Manufacturing « North Korean Economy Watch

Archive for the ‘Manufacturing’ Category

Building the economy and construction projects emphasized once again

Friday, December 27th, 2013

Institute for Far Eastern Studies (IFES)
2013-12-27

In an effort to restore the mood of economic development following the ‘terror politics’ created from the execution of Jang Song Thaek, North Korean state media is beginning to emphasize “construction of a powerful economy” and “improvement of people’s lives” once again.

Rodong Shinmun reported on December 19, 2013 that all fields reached their production plans for the year, describing (on page 3) exemplary cases of various party organizations that upheld the legacies of Kim Jong Il and “displayed best practices that actively contributed to improving people’s lives.”

In one article (“Advancement in Science and Technology Is the Lifeline of Constructing a Powerful Economy and Improving People’s Lives”) the importance of science and technology was emphasized. It claimed, “breakthrough in science and technology is the best way to achieve a miracle and innovation in production while protecting the dignity of the nation in the era of knowledge economy.”

Korean Central Television, Korean Central Broadcasting, and Pyongyang Broadcasting encouraged its people to realize “new miracle, new record” in the production fields emphasizing the goals of the Kim Jong Un regime, “construction of economic powerhouse,” and “construction of civilized socialist nation.”

In addition, the military was presented with modern fishing boats. Kim Jong Un’s gift to the military may be interpreted as a display of interest in improving the welfare of soldiers. Kim Jong Un was reported to have made an on-site inspection at the “8.25 Fishery” military unit and expressed interest in the welfare of the soldiers.

Kim Jong Un is also continuing to commend “best citizens” as he delivered letters of appreciation to recognize those that displayed exceptional performance at the construction sites of Sepho Tableland and the residential complex for Kim Il Sung University (KISU) faculty members.

In the Kim Jong Un era, state media is continuing to emphasize the achievements in the construction sectors, calling these times a “new heyday of juche construction.” It listed last year’s construction achievements: completion of Changjon Street, People’s Theatre, Pyongyang Children’s Department Store, Rungra People’s Pleasure Park, People’s Outdoor Skating Rink, Pyongyang Folk Park, and Ryugyong Health Complex.

In addition, it boasted that Munsu Water Park was “miraculously” completed in only nine months. Other achievements were listed: War Memorial, Mirim Riding Club, Ryugyong Dental Hospital, Okryu Children’s Hospital, Unha Scientists Street, and KISU faculty apartment complex.

North Korea is propagating these achievements, heralding the Kim Jong Un era as the “glory days of construction” to promote his accomplishments and consolidate his power base.

During his own period of succession, Kim Jong Il sought the support of the masses by emphasizing construction of Changgwang and Munsu Streets and landmarks such as Juche Tower, Kaeson Mun (Gate of Triumphant Return), and Pyongyang Maternity Hospital.

Posted in Agriculture, Construction, Light Industry, Manufacturing, Real estate | Comments Closed

Factory automation actively being promoted

Sunday, December 15th, 2013

Institute for Far Eastern Studies (IFES)
2013-12-13

Recently the benefits of unmanned factories that do not require much manual labor are being largely advertised in North Korea. The propaganda for automated factories are analyzed to have strengthened from this year.

The Kim Jong Un regime has continuously emphasized the need for factory automation to achieve economic results and is actively publicizing that it is improving the working life for the workers.

The Korean Central News Agency (KCNA) reported on November 19 that the full automation of the production process of bread and confectionaries manufatured at the KPA Food Factory No. 354 was accomplished. It stressed, “The results of the modernization of production plants brought the cost of labor and production down while enhancing the quality of production efficiency and the quality of the products.”

In particular, it boasted “The work experience for female workers without hand labor is bringing them joy and merry tunes.”

On November 16, another North Korean media reported that Kim Jong Un had made an onsite inspection to this factory and commented, “What I find most pleasing is that by automating all production process, hand labor was eliminated and liberated the workers from hard labor.”

The Rodong Sinmun, official newspaper of the Workers’ Party of Korea, reported on November 19 about the productivity of the Sinuiju Knitting Factory and described that, “through mechanized work processes of hand labor, it is contributing to the improvement in quality and productivity.”

Then on November 12th, the Rodong Sinmun also reported on Kim Jong Un’s onsite inspection to the 11. 2 Factory that supply food items to soldiers and he is reported to have instructed to make the production processes computerized and automated.

In March this year, Kim Jong Un delivered a speech at the State Light Industry Convention where he mentioned to incorporate CNC (computer numerical control) into production and machine equipment and stressed the automation process. He recognized Pyongyang Essential Foodstuff Factory as an exemplary factory for its achievements in automation.

The added emphasis on the factory automation reflects the Kim Jong Un regime’s aspirations in science and technology achievements.

In the Kim Jong Un regime, knowledge economy era places higher importance on knowledge, information, science and technology than physical labor. The current effort in promoting the state-of-the-art technology, including computers, in the unmanned factories demonstrates this point.

In addition, the automation of factories is analyzed to be associated with the new economic improvement measures.

The North Korean media’s coverage on the advantages of the automated factories are named as improved production costs and production efficiency and these concepts are an important market economy components used with the intention of dissemination competition in economic units.

Posted in CNC, Light Industry, Manufacturing | Comments Closed

Kaesong Industrial Complex: 2013 crisis timeline compendium

Wednesday, November 13th, 2013

UPDATE 91 (2014-1-14): ROK spends 1/3 of DPRK budget for FY 2913. According to Yonhap:

South Korea spent less than one-third of its fund intended to boost exchange and cooperation with North Korea last year, the unification ministry said Tuesday.

South Korea spent 296.4 billion won (US$280 million) last year, or 27 percent of the 1.09 trillion won earmarked, for the inter-Korean cooperation fund, according to the ministry, which handles inter-Korean affairs.

The figure represents the highest level in six years as the government paid insurance money to small South Korean companies that operate plants in the North’s border city of Kaesong.

The South Korean companies received insurance money worth 177.7 billion won due to the months-long shutdown of the inter-Korean joint factory park in Kaesong last year.

In 2008, the ministry spent 18.1 percent of the inter-Korean cooperation fund. The ratio dropped to 8.6 percent and 6.5 percent in 2009 and 2012, respectively, as inter-Korean relations soured.

The factory park resumed operations in September, more than five months after the North unilaterally closed it in anger over joint annual military exercises between South Korea and the United States. In August, Pyongyang pledged not to shut the park down again “under any circumstances.”

More than 44,600 North Koreans work at 120 South Korean firms operating in the park to produce clothes, shoes, watches and other labor-intensive goods. The project serves as a major legitimate revenue source for the impoverished communist country.

UPDATE 90 (2013-12-30): The ink has barely dried before the DPRK has seemed to breech it. This time the DPRK has demanded that the firms in the KIC pay back taxes. According to Yonhap:

North Korea has demanded that South Korean firms operating in a jointly run factory park in the communist nation pay taxes to North Korea, an official said Monday, in an apparent breach of a September deal.

The North said in a notice last week that the firms in the factory park in the North’s western border city of Kaesong should pay taxes incurred between Jan. 1 and April 8, according to the official handling the issue at the unification ministry.

The ministry, which handles inter-Korean affairs, said the North’s demand did not make any sense, and it was in talks with North Korea over the issue.

The move comes three months after North Korea agreed not to collect taxes from the South Korean firms for 2013 to make up for their losses following its unilateral closure of the factory park on April 9.

In September, the sides resumed the operation of the factory park, a month after the North pledged not to shut it down again “under any circumstances.”

Although the North Korean government took a loss on “tax revenue” it still made plenty of money from the confiscated wages of its workers. According to the article:

The North earned US$80 million in wages for its workers last year.

UPDATE 89 (2013-11-24): Inter-Korean trade has started to recover.

UPDATE 88 (2013-11-13): The Korea Times reports that the Kaesong firms are getting loan payments deferred and a new round of talks is underway. According to the article:

The government said Wednesday it will allow companies with factories at the inter-Korean Gaeseong Industrial Complex (GIC) to delay payment of loans due within the next six months.

“The due date for loans taken out from the state-run inter-Korean cooperation fund will automatically be pushed back six months,” said Park Soo-jin, vice-spokeswoman of the Ministry of Unification that handles inter-Korean affairs, Wednesday, during a regular briefing. “The amount equals to 46 percent of all loans provided by the fund.”

According to the ministry, 28 out of the total 123 companies, which have taken out loans totaling 9.7 billion won ($ 9 million), will benefit from this measure.

Up to date, companies that have factories in North Korea’s border city of Gaeseong altogether borrowed about 21.3 billion won ($ 19.9 million) from the cooperation fund.

The move by the government is aimed at easing the pressure on GIC companies strapped for cash in the face of declined production as a consequence of the five-month hiatus of operations because of heightened tension on the Korean Peninsula earlier this year.

In the same article, the Korea times reports on the latest round of talks between the DPRK and ROK over the management of the KIC:

Meanwhile, on the same day, working-level officials from the South and North met to discuss ways of better protecting investment at the GIC and promote its internationalization.

The meeting of two sub-panels of the Gaeseong joint management committee were held in the North’s border city, the ministry said.

“The two sub-panel meetings, the first since Sept. 26, are designed to bolster the overall global competitiveness of the GIC,” a ministry official said.

There are altogether two sub-panels under the larger GIC joint management committee that has taken charge of running the complex since operations resumed in September.

During the investment protection panel meeting, the two sides reportedly discussed the establishment of an official dispute settlement regime coupled with how to attract more foreign investors into the GIC.

Previously, the two Koreas agreed to hold an IR session on Oct. 31 but it was canceled when little headway was made in a separate sub-panel meeting to change rules dealing with travel, communication and customs at the joint complex in North Korea.

The ministry also said another meeting to discuss the rights and safety of South Koreans working in Gaeseong will be held today.

But the date for the travel and communication meeting has yet to be fixed because of its sensitivity.

Read previous posts below:

(more…)

Posted in International trade, Kaesong Industrial Complex (KIC), Light Industry, Manufacturing, South Korea, Special Economic Zones (Established before 2013), Uncategorized | 1 Comment »

The “Samjiyon”: North Korea’s tablet computer

Tuesday, October 22nd, 2013

Two good reviews of the tablet here:

1. Martyn Williams, North Korea Tech (2013-8-1)

2. Ruediger Frank, 38 North (2013-10-22)

Posted in Computing/IT, Light Industry, Manufacturing | Comments Closed

Russian firm Evraz selling coking coal to DPRK

Monday, September 23rd, 2013

According the Russian outlet Izvestia (translated by Google Translate):

Tensions between the U.S. and North Korea do not interfere with the group Evraz, the largest shareholder is Roman Abramovich, it is advantageous to work with both countries: part of the holding coal company “Raspadskaya (Распадской)” began selling coal in North Korea. At the end of 2013 the total supply of “Raspadskaya” to North Korea could reach $ 32 million – half of it is comparable to last year’s total exports from Russia to North Korea.

During the first half of 2013 “Raspadskaya” delivered to North Korea coking coal at $ 4.5 million, follows from the statements of the company. In the total volume of exports “Raspadskaya” is about 4%, which makes the DPRK fifth largest export market for sales of coal (after China, Ukraine, South Korea and Japan).

…

In the DPRK embassy in Russia, “Izvestia” reported that, except for “Raspadskaya”, none of the Russian coal industry supplies goods to North Korea. There’s also clarified that the recipient of coal – Metallurgical Works named. Kimchaek– one of the largest steel companies in North Korea. Total design capacity metkombinatu them. Kimchaek on all kinds of products, according to various estimates, 6.5 million tons, but in recent years the plant has significantly underutilized. According to South Korean estimates, the actual production of steel in all of North Korea is 1.25 million tons per year (Statistics Korea itself does not publish a lot of years).

The volume of coal supply to the “Raspadskaya” to North Korea – to 20 kt (4-5 railroad tracks) on a monthly basis under the current annual contract, described in the company. Price is tied to the international price system (quotation Australian HCC with a discount for the quality of the brand SHCC). That is the sum total of the contract – about $ 32 million, considered BCS analyst Oleg Peter and Paul: The current market price of coking coal at $ 152 per ton (FOB Australia), but the average price for the first half was $ 134.

– Last year, the entire bilateral trade between Russia and North Korea amounted to less than $ 80 million – says Ludmila Zakharova, a senior researcher at the Center for Korean Research Institute of Far Eastern Studies. – At present, trade between our two countries in a state of crisis, Russia accounts for less than 1% of North Korea’s foreign trade.

In 2012, Russian exports to Korea totaled $ 65 million, told “Izvestia” in Economic Development. North Korea among foreign trade partners of Russia occupies 124th place with a “specific weight of 0%,” stated in the department. Starting this year, however, there is growth of sales: in January-July 2013 two-way trade turnover of Russia and North Korea reached $ 56 million ( an increase of 31% compared to the same period in 2012), including Russian exports totaled nearly $ 51 million (an increase of 38%).

A small volume of direct trade is partially offset by other forms of economic cooperation continues Ludmila Zakharova. For example, it is estimated that about $ 100 million a year is the so-called labor services: experts from North Korea come to work in Russia (for the current year quota for North Korean workers reached 35 thousand people). Since the DPRK shortage of agricultural land, there are projects to provide Koreans to lease farmland in the Primorye Territory. In the last few years has intensified investment direction of Russian-North Korean cooperation. The other day, completed the reconstruction of the railway Hasan-Rajin. Investment in this project is a joint Russian Railways and the Ministry of Railways North Korea amounted to more than $ 200 million

According to data provided by the Ministry of Economic Development, the amount of accumulated investment of Russia to the DPRK at the end of the first quarter of 2013 amounted to only $ 572 million, while the DPRK in Russia – more than $ 79 million

Evraz – a vertically integrated global company with assets not only in Russia but also in other countries, including the United States. Evraz North American division includes several large steel companies formerly known as Oregon Steel, Rocky Mountain Steel, Claymont Steel and Ipsco.

– Evraz to some degree of risk. Under existing U.S. sanctions against the DPRK any large company with offices in the U.S. carries certain risks, working with North Korea – warns Ludmila Zakharova. – America includes a list of objects sanctioned North Korean banks and organizations that are involved in nuclear and missile program. All legal entities operating in the United States, engaging in economic relations with the companies on this list are subject to the relevant law and can not only get the fines, but generally lose access to the U.S. market and the U.S. banking system. In this case, unlike the UN sanctions, the U.S. rules imply a sufficiently broad interpretation than may be exploited Evraz. Of course, the steel industry is difficult to draw to a nuclear program, but you can.

The contract with the DPRK was verified for international risks assured “News” in the “Raspadskaya”.

– At Evraz in America a lot of assets, but the supply of this market are small. Much more dangerous for her to lose access to local banking system – says Oleg Peter and Paul. – Still, the U.S. market civilized, hardly any of the competitors Evraz want to speculate on its relations with the DPRK. Also tied to the steel industry’s nuclear program would be extremely difficult.

If any Russian translators care to improve on the text offered by Google Translate, please do so.

Read the full story here:
Компания Абрамовича подзаработает в Северной Корее
Известия
2013-9-23

Posted in Coal, Energy, International trade, Manufacturing, Russia | Comments Closed

Haeju’s new brewery

Thursday, September 19th, 2013

I am unable to find an article about this in either Rodong Sinmun or KCNA, but according to Yonhap:

North Korea completed construction of a brand new brewery in Haeju city that has up-to-date production facilities, the communist country’s leading newspaper said Thursday.

The Rodong Sinmun, an organ of the ruling Workers’ Party of Korea, said the brewery has fermentation, filtering, cold storage and bottling facilities that will allow it to produce alcoholic beverages to benefit people.

It said trial runs have been successfully carried out and efforts are currently underway to secure production materials to make beer.

The latest report comes after microbreweries in the communist country such as Taedonggang Craft Brewery and Yanggakdo Hotel Microbrewery have received acclaim by some for making the best beverages on the Korean Peninsula and in Northeast Asia. The secret behind the taste, experts have said, lies with North Korea using less rice and corn to make its beverages compared to South Korean manufacturers.

Such quality products have even spurred visits by foreigners who want to taste the beer.

The paper, meanwhile, did not give exact details on the size of the new brewery other than to say it covered several thousand square meters.

Read the full story here:
N. Korea sets up modern brewery in Haeju
Yonhap
2013-9-19

Posted in Alcohol, Light Industry, Manufacturing | Comments Closed

3rd Rason International Trade Fair (UPDATED)

Wednesday, August 21st, 2013

UPDATE 1 (2013-8-27): Chinese auto manufacturer announces plans for Rason plant. According to Yonhap:

A major Chinese automaker has expressed its intention to invest in a project to build a car manufacturing factory in North Korea, the North’s media said Tuesday.

FAW Group Corp., a Chinese state-owned automotive manufacturing firm, signed a letter of intent last week with North Korea’s Rason regional government to invest in the construction of the factory, the North’s Korean Central News Agency (KCNA) reported.

The agreement is a preliminary step to conclude an official deal for the investment.

The deal was made during the third round of the exhibition for international goods held in the North Korean city last week, according to the KCNA.

The impoverished communist country designated Rason, located on its northeastern tip, as a special economic zone and has been actively seeking an overseas investment in the region.

During the exhibition, China’s Heilongjiang regional committee on trade promotion and Rason’s economic committee signed an agreement to boost cooperation. Heilongjiang province is located in the northeastern part of China.

Stressing Chinese firms’ investment in the Rason region, an unidentified official from the Chinese body vowed “to transport goods from its region to Shanghai via Rason ports,” according to the report.

ORIGINAL POST (2013-8-21): According to KCNA:

3rd Rason Int’l Trade Exhibition under Way

Pyongyang, August 21 (KCNA) — The 3rd Rason International Trade Exhibition is going on in the Democratic People’s Republic of Korea.

The exhibition in the Rason Economic and Trade Zone bordering China and Russia is attended by more than 120 entities from countries and regions, including the DPRK, China, Russia, Germany, the U.S., and Japan.

On display at the exhibition are some 78 000 items of exhibits in 410 kinds, covering machinery, steel, electrical, electronic and chemical products, foodstuffs, medicines, building materials, vehicles and sundries.

In this regard, KCNA met Hwang Chol Nam, vice-chairman of the Rason City People’s Committee.

Hwang said:

The Rason City has laid definite institutional guarantee and legal foundations for jointly developing the economic and trade zone and has made a big stride in building infrastructure, paving a way for foreign businesses to smoothly carry on production and trade in the zone.

During the days of the exhibition, foreign businessmen will witness the situation of the developing zone.

Ho Myong Ho, director of the Rason Exhibition Corporation, told KCNA that the current exhibition is the biggest in scale and he believes that it will serve as an occasion for making the trade in the zone gain momentum.

The exhibition will run until August 23.

The Rason Economic and Trade Zone is a special economic zone in the DPRK, where preferential treatment is available.

The zone has developed into a hub for transit transport, trade and investment and financial and tourism service.

2013-8-20 evening news coverage of the opening ceremony can be seen here.

Dr. Bernhard Seliger posted the application form for the trade fair:

Previous posts on the Rason International Trade Fair can be found here.

Posted in China, Foreign direct investment, Manufacturing, Rason International Trade Fair | Comments Closed

Bank of Korea publishes DPRK economic statistics

Friday, July 12th, 2013

The Bank of Korea has published its estimated aggregate data on the North Korean Economy for 2012.

You can download the report in English here.

You can download the report in Korean here.

It has been cataloged with previous reports (and many others) on my DPRK economic statistics page.

Here is what Reuters analysis of the data:

North Korea’s economy expanded for a second successive year in 2012, South Korea’s central bank said on Friday, bolstering the claims of new leader Kim Jong-un to be pursuing economic growth alongside strengthening the country’s nuclear deterrence.

The economy of the reclusive and impoverished nation grew 1.3 percent in 2012 as nearly all sectors saw improvement compared to a 0.8 percent annual growth the year before, said the Bank of Korea, one of the few sources of estimates about the economic performance of the North, which does not publish data.

Agriculture, farming and fisheries rose 3.9 percent last year in North Korea on the back of expanded use of fertiliser and an increase in pig and chicken farms, according to the Bank of Korea data, compared to a 5.3 percent growth in 2011.

Livestock farming rose 12.3 percent on an annual basis.

North Korean industrial output and manufacturing both expanded for the first time since 2008 after shrinking for three straight years, rising 1.3 percent and 1.6 percent respectively in 2012 compared to a year ago.

Despite the rise in output, North Korea remains one of the poorest countries on earth and its economy is around a thirtieth the size of industrial powerhouse South Korea.

…

The Bank of Korea data showed that North Korea’s total trade was worth $6.81 billion in 2012, with exports up an annual 3.3 percent, mostly on the back of chemical products and animal products. Imports were up 10.2 percent.

Trade with South Korea, which the Bank of Korea exempts from North Korea’s trade statistics, was worth $1.97 billion dollars last year, up 15 percent from a year ago. Almost all of that trade comes from the closed Kaesong industrial park.

Here is coverage by the Institute for Far Eastern Studies (IFES):

The Bank of (South) Korea released a report on the economic growth estimation of North Korea in 2012. North Korean economy recorded positive growth for two consecutive years. Per capita gross national income (GNI) rose by 2.7 percent to 1,371,000 KPW against the previous year. However, the gap between the South and North has not narrowed.

Last year, North Korea’s gross domestic product (GDP) growth was estimated to be 1.3 percent. This is the highest level since the financial crisis of 2008 when it surpassed the South Korean economic growth and reached the 3.1 percent growth.

Agricultural production improvement as well as international aid in heavy oil in 2008 permitted the North Korean economy to rebound brieflybut it began to decline resulting in minus growth in 2009 (-0.9 percent), 2010 (-0.5 percent), and 2011 (0.8 percent).

Agriculture, forestry and fishery industries last year made robust growth as well as manufacturing, engendering the boost in the economy. The construction of the Huichon Power Station was completed last year and it is considered to have attributed to the improvement in the power situation.

In terms of industries that accounted for the growth, agriculture, forestry and fishery made up about 23.4 percent of the nominal GDP, recording a production increase by 3.9 percent. Production of livestock such as swine and poultry husbandry rose by 12.3 percent and rice and corn production also increased due to improved fertilizer supply.

Production in manufacturing (21.9 percent of North Korean GDP) made a 1.6 percent increase. The rate of manufacturing production increased by 2.6 percent in 2008 but began to decline from 2009 at -3.0 percent; 2010, -0.3 percent; and 2011, -3.0 percent.

Production improved in food, tobacco and light industries by 4.7 percent, and heavy chemical industries rose by 0.2 percent. Mining (14 percent of GDP) also rose by 0.8 percent due to improvement in coal production. Electricity, gas and water supply (3.5 percent of GDP) also increased by 1.6 percent from the expansion of hydroelectric and thermal power generation. Service industry (29.4 percent of GDP) rose by 0.1 percent. Government services dropped by 0.2 percent but transportation and communication, wholesale and retail, food and lodging services increased by 2.0 and 2.2 percent, respectively. However, construction (7.8 percent of GDP) fell by 1.6 percent due to the decrease in the civil construction such as road works.

Last year, North Korea’s gross national income (nominal GNI) was estimated to be 33.5 trillion KPW. Compared to South Korea’s 1.28 quadrillion KRW, this is a ratio of about 1 to 38.2. By dividing the GNI by North Korean population, per capita gross national income is calculated to be 1,371,000 KRW. Compared to South Korea’s (25,589,000 KRW) it is 1 to 18.7. This is comparable to the figures recorded in 2011 (1 to 18.6).

North Korea’s foreign trade volume (based on only import and export excluding the inter-Korean trade) increased 7.1 percent to 6.81 billion USD. North Korea’s exports (2.88 billion USD) increased by 3.3 percent, mainly in chemical products (38.0 percent) and animal products (23.6 percent). As for imports (3.93 billion USD), textiles (17.6 percent) and transport equipment (6.2 percent) increased by 10.2 percent.

Last year, the size of trade between North-South Korea rose by 15.7 percent over the previous year at 1.97 billion USD. Import and export to and from the Kaesong Industrial Complex accounted for 99.5 percent of the total amount. North Korea’s export increased 12.1 percent — mainly machinery (28.2 percent) and electrical and electronic equipment (16.1 percent) — and imports to South Korea increased by 17.5 percent — electrical and electronic products (25.8 percent) and textiles (12.8 percent).

Here is additional coverage in the Wall Street Journal‘s Korea Real Time, Bloomberg, Straits Times, Foreign Policy.

Read the full stories here:
North Korea posts 2nd successive year of growth-Bank of Korea
Reuters
Christine Kim
2013-7-12

Posted in Agriculture, Agriculture statistics, Foreign aid statistics, GDP statistics, Manufacturing, Statistics, Trade Statistics | 3 Comments »

North Korea promoting extensively for the international product exhibition

Thursday, May 30th, 2013

Institute for Far Eastern Studies (IFES)
2013-5-30

North Korea currently under robust international sanctions has put on extensive advertising campaign for the recent International Product Exhibition [Spring International Trade Fair] held in Pyongyang.

A week has passed since the 16th Pyongyang International Spring Product Exhibition (May 13-16), but the Choson Sinbo, the bulletin of the Japan-based Chosen Soren, continues to run daily articles on the products displayed in the exhibition.

The products displayed at the Pyongyang International Spring Product Exhibition, which is North Korea’s largest trade exhibition, provided a peak at the country’s current industrial trends. Moreover, this year’s exhibition introduced a number of products which are used in the daily lives of North Koreans.

The (North) Korean United Trading Company exhibited over fifty categories of products including colored metal products and a variety of lubricants and ball bearings. Groups including the Sungri Economic Trade Alliance, the State of the Art Technology Development and Exchange Center, the (North) Korean Hard Glass Company, the Pyongjin Bicycle Joint Venture Company, etc. entered products which contribute to improving the lives of North Koreans. The Chosun Sinbo introduced various new products displayed at the exhibition, including shoes was introduced which treats athlete’s foot and dissipates odors with substances such as nano silver as well as complex lactic acid products and other pharmaceutical products made at the Pyongchon Koryo Pharmaceutical Factory.

North Korea also focused on advertisement for automobiles and electronics. Pyonghwa Motors introduced over 30 new models at the exhibition, with the increase in demand. It also boasted that the new models were equipped with lower fuel consumption, reduced by two-thirds.

North Korean media also praised computer products introduced by the (North) Korean Computer Center for its rise in popularity and international competitiveness. The Ryongak Computation Information and Technology Exchange Center introduced a new tablet PC which it dubbed the ‘Yongheung.’ It was reported that buyers welcomed the site for portable profile projectors which had TVs for viewing and allowed for comfortable exhibition of mass media materials.

To overcome the current international sanctions imposed on North Korea, the exhibition is likely to be intended to increase its economic cooperation with the outside world. On May 22, the Chosun Sinbo reported that despite the United States-led economic sanctions on North Korea, many foreign enterprises participated in the exhibition in the hopes of expanding trade with North Korea. It highlighted that the Rason Comet Trade Corporation which is located in China and North Korea’s joint Rason Special Economic District, participated this year for the first time in the Pyongyang International Spring Merchandise Exhibition. The article explained that the Rason Comet Trade Corporation is exporting clothing including t-shirts and athletic wear to Indonesia, Thailand, China, etc. Pyonghwa Motors which exhibited 36 varieties of cars, passenger vans, and buses at the outdoor exhibition center, benefited from meetings with several foreign companies as well as North Korean trade and economic agencies.

The 16th annual Pyongyang Spring Product Exhibition was held from the 13th to 16th of this month and companies from North Korea, Germany, Malaysia, Mongolia, Switzerland, Singapore, Australia, Italia, Indonesia, China, Poland, and Taiwan participated at the event with various products including machineries, electronics, light industry, foods, medical, and chemicals.

Posted in Computing/IT, Korea Computer Center (KCC), Manufacturing, Pyonghwa Motors, Pyongyang International Trade Fair | Comments Closed

Premier Pak Pong-ju attends the first extended cabinet meeting

Friday, May 3rd, 2013

Institute for Far Eastern Studies (IFES)
2013-5-3

On April 22, for the first time since Premier Pak Pong Ju took office as the new Premier of the DPRK Cabinet, North Korea held an extended cabinet plenary meeting. Cabinet members discussed a variety of topics including the economy, enhancing nuclear capability for military purposes, advancing the party line, the results of the National Light Industry Convention, the first quarter assessment of the People’s Economic Development Plan, and adjustments to be made to the People’s Economic Development Plan during the second quarter.

The meeting has spurred interest in what economic breakthroughs will be made under Premier Pak’s direction. While this was only the first extended meeting held since Premier Pak became premier, there appeared to be no fundamental changes in the party line. The results from the last Politburo extended meeting regarding the National Light Industry Convention and the advancement of the party line in the areas of economics and the nuclear program were mirrored in the cabinet meeting. At the meeting, cabinet members emphasized groundbreaking measures that would contribute to improving the lives of the North Korean people.

At the Light Industry Convention, Kim Jong Un ordered for the normalization of operations of factories that produce consumer goods. As Pak was the official in charge, it is likely that he demanded for specific plans to stabilize production.

At the extended cabinet meeting, measures in response to the international sanctions against the country were also discussed. The KCNA reported the results of the meeting: “Foreign economic business must be strengthened to destroy the blockade of the US imperialists and their followers and put forth tasks and measures to explore favorable conditions to become an economic powerhouse.”

In order to avoid the sanctions of the international community, North Korea must continue foreign trade with China and other countries, as covertly as possible.

With respect to the contents of the meeting, Minju Choson, the state-run North Korean government newspaper, reported that “specific plans were discussed to expand the fuel production and restart Yongbyon GMR (graphite moderated reactor), and educational programs for nuclear experts.” In addition, plans for the development of practical and communications satellite were established and reaffirmed in order to continue the launch of long-range ballistic missiles.

North Korea’s long-range missiles, restart of the Yongbyon nuclear facility, and uranium exploration are under the control of the Second Economic Commission, military defense (military economy affairs), not the Cabinet. The Second Economic Committeeis the central coordinating body of the DPRK’s military-defense industry. Yet, the cabinet declared its decision to continue nuclear and missile launches at the cabinet meeting. This would suggest that the cabinet is supportive of Kim Jong Un’s “byungjin line,” or policy of pushing forwarding economic construction and the building of a nuclear force.

Expectations that cabinet reform would be mentioned did not come to fruition. There is a probability that Premier Pak is preparing to implement in earnest the ‘6-28 Economic Management Improvement Policy’ which has been in the works internally since last year.

North Korean leader Kim Jong Un, since delivering the New Year’s Address last January, has promoted Premier Pak as the leader most qualified to execute plans to make North Korea an economic power. However, it is unclear whether Premier Pak will be able to meet such a challenge given the limited reforms in progress and the deterioration of the external situation. On the other hand, Premier Pak chose a cooperative farm for his first site visit which suggests that the North Korean cabinet may concentrate on agricultural sector this year.

Posted in 6.28 Policy on Agriculture (June 28), Cabinet, Energy, Light Industry, Manufacturing, Nuclear | Comments Closed

North Korean Economy Watch