Archive for the ‘Manufacturing’ Category

Working through Korean unification blues

Thursday, November 15th, 2007

Asia Times
Andrei Lankov
11/15/2007

For six decades, the myth of unification as Korea’s supreme goal has been enshrined in the official mythology of both nations. The lip service to this myth is still paid by virtually all political forces in both Koreas, but the actual policy of both Pyongyang and Seoul nowadays is clearly based on a very different set of assumptions and hopes: both sides try to avoid situations which might lead to unification.

There are good reasons for this quiet change of policy. The gap between the Koreas is too great; depending on which calculations you believe the per capita gross domestic product in the South is between 15 and 40 times higher than that of the North. Perhaps, nowhere in the world one can find two neighboring countries whose income levels would be so vastly different – and in this case the two countries happen to speak the same language.

The North Korean rulers know perfectly well that in a unified country they would be unable to keep their privileges, and also are likely to be held responsible for decades of gross human-rights abuses and economic mismanagement. South Koreans are no more willing to unify with their impoverished brethren – unification of Germany where the initial situation was much better, became an ordeal, so the unification of Korea would clearly become a disaster.

Therefore, South Korean politicians are doing everything possible to support the dictatorship in Pyongyang, assuming that “stability” in the North is necessary for South Korean economic prosperity. Sufficient to say that some 40% of all grain consumed in North Korea is either received from the South or produced with the help of the mineral fertilizer shipped by Seoul free of charge.

This policy is usually explained as a way to “create the environment for Chinese-style reforms”. This indeed might be its long-term goal, but for all practical reasons the major immediate outcome of massive South Korean aid is a continuous survival of the Pyongyang dictatorship. The statement that a “German scenario is unacceptable” has become a mantra of Seoul politicians.

However, over the past decades, Kim Jong-il’s regime has not shown the slightest inclination to reform itself. Obviously, the Pyongyang elite believes that the Chinese model, so enthusiastically extolled by the good-wishers from Seoul, is not acceptable for them. Perhaps they are correct in their fears. The existence of a rich and free South, always presented as another part of the same nation, makes the situation in Korea quite different from that of China or Vietnam.

Chinese-style reforms, if undertaken by Pyongyang, are bound to produce a certain openness of the country and certain relaxation of political control. As a result, the North Korean populace will soon learn about South Korean prosperity and will be less afraid of the regime’s repressive machine. It’s questionable to what extent the North Koreans would be willing to obey a government whose track record has been so bad after they see an attractive alternative of the South.

Hence, North Korean leaders have made a rational decision: to keep stability and their own privileges, in recent years they have used foreign aid to roll back the changes which happened in the mid-1990s. Instead of reforms, they now do everything possible to limit or ban private economic activity and reassert their control over society.

Despite the government’s resistance to reform, the North Korean system is gradually crumbling from below, and this slow-motion disintegration might turn into an uncontrollable collapse in any moment. A sudden death of even a serious illness of Kim Jong-il is almost certain to trigger a serious crisis. If this happens, all bets are off, but it seems that a collapse of the system, Romanian or East German style, is one of the most likely outcomes.

This is what people in the South fear most. Indeed, unification might indeed spell economic and social disaster for the rich South. There are different estimates of the “unification costs”, the amount of money that would be necessary to close the yawning gap between the two Korean economies. The most recent estimate was made public last October. A report prepared by a committee at the South Korean National Assembly states that if unification happened in 2015, it would cost US$858 million to raise North Korean per capita income to half of the South Korean level. This is guesswork, of course, but everybody agrees that the amount of money necessary for reconstruction of the impoverished North could ultimately be counted in trillions of US dollars.

The “unification cost” is a hot topic, but many problems are of a social nature and have nothing to do with money issues. For decades, North Korea has remained one of the world’s most isolated regimes whose rulers once perfected Stalinism to the level undreamt of by Joseph Stalin himself. The population, with the exception of a tiny elite, has very vague and distorted ideas about the outside world.

North Korea is a well-educated society, but the technology and science they teach at the colleges is of 1950s vintage. The average North Korean engineer has never used a computer. Society has been conditioned to perceive the total distribution of goods and services as the norm, and experts seem to agree that the average North Korean defector in the South has serious problems when it comes to making consumer or career decisions for oneself (no such decisions are necessary or even possible under the North Korean system).

So, it is easy to see why South Koreans are so afraid of unification. However, history does not flow in accordance with human desires. If the North Korean state collapses, South Koreans will have few choices but to prepare themselves for unification at time and under circumstances which they would not be too happy about.

As the East European revolutions of 1989-1990 (or, for that matter, of nearly all popular revolutions) have demonstrated, once changes begin, nobody can control the pace and direction of events. Now it is time to think what should be done if an emergency happens and the North Korean regime follows the fate of nearly all regimes which once were its models and aspirations – Albania, Romania and the Soviet Union itself. When a crisis starts unrolling, it doesn’t leave much time for rational thinking.

Alas, any open media discussion of this subject remains taboo in the South. There are fears that such discussions might annoy the North, undermining inter-Korean detente. The Korean nationalist left, now (barely) in power, still believes that the Chinese solution is possible and “progressive”, and also perceives any talks about regime collapse in the North as a reminder of the official anti-communism of the past. The right is slightly more realistic, but it seems that its supporters are not too eager to discuss the difficulties such a turn of events could bring about.

It will be a simplification to think that South Koreans are completely unprepared for such an eventuality. Seoul government agencies do not like to talk about it, but it is clear that somewhere in government there are secret files with short-term contingency plans, to be put in motion in case of a power collapse in the North. However, these plans deal with immediate consequences of the crisis, especially with handling of refugees, and not with the long-term strategy of reconstruction, and this strategy is actually the hardest part of the task.

The major task is to smooth the transition, to make the shock of unification less painful and more manageable. It seems that one of the possible solutions is a confederation. The idea of confederation has been suggested many times before, but in most cases it was assumed that the two existing Korean regimes would somehow agree to join a confederative state. Needless to say, one has to be very naive to believe that the North Korean rulers could somehow co-exist with South Korea, which even in its worst times was a relatively mild dictatorship committed to a market economy (and become a liberal democracy two decades ago).

Such confederation is plainly impossible. However, in this case we mean a different type of state union, a provisional confederation, whose sole and clearly stated task would be to lay the foundations for a truly unified state and to cushion the more disastrous effects of North Korea’s transformation.

Such a confederation will become possible only when and if the North Korean regime changes dramatically, and a new leadership in Pyongyang will have no reasons to fear the influence of the democratic and capitalist South. In other words, only a post-Kim government can be realistically expected to agree to such a provisional confederation. It does not really matter how this government will come to power, whether through a popular revolution, a coup or something else. As long as this government (most unlikely, bowing to pressure from below) would be genuinely willing to unite with the South, it might become a partner at these negotiations and a participant of the confederation regime.

The confederation regime should make North Korea a democracy, one that introduces political freedoms and basic political rights. There should be an explicit statement about the length of the provisional confederation regime, and 10 to 15 years seems to be ideal. A longer period might alienate common North Koreans who will probably see it as an attempt to keep them from fully enjoying the South Korean lifestyle while using them as “cheap labor”. On the other hand, a shorter period might not be sufficient for any serious transformations.

One of the tasks of such a provisional system will be to control cross-border movement. South Koreans are now haunted by nightmarish pictures of millions of North Koreans flooding Seoul and other major cities, where they will push the South Korean poor from unskilled jobs or resort to robbery and theft. Such threats are real, and the confederation will make it relatively easy to maintain a visa system of some kind, with a clearly stated (and reasonable) schedule of gradual relaxation. For example, it might be stated that for the first five years all trips between the two parts of the new Korea will require a visa, and North Koreans will not be allowed to take jobs or long-time residency in the South. In the following five years these restrictions could be relaxed and then finally lifted.

South Korean fears of a North Korean crime wave might be well-founded – notoriously tough North Korean commandos indeed make ideal mafia enforcers. However, the North Koreans also should be protected from the less scrupulous of their new-found brethren – for example, from South Korean real estate speculators. In the case of uncontrolled unification, South Korean dealers will rush to buy valuable property in the North, a task which will not be too difficult in a country where $10 a month is seen as a good income.

South Korean dealers vividly remember what happened in Kangnam, former paddy fields which were turned into a posh neighborhood in southern Seoul. In some parts of Kangnam land prices increased more than a thousandsfold within a decade or so, making a lucky investor super-rich, and there are good reasons to believe that the price of land in Pyongyang or Kaesong could sky-rocket as well.

However, it is easy to predict the resentment of those North Koreans who will lose their dwellings for what would initially appear to be a fortune, but soon will come to be seen as small change. If real estate speculations are left uncontrolled, in a few years entire North Korean cities could become the property of South Korean dealers – with predictable consequences for relations between northerners and southerners. Hence, the provisional confederation regime, while encouraging other kinds of investment, should strictly control or even ban the purchase of arable land and housing in the North by South Koreans.

Another painful issue is that of land reform, distributing the land of state-run agricultural cooperatives among individual farmers. One of the major challenges would be claims of land owners who lost their property during the North Korean radical land reform of 1946. A majority of the dispossessed landlords fled to the South in 1945-1953 when some 1.5 million inhabitants of the North crossed the border between the two Koreas. Their descendants now live in the South and, as both anecdotal evidence and some research testify, carefully kept the old land titles. It is just a minor exaggeration to say that an arable plot in the North usually has an aspiring landlord residing in Seoul. These claims remain technically valid since the Republic of Korea has never recognized the North Korean land reform of 1946.

For generations, the North Koreans have been told by their government that the collapse of the communist regime will bring back the nasty landowners who have been laying in wait in the South. If in this particular case the propaganda statements are correct, this would produce a very serious negative impression on North Koreans, further increasing their alienation and disappointment.

Under protection of the confederation regime, a land property system could be redesigned, or rather created from scratch. The recognition of the 1946 land reform and its results is a necessary first step. To placate former owners, some partial compensation might be paid, even though the present author is not certain whether grandchildren of former landlords, usually rich and successful men and women, are really in dire need of such compensation.

As the next step, the cooperative property should be distributed among its members, preferably among the people who are really present in their villages (perhaps, a free rent system might be the first step). At any rate, by the end of the confederation period, land and real estate in North Korean should be safely privatized, with North Korean residents (and, perhaps, recent defectors) being major or even sole participants in this process.

One of the more controversial parts of the package might be a general amnesty for all crimes committed under the Kim family regime. This is especially necessary because the fear of persecution seems to be one of the reasons which keeps the North Korean elite, including its lower ranks, united around the inefficient and brutal regime. They believe that collapse of the Kims’ rule will mean not only the bend of their privileges (which actually are quite small – only a handful of top officials enjoy a really opulent lifestyle in North Korea), but they are more afraid of judicial persecution and even mob violence.

It is not incidental that North Korean officials and guides in Pyongyang ask one foreign visitor after another about the fate of former East German bureaucrats. Indeed, despite considerable liberalization in recent years, the regime remains exceptionally brutal, and its officials have no illusions about this. Unfortunately, this fear of persecution has kept the murderous regime going for the past decade or so and led to many more deaths.

One might argue that such unconditional amnesties to all Koreans is probably “unethical”. Perhaps, but let’s face it: the sheer scale of the crimes committed makes any serious and fair investigation impossible. About half million people have been in prison during those decades, and many more exiled, and nobody will be capable of investigating all these cases carefully and impartially. A great number of people have been directly or indirectly involved with the human-rights abuses, and again, it is impossible to investigate a few hundred thousand former officials who by the nature of their job might have been responsible for some criminal actions. Hence, only partial, selective symbolical (and therefore largely politically motivated) justice can be served at best.

A general amnesty would solve two problems: first, it will make former North Korean bureaucrats less willing to resist changes; second, it would diminish the scale of intrigue and manipulations, since people would not be fighting to avoid the fate of arbitrarily chosen scapegoats. It should become part of the law, and to be taken seriously the amnesty should be made as straightforward and unequivocal as possible.

Of course, amnesty does not mean complete forgiveness. There might be restrictions for former party and secret police officials to occupy certain positions in a post-Kim Korea (a policy pioneered by Eastern Europe). It might be a good idea to create non-judiciary commissions to investigate former abuses, like it was done in post-apartheid South Africa. This commission might lead to truly awful discoveries, but the promise of amnesty should be kept even if it will become clear that North Korean prison camps were not much different from Adolf Hitler’s Auschwitz or Pol Pot’s Tuol Sleng in Cambodia.

The confederation treaty also should include some legal measures which will make certain that North Koreans will not remain the source of “cheap labor”, to be used (and abused) by South Korean businesses.

For example, the military of the two Koreas should be integrated first, and there should be large quotas reserved for former North Korean servicemen in the united army. Politically, the North Korean military might become a hotspot of social discontent: the 1.2 million-strong North Korean armed forces probably lack the skills necessary for modern warfare, but this force consists of professionals who have not known anything except the barracks life and intense nationalist indoctrination. If former military officers are given commissions in the post-unification forces, their skills and zeal will find a good and useful outlet. Otherwise, the very same people are likely to join the ranks of organized crime.

It is also important to provide large admission quotas for North Korean youngsters at major South Korean universities. Korean society is both hierarchical and meritocratic, and being a graduate of a major Seoul school is a necessary condition of entry for nearly all important jobs. It is not incidental that the entire life of a middle-class South Korean family is often designed to facilitate exam preparations for the children.

Unfortunately, for decades to come even the most gifted North Koreans will be unable to compete on equal terms with much better prepared South Korean students, and this means that they can realistically hope to get only to lower-level universities, usually in the North. Both actual and perceived quality of education in those schools will remain relatively low for decades, and this will ensure that North Koreans, even with “new” college-level education, will be permanently relegated to subaltern positions. Hence, affirmative actions are necessary, even if such measures are certain to provoke an hysterical outcry from Seoul and Busan parents.

The confederation regime will help to solve another important problem – that of the North Korean middle class. As East Europe demonstrated, a majority of active supporters of democracy and reform has come from local-educated urban groups, a close analogue of the Western “middle class”. The same is likely to happen in Korea.

However, the same people will become very vulnerable after unification. Who will hire an engineer who has not seen a computer? What can be taught by a social science teacher who spent his or her college years memorizing Kim Il-sung’s genealogical tree and the “Dear Leader’s” asinine pronouncement on everything, from rice planting to nuclear physics? Who will visit a former North Korean doctor whose medicine is essentially on the 1950s level?

During the confederation regime, special efforts could be made to re-educate those people, at least partially, preparing them for a new environment while still allowing them to continue their professional work in the North. Most of them will be unable to adjust, unfortunately, but at least the 10 or 15 years leniency will give a chance to the lucky and determined few, and will also provide others with time to find other ways to make a living.

The confederation model does have serious shortcomings. For example, there are good reasons to believe that the new North Korean political elite will consist largely of Kim-era officials (or their children) who will retain their old habits, including that of corruption and inefficiency. A Northern democratic government would be prone to populist decisions, based on pressure from below, and North Koreans are likely to have particularly naive views on how their society and economy can and should operate, so some mistakes introduced via popular vote might become ruinous and costly.

But no ideal solution is possible. One should not harbor too many illusions. The recovery of North Korea will be prolonged and painful. Even if unification happens tomorrow, the difference between the two Koreas will remain palpable until 2050, if not longer. Tensions, misunderstanding and even outright hostility between northerners and southerners are bound to continue for a long time.

There are no easy and simple solutions. But the current state of affairs cannot continue indefinitely, and it is time to think how unavoidable problems can be mollified. The current policy of Seoul administrations merely helps to postpone the problems created by Korea’s division, and the disastrous choices made by the North half of the country. But sooner or later, Korea and the entire world will have to face these problems – and solve them.

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Civilians along the North Korea-Chinese Border Prefer Small-Size TVs?

Tuesday, November 13th, 2007

Daily NK
Moon Sung Hwee
11/13/2007

Recent demand for small-sized TVs has been rapidly increasing in North Korea’s border regions, resulting in a huge price increases.

According to an inside North Korean source, the price of 12-inch (dubbed “chok” in North Korea) and 14-inch TVs, compared with prices this time last year, increased by 50 thousand to 100 thousand won (approx. USD15-30). Despite the increase, these small TVs are selling out, resulting in a supply shortage in stores located throughout the border regions.

Most 12-inch black and white TVs are Chinese-made. These TVs, which could have been purchased for a mere 150,000 won (approx. USD46) up until the end of last year, have recently sold for as much as 250,000 won.

The reason for the increase in the border region is that the state has strengthened inspections in these areas of those who watch Chinese TVs. The recent preference for small-size TVs comes from the fact that they are relatively easy to conceal.

A majority of border region civilians from North Pyongan to North Hamkyung Province can receive Chinese TV signals, thanks to the close distance. Among the channels able to be viewed is once broadcasted via Yanbian TV and South Korea’s China TV (www.openchina21.com). In accordance with a 2004 agreement between these two companies to promote broadcasting and cultural exchange, diverse South Korean dramas and movies as well as advertisements of South Korean products can be viewed.

The North Korean government collected remote controls to prevent the viewing of Chinese TV along the border region and implemented measures such as sealing the channels. Throughout the China-North Korea border region, inspections conducted by the No. 27 Bureau (under the Central Communications Office) are still very much underway.

The source said, “No. 27 Bureau agents come knocking at the door and turn on the TV at once to verify which channels have been viewed. Further, they inspect the state of sealed channels; if the seal has been damaged, the TV is confiscated.” When inspections take place, 30~50 sets are taken at a time, and in order to retrieve them, several thousand won in bribes is needed.”

However, in cases where these methods have failed to prevent the viewing of Chinese TV, technicians have entered homes and intercepted the circuits inside the TV, re-sealing the attached apparatus with high-strength adhesives. By doing so, the channels are forcibly fixed on Chosun Central TV broadcasting.

When the government carried out such invasive measures, the civilians put up a strong resistance, “Are they planning to just break TVs?” However, the government enforced the regulation of internal equipment, even when faced with civil rebellion.

The source said, “The apparatus inside televisions have been fixed so that people cannot watch Chinese TV channels, and inspections have been occurring randomly, so people have been watching and hiding small-size TVs in their homes.” This activity is reflected in the price increase.

One defector who has experience in selling used TVs in Rajin in North Hamkyung Province said, “Small-size TVs by which people could watch South Korean broadcasting were originally in high demand in South Pyongan, Kangwondo and South Hwanghae.” He said, “Since they cannot pass through customs, they are usually smuggled into and sold on the black market.”

The People’s Safety Agency handed down a decree stating that, “Those who pose a threat to the state and social system will be severely punished. Get rid of all kinds of places offering karaoke, movies, film subscriptions, PCs, and games.” It further emphasized the National Security Agency’s tightening of cell phone regulations along the border region.

Since last year, severe regulation of illegal films (foreign and South Korean DVDs and VCDs) has continually been enforced. Since this year, the North Korean government has gotten headaches from regulating the houses of civilians.

The North Korean government claims that the purpose of the regulations is “Destroying enemy maneuvers and directly impugn acts that pose a threat to society and the system.” North Korea’s opening and reform still seems far off.

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Surfing Net in North Korea

Monday, November 12th, 2007

Korea Times
Andrei Lankov
11/12/2007

Kim Jong-il loves to surf the net. In 2001 he asked the U.S. Secretary of State for her e-mail address, and in 2002 he told a visiting North Korean dignitary that he spent much time going through South Korean sites. He repeated this statement during the recent summit describing himself as ”an internet expert.”

Despite his relatively advanced age, Kim Jong-il takes the IT industry seriously. He obviously believes that the IT industry might become a wunderwaffen (super weapon) which one day will save the ailing North Korean economy (Kim Jong-il has always believed in simple, one-step, technology-based fixes for problems).

Now and then, news agencies report on North Korean efforts to train software specialists, or on a technology firm established by the North Koreans, or even on Kim Jong-il’s plans to create a large industrial complex which would become the North Korean reply to the Silicon Valley.

Efforts to create a computer industry go back to the late 1970s. In those days, the U.N. Development Program helped the North build a small pilot integrated circuit plant. Its history was plagued by one misfortune after another: the plant’s building proved to be badly insulated, the electricity supply was unreliable, and the engineers who were sent overseas for training arrived too late (most of them did not speak English, anyway). However, by late 1985 the plant was operational, producing ICs, an essential component of a computer.

By the early 1990s, the North was producing some 20,000 computers a year. Not much, but enough to provide for the military and even earn some money from export (over 60 percent of them were said to be exported).

In the early 1990s the North Koreans developed their own software, including a word processor. The latter had, among others, a peculiar function: it could automatically insert the names of the Great Leader and Dear Leader through a specially designated hot key.

In the North the PC was never meant to be a personal computer. It is reserved for office or industrial use, not for home – not least because the Internet is unavailable. For a regime which (correctly) assumes that its survival depends on its ability to keep the populace ignorant about outside world, the internet presents a mortal danger. Matters are further exacerbated by the unique success of the South Korean internet. If North Koreans were allowed to surf the numerous Southern sites at will, the carefully constructed picture of the world would instantly fall apart.

Thus, the internet is outlawed – but not completely. In recent years, foreign embassies have been allowed to connect to Chinese internet providers, but they have to pay the exorbitant fee for an overseas call (currently, $2 a minute). The connection is unreliable, but if your bills are paid by your country’s taxpayers, you probably can check your email… Access to email through business centers and even Internet cafes is becoming possible as well _ as long as one is a foreigner and is willing to pay exorbitant prices.

Only the privileged few have unlimited high-speed access to the Internet. But these trusted people are numbered in the hundreds or, perhaps, count a few thousands. Access is provided for the military, intelligence, and few privileged research centers only. Rooms where the internet-connected computers are installed are considered off limits for the North Korean personnel, and only people with proper security clearance can access this source of dangerous knowledge.

Less privileged institutions have access to local networks with limited connections to the World Wide Web. Their task is to let scientists and engineers retrieve the data they need without unduly exposing them to the dangers of overseas decadence.

There have been attempts to make money through IT. None of the grand plans for selling locally developed software on the international market have come to fruition, but there are easier ways to make a buck. In 2002 the North Koreans started an on-line gambling site in cooperation with a South Korean company. It targeted South Koreans, since gambling is illegal here. Its message board attracted much popularity since it was a place where the Southerners could exchange messages with the North Korean staff. The ability to chat with the Northerners was exciting (even though the largely young participants probably did not realize to which extent their interlocutors were controlled). The combination of gambling and propaganda obviously terrified Seoul, and the site was closed down.

Another area where North Koreans are trying their luck (and obviously not without moderate success) are game development and computer animation. Indeed, even major studios are sometimes inclined to outsource their animation work to North Korea.

The Internet remains a hot potato for the North Korean leaders. They understand its importance, but they do not know what to do about its political dangers. While facing such a choice, they have always opted for political security.

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North Korea authorities “Stop Operating Chinese Motorcycles for Commercial Use”

Monday, November 12th, 2007

Daily NK
Kwon Jeong Hyun
11/12/2007

North Korean authorities recently started regulating motorcycle operation in order to control private market.

Motorcycle is most preferred means of transportation especially for North Korean salespersons. And in North Korea, everybody must get a license from the government to operate cars, motorcycles or even bicycles.

North Korean authorities now give license to only Made in DPRK “Bugang Motorcycle,” which is considerably more expensive than those imported from China.

Choi, a 33 years old resident of Sinuiju visiting his relative in Dandong, China, said on last Thursday “getting operator’s license for Made in China motorcycles has become ridiculously difficult.” According to Choi, only domestic motorcycle owners receive license and popular dissatisfaction increased.

It seems that North Korean authorities want to stop growing of private market by making it impossible to operate motorcycle, a vital part of transportation of goods.

Choi added “even before, someone had to bribe police officer to get a license, but now, bribery doesn’t work for Chinese-built motorcycles at all.”

Why people prefer Made in China? “Korean motorcycles manufactured in Pyongyang cost 1,500 US dollars and often break down. However, Chinese ones cost only 600 dollars while perform far better.”

Choi complained that “some people who operated Chinese motorcycle without license got their bikes confiscated.”

The loots were sent to the Army troops on DMZ.

Chinese motorcycle has become prevalent since 2002 when North Korean residents whose relatives lived in China received it as gift and operated for commercial purpose.

According to Choi, “Motorcycle can carry a certain amount of goods to inlands and it is so convenient. Even if motorcycle is expensive, everybody wants to own one. People buy seafood on the coast and bring them to the cities or sell small commodities.”

For alluvial gold, price differs among regions, so transporting it fast with motorcycle is lucrative business.

Lee, defected Pyongyang last year, said “In the past, a few rich people bought used Japanese motorcycles like Honda or Yamaha, but now many people operate Chinese ones for commercial purpose.”

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North Korea Shuts Down Most of Its Complex Microbial Fertilizer Factories

Sunday, November 11th, 2007

Daily NK
Moon Sung Hwee
11/11/2007

A source inside North Korea reports that most of the country’s complex microbial fertilizer factories built during the mass starvation period in 1990s for increase of food production have been shut down.

The source said, “Those factories built between 1996 and 1997 in Kyongsung county of North Hamkyung Province had produced fertilizers only for one year following the construction. The year after, they were shut down. Now, the factory buildings are cleared”

North Korean media has praised till quite recently about North Korea’s advanced technology for producing complex microbial fertilizers. They said that the country’s fertilizer-producing technology and nature farming methods helped solve the food crisis and protect the ecosystem of North Korea. South Korean media have also once positively reported upon North Korea’s new fertilizer-producing technology.

However, the source said, “The situation is pretty much the same across the country. Most factories had stopped operating the year after the construction. It was Kim Jong Il who gave orders to build those fertilizer plants. But many factories fell into ruins.”

North Korea had built more than one hundred complex microbial fertilizer plants throughout the country during the mass starvation period in 1990s because it needed quite an amount of fertilizers to increase crop production.

The agricultural technology, which uses complex microbial fertilizers is a natural farming method developed by Dr. Teruo Higa, a professor at Ryukus University, Okinawa, Japan and the founder of Effective Microorganisms(EM) technology. Since complex microbial fertilizers contain 100 times more nutrients than ordinary fertilizers, they are used in many places in South Korea such as Yichu city of Kyungki Province where environment-friendly agriculture method is being practiced.

When crop production rapidly decreased in the mid 1990s, the failure was attributed to soil acidification, and Kim Jong Il urged his people to spread burnt soil, decomposed grass and compound fertilizers composed of soil, manure and chemical fertilizers over the field.

Unfortunately, that did not work. Then, Kim Jong Il gave another order to produce complex microbial fertilizers in large quantities in an attempt to increase crop production. Upon his order, North Korea started promoting the construction of complex microbial fertilizer plants through Chongryon (General Association of North Korean Residents in Japan) and built more than one hundred factories nationwide for the period of one year including ‘Patriotic Center for Complex Microorganism,’ whose construction work was completed in June, 1997.

Many North Koreans had to use pure grain to make complex microorganisms instead of costly granulated sugar. However, that was a bad idea because there was food shortage across nation and a great number of people were staving to death. Moreover, North Korea should not have wasted grain for microorganism production in such situation because it takes three years to see any effect of the use of microorganisms on crop production.

Kim Yong Hwa (pseudonym), a defector from Hyesan city of Yangkang Province, who used to work at ‘Patriotic Center for Complex Microorganism’ said, “350 kg of corn is used to make one ton of fermentation solution. That amount of corn is sufficient enough to feed one person for an entire year. Overall, the plant had used 38 tons of corn during its first two- year operation.”

The defector said, “The workers received food ration, but it wasn’t enough. So, many people stole corn power and even fermentation solution from the factory.” The defector added, “When people heard that we were using corn to make fertilizers, they found it hard to believe at first, but soon flared up in anger, saying ‘those microorganisms are eating us.’”

The defector said, “In addition, we did not know what to do with microorganisms we had produced because we didn’t have gas and a means of transportation. Sometimes, containers for storing microorganisms were lost or broken. We also had difficulty to move around microorganisms because they were produced in liquid form.”

Kim said the locals did not believe the expert’s explanation that microorganisms would produce germs three years later, which produce nitrogen gas, and therefore make soil rich. He said that the locals disapproved the use of corn for the production of microorganisms, and had no interest in sowing microorganisms in the field. Therefore, Kim said, the plant had to close.

South Korean experts have continued to point out the problem of soil acidification in North Korea and encourage the use of organic fertilizers. Nevertheless, many defectors criticized the use of grain for the production of complex microbial fertilizers for being detached from the realities of food situation in North Korea.

Lee Min Bok, a defector who used to work at North Korean Academy of Agricultural Science, said, “Staring with 1979, soil acidification became a serious problem, and Kim Jung Il has been giving orders to improve soil condition. The use of microorganisms can better the condition to some extent. However, North Korea needs to come up with comprehensive policies on its agricultural structure, anti-flood afforestation, and the establishment of production systems for chemical and organic fertilizers to solve the acidification problem.”

The source inside North Korea said, “In 1996, the authorities began praising about the effect of complex microbial fertilizers. Disappointedly, there weren’t any significant effect. So, starting with 1999, many fertilizers plants began to shut down.” The source added, “Most plants fell into ruin except few large factories such as Patriotic Center for Complex Microorganism in Pyongyang and a fertilizer plant in Rasun.”

North Korea began to display an interest in the production of complex microbial fertilizers because it had failed to produce enough manure and chemical fertilizers before. The South Korean government agreed to provide North Korea with 300,000 tons of chemical fertilizers this year and 400,000 tons next year.

According to Rodong Shinmun (North Korean state newspaper), Kim Jong Il spoke about the worldwide decrease in the production of chemical fertilizers, and stressed the importance of the use of microbial fertilizers in May, 2004.

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Google Earth North Korea (version 6)

Sunday, November 11th, 2007

The most authoritative map of North Korea on Google Earth
North Korea Uncovered: Version 6
Download it here

kissquare.JPGThis map covers North Korea’s agriculture, aviation, cultural locations, manufacturing facilities, railroad, energy infrastructure, politics, sports venues, military establishments, religious facilities, leisure destinations, and national parks. It is continually expanding and undergoing revisions. This is the sixth version.

Additions to the newest version of North Korea Uncovered include: Alleged Syrian nuclear site (before and after bombing), Majon beach resort, electricity grid expansion, Runga Island in Pyongyang, Mt. Ryongak, Yongbyon historical fort walls, Suyang Fort walls and waterfall in Haeju, Kaechon-Lake Taesong water project, Paekma-Cholsan waterway, Yachts (3), and Hyesan Youth Copper Mine.

Disclaimer: I cannot vouch for the authenticity of many locations since I have not seen or been to them, but great efforts have been made to check for authenticity. These efforts include pouring over books, maps, conducting interviews, and keeping up with other peoples’ discoveries. In many cases, I have posted sources, though not for all. This is a thorough compilation of lots of material, but I will leave it up to the reader to make up their own minds as to what they see. I cannot catch everything and I welcome contributions.

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North Korean Economy Does Not Have a Basis for Development

Wednesday, November 7th, 2007

Daily NK
Yang Jung A
11/7/2007

Although the North Korean economy has been growing since late 1990s, it is hard to say that the economy has growth on its own.

A senior researcher at the Korea Institute for National Unification, Choi Su Young, released a paper titled “the Latest Tendency of the North Korean Economy” in the October “Finance,” which is issued by Korea Federation of Banks. He pointed out in the paper that “North Korea’s economic reliance on China is getting serious and cited the state’s 1.7 billion dollars in trade with China.”

He explained “On one hand, North Korea exports to China in 2006 increased to 72.7% compared with exports in 2002; on the other hand, imports from China increased to 163.8%. This resulted in a recorded deficit of 760 million dollars. The rate of North Korean trade reliance on China was 48.5% in 2004, and it reached 60% last year.”

He relayed that “In the production industry, North Korea has to rely systematically on China’s raw materials, energy, facilities and parts. North Korea is importing its entire amount of petroleum for transportation and production. Chinese influence on the North Korean economy is so absolute that 70-80% of consumer products are made in China.

Mr. Choi insists that “Although foreign aid and South-North economic cooperation were expanding and its reliance on the influx of foreign currency was great, North Korea was staying in low-growth status, which means North Korea does not have the economic foundation for development.

According to the report, the scale of exchange between the South and the North was rapidly increasing through the annual provision of South Korean rice and free fertilizer supporting and South Korean enterprises’ activities at the Kaesung Industrial Complex.

With the exception of South Korea and China, there are no countries willing to invest in North Korea. Most developed countries turn away from North Korea because the standard and environment related to North Korean investment are significantly inferior to the norm.

He explained that “The North Korean investment environment is inconvenient for foreign investors due to obsolete infra-structures, high distribution costs and limited markets. It is unnecessary to mention the international policies related to North Korea.”

Mr. Choi added that “The scale of North Korean foreign trade was 2 billion dollars in 2000 and reached 3 billion dollars in 2006. Exports amounted to 950 million dollars and imports came to a total of 2.05 billion dollars.”

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Pigs and Chickens… (better title ideas welcome in the comments)

Tuesday, November 6th, 2007

Poultry company looks North for land, workers
Joong Ang Daily

11/7/2007

A South Korean food company said yesterday it will start building a chicken farm in North Korea later this year as part of its efforts to produce chickens using the North’s cheap labor.

Maniker Company, the nation’s second-largest chicken processing company, said it agreed with North Korean officials last month to establish the farm in Kaesong, where an inter-Korean industrial complex is located.

“Construction will start later this year and the farm will be operational early next year,” said Choi Young-sam, a spokesman for Maniker, by telephone.

North Korea will provide the site and workers for the construction, Choi said, adding the project is partly supported by the South Korean government.

The agreement was reached at a meeting in Pyongyang when two executives of Maniker visited the North in late October, the spokesman said.

Details such as how much money Maniker and the South Korean government will spend on the chicken farm have yet to be fixed, Choi said.

In the Kaesong Industrial Complex, located 70 kilometers north of Seoul, 26 South Korean companies employ about 16,000 North Korean workers who produce garments, kitchenware and a number of other goods.

North, South Korea collaborate on strategy to end food shortage
Courier News
(Via DPRK Forum)

11/6/2007

North Korea and South Korea have decided to start a jointly operated hog farm in the North’s capital to help alleviate the communist nation’s chronic food shortages, a South Korean official said Tuesday.

The agreement came as a follow-up to a wide range of accords reached by the leaders of the two Koreas last month.

The farm will run for a two-year trial period in Pyongyang and aim to breed 5,000 hogs, with the South providing the animals, feed, equipment and building materials, and the North providing the land, electricity, water and labor, South Korea’s Unification Ministry said.

Officials of the two countries negotiated the deal in talks in the North Korean border city of Kaesong on Monday and plan to meet again to map out details, such as when to open the farm, ministry spokesman Park Won-jae said in Seoul.

“The hogs are aimed at resolving the North’s food shortage problem,” Park said, adding that the animals would not be exported to South Korea or elsewhere.

North Korea suffers from chronic food shortages and has struggled to increase its grain production in recent years. The country was hit by famine in the mid-1990s that killed an estimated 2 million people.

In the second-ever inter-Korean summit in Pyongyang in early October, South Korean President Roh Moo-hyun and North Korean leader Kim Jong Il agreed on accords aimed at easing tensions and boosting cross-border economic exchange programs. The measures included the launch of cooperative farm programs.

The two Koreas are still technically at war, as their 1950-53 Korean War ended with an armistice, not a peace treaty.

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Hyesan Mine, the Center of Copper Production Is Flooding!

Thursday, November 1st, 2007

Daily NK
Moon Sung Hwee
11/1/2007

A source familiar with issues inside North Korea said on the 30th, “Most of the underground tunnel of Hyesan Youth Mine in Yangkang Province is now under water.” The source added, “Ever since Samsoo Hydroelectric Power Station started filling up the dam last year, the mine began to flood, and now it can not operate properly.”

Hyesan mine produces 80 percent of the country’s copper. North Korea expects that the mine could produce copper for the next forty years. Hebeisheng-Luanhe Industry in China once attempted to buy 51 percent shares of the Hyesan Youth Mine. However, this was unsuccessful due to opposition from North Korea’s second Economic Commission, which manages the military economy.

North Korea began the construction of Samsoo Hydroelectric Power Station in February of 2004, mobilizing thirty thousand troops of the so-called “Shock Brigade for the Propaganda of the Party Ideology” every year. Unfortunately, Samsoo Power Plant became the major cause of the flooding of Hyesan Mine.

If this mine is inundated with water, North Korea has to import huge amounts of copper. It was the Propaganda and Agitation Department that led the construction of Samsoo Power Plant, which generates 50,000 kilowatts of power and is now causing the flooding. It is absurd that North Korea is about to lose its principal copper mine because of Samsoo Power Plant, a facility that was primarily constructed for political purposes.

Jung You Sim (37, pseudonym), a defector from Hyesan who came to South Korea in July of this year, stated that “Hyesan Mine is almost abandoned. It takes about three years to fill up the Samsoo Dam with water. Even now, there is difficulty in pumping out the water leaked from the power plant. Once the dam is completely filled, the total volume of water will be 1,300 million cubic meters. By then, the water pressure will have made it impossible to pump out the water that has infiltrated the mine. North Korea must choose either Samsoo Power Plant or Hyesan Mine.”

Samsoo Power Plant was constructed in Jangan-ri of Hyesan, Yangkang Province; Hyesan Mine is located nearby in Masan-dong.

The construction of Samsoo Power Plant which began in February 2004 evoked a great deal of controversy from the beginning. The Guidance Department of the Party and the Ministry of Extractive Industries opposed the construction citing the high risk of flooding in the Hyesan Mine.

However, Jeong Ha Cheol, then Secretary of Propaganda and Agitation Department and Choi Choon Hwang, then vice director of the Central Committee of the Party pushed hard for the construction with the aim of boosting their political standing and succeeded in obtaining Kim Jong Il’s approval. It is almost certain that both men have been purged.

At that time, the Propaganda and Agitation Department reported that the water leakage could be prevented if the bottom of the power plant dam is pressed hard and cemented with mud about three meters deep. However, experts from France who inspected the area opposed the construction because the land itself was calcareous and unstable. The water leakage was inevitable.

First explored in the 1960s, Hyesan Mine produces 10,000 tons of copper concentrates annually. When Gapsan Dongjum Mine, explored during the Japanese colonial period, was finally depleted and closed in 1990, Hyesan Mine became the lifeline of the nation’s copper production. It flooded before in the mid 1990s but was restored shortly thereafter.

At that time, the mine flooded because the pumping device stopped operating due to the lack of electricity across the country. Although the workers at the mine did their best to pump the water, they could not stop the water flowing into the mine at a speed of 480㎥/hour. In January, 1997, Hyesan Mine flooded again, as did other mines throughout the country, and lost all mining facilities.

The workers faced insurmountable obstacles in trying to save the mine. This was because some workers at Hyesan mine had removed the copper from pumping devices and had smuggled it to China before the flood hit the country.

When the officials from the Ministry of Extractive Industries visited Hyesan Mine in 1999, they informed the local cadres that the mine’s copper production had become insufficient for the manufacture of military supplies, and as a result, copper would have to be imported from Chile.

Defectors coming from Yangkang Province said that when Kim Jong Il paid a visit to the mine in October, 1998 and received the report on the difficulties in the mine’s operation, he said, “We must save the mine at any cost. I will supply the money.” At once, the chief secretary of Yangkang Province and the Ministry of Extractive Industries took charge of restoring the mine and organized the recovery workforce.

Kim Jong Il provided the so-called “Revolutionary Fund” for the mine’s recovery. He sent $ 3.8 million in 1998 and $2.6 million in 2001, paid all in cash. In 1998 when a great number of people were starving to death, corn was available in China for $ 137 per ton. The amount of money spent on the mine’s recovery could have been used to purchase approximately 28,000 tons of corn. In those days, the local residents in Yangkang Province were made to listen to lectures about the ‘General’s Revolutionary Fund’ over and over.

Upon the order for recovery, residents in Masan 1-dong and 2-dong in Hyesan city were mobilized every weekend to dig out the dirt in the mine. By May 1, 2003, the locals had dug to a depth of 710 m. Later that year, the mine produced 1,500 tons of copper concentrates, and in 2004 it produced 3000 tons.

The local people made huge sacrifices to recover Hyesan mine, and the recovery cost about $ 7 million. However, it was all in vain. The mine is now again flooded due to the construction of Samsoo Power Plant. Hyesan defector Jung Yoon Sim said that Kim Jong Il later changed his tone when he visited Yangkang Province and heard about the recent flooding, saying “it was anticipated.”

Samsoo Power Plant can produce up to 50,000 kilowatts of power. However, about 60,000 kilowatts of power are needed to supply electricity to the apartment complexes constructed in 2003 in Samjiyun county of Yangkang Province.

After all was said and done, Kim Jong Il had mobilized 30,000 people for three and a half years and had them work 14 hours per day while providing a mere 580 grams of grain daily in an attempt to build a power plant that generates only 50,000 kilowatts. In doing so, he destroyed the nation’s leading copper production center.

President Roh praised such an incompetent and irresponsible man as “a charismatic leader who has a deep understanding about the affairs of the country and has faith in the system.”

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Hyundai Motor union leaders visit N. Korea for noodle project

Wednesday, October 31st, 2007

Yonhap
10/31/2007

Union leaders of Hyundai Motor Co., South Korea’s largest carmaker, left for North Korea to attend a ceremony to mark the completion of a corn noodle plant in the North’s capital, union officials said Wednesday.

Hyundai’s 44,000-strong union has donated 500 million won (US$553,800), collected from unionized workers for a mere $13 each, to help a South Korean humanitarian group build the noodle factory in the impoverished North.

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