Archive for the ‘Institute for Far Eastern Studies’ Category

Food distribution to resume for the first time in seven years

Friday, January 27th, 2012

Institute for Far Eastern Studies (IFES)
2012-1-25

A month into Kim Jong-un’s ascension to power, it is reported that food distribution is likely to resume nationwide in North Korea.

Many experts evaluate this as a symbolic measure to propagate the construction of a powerful economy and improve the lives of the people. For the North Koreans, the most apparent and obvious economic accomplishment is the improvement of the food situation. Thus, North Korea is most likely to take action to normalize food rations as its top priority.

According to a statement made by a South Korean government official on January 20, “Kim Jong-un and his leadership will begin the food distribution as a way to prove to its people about changes forthcoming in the new regime.”He also added, “After years of propagation for the building of a strong and prosperous nation, they must demonstrate it to the people with noticeable results.”

The amount of rations to be provided is still unclear. However, the source emphasized that it was very likely for rice rations to resume, especially with the approaching national holidays, such as the Lunar New Year and Kim Jong-il’s birthday (February 16).

He also commented that “the food distribution will be a nationwide movement and the food ration system will go into effect based on the distribution network of available food supply.”

According to the Food and Agricultural Organization (FAO) and the World Food Programme (WFP), North Korea’s food production in 2011 compared to the previous year rose by 8.5 percent, sitting at about 5.48 million tons (of rough grains or 4.66 million tons of milled grains).

The minimum amount of food consumption in North Korea is 5.4 million tons, but a shortage of about 400,000 tons is expected, including the international food aid and industrial food imports. Among the recent years, this marks the largest deficiency in food supply.

However, such shortages can be overcome with additional food imports and distributing mainly rice reserves.

The last national food distribution in North Korea was in 2005, seven years ago.

North Korea is also likely to exert more effort in food processing production to improve the distribution of daily necessities. With relatively little dependence on raw material imports, North Korea is planning to improve the food situation through expanding the food processing production in agricultural, fishery, and livestock industries, with less competition with Chinese products.

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Preciseness emphasized for the tax investigation of special economic zones

Monday, January 23rd, 2012

Institute for Far Eastern Studies (IFES)
2012-1-18

North Korea is continuing to put forward new laws for the special economic zones (SEZs) such as Rajin-Sonbong and Hwangumpyong Island. Recently, North Korea announced special guidelines for the tax investigations of foreign businesses in the zones.

North Korea’s Academy of Social Science Newsletter Volume 4 (published on November 2011) released an article titled, “Suggestions to Improve Tax Investigations in the Special Economic Zone,” which included detailed instructions for the policy improvement for tax investigation for SEZs. Here, particular emphasis was placed on the enhancement of the tax investigation system — to be accurate and rational — for the foreign investment companies.

The article explained, “Based on the principles of equality and reciprocity for the construction of powerful economic state, the tax investigation system in the SEZ must be improved especially at the present time when SEZs are being constructed and expanded to increase economic trade with other nations.”

It also stressed tax officials must be equipped with, “comprehensive knowledge and experience who accurately understand the entire process of business management. They must be capable of creating new tax investigation methods and be able to discern the various forms of tax evasions.”

For the qualifications of the tax officials, the article recommended that the officials be selected based on their knowledge and experience; ability to develop techniques for tax investigation; awareness of rules and regulations of tax laws and bylaws, and regulations of rights and responsibilities of taxpayers; and capability of conducting research on foreign tax investigation policies.

The Academy of Social Science is a government agency of the DPRK, and the recent article on the tax investigation reflects that the government has already begun the process of implementing the tax investigation guidelines and laws in the SEZs.

The article emphasized establishing a tax investigation system acceptable to foreign companies. One can construe this as North Korea’s effort to attract more businesses to the SEZ, which is currently suffering from poor performance.

In addition, North Korea is believed to be placing weight on the tax investigation based on its past experiences with the South Korean companies in the Kaesong Industrial Complex (KIC). In the past, the officials of the Central SpecialDirect General Bureau toured the industrial districts in China and showed keen interests in the tax management.

On December 8, 2011, the KCNA reported that the Standing Committee of the Supreme People’s Assembly (SPA) has adopted the Economic Zone Act for Hwanggumpyong and Wihwa Islands. The law was revised and supplemented to include the Free Economic and Trade Act of Rajin-Sonbong. However, the details of these laws were not disclosed and some experts are predicting that these laws are likely identical to the Chinese laws in China’s flourishing SEZs.

However, on January 11, 2012, Yonhap News Agency of South Korea reported that China rejected the new Special Economic Zone Act of the DPRK because it is “not business-friendly.” The news reported, “China said the law was not business-friendly, telling North Korea that the law had some problemsregarding taxes, accounting, remittance of profits and stability of investment.” It is reported that North Korea is working on the revision of these laws and likely for a new special zone act to be passed by the Standing Committee of the DPRK’s Supreme People’s Assembly (SPA).

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Kim Jong-il visits economic sites across the country

Thursday, October 27th, 2011

Institute for Far Eastern Studies (IFES)
2011-10-27

The North Korean media has reported Kim Jong Il has made nine official appearances from October 1 to 16, making roughly about one appearance every two days.

According to the KCNA, Kim has made six on-the-spot guidance visits in South Hamgyong Province, visiting Daehung Youth Hero and Ryongyang Mines in Danchon City and 2.8 [Vinalon] Complex, Hungnam Fertilizer Complex, Ryongsong Machinery Complex, and Hungnam Smeltery in Hamhung City.

Compared to last month’s official activities, this is a noticeable increase.

Kim has made 18 official appearances in July and spent a week in Russia and China in August but remained fairly quiet during the month of September with only six reported activities.

Last month, Japan’s Jiji Press reported that Kim was not able to meet with the Indonesian delegation (who was visiting Pyongyang at the time) due to poor health. Many experts also believe that Kim’s health has deteriorated since his return from abroad and thus has made fewer public appearances.

Kim is believed to have stayed in Pyongyang in September and his recent visits to South Hamgyong Province are evidence that his health is improving.

Another interesting fact is that most of Kim Jong Il’s recent activities are economic centered. He has made no visits to military base this month, and except for attendance at the sixty-sixth anniversary party of the Korean Workers’ Party and Unhasu Orchestra performance, Kim has focused mainly on economic on-site inspections.

Taking a closer look at the sites Kim has visited, they consist mainly of construction or completed sites such as Danchon Port, a solar energy installation center, Daedong River pig and duck farms, and Pyongsong synthetic leather factory in Northern Pyongan Province.

Accompanying Kim at these economic sites were also high ranking officials. The KCNA reported on October 18 that President of the Supreme People’s Assembly Kim Yong Nam, Premier Choe Yong Rim, and other party members inspected the modernized facilities of the Tudan Duck Farm.

As North Korea prepares for the year 2012, with the self-proclaimed goal of becoming a “strong and prosperous nation,” it appears to be placing added emphasis on producing tangible outcomes to encourage economic development and improve the quality of life for the North Korean people.

North Korea recently discussed ways to fulfill this year’s economic targets. In an extended plenary session presided over by Premier Choe Yong Rim, the cabinet addressed measures to increase the state’s production of coal, electricity, metal, and railways freight traffic. In addition, it also reported on the economic performance for the third-quarter of this year.

This story was published on October 27, but it was probably written on October 17th.  Following completion of the article, but before it was posted to the internet, Kim Jong-il did make two visits to KPA units (4304 and 985).

As of October 29, Kim Jong-il made 32 public appearances in the month:

Huichon Precision Machine Plant
Huichon Ryonha General Machinery Plant
February 8 General Machinery Plant
Jangjagang Machine Tool Factory
Kanggye General Tractor Plant
KJI received Li Keqiang, member of the Standing Committee of the Political Bureau of the C.C., the Communist Party of China and vice-premier of the State Council of China
Banquet for South Hamgyong officials
Kwangdok Pig Farm
KPA Unit 985
Kim Jong Il received Oleg Kozhemyako, governor of Amur Region of the Russian Federation
KPA Unit 4304
Art Performance of KPA Company Soldiers
Tongbong Cooperative Farm
February 8 Vinalon Complex
Hungnam Fertilizer Complex
Ryongsong Machine Coplex
Hungnam Smeltery
Ryongyang Mine
Taehung Youth Hero Mine
Taedonggang Net-weaving Factory
Taedonggang Pig Farm
Taedonggang Terrapin Farm
Banquet Given by Central Committee and Central Military Commission of WPK
Unhasu Orchestra
Tudan Duck Farm
Solar Equipment Center
Central Tree Nursery
Phyongsong Synthetic Leather Factory
Raknang Disabled Soldiers’ Essential Plastic Goods Factory
Ryongjon Fruit Farm
Tanchon Magnesia Factory
Tanchon Port Construction

And what has Kim Jong-un been up to?  According to Yonhap:

North Korean leader Kim Jong-il’s heir apparent has been seen expanding the realm of his public activities in recent months, according to reports from the North’s news media monitored in Seoul.

Kim named his youngest son, Jong-un, vice chairman of the Central Military Commission of the ruling Workers’ Party and a four-star general last September in the clearest sign yet that he will take over the regime.

The son has frequently attended economic and diplomatic events in the second half of this year while he focused on military-related activities in the first half, according to North Korean media reports.

The junior Kim has already accompanied his father for his public activities as many as 36 times in the four months or so from July, compared to 35 times in the first six months.

Of the 36 cases, 11 were economy-related, compared to nine in the first half.

Jong-un is also believed to be faithfully absorbing leadership lessons from his father in the diplomatic sector.

He sat beside his father when he met with visiting Chinese Vice Premier Li Keqiang on Monday in Pyongyang.

Jong-un, in particular, sat to Li’s right during a photo opportunity for the meeting, indicating his firm position as the No. 2 man in the North.

On Sept. 23, Jong-un attended a meeting between his father and visiting Laotian President Choummaly Sayasone.

Experts say the heir apparent’s expansion of activities to the economy and diplomacy shows that the country’s second father-to-son power succession is going smoothly.

“Jong-un has yet to assume titles other than vice chairman of the Central Military Commission but seems to be strengthening his position, building experience in various fields,” a North Korea expert said, requesting not to be named.

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ROK government planning to resume construction and relax sanctions in Kaesong zone

Thursday, October 20th, 2011

Pictured above (Google Earth): The towns mentioned in the article below from which the Kaesong Industrial Zone could draw more labor: Pongchon (봉천), Kumchon (금천), and Phyongsan (평산).

Institute for Far Eastern Studies (IFES)
2011-10-20

According to South Korea’s Ministry of Unification (MOU), the “May 24 Sanctions” that went into effect after the sinking of the naval boat Cheonan was relaxed and began to permit the resumption of construction of businesses in the Kaesong Industrial Complex (KIC). In addition, plans to build fire stations and emergency medical facilities in the area are also currently underway.

After South Korean Grand National Party chairman Hong Jun-pyo visited KIC on September 30, 2011, the ROK government has reached the following decisions: 1) to allow the resumption of halted factory constructions; 2) to build a fire station and emergency medical facility; 3) to resume repair work for commuting roads for KIC employees; and 4) to extend the operations of commuter buses.

This means seven companies that received permits in the past to begin construction but stopped after the sanctions went into effect would be able to resume the halted construction projects.

According to the Ministry of Unification, the seven companies include three metal and machinery, three textile, and one electronic factories, taking up a total area of 103,527 square meters. The total site of production facilities of stage 1 businesses in the KIC reaches 2,171,900 square meters, in which the currently operating 123 companies take up 783,471 square meters. With the sanctions lifted, the total area of businesses in operation will reach 885,950 square meters.

In addition, five companies awaiting construction for expansion will have to wait a little longer. The authorities announced to discuss this issue at a later date, looking positively on their construction to resume shortly as well.

Also the MOU announced to push forward with the establishment of fire stations and emergency medical facilities, “to protect the properties and health of businesses and employees of the KIC. The plans to break ground for fire station will begin in mid-November and is expected to be completed by late next year.”

The layout for the KIC fire station was completed in December 2009 and 3.3 billion USD has been budgeted to fund the construction. The station will be constructed on a steel frame on a 3,305 square-meter lot with the total floor space to be around 2,182 square meters.

The Kaesong Management Committee has been operating a “fire/police station” from April 2005. But with occurrences of accidental fires since last winter, it has reinforced the number of fire engines and manpower – currently at a total of eight fire trucks and 36 fire fighters.

Medical facilities in the KIC will also be completed by the end of 2012 once the construction begins early next year. About 3 billion USD is set for this project.

Currently at the KIC, Green Doctor’s Cooperation Hospital is in charge of providing medical and health services in the KIC, with South Korea Green Doctor’s Kaesong Hospital treating the South Korean employees and North Korean Comprehensive Clinic treating the North Korean employees exclusively. The South Korea Green Doctor’s Kaesong Hospital is currently operated by volunteers at a clinic level. The hospital was in the process of improving the facilities to more than ten beds. However, this project was halted after the May 24 sanctions went in effect.

On another note, the MOU also announced that maintenance work for the road connecting Kaesong City to the KIC would begin. The road is normally used by North Korean employees of the KIC. It was also announced that the number and operation of commuter buses would increase to help with the commute. The buses operate in the 20 km radius; the plan is to increase that to 40 km. Since September 2010, the number of buses increased to 400.

There are plans to extend the service to cover the areas of Kumchon, Bongchon, and Pyongsang. However, the roads to these areas are unpaved and extension of transportation services to these areas will require negotiations with the North Korean authorities.

Although these measures will alleviate some of the problems faced by the businesses in the KIC, the MOU still stands firm on its position that North Korea must take responsibility and make formal apology for the Cheonan incident in order for a fundamental resolution of the situation to occur.

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Plans for SEZ between China and the DPRK to Come Out at Year’s End

Thursday, October 13th, 2011

Institute for Far Eastern Studies (IFES)
2011-10-5

Dai Yulin, secretary of the Dandong Committee of the Communist Party of China, said in his interview with the China Daily on September 28 that concrete plans for the joint development projects between China and North Korea in the Hwanggumpyong and Rajin-Sonbong regions will be announced at the end of the year.

This past June, Dai stated both countries agreement to jointly develop Hwanggumpyong and Rajin-Sonbong as an economic development zone and reported smooth progress in its plans.

According to Secretary Dai, “The joint management committee between China and North Korea has already been formed to promote the Hamggumpyong development project. Both countries are getting up steam to advance the project.”

In addition Dai explained, “China has secured 10 square kilometers of national land to be used to support the joint development of Hamggumpyong.” He also added, “A think tank comprised of 72 experts was also established to advise and buttress the project.”

When DPRK Cabinet Premier Choe Yong Rim visited China last month, Dai commented, “Choe’s visit to China is underlined with North Korea’s strong interest in economic reform. All the high level officials in the economic sectors accompanied him on the trip.”

While visiting China for five days, Choe met with Premier Wen Jiabao and expressed strong motivation for strengthening trade and cooperation with China, especially to improve its infrastructure. He stated, “For those Chinese companies investing in North Korea, we will provide special accommodations to encourage more investments.” In response, Wen Jiabao commented, “China will do all it can to support North Korea, so that they may seek development method most appropriate for them.”

After the meeting between the two top officials, the two nations came to an agreement to cooperate in trade, investment, and infrastructure, resources and agriculture development.

Prior to meeting with Wen, Choe visited Lanxing Chemical Industrial Machine Co. After he paid his courtesy visit to President Hu Jintao of China in Beijing, he continued to make economic related visits to Baoshan Steel Group, Bailian Xijiao Goods Purchasing Center, and industrial facilities in Jiangsu Province.

After North Korea designated Hwanggumpyong Island as a free trade zone, China has signed a 50 year-lease agreement to develop the island. Despite being a “joint development” in name, in actuality, China has the exclusive development rights based on Chinese capital.

However, North Korea is requesting for revision of the name to “co-development between China and the DPRK,” a request that China is expressing some uneasiness over. The initial agreement was to “lease Hwanggumpyong Islands to China,” which gave exclusive and autonomous development and management rights to China in the zone.

China has articulated on many occasions the Hwanggumpyong project must be strictly based on market principles and expressed apprehension that Chinese businesses may be unwilling to invest in the area if North Korea continues to pursue to change it as a joint development.

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DPRK-China Trade Volume Reaches Record High at 3.1 Billion Dollars

Thursday, September 29th, 2011

Institute for Far Eastern Studies (IFES)
2011-9-29

This year’s trade volume between China and the DPRK reached an all time high.

According to the (South) Korea Trade Investment Promotion Agency, the trade volume between China and North Korea between January and July of 2011 recorded 3.097 billion USD, surpassing last year’s 3.472 billion USD by 88 percent.

This is the second year since 2008 for the yearly trade volume to continue to break the record of the previous year.

During the same period, China exported 1.783 billion USD and imported 1.314 billion USD to North Korea. Compared to the same period last year, exports increased by 53.3 percent while imports increased by 169.2 percent, and its trade surplus decreased by 30.4 percent.

The main exports of China are oil, diesel freight vehicles, nitrogenous fertilizers, and grains while the top imports were anthracites, steel, and non-alloy pig irons.

The total amount of fertilizer North Korea imported between January and June totaled 193,960 tons (equaling about 39.88 million USD), a hike of 91 percent against last year’s 99,588 tons (25.4 million USD).

The price per ton of imported fertilizers was 188 USD for ammonium sulfate fertilizer (164,456 ton) and 346 USD for urea fertilizers (25,577 ton). Last year, 59,110 tons of ammonium sulfate fertilizer and 45,310 tons of urea fertilizer were imported. A drastically higher amount of ammonium sulfate fertilizer was imported this year compared with the previous year, the cause of which is speculated to be either a radical decrease in the fertilizer production in North Korea or an attempt to improve the country’s food production.

The total amount of grains imported from China from January to June totaled 149,173 tons, a boost of 5.5 percent from the previous year. The price of grain per ton went up from 372 USD to 404 USD, a rise of 8.6 percent. The cost of imported grain increased 14.4 percent against last year, an increase from 52.7 million USD to 63.1 million USD.

The grains imported were corn (38.2 percent), flour (37.5 percent), rice (16.9 percent), and bean (7.2 percent). Compared to last year, corn and flour imports rose while rice and bean slightly decreased. This year’s average price per ton of grain was 661 USD for bean, 538 USD for rice, 395 USD for flour, and 304 USD for corn.

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Optimism remains on gas pipeline between North and South Korea

Tuesday, September 13th, 2011

Institute for Far Eastern Studies (IFES)
2011-9-7

An article entitled, “Joint energy project on the agenda” was featured in the KCNA on August 31, which elaborated on the agreement reached between the DPRK and Russia on August 24 for the construction of a gas pipeline. The joint project is also inclusive of South Korea.

The KCNA said in the article, “The three countries have explored various options in transporting gas and have reached a consensus on building a gas pipeline running through North Korea will be the most cost-effective option.”

It also stressed this project will be beneficial for all three parties. In addition, Russia was commended as the major world power in natural gas and oil reserves and production and stressed Russia is turning its attention to expanding the energy sector.

When the Sakhalin – Komsomolsk – Khabarovsk pipeline that began construction in 2009 is completed, it will be equipped to provide enough gas not only domestically but across the Pacific-Asia region, producing a capacity of 30 billion cubic meters of gas per year.

The news also covered the specific plans of the Russian government to expand its energy supply; to boost the exports of oil and gas from three to thirty percent and five to twenty-five percent respectively, until the year 2020.

Therefore, the inter-Korean gas pipeline construction between the DPRK and Russia will be a vital project for Russia.

On August 30, the ROK’s Grand National Party (GNP) chairman Hong Jun-pyo declared, “The trilateral negotiation will be expected to take place sometime in November on the inter-Korean gas pipeline project.”

Hong also stated, “The ROK-Russia and the DPRK-Russia bilateral agreements have already been reached. Once the three parties meet to sign the tripartite agreement, the project will soon take off.” He also added, “President Lee Myung-bak has quietly pushed forward with the gas pipeline project since he first took office and it will be his major accomplishment.”

After the bilateral summit was held between the two leaders of Russia and the DPRK on August 24, the two nations have consented to establish a special commission to work cooperatively on the gas transit project running through the territories of North Korea to South Korea.

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The DPRK and Russia to Discuss Construction of Gas Pipelines

Wednesday, August 24th, 2011

Institute for Far Eastern Studies (IFES)
2011-8-24

Kim Jong Il’s visit to Moscow on August 20 is sparking interest for the future of economic cooperation between the two countries.

According to the KCNA, Russian President Dmitry Medvedev expressed interest to increase trilateral cooperation between the ROK-DPRK-Russia in the gas, energy, and railroad sectors. In the message sent from Medvedev to mark the 66th anniversary of independence from Japanese colonial rule, “plans to expand cooperation with the DPRK and the ROK in gas, energy, and railroad industry” were emphasized.

The cooperation projects are evaluated to have “great economic and political significance contributing to the stability in Northeast Asia and denuclearization of the Korean peninsula.”

In July 4, the KCNA reported that the delegates from the Russian energy giant Gazprom headed by Chairman Alekhsandr Ananenkov visited Pyongyang to discuss energy cooperation, although details of the visit was not elaborated. Ananenkov was reported to have met with North Korean officials in gas and oil industriesto discuss bilateral cooperation in these areas.

Russia has also expressed interest in linking gas pipelines to export natural gas to South Korea via inter-Korean railroad system.

A spokesperson of the foreign ministry of the DPRK reported on the recent visit from the vice-foreign minister and chief representative of Russia on Six-Party Talks, Aleksei Borodavkin, this past March. In the statement, the Russian government expressed concerns for improving inter-Korean relations and stressed prospects of the tripartite economic cooperation projects with North and South Korea including the construction of railways, gas pipeline, and a transmission line linking the three countries. The DPRK also expressed support for the upcoming economic cooperation projects.

In result, the main agenda in the bilateral economic cooperation between Russia and North Korea entails railway, gas pipeline, and transmission line construction.

President Lee Myung-bak has met with the Russian president Medvedev in September 2008 in Moscow. At the summit, the two presidents reached an agreement to pursue projects to export Russian PNG or pipeline natural gas to South Korea through a pipeline via North Korea from 2015.

Immediately following the summit, South Korea’s Korea Gas Corporation (KOGAS) and Russia’s Gazprom signed a memorandum of understanding (MOU) to jointly study the possibilities of constructing a long-distance pipeline running from Vladivostok. Under the contract, Russia will send at least 7.5 million tons of natural gas annually for a period of 30 years through a pipeline to South Korea via North Korea.

This joint study between ROK-Russia is expected to serve as a momentum in bringing diverse economic cooperation between North and South Korea as well.

While it is still premature to judge the long-term outlook for such trilateral economic cooperation, its effects are anticipated to contribute to stability and peace in the Northeast Asian region.

Additional Information: here is a summary of the recent Kim Jong-il — Medvedev summit.

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Official activities of Kim Jong-il centered on economy while Kim Jong-un focused on military

Thursday, July 21st, 2011

Institute for Far Eastern Sudies (IFES)
2011-7-19

Kim Jong Il has made a total of 63 official activities in the first half of 2011, focusing mainly on providing field guidance at economic related facilities. On contrast, only one onsite inspection was given at a military base.

According to an official report from the Ministry of Unification, Kim Jong Il was witnessed to have made 63 official appearances this year thus far, already reaching 80 percent of total activities made last year, a record all-time high in the number of official activities for Kim

Specifically, he has made 28 economic related activities which encompassed 45 percent of the entire official activities. Only 14 military related activities were made, the lowest number ever recorded. Out of the 14 military activities, 9 consisted of attendance at military performances and only one trip was entirely associated with military inspection. Alongside these inspections, Kim also made 7 foreign-related activities.

The monthly breakdown of Kim’s official activities was 15 in January, 11 in February, 9 in March, 13 in April, 10 in May and lastly, 5 in June.

Since 2009, Kim made consistent official appearances and the reports of his official activities were found regularly on a bi-weekly basis, except for June when his activities were not reported for two weeks between 14th to 30th.

Kim is accompanied by several officials on his official activities, in which 54 officials were recorded to have accompanied this year. Kim Kyong Hui escorted Kim the most at 48 times. Following Kim Kyong Hui; Jang Song Taek, vice chairman of National Defence Commission (NDC) accompanied 45 times; Kim Ki Nam, secretary of Workers’ Party of Korea (WPRK) accompanied 43 times; Tae Jong Su, secretary of WPK made 43 trips; Ju Kyu Chang, Director of WPK 38 times; Kim Jong Un, vice chairman of Central Military Committee of WPK 35 times; Park Do Chun, secretary of WPK 29 times; Choi Tae Bok, secretary of WPK, 27 times; Hyun Chul Hae, director of Korean People’s Army 26 times; Moon Kyong Duk, Pyongyang, secretary of Pyongyang City Party Committee 25 times; and lastly, Lee Myong Su, director of People’s Safety Ministry made 25 trips.

After making his appearance at the KWP Convention on September 28, 2011, Kim Jong Un has made a total of 73 official activities, and 35 of these activities took place this year.

In detail, Kim Jong Un made 20 military, 18 economic, and 7 foreign-related activities. Monthly breakdown of activities are 2 times in September, 16 times in October, 11 times in November, 9 times in December, 5 times in January, 9 times in February, 8 times in March, 7 times in April, 4 times in May and 2 times in June.

Kim Jong Un’s activities were chiefly military related in which 86 percent comprised of accompanying senior Kim on his visits to political and military sectors. This is a natural outcome, considering his official position as the vice-chairman of Central Military Committee of WPK. The high number of military activities is in sharp contrast with his father, who began to focus mainly on economic activities since 2008.

The New Year’s Message delivered at the beginning of this year placed “improvement of North Korean people’s lives and development of light industry” as the top agenda for the nation. Correspondingly, Kim Jong Il official activities were mainly economic-related to light industry and agricultural sectors.

Kim Jong Il’s official activities are noteworthy indicator which exhibit the direction of leadership and the changes occurring amongst the main elites

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Kim Jong-il actively making field guidance visits in the economy sector

Friday, April 29th, 2011

Institute for Far Eastern Studies (IFES)
(NK Brief 11-04-27)

Kim Jong Il is continuing to make field guidance visits around Ryanggang and the Northern Hamgyong Province.

The Rodong Sinmun reported on April 23 that Kim Jong Il visited Rajin Shipyard. Rajin Shipyard is known for producing ships necessary for advancing fishing, marine transportation, and foreign trade industries. Chairman Kim emphasized the importance of self-reliance, especially on the need to adopt the latest science and technology and partake in the mass technical innovation movement by implementing CNC (Computer Numerical Control) technology into ship design, assembly, and manufacturing.

According to the Korean Central News Agency (KCNA) on April 20, Kim also gave field guidance at Kim Chaek Iron and Steel Complex and newly built Susongchon General Foodstuff Factory in Northern Hamgyong Province. The Rodong Sinmun on April 22 also reported that the DPRK leader provided field guidance at Hyesan Youth Mine in Ryanggang Province. At the Hyesan Youth Mine, he said “The major project of the Party is to complete the technological modernization to radically increase the production of mineral ores.”

At the recent visitation to Songjin Steel Complex at Kim Chaek City, Kim once again emphasized self-reliance. Kim stated, “The self-reliance of the metal industry is the permanent path of our economy.” He further added, “Despite the imperialist’s sanctions and blockade, we reached the highest level of metal production from the revolutionary spirit of self-reliance. The Party’s traditional slogan of self-reliance is the only weapon of victory leading to our nation’s triumph and prosperity.”

North Korea announced that Songjin Steel Complex established Juche steel production system at the end of 2009. At the complex, Kim gave praise to the facility by saying, “The completion of steelmaking process of Juche steel with our own technology is a greater victory than the success of a third nuclear test.”

However, Kim Jong Un, the vice-chairman of the Central Military Commission and the named successor of the DPRK was not included in the list of entourage in the recent field guidance given by the senior Kim at Kim Chaek Iron and Steel Complex, Hyesan Youth Mine and Najin Shipyard.

Kim Jong Il is reported to have conducted 35 official activities in the first quarter of 2011. Although it is a decrease from last year’s number of 41, it is still higher than the average of 21(1999-2010) in the first quarter. The breakdown of the activities of Kim is as follows: 12 economy-related visitations, 10 attendances at performances, 9 inspections at military bases or other military related activities and lastly, 4 meetings with diplomatic delegations.

The economy-related inspections were the highest in the first quarter since 2009. This trend reflects Kim’s intentions of concentrating on inspecting the economic sectors early on in the year to encourage results in this sector. A notable point is that self-reliance and incorporation of CNC was mentioned at all industrial facilities that Kim inspected.

Among the entourage, Kim Jong Il’s sister, Kim Kyong Hui, director of the Light Industry Department of the Korean Workers’ Party (KWP), accompanied the leader 28 times on his recent inspections. Kim Ki Nam, the KWP Secretary and Director of Publicity and Information Department made 24 trips, Kim Jong Un and Tae Jong Su, KWP Secretary and Director of the General Affairs Department made 22 trips each, and Chang Song Taek (Jang Song Thaek), the husband of Kim Kyong Hui and vice-chairman of the National Defence Commission, is known to have made 20 accompaniments.

Recently, North Korea has been making changes in the planned economy by naming the new Central Bank chief, upgrading the State Price Bureau to the State Price Commission, and establishing the State General Bureau of Economic Development.

Kim Jong Il has conducted a total of 161 official activities last year, his most active year since the official launch of the Kim Jong-Il regime in 1998.

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