulfilled their production plans 120 percent on an average, 150 percent to the maximum.

An increasing number of units in light industry and foodstuff industry have finished their yearly and half-yearly production quotas.

Such successes are reported from railway, agricultural and other industrial sectors.

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North Korea considers nuclear test a driving force of economic development

Thursday, January 21st, 2016

Institute for Far Eastern Studies (IFES)

Following North Korea’s self-proclaimed hydrogen bomb test on January 6, 2016, which highlighted the fact that North Korea is a nuclear-armed state, daily mass rallies have been held in order to stimulate economic development and cement national unity. The Korean Worker’s Party (KWP) mouthpiece Rodong Sinmun proudly announced on January 8th that the fourth nuclear test had been a ‘success’. It has been reported that mass rallies were held in North Phyongan Province, Jagang Province, Kangwon Province, North Hamgyong Province, Ryanggang Province, Rason City, and other regions as part of the effort to continue building a strong and prosperous nation.

Each of these mass rallies included discussions on how to develop the economy so as to “achieve a golden age through the building of a strong and prosperous nation.” The purpose behind these daily mass rallies can be interpreted as both taking advantage of the opportunity provided by the nuclear test to strengthen solidarity of the people while also paving the way to maximize economic productivity ahead of the upcoming 7th Party Congress that is scheduled for May.

In fact, the North Korean media is asserting that the recent nuclear test was a measure to deter war in order to bring about a domestic economic revival. A front page editorial in the Rodong Sinmun encouraged the nation, saying “We will go full-speed ahead to raise North Korea’s human dignity, vigor, and glory, which are already well-known in the international community. With the success of our hydrogen bomb test as the main driving force, we will show off the mighty power of our nation, and we must aggressively take on the struggle of improving the lives of the people and building an economically strong nation.”

The Chosun Sinbo, which is the mouthpiece of Chongryon (the General Association of Korean Residents in Japan) serving as the representative for North Korea in Japan, emphasized that, “We must have a powerful deterrent to endless warfare in order to have a peaceful environment that will enable us to build up our economy. Focusing all of our efforts on building an economically powerful nation and creating a new paradigm shift in which to develop our economy and improve the lives of the people is the most important task of this year.”

Meanwhile, North Korea’s propaganda outlets are stating that food processing plants and other sectors are producing a flood of globally competitive products. North Korea’s propaganda website aimed at the outside world (Chosun Today) stated on January 7th that “Recently, many North Korean food processing plants have been modernizing their manufacturing processes to produce foodstuffs that meet global quality standards, actively contributing to the improvement of the living standards of the Korean people.”

The Sonhung Food Processing Plant was introduced as a model case example. According to North Korean media, the foods produced at this plant are all globally competitive goods, and the best products of the country. Although the plant has only been in operation for 10 years, the media claims that current annual net operating profits per employee are a staggering 350 times higher than those of their first year of operation, and the plant is known for this remarkable record-setting achievement.

These formidable efforts also encompass the development of approximately 90 health products with high nutritional value over the past four years, including healthy danmuk. The news outlets also boasted that nine North Korean factories have received ISO 22000 (food safety management system) certifications.

In addition, 60 products were registered as ‘February 2nd products’, and not long ago five food products, including fruit bread, coffee sweetener, and healthy danmuk, received ‘December 15th quality medals’.

Supreme Leader Kim Jong Un’s New Year’s Address emphasized “improving the lives of the people” and encouraged various factories to achieve success. The propagation of these successes through the North Korean media outlets demonstrates Kim Jong Un’s intentions of inspiring loyalty from the people through intensive efforts to increase the quality of their diets.

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North Korea’s self-assessment of its economy in 2015

Tuesday, December 29th, 2015

Institute for Far Eastern Studies (IFES)

The Choson Sinbo, a pro-North Korea newspaper of the General Association of Korean Residents in Japan, released an article on December 18 that evaluated North Korea in 2015 and commended it for “achieving a remarkable leap that reached 10 years achievement in just one year.”

The newspaper commented that many monumental works had been created in 2015 that changed the country. The newspaper also introduced the recently completed constructions of Mt. Paekdu Hero Youth Power Station, multi-tier power stations on the Chongchon River, Future Science Street, Mangyongdae School Children’s Palace, Pyongyang Nursing Home, Mansudae Fountain Park, and “Mujigae” ferry on the Taedong River.

In addition, the Sonbong region in Rason City which had suffered severe flood damages in August was reported to have achieved great changes in only 30 days, turning the village into a “socialist fairyland.”

The newspaper added that “this year, Choson [North Korea] embarked on the advancement of science and technology and emphasized ideology, weapons, and technology as three pillars for constructing great and powerful socialist nation.” It also stated that “in accordance with the party’s policy to turn all people into science and technology talents, institutions, factories, enterprises, and cooperative farms across the country were equipped with over 2,000 science and technology resource rooms.”

A corn processing plant and a catfish farm were discussed as examples: “Pyongyang corn processing plant has achieved automation, and dust and bacteria-free conditions in the entire production process, from raw material to the packaging stage”; “Pyongyang Catfish Farm established the comprehensive production system that integrated intellectualization, informatization, and magnetization in the factory.”

In particular, the newspaper mentioned North Korean leader Kim Jong Un’s onsite field guidance visit to the Pyongyang Catfish Farm where he emphasized the modernization of farm, noting that “the modernization of the catfish plant did not simply bring in power and technology from outside but is based on our independent technology and facilities.”

Moreover, the newspaper said, “This year, measures were devised to improve the dietary level of the people through focusing on advancing livestock, agricultural, and marine products.” It further announced that “Vegetable Science Institute of the Academy of Agricultural Science succeeded in cultivation methods of producing 300 tons per chongbo (1 chongbo = 9,917 square meters) through vigorous research that concentrated on scientification of greenhouse vegetable cultivation.”

In addition, the newspaper added that “scientification” was promoted in other sectors including education, sports, and culture.

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North Korean media continues promotion of domestic products

Friday, December 11th, 2015

Institute for Far Eastern Studies (IEFS)

North Korean media continues to promote the country’s domestic products and encourage North Koreans to buy them.

On November 29, 2015, much of North Korean media coverage was devoted to reporting on North Korea’s modern factories and encouraging North Koreans to purchase the products they produced.

Likewise, Korean Central Television (KCTV) aired a program on November 20, 2015 about the Mangyongdae Kyonghung Foodstuff Factory, describing it as “a place that produces an assortment of food products made by us and with our brand names.” The program went on to explain the factory’s products and latest facilities in detail for thirteen minutes.

North Korean media is not just promoting domestic food and daily commodities, but is actively promoting a variety of products, including heavy equipment like tractors.

On November 26, 2015, KCNA reported that the Kim Jong Tae Electric Locomotive Works has “achieved praiseworthy results producing and developing an ‘our-style’ subway train that meets the demands of the development era.”

The Rodong Sinmun is also participating in the promotion of domestic goods. It recently published an article entitled ‘Let’s Love Our Things and Honor Them’ in which it reported on North Korean-made goods such as tractors, cars, and bulldozers, and further warned that “If a country’s citizens rely on foreign powers and do not trust their own strength, eventually that country will fail.”

The article also praised a researcher who helped develop a type of ‘medicinal toothpaste’: “Through our strength and technology and with our raw materials, he developed an ‘our-style’ product.”

Furthermore, North Korea has claimed that all of the satellites the country has launched, including Kwangmyongsong-3 Unit 2 (carried by the long-range rocket ‘Unha-3’ and successfully launched into orbit in December 2012), were 100% composed of North Korean parts.

The Rodong Sinmun echoed this claim in an article on December 2, 2015: “There are many countries in the world that have their own satellites in space, but how many of those countries can honestly say that their satellites are 100% domestically-made?”

It added, “Mankind probably could not find an example of a successful satellite launch amidst such infernal sanctions, such harsh circumstances, such brutal and unfair challenges.”

In some sense, these reports can be interpreted as an attempt by the regime to stimulate the development of factory technology by increasing consumption of domestic products and to promote economic development by infusing energy into the industrial sector.

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North Korea heightens promotion of domestic light industry goods

Tuesday, December 8th, 2015

Institute for Far Eastern Studies (IFES)

North Korean media is actively promoting the superiority of its light industry products, likening Pyongyang’s department stores to product exhibition halls.

North Korea’s external propaganda site, DPRK Today, posted an article on November 26, 2015 entitled, ‘Come Visit the Pyongyang Department Store No. 1, which is Gaining Popularity for its Domestically-Produced Goods.’ According to the article, “The display stands are so full of domestic products that the department store looks like a light industry product exhibition.”

Opened in 1982 after reconstructing Pyongyang’s former Hwashin Department Store, Pyongyang Department Store No. 1 is located in Pyongyang’s Jung-guyok and is North Korea’s largest department store. With nine floors above ground and one below, it sells numerous domestic goods as well as goods produced in China and other countries. Its most popular items are female beauty products.

According to the article, North Korea’s domestic goods enjoy great popularity with the North Korean people. The Cosmos brand hairpin and Bomhyanggi and Unhasu high-end cosmetics brands (manufactured by the Pyongyang Cosmetics Factory and Sinuiju Cosmetics Factory) are reportedly well-received by women. Also said to be selling well are the Choltchuk socks produced by the Pyongyang Hosiery Factory, shoes manufactured by the Ryuwon Shoes Factory, and light-weight dishes made by Kyongsong Ceramic Factory. The article goes on to boast that people who purchase domestic brands like Rungna, Bombit Bread, Taedong River Bottled Beer, Pyongyang Soju, Raengchon Cider, and Kangso Mineral Water all say, “Our things are the best.”

Between January and February 2015, North Korean leader Kim Jong Un visited Pyongyang’s cosmetics and shoes factories, where he directly mentioned famous overseas brands and repeatedly called for the production of world-class products. In early November 2015 North Korean media released a flurry of reports boasting about the improvement in the quality of its cosmetics.

On another note, Kim Jong Un is also reportedly visiting military-affiliated fisheries and urging an increase in production. The Korean Central News Agency (KCNA) reported on November 25, 2015 that Kim gave field guidance to the No. 15 Fisheries Office, which is affiliated with the 549th Unit of the Korean People’s Army and is pushing forward a “massive fish harvest.”

To encourage the workers, Kim reportedly said, “I hope the laborers and warriors of the fishery offices do as the Party intends and welcome the 7th Congress of the Korean Workers’ Party by fixing and modernizing the offices magnificently and achieving more excellent fishing results. . . . The fishery offices must build on the results this year and set magnanimous goals in order to rapidly increase the yearly fish output in a short period of time.”

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