International Organizaitons « North Korean Economy Watch

Archive for the ‘International Organizaitons’ Category

N.Korea in Fresh Attempt to Lure Foreign Investment

Thursday, December 10th, 2009

Choson Ilbo
12/10/2009

Even as North Korea struggles under UN sanctions and is in the midst of a controversial currency reform aimed at breaking the back of a nascent free market, the reclusive country is apparently in the process of changing laws in order to attract more foreign investment, an expert said Wednesday. It is even offering foreign companies wages cheaper than those paid to North Korean workers at the joint-Korean Kaesong Industrial Complex, according to Jack Pritchard, president of the Korea Economic Institute in Washington D.C.

Pritchard, who visited Pyongyang last month along with Scott Snyder, director of the Center for U.S.-Korea Policy at the Asia Foundation, told reporters in Washington. The North Korean trade department official they met there told them there are no strikes among North Korea’s skilled workers and were very aggressive in luring foreign investment. He added North Korean officials offered wages of 30 euros a month (around US$44), which was lower than the average $57 paid to workers at the Kaesong Industrial Complex. The officials said they were also willing to offer various incentives to foreign companies interested in taking part in the construction of 100,000 homes in Pyongyang. North Korea appeared to be changing its attitude toward foreign countries as part of its goal to become a strong and powerful nation by 2012, he said.

In an article for Global Security [Posted below], the Internet-based provider of military and intelligence information, Snyder wrote, “North Korean colleagues at the Ministry of Trade appeared genuinely surprised and dismayed when we mentioned that UN Security Council Resolution 1874… contains provisions prohibiting companies from making new investments in North Korea.”

Snyder said North Korea’s interest in foreign investment as part of its goal to become a “strong and powerful nation” by 2012 is a new development and one that could play a role in resolving the nuclear stalemate.

But efforts to attract foreign investment and capital over the past 25 years have been a disaster. North Korea announced new regulations in September of 1984 to allow businesses from capitalist countries to operate there. It set up special economic zones in Rajin-Songbong in 1991 and in Sinuiju in 2002. But the Sinuiju project never got beyond the ground-breaking stage due to conflict with China, while empty factories litter Rajin-Sonbong.

North Korea aimed to attract $7 billion worth of foreign investment into Rajin-Sonbong, but actual investment amounted to only $140 million. According to the South Korean government and other sources, there are an estimated 400 foreign businesses operating in North Korea. Most of them are small businesses run by Chinese or North Korean residents in Japan. The shining exception is the Egyptian telecom company Orascom, which offers mobile phone services in the North. “It’s more accurate to say that there are no major foreign businesses operating in North Korea,” said Cho Dong-ho, a professor at Ewha Woman’s University.

North Korea forged its first pact guaranteeing foreign investment with Denmark in September 1996 and signed similar pacts with around 20 countries, including China, Russia, Singapore and Switzerland, as of 2008. There have been consistent reports that businesses in Europe and Southeast Asia were interested in doing business in the North, but hardly any made the move.

Cho Myung-chul, a professor at the Korea Institute for International Economic Policy, who taught economics at Kim Il Sung University in North Korea, said, “The reason why no listed foreign companies are operating in North Korea is because they may end up on the list of businesses subject to U.S. sanctions.” This is one of the reasons why North Korea has tried so desperately to be removed from the U.S. list of terrorism-sponsoring countries.

And even if foreign businesses are interested in investing in North Korea, its lack of infrastructure, including steady power supply and adequate roads and ports, make it impossible to operate factories there. Cho Young-ki, a professor at Korea University, said, “You have to build a power plant if you want to build a factory in North Korea. Cheap labor does not mean businesses will profit there.” The electricity used by the Kaesong Industrial Complex is provided by South Korea, while Hyundai Asan operates its own generator at the North Korean resort in Mt. Kumgang.

Dispatch from Pyongyang: An Offer You Can’t Refuse!
Global Security
Scott Snyder
12/07/2009

Every North Korean seems to have been mobilized for an all-out push to mark their country’s arrival as a “strong and powerful nation” in 2012, which marks the 100th anniversary of Kim Il Sung’s birth, Kim Jong Il’s seventieth birthday, and the thirtieth birthday of Kim Jong Il’s third son and reported successor, Kim Jong-Eun. Pyongyang citizens have cleaned up the city during a 150-day labor campaign, followed by a second 100-day campaign now underway. The Ryugyong Hotel in the middle of Pyongyang, unfinished for over two decades, has been given a facelift courtesy of the Egyptian telecommunications firm Orascom, which expects to have 100,000 mobile phone customers in Pyongyang by the end of the year. But it is still difficult to shake the feeling in Pyongyang that one has walked onto a movie set in between takes. Or that the used car looks good on the outside, but you really don’t know what you might find if you were able to look under the hood or give it a test-drive.

North Korean foreign ministry officials saw United Nations condemnation of their April missile launch as an affront to their sovereignty. This is the ostensible reason the North Koreans have walked away from six party talks. Having conducted a second nuclear test, North Korean officials want to be considered as a nuclear power, choosing instead to “magnanimously” set aside nuclear differences in order to focus on the need to eliminate U.S. “hostile policy” by replacing the armistice with a permanent peace settlement. Essentially, Pyongyang’s new offer–as a “nuclear weapons state”–has shifted from the denuclearization for normalization deal at the core of the 2005 Six Party Joint Statement to “peace first; denuclearization, maybe later.” There was no mention of “action for action” by our North Korean interlocutors.

But the North Koreans are likely to find when Ambassador Stephen Bosworth arrives in Pyongyang next week that the United States will not accept North Korea as a nuclear weapons state. There is virtually no area of agreement between the two governments on the nuclear issue based on public statements made by the two sides thus far, suggesting the likelihood that both sides will face a difficult conversation.

A new component of North Korea’s strategy for achieving its economic and infrastructure goals in the run-up to 2012 is its effort to attract investment from overseas. The Director of North Korea’s newly established Foreign Investment Board unveiled a new plan for attracting equity, contractual, and 100% foreign owned joint venture investments. On paper, the rules incorporate provisions for repatriation of profit, generous tax incentives, and a labor rate of thirty Euros per month. This rate undercuts the compensation of $57.50 per month currently offered at the South Korean-invested Kaesong Industrial Zone. Even more generous was the offer of special concessions in North Korea’s natural resources sector for companies willing to build 100,000 units of new housing in Pyongyang that have already been promised in the run-up to 2012.

North Korean colleagues at the Ministry of Trade appeared genuinely surprised and dismayed when we mentioned that UN Security Council Resolution 1874, which condemned North Korea’s May 25, 2009, nuclear test, contains provisions prohibiting companies from making new investments in the DPRK. This is all the more unfortunate because on paper, North Korean efforts to open its economy through foreign investment are exactly the course that should be encouraged, and North Korea’s goals for 2012 could be advanced significantly with inward investment from companies that might be willing to take the risk, but the nuclear issue stands in the way. This is not to mention that North Korea’s own economic retrenchment and anti-market policies, including the “currency reforms” announced earlier this week, stretch the credibility of the North Korean government to back up these laws. Recent surveys of Chinese investors suggest few demonstration projects for successful investment in North Korea and a high probability of getting scammed or fleeced on the ground.

But the North Korean plea for foreign investment does suggest a potential point of leverage that deserves careful consideration, and that is the possibility of an investment in a strategic commodity that is of special interest to the United States: North Korea’s plutonium stock. During the Clinton administration, former Defense Secretary William Perry led efforts to make similar purchases of nuclear materials from the Ukraine and Kazakhstan, which had inherited stocks of nuclear materials from the breakup of the Soviet Union. These transactions advanced the cause of nuclear non-proliferation by ensuring that these countries would not become nuclear states. A 2004 report of a Task Force on U.S.-Korea Policy co-sponsored by the Center for International Policy and the University of Chicago, also suggested a plutonium “buy-out” proposal for North Korea, despite the obvious moral hazard of appearing to reward North Korea’s bad behavior. Any transaction with North Korea involves moral hazard, and North Korea has already proven that it will sell or sub-contract nuclear materials to the highest bidder. One positive of this approach is that any transaction involving removal of nuclear materials or capabilities from the North would be irreversible, in contrast to past practice of offering irreversible food-aid benefits to North Korea in exchange for participation in multilateral dialogue, but not for irreversible steps toward denuclearization.

In a post-9/11, post-North Korean nuclear test world, the Obama administration must find a formula that facilitates North Korea’s irreversible actions on the path toward denuclearization rather than agreeing to half-measures: North Korea’s immediate focus is on gaining the resources necessary to mark 2012 as a year of accomplishment, yet the North has been highly critical of Lee Myung-bak’s “grand bargain” Proposal. Denuclearization needs to be placed on the North Korean agenda as an accomplishment that North Korea will be able to justify as part of its broader 2012 objective of becoming a “strong and prosperous state.” Unless a new formula can be found by which to bring these two objectives into line with each other, it is likely that the United States and North Korea will continue to talk past each other.

Posted in 2012 Strong and Prosperous Nation (Kangsong Taeguk), DPRK Policies, Economic reform, Foreign direct investment, Law on Foreign Investment, Orascom Telecom Holding, Rason Economic and Trade Zone (Rajin-Sonbong), Special Economic Zones (Established before 2013), Trade Statistics | Comments Closed

KOTRA – KDI higlight DPRK’ growing trade volume

Monday, December 7th, 2009

From the Korea Herald:

The North Korean economy’s dependency on international trade is nearing 40 percent, a think tank reported yesterday.

According to the Korea Development Institute’s report on North Korea’s economy in the 2000s, North Korea carried out international trade worth $5.64 billion last year.

The cross border trade figure of $5.64 billion recorded last year is equivalent to about 40 percent of the North’s gross domestic product, which is estimated to be about $15 billion.

In the report, the KDI said that the figures show that North Korea’s economy, which the regime boasted as having the most independent structure in the world, is taking a form increasingly dependent on the outside world.

The report said that North Korea’s cross border trade volume has risen rapidly, mainly due to increasing imports, and that such developments have been essential to the country’s economic recovery.

Since 2000, North Korea has managed to post positive growth rates.

However, North Korea’s GDP per capita is thought to be hovering below figures recorded in the late 1980s and the early 1990s, before the country’s economic crisis began.

According to United Nation’s statistics, North Korea’s GDP per capita was between $600 and $700 for the 2007 to 2008 period.

In comparison, the country’s GDP per capita was ranged between $900 and $1,000 in the late ’80s and the early ’90s.

The KDI estimated that applying the rate at which the North’s GDP per capita has been increasing since 2000, the country’s GDP per capita is likely to be between $700 and $1,300 in 2012.

The report also said that although the North Korean authorities are moving back toward a more tightly controlled economy, the country’s is unlikely to meet the targets set for 2012.

In addition, the report said that recording a trade deficit of $1.5 billion last year — equivalent to about 10 percent of its gross domestic product — makes it appear that the country is going to have a hard time digging itself out of trouble by itself.

Of last year’s $5.64 billion trade figure, exports accounted for about $2.06 billion, while imports came in at more $3.57 billion. According to the KDI’s figures, the North’s cross border trading has been increasing at an average rate of 11 percent each year since 2000, when the figure was recorded at about $2.39 billion.

Along with the increase in trade volume, North Korea’s trade deficit has also increased rapidly since 2000.

Between 2000 and 2004, North Korea’s trade deficits were maintained below or just above $1 billion. However the figure rose sharply in 2005 to reach $1.38 billion in 2005.

The KDI said that the North’s authorities have been able to offset trade deficits through the large amount of overseas capital that has flown into the country since 2000.

So where is that capital account surplus coming from to finance the trade deficit? It is NOT coming from South Korea.

Read the full story here:
N. Korea trade dependency hits 40%
Korea Herald
Choi He-suk
12/7/2009

Posted in International trade, Korea Development Institute, Korea Trade-Investment Promotion Agency (KOTRA), Statistics, Trade Statistics | 1 Comment »

Goethe Institute opens-closes library in Pyongyang

Wednesday, December 2nd, 2009

UPDATE: In 2004 Germany’s Goethe Institut opened a reading room in Pyongyang (see Choson Sinbo article below). This week it was closed. According to Deutsch Welle:

After five and a half years in operation, the Goethe-Institut in North Korea has said it will close its reading room in the capital city of Pyongyang due to censorship concerns.

The institute, a non-profit organization that promotes the study of German language and culture in 91 countries, opened the reading room in June 2004. It was the first and only Western cultural institution to establish itself in the communist country.

Raimund Woerdemann, director of the Goethe-Institut in Seoul, told Deutsche Welle that, contrary to an agreement made with the North Korean government, access to the center was often hindered.

“The building in which the reading room was located was often locked from the front,” he said. “There was a permanent construction site in front of the back entrance: not a welcoming situation.”

To his knowledge, there has never been an Internet connection in the Pyongyang center, said Woerdemann, and attempts to establish an Intranet connection with other North Korean educational institutions were interrupted on multiple occasions.

The reading room is slated to close in summer 2010. Woerdemann added, however, the Goethe-Institut would make an effort to maintain positive relations with North Korea through participation in the North Korean-German Friendship Society, the Committee for Cultural Relations Abroad and other partnerships.

Criticism from Berlin

The decision to close the reading room has met with strong criticism from the German parliament. Phillip Missfelder, parliamentary foreign policy spokesman for Chancellor Angela Merkel’s CDU issued a statement Wednesday, calling the closure “a bitter experience and a big disappointment for everyone who has stood up against resistance to cultural exchange and for the gradual opening of communist North Korea.”

The move represented “the end of an important aspect of German foreign policy in the areas of culture and education, which was a ray of light in the darkness of the repressive, totalitarian government in North Korea.”

In the statement, Missfelder said the CDU parliamentary group takes the closure “very seriously” and would make every effort to reverse the decision.

The center in Pyongyang was founded with the aim of reducing the information deficit in the country, offering unrestricted access to the Internet and free press, networking with South Korea and other countries, and promoting literature.

The Pyongyang reading room has been removed from the Goethe Institute’s web page, although not all of the links have been removed.

The reading room was located near Tae Mun and the DPRK’s Ministry of Culture in Pyongyang here.

UPDATE 1: According to Korea.net, the Goethe Institut plans to expand Pyongyang reading room:

On the sidelines of the International Federation of Library Associations and Institutions (IFLA) conference last week, a German cultural institution reaffirmed its commitment to promote freedom and democracy in North Korea.

The Goethe Institute, an NGO sponsoring German language and culture worldwide, said it is ready to expand its collection of media resources in North Korea.

The institute opened a reading room in Pyongyang in 2004 where North Koreans can freely access a variety of German media, including books, newspapers, and music. The content is completely uncensored and accessible to all North Koreans. That was the condition under which Goethe Institute agreed to open the reading room, said Jurgen Keil, director of the Goethe Institute in Seoul.

“The reading room has been received very positively by North Koreans. We hope that it can contribute to normalizing North Korea’s relations to the outside world,” Keil said.

The efforts mirror a similar German diplomatic strategy in the 1970s when then West German Chancellor Willy Brandt pursued a policy of “Change through Rapprochement” of easing ties with East Germany through a series of reconciliatory measures.

Former President Kim Dae-jung made reference to this strategy when he formulated the South Korean “Sunshine Policy.”

Claudia Lux, IFLA president-elect, stressed that “knowledge is always a step toward freedom.”

Keil added that many North Koreans can speak German. Until German reunification in 1989, a great number of North Koreans were living and working in East Germany.

North Korea was eager to establish the reading room in order to boost its international diplomatic profile, even though the content available there undercuts the strict censorship imposed by the country.

The reading room in Pyongyang currently holds 4,000 items. Keil said it plans to gradually increase the number to 8,000 in the coming years.

ORIGINAL POST: From the Choson Sinbo (August 14, 2004):

A library of German science books was opened in central Pyongyang on June 2, as the first institution where people can freely read foreign books.

The library was opened in cooperation between Pyongyang’s DPRK-Germany Friendship Association and Germany’s Goethe Institute.

The library has 4,000 scientific books in natural and social sciences and leading German newspapers and magazines. In addition, the library has various kinds of movie tapes, music CDs and cassette tapes and audiovisual education aids for German language study.

It is the first time that the DPRK has opened a library of scientific books of a specific Western country.

An official concerned with the library said that the institute aims at introducing advanced science and technology of Western countries and at promoting mutual understanding between the DPRK and Germany by spreading Germany’s scientific books in the DPRK.

The library introduces German books to libraries of domestic universities and research institutes while allowing people to freely read German books, newspapers and magazines. It lends books to users.

Accepting users’ requests the library orders books from the Goethe Institute, a nongovernmental cultural organization of Germany. Pyongyang’s counterpart offers requested books to the library free of charge.

The library has plenty of natural science books, such as books of medical science, information technology, geology, physics, architecture, chemistry and biology. In addition to natural science books, there are books of German literature, art, philosophy and books of social science including law and history.

According to an official concerned, main users of the library are university students, researchers and scholars.

Officials said that a delegation of the Goethe Institute plans to visit Pyongyang in September to provide 4,000 more books to the library. The Goethe Institute also plans a training course for librarians to staff the library.

Kim Mun Ik, 57, an official of the Association of External Cultural Liaison, said, “The DPRK is not an ‘exclusive country.’ The library is a clear indication that we have been open to the outside, receiving foreign things as far as these are useful for us and now we are making every effort to develop relations with foreign countries, even with Western countries.”

Posted in Education, Germany, Goethe Institute, Library | 3 Comments »

DPRK joint venture releases e-learning software

Thursday, November 19th, 2009

eleROM, Sinji JV Group and Phoenix Commercial Ventures Ltd are proud to present learnwithelsi: an innovative new web-based e-learning platform.

learnwithelsi derives its name from the “el” of eleROM and “si” of Sinji. The system is jointly managed by eleROM and Sinji. Subscribers can use the system to manage and study educational courses. learnwithelsi combines the standard features of traditional e-learning platforms with additional features:

* Lectures can be presented real time, even when the lecturers and students are geographically disbursed
* The lecturer can interact with students via video link, whiteboard and instant messaging
* The lecture can be recorded and stored for future access (available from November)
* Every user has tools that enable him/her to create learning contents, manage training activities and interact with other users
* Additionally there are a host of other features; documents can be managed, online exercises created, learning paths created, group work coordinated, assignments produced, forums developed, agendas set, announcements can be made and statistics can be monitored.

Sinji ’s and eleROM ‘s experience in software and e-learning guarantee the quality and reliability of the product. Additionally, learnwithelsi comes with 24 hour support.

Unlike other e-learning platforms, learnwithelsi is offered directly to training institutes for them to create their own courses; thereby enabling them to concentrate on the content of their courses, without having to worry about the technology.

The product follows the philosophy of SAS (software as a service). You don’t need to install anything on your server. You need only an Internet connection to use the platform.

Further system and functional enhancements will be made, eg as from November the video lecture can be recorded and stored for future access.

You can try a sample course on the learnwithelsi platform by clicking here. (login: sample, password: course).

———–

Here is a PDF of the press release.

Posted in Computing/IT, Education, Phoenix Commerical Ventures, Sinji JV group | 2 Comments »

Korea Business Consultants Newsletter

Thursday, November 19th, 2009

Korea Business Consultants has published their October 2009 newsletter. You can read it here.

Here is the newsletter table of contents:

COVER
– China eyes DPRK’s mineral wealth
– SinoMining acquires 51% of DPRK’s Hyesan Copper Mine
– Transformation and Modernization of North Korea
– DPRK sees peace pact with US as key to disarmament
– US “willing to engage DPRK directly”
– “DPRK Energy Sector Assistance to – Accompany Progress in… Discussions”
– Billy Graham’s son visits DPRK to deliver aid
– Lang visits Seoul

ECONOMY
– DPRK vows to expand trade
– China poised to give substantial aid
– DPRK films looking for joint producers

INTER KOREAN
– Buddhists from south, north call for reopening of Mount Kumgang tour
– Kaesong factory recognized for quality
– Frayed relations hindering development of mineral resources
– ROK aid to north falls
– Lawmakers call for use of rice surplus as DPRK aid
– Farmers demand rice price stabilization

POLITICAL
– Kenya establishes diplomatic relations with DPRK

CULTURE & SPORTS
– Eriksson to coach DPRK?
– DPRK’s Hong battles for gold at World Gymnastic Championships
– DPRK begins preparations for World Cup

KOREA COMPASS
– Mangyongdae
– Korean Proverb

Posted in Art, Domestic publication, Economic reform, Film, Foreign direct investment, International Aid, International trade, Kaesong Industrial Complex (KIC), Korea Business Consultants, Labor conditions/wages, Mining/Minerals, Mt. Kumgang Tourist Special Zone, Tourism, World Vision | Comments Closed

Koryolink continues to expand customer base

Tuesday, November 17th, 2009

At the end of Q2-2009 Koryolink had signed up nearly 48,000 subscribers. At the end of Q3-2009, this number has grown to more than 69,000. According to Telegeography:

North Korea’s only mobile operator, CHEO Technology, which offers services under the Koryolink brand, has signed up 69,261 customers as at 30 September 2009. The company was awarded a 25-year licence to operate 3G services in January 2008, with the first four years on an exclusive basis. It is owned by Orascom Telecom Holding of Egypt (75%) and state-owned Korea Post and Telecoms Corporation (25%). Koryolink launched services in December 2008 in the capital Pyongyang, but the network has since been expanded to include the main road running up to the northern city of Hyangsan, with the company currently working on expanding services nationwide. In the first nine months of 2009, the cellco reported revenue of USD18.5 million, while earnings before interest, tax, depreciation and amortisation (EBITDA) reached USD9.99 million with a margin of 54%. Average revenue per user (ARPU) for the third quarter of 2009 totalled USD21.6, down from USD22.8 in the previous quarter. With a focus on network rollout and network quality improvement, Koryolink invested USD25 million in the first nine months of 2009.

Thoughts and additional information:

1. For the record, Koryolink is not the only mobile phone operator in the DPRK. It is the only 3G operator. A little research on this site will turn up plenty of information on the DPRK’s first cell phone provider.

2. See past Koryolink and Orascom posts here.

3. It is interesting that the DPRK and Orascom have expanded 3G service from Pyongyang to Myohyangsan. Though a popular spot for North Korean elites and tourists, it is not a commercial hub by any means…

Posted in Cell phones, Communications, Orascom Telecom Holding, Telephones | 1 Comment »

DPRK stresses economic ‘informationalization’

Wednesday, November 11th, 2009

Institute for Far Eastern Studies (IFES)
NK Brief No. 09-11-04-2
11/4/2009

The North Korean monthly publication “Chollima” stressed in a recent (September, 2009) edition the need to improve efficiency in production and administrative activities, emphasizing that if the North is to succeed at becoming an “economic power,” then economic management and administrative activities need to become “informationalized.”

In an article titled “Informationalization of Economic Management and Administrative Activity,” the magazine stated, “In order to meet the demands for science and technology development in the era of the information industry, improvement of the socialist economic management has emerged as an important issue.”

The magazine also offered a solution, suggesting that computers and IT resources be ensured first in order to “informationalize” economic management and administrative activities, and that communications equipment be modernized, stating that construction of basic facilities was an urgent task.

In addition, program industries used in the economic sector should be developed, and planning, statistical, and accounting programs, in particular, need to be connected across the country.

Along with this, the magazine noted that the development of information science is closely related to that of information technology, and that research efforts regarding information science need to be strengthened. The article called for further development of basic elementary management systems education, information theory research, and, of course, systems engineering, legal administration, and other economic science fields.

“Informationalization” of economic management and administrative activities is based on IT resources, and focuses on automating statistical and accounting practices in order to strengthen economic management controls and to boost productivity and efficiency.

On August 11, the Rodong Sinmun also emphasized “informationalization,” referring to the current times as the “information economy age” and the “informationalization age,” stating that “today’s war, absent the sound of gunfire, is a war of brains, a technology war,” and, “technological revolution is bravely marching forward at breakneck speed.”

Posted in Chollima, Computing/IT, Domestic publication, Institute for Far Eastern Studies | Comments Closed

Humanitarian aid on the way

Sunday, October 25th, 2009

Yonhap anounces two new aid projects aimed at the DPRK.

First, the International Federation of Red Cross and Red Crescent Societies (IFRC) has earmarked US$17 million for humanitarian aid to the DPRK over the next two years. This is to cover medical services for 8.5 million vulnerable people and improve water supply services in North Korea from 2010-2011.

Second, South Korea on Monday offered the North 10,000 tons of corn and other small-scale humanitarian aid, responding to a rare official request for assistance from Pyongyang.

Posted in Foreign aid statistics, International Aid, International/Korean Red Cross, Statistics | 4 Comments »

GPI business delegation to DPRK

Thursday, October 22nd, 2009

From GPI:

PDF Brochure here.

In the current financial and economic situation, companies face many challenges. They must cut costs, develop new products and find new markets. In these fields, North-Korea might be an interesting option. Since a few years, it is opening its doors to foreign enterprises. The labor costs are the lowest of Asia, and its skilled labor is of a high quality. It established free trade zones to attract foreign investors and there are several sectors, including textile industry, shipbuilding, agro business, logistics, mining and Information Technology (computer games, animation) that can be considered for trade and investment. Heineken is an example of a Dutch company, active in North-Korea. Its beer is now widely available (see photo).

In order to explore these business opportunities, a Dutch trade delegation visited North-Korea in September. See a report of this mission here. Are you interested as well? Then join our upcoming mission in May 2010, when we will also visit the annual Pyongyang Spring International Trade Fair. This fair can also be used by European companies to come in contact with potential buyers and suppliers in North-Korea, by using a booth. It is also possible for us to organize individual business tours, for participants from a single company.

With best regards,

Paul Tjia (director)
GPI Consultancy
P.O. Box 26151
3002 ED Rotterdam, The Netherlands
E-mail: [email protected]
tel: +31-10-4254172
fax: +31-10-4254317
Web: www.gpic.nl

Posted in Economic reform, EU, Foreign direct investment, GPI Consultancy | Comments Closed

World Council of Churches visiting North Korea

Wednesday, October 21st, 2009

UPDATE 2: Well apparently the World Council of Churches is in bed with the North Korean Ministry of Foreign Affairs. According to their most recent press release:

Nearly 140 leaders from the world’s churches, North and South Koreans among them, have called for the formation of an inter-Korean confederation even before complete reunification of Korea can take place. Agreement was reached at the close of a three-day meeting in Tsuen Wan, Hong Kong where the Christian leaders expressed unrelenting hope for peace and reconciliation among Koreans, despite the stark realities of the ongoing division of the Korean peninsula.

The call for a confederation came in a communiqué developed by the group at the end of their international consultation on Korean reunification. The “Tsuen Wan Communiqué” says the confederation option would involve progressive steps such as peaceful co-existence and the furthering of economic cooperation between the two Koreas.

The proposal for an inter-Korean confederation was presented to the group jointly by church leaders from North and South Korea on the final day of deliberations.

The “confederation system would respect both governments”, said the Rev. Kang Yong Sop, chairman of the Korea Christian Federation of North Korea, in a presentation to the group on Friday morning.

“North and South Korea must first recognize each other’s systems and engage in cooperation in any field possible, and institutionalize the results,” said Suh Bo Hyug, a member of the National Council of Churches in Korea’s reconciliation and reunification committee: “Only then will they move closer to reunification.”

The communiqué was the outcome of a consultation on peace, reconciliation and reunification of the Korean peninsula held 21 to 23 October 2009, sponsored by the World Council of Churches (WCC) and the Christian Conference of Asia (CCA).

Of course the confederation plan was raised by Kim Il sung years ago and the DPRK is still pushing that vision as an intermediary step towards reunification.

And if there was any doubt remaining:

They also called for all sanctions against North Korea imposed by the United Nations Security Council to be lifted, for immediate bilateral talks between the United States and North Korea, and for North and South Korea to implement fully the 15 June 2000 North-South Joint Declaration and the 4 October 2007 Declaration, both of which spelled out a number of goals and steps toward reunification.

UPDATE 1: The WCC issued an interesting press release following their visit to the DPRK. Here is an excerpt:

Visiting North Korea at the invitation of the Korean Christian Federation of North Korea, Kobia and the delegation visited three churches on Sunday 18 October.

In addition to visiting the Bong Soo Church the delegation also visited the Chilgol Church in the capital, Pyongyang, and a house church of 12 members in the town of Sunam which is near Pyongyang.

Continuing with the Corinthian example Kobia told the Bong Soo congregation that no church is more important than the other. “The body is whole when all the parts cooperate with each other,” he said. “Therefore in his letter to the churches in Corinth, Paul appeals to the community to recognize each other as being a very important part of the body.”

The Bong Soo Church was constructed in 1987 with funding from the North Korean government and the Presbyterian Church of Korea. The church is thoroughly modern with a full sound system, balcony and music text on a large screen in front of the church, a video camera system, a high-lofted ceiling and an area for a large choir.

Bibles and songbooks line the seating areas for the congregations. Within the church compound is a recently constructed theological seminary where 12 students are now enrolled to earn degrees in evangelism.

The Bong Soo worship service overflowed with music from the choir, soloists and several women’s groups, mostly singing traditional hymns. Asked if the abundance of music was especially for the WCC delegation, a congregation member said no, “this happens every week.”

The smaller congregation at the Chilgol Church, which the WCC delegation also visited, has been in existence since the late 1800s. The current building is relatively new, as the original building was destroyed in the Korean War by the U.S. bombing of Pyongyang.

A WCC delegation member asked the congregation about the noticeable absence of children in the churches. While acknowledging this is a challenge within North Korean society, they said the children are involved in a broad range of other activities and some will at a later age come to church. They said it was their job to teach their children at home about Christianity.

On Sunday afternoon the WCC delegation visited a house church of 12 members who meet in a home in the community of Sunam outside of Pyongyang. They said the house church movement within North Korea is growing.

The church meets on Sundays, sitting on the floor of the living room of a member’s home. One member brings an accordion to accompany the singing. The singing in the North Korean church tends to be extraordinarily rich and is a key part, along with prayer and teaching, of any worship service.

Read the full press release here.

ORIGINAL POST: According to the press release on their web page (written before departure):

The visit is at the invitation of and being organized by the Korean Christian Federation (KCF) of North Korea and will take place 17 to 20 October.

“We will be meeting with the churches, government officials and learning about the life and witness of churches in North Korea,” said Dr Mathews George Chunakara, director of the WCC Public Witness programme and the Commission of the Churches on International Affairs, who will be a member of the delegation travelling with Kobia. “We will be participating in the worship service at Bong Soo Church in Pyongyang, where the WCC general secretary will preach.”

The churches in North Korea are involved in social development and humanitarian aid assistance, and the members of WCC’s ecumenical fellowship have been supportive to the KCF for the past several years, said Chunakara.

The visit is taking place at a time when intense multilateral diplomatic efforts and negotiations are under way on issues related to denuclearization of North Korea and resumption of Six Party Talks, which were stalled for some time after North Korea withdrew from the talks.

Although North Korean leader Kim Jong-il is said to have made the announcement to Chinese Premier Wen Jiabao in Pyongyang last week during his three-day visit that North Korea would return to the Six Party Talks, it is also reported that Kim Jong-il said the return would be dependent on the progress of its planned bilateral talks with the US.

The WCC has been relating with the churches in North Korea for the past 25 years, with the first official visit having taken place in 1985. In the early 1980s the WCC Commission of the Churches on International Affairs initiated a process aimed at peace, reconciliation and reunification of the Korean peninsula and bringing church leaders from North and South Korea together.

This is the second visit of a WCC general secretary in ten years. In 1999, then general secretary Rev. Dr Konrad Raiser visited North Korea.

After the visit to North Korea, the delegation will travel to Hong Kong to participate in an international consultation on peace, reconciliation and reunification of the Korean peninsula, which will be held from 21 to 23 October.

The WCC general secretary will be accompanied by WCC staff members Mathews George Chunakara, Christina Papazoglou, Mark Beach and Peter Williams, as well as the general secretary of the Christian Conference of Asia, Dr Prawate Khid-arn.

Critics of the DPRK have long argued that the primary purpose of Korean Christian Federation is to attract aid from foreign religious organizations. This is probably true to some extent, but the organization has been around since the 1940s so it is likely that by this point its mission within the political system is more complicated than to function only as an aid magnet.

Here are a few older posts about the KCF.

Posted in Christian Federation, International Aid, Religion, World Council of Churches | 1 Comment »

North Korean Economy Watch