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Strict Regulation of Underage Prostitution

Sunday, September 16th, 2007

Daily NK
Yang Jung A
9/16/2007

The “Good Friends” reported on the 12th that there has been an arrest of North Korean women who had jumped into the act of prostitution to support their family.

According to the newsletter published by Good Friends, “There was a nation-wide inspection, while there were regular evaluation meetings in the early September. This is when a large sum of the women in the prostitution business were arrested.”

According to the Good Friends, “Most of these women received a sentence of 3 years were sent to Jeungsang, South Pyongan to the labor-detention facility. Most of these women were from poor families who were talked into prostituting themselves by their mothers to supporting their family.”

The arrested women argued that, “If there were more jobs, salary or even rationing, who in their right mind would do such things for a living?”

The newsletter revealed that, “With the worsening shortage of food the number of underage prostitution has been on the rise. In Wonsan, Kangwon province, restaurants were found with rooms on the underground level in which a large group of underage children were forced into be in the activity of prostitution.”

“The seven restaurant owners and managers were sentenced to execution by a firing squad and the 40 underage children that were involved in the prostitution are currently in jail receiving indoctrination.”

The newsletter revealed that, “With the strict inspections being processed per district, the North Korean government is putting a stricter surveillance on prostitution, infiltration and drug smuggling. Last week at Hwoireong, one drug smuggler was executed in public.”

In addition, the newsletter also revealed that there is a shortage of necessities in North Korea nationwide due to the huge flood this summer.

In North Hamkyung province, the civilians are lacking three crucial necessities: rice, water and electricity.

“Due to the paralysis of transportation methods in North Hamkyung, they are not even able to receive the minimum supply for flood victims. Other regions are able to receive the partial amount of the supply for flood victims given by the South, but North Hamkyung is suffering the most out of all provinces.”

There has been a continuance of water shortage in Shinuiju since July.

The newsletter stated that, “There has not been a single drop of water in the entire city of Shinuiju. Only after September 9 were the civilians able to receive some tap water, but the tap water supply only runs from 3:00 a.m. to 4:00 a.m. for one hour.”

“The people in Shinuiju are not able to go to sleep because they are waiting to receive the water. The electricity is provided for five hours each day, but due to the low electric pressure, they are not even able to use the water pump.”

Posted in Black markets, Civil society, Dating/Courting, Good Friends | Comments Closed

Charity flight to North

Wednesday, September 5th, 2007

Korea Herald
9/5/2007

A Boeing 747 carrying 75 tons of emergency relief goods worth $8 million arrived in Pyongyang last week by a direct flight from the United States, while denuclearization talks between the two countries were making progress in Geneva.

Officials here say it was the first time that a full planeload of U.S. emergency relief materials were delivered to North Korea since Pyongyang began accepting private U.S. donations in the mid-1990s after severe floods hit the country. The airlift, provided by Samaritan’s Purse, a North Carolina-based Christian charity organization, consisted of medicine, medical supplies, antibiotics, temporary shelter materials and other items needed for the relief of flood victims.

U.S. transport authorities gave their permission for what was known as “the first direct flight from continental U.S. to North Korea since the Korean War.” Airlifted supplies included goods purchased with a $50,000 grant from the U.S. government, according to a press release from Samaritan’s Purse, currently represented by Franklin Graham, son of the late evangelist Billy Graham. A dispatch from the (North) Korean Central News Agency said Pyongyang’s Foreign Minister Pak Ui-chun met the American visitors who delivered the relief materials.

The American charity group’s swift, large-scale delivery of emergency aid was a noteworthy gesture of friendship, shown in response to the disastrous floods last month. After years of extreme antagonism over the North’s nuclear armament, such a people-to-people exchange of goodwill is inspiring.

The Graham family has special relations with North Korea: Billy Graham’s wife, Ruth Bell, attended Pyongyang Foreign School in the 1930s, Billy Graham visited North Korea twice in the 1990s and other family members traveled to the country in recent years. At a time when diplomatic relations are being explored between the two countries, such personal ties can prove valuable in promoting mutual understanding. Many hope “swords into ploughshares” will not remain a biblical prophecy.

Posted in Aviation, International Aid, Samaritan's Purse, USA | 1 Comment »

U.S. medical aid arrives in flood-stricken N. Korea: report

Friday, August 31st, 2007

Yonhap
8/31/2007

North Korea’s foreign minister Friday met with a U.S. delegation bringing emergency medical supplies to help North Korean victims of recent floods, the North’s official news outlet said.

The reclusive country has appealed to the international community for assistance to cope with massive flooding caused by heavy downpours that left at least 600 people dead or missing and about 100,000 people homeless in early August. The United Nations is seeking US$14 million to provide North Korea with food, medicine, drinking water and other emergency goods.

“Foreign Minister Pak Ui-chun met with guests from the United States who visited with emergency medical aid equipment donated by the U.S. administration and the non-governmental organization Samaritan’s Purse with regard to flood damage at the Mansudae Assembly hall,” said the one-sentence report carried by the Korean Central News Agency. It did not identify the U.S. guests.

Washington has so far pledged US$100,000 for the U.N. initiative, equally distributing the funds to two non-governmental relief organizations, Mercy Corps and Samaritan’s Purse, to deliver emergency aid to North Korea.

The heaviest rain in 40 years swept North Korea, which is poorly equipped to cope amid wide-spread deforestation. The severe damage caused the second inter-Korean summit to be postponed from late August to early October.

Posted in Agriculture, Health care, International Aid, Mercy Corps, Samaritan's Purse, USA | Comments Closed

DPRK Economic Growth Estimates for 2006

Wednesday, August 22nd, 2007

Institute for Far East Studies (IFES)
NK Brief No. 07-8-22-1

The Bank of Korea released a report on August 17 that details economic estimates on a variety of sectors in North Korea. Overall, North Korea’s Gross Domestic Product (GDP) fell 1.1 percent during 2006, the first time since 1999 that the North has failed to increase its GDP. Inclement weather was one factor that played into a fall in agricultural production, and there also appears to have been little progress in the construction of public works in the country. Overall, North Korean GNI was 2.9 percent of that in the South, with per capita GNI at 1,108 USD, 6 percent of the 18,372 USD per capita GNI in South Korea.

The entire economy of the DPRK is approximately 1/35th that of the South, with the Gross National Income (GNI) a mere 1/17th the level seen in the ROK. This shows a growing divide between the two Koreas, as the comparisons in the previous year were 1/33rd and 1/16th, respectively. Due to the North Korean nuclear issues and other foreign relations problems faced during 2006, a worsening of diplomatic relations with other countries, energy shortages and other economic woes befell the North, putting the entire economy in a difficult situation.

The North showed a weakening of the agricultural and forestry industries, increasing production by a mere 2.4 percent, 2.6 percent down from 2005. Corn and other cereal production grew by 7 percent, but rice was down 6.4 percent, and bean production was down 6.6 percent from the year before, leaving overall grain output down 3.6 percent. On the other hand, shellfish and crustacean harvests grew by 1.5 percent, while timber and livestock harvests remained unchanged.

On the mining front, coal and other non-metal mined resources showed promising increases, but production of lead, zinc, and copper fell by 1.7 percent, compared to the 3.5 percent growth posted in the previous year. Despite promising increases in production of manufactured goods and growth in the chemical and heavy industries in 2005, last year North Korean production growth rates in these fields fell flat at a mere 0.4 percent, increasing production rates of fibers, clothing and shoes, but turning out less kitchenware and food-related products. Coal and fuel products looked favorable, but fabricated metals and machine parts, as well as nonferrous metal products grew at a rate of 1.1 percent, down from 5.4 percent.

Gas-fired electrical generation was up 17 percent, while hydroelectric power grew only 2.7 percent, falling from 4.4 percent in 2005. Other infrastructure projects were also on the decline, with only 49 km of road paved in 2006.

The number of foreign tourists declined, with visitors to Kumgang Mountain falling from 366,000 in 2005 to only 265,000 last year, adding to the 21.8 percent decline in the food and lodging sector, but the transportation and communication sector grew by 5.1 percent, leading to an overall gain of 1.1 percent in the service industry.

The gap in overseas trade between the two Koreas increased from 182-fold to 212-fold as North Korean foreign trade fell off 5.2 percent. Imports in the North were up 2.3%, although seafood imports were down 48.4 percent. The slack was made up by a 34.1 percent increase in the import of plastics, a 31.2 percent increase in imported chemical goods, and a 12.4 percent increase in imported machinery.

During 2006, inter-Korean exchanges grew 27.8 percent, reaching 13.5 billion USD. South Korean exports to the North grew 16 percent as Seoul increased rice and fertilizer aid, and exports to the Kaesong Industrial Complex grew. On the other hand, North-South cooperative projects grew 52.7 percent as South Korea increasingly imported North Korean zinc, sand, and other natural resources.

In order to give some perspective to the North Korean economic data, the Bank of Korea offered the following comparisons:

DPRK/ROK/Ratio
Population (thousand) 23,079/48.297/2.1
Economic Growth (2006) -1.1%/5.0%
Nominal GNI (100 million USD) 256/8,873/34.7
Per Capita GNI (USD) 1,108/18,372/16.6
Exports (100 million USD) 9.5/3,254.6/343.8
Imports (100 million USD) 20.5/3,93.8/151.0
Coal Production (10,000 tons) 2,468/280/0.11
Electrical Use (10,000 kW) 782/6,551/8.4
Electrical Production Capacity (100 mill. KW) 225/3,812/16.9
Petroleum Imports (10,000 bbl) 384/88,843/231.4
Cereal Production (10,000 tons) 448.3/530.0/1.2
Rice Production (10,000 tons) 189.4/468.0/2.5
Seafood Harvest (10,000 tons) 92.3/303.3/3.3
Iron Ore Mining (10,000 tons) 504.1/22.7/0.05
Nonferrous Metals Mining (10,000 tons) 8.6/187.7/21.8
Automobile Production (10,000) 0.44/384.0/872.8
Steel (10,000 tons) 118.1/4,843.3/41.0
Cement (10,000 tons) 615.5/4,920.9/8.0
Fertilizer (10,000 tons) 45.4/318.3/7.0
Chemical Products (10,000 tons) 2.9/145.7/50.2
Railways (km) 5,235/3,392/0.6
Roads (km) 25,544/102,061/4.0
Port Loading Capacity (10,000 tons) 3,700/69,213/18.7
Shipping Capacity (10,000 tons) 90.4/1,180.2/13.1

Posted in Agriculture, Automobiles, Bank of Korea, Communications, Copper, Dams/hydro, Energy, Forestry, GDP statistics, Institute for Far Eastern Studies, International trade, Kaesong Industrial Complex (KIC), Mining/Minerals, Mt. Kumgang Tourist Special Zone, Railways, Sea shipping, Statistics, Tourism | Comments Closed

US provides 100,000 dollar flood aid to North Korea

Friday, August 17th, 2007

AFP
8/17/2007

The United States is providing 100,000 dollars in humanitarian aid to flood-stricken North Korea, the State Department said Friday.

The US Agency for International Development (USAID) would provide 50,000 dollars each to two US non governmental organizations operating in North Korea — Mercy Corps and Samaritan’s Purse, department spokesman Sean McCormack said.

“The intention is that the money would be used to provide blankets, shelter materials, water containers and other supplies to those in need,” he told reporters.

Almost 300 people were dead or missing in the North Korean floods, according to an aid agency quoting official figures in the nuclear-armed hardline communist nation.

Official media in the reclusive state has painted a grim picture of inundated crops and homes, flooded factories and mines and washed-out roads.

UN agencies said on Friday that half of North Korea’s main health centres have been submerged by floods and warned that the situation in the country could deteriorate unless aid arrives rapidly.

The United States, together with China, Russia, Japan and South Korea, have promised to provide the North Koreans aid and security and diplomatic guarantees if it scraps its nuclear weapons program.

But any flood relief provided by the United States would not be linked to a planned gradual shipment of one million tonnes of fuel or its equivalent to North Korea if it completely dismantles its nuclear weapons program, McCormack had said.

North Korea has already got 50,000 tonnes of fuel aid for closure of its key nuclear reactor under the six-party nuclear talks.

Posted in International Aid, Mercy Corps, Samaritan's Purse, USA | Comments Closed

IT business delegation to visit DPRK

Thursday, August 16th, 2007

October 20-27, 2007 (Beijing/Pyongyang)
GPI Consulting

GPI Consulting (Netherlands) is one of the few western companies that has done an audit of the DPRK’s IT capabilitites and has published about them.

They are organizing an IT delegation to visit the DPRK this October. Here is their marketing flyer and itinerary: NK-IT-tour.pdf

From the Marketing Flyer:

North Korea offers interesting business opportunities in several fields, such as software development, production of computer games, animation and cartoons, data entry en digitization. In order to provide detailed information about the IT opportunities in North Korea, a unique IT Study Tour will take place from 20 – 27 October 2007.

The trip to North Korea will focus on offshoring in the field of IT and BPO (Business Process Out-sourcing). We expect participants from IT- and software organizations that are investigating offshoring, or from consultants researching new offshore locations. Companies interested in exploring a new potential export market are also welcome to join the tour.

Europe still lacks sufficient knowledge about the promising North Korean IT sector. The goal of the business mission is to give the participants detailed information about offshoring, and especially about the opportunities in North Korea. We will strive to have participants from large, small and medium sized companies taking part in the IT study tour.

In order to make a business trip of 7 days attractive, the delegation will visit various companies in Pyongyang in the field of IT, animation, cartoons, computer games and BPO. The business mission will have an informal character with a visit to a university and also with attention to cultural and tourist elements. The participants of the tour will meet in China (Beijing); after returning from North Korea, an extension of the stay in China is possible.

The organizer of this mission is KCC (Korea Computer Center), a major IT services provider in North Korea with offices in several cities, including Pyongyang and Beijing. The European contact for this business mission will be Mr. Paul Tjia, founder and director of GPI Consultancy, Rotterdam, The Netherlands. Established in 1995, GPI Consultancy is a specialized Dutch consultancy firm in the field of offshore sourcing. It is regularly involved in IT study tours to various offshore countries in Asia.

Posted in Cell phones, Communications, Computing/IT, GPI Consultancy, Intellectual Property, Internet, Intranet, Korea Computer Center (KCC) | Comments Closed

3rd Pyongyang Autumn International Trade Fair

Thursday, August 16th, 2007

European Business Association
September 24-27, 2007

The European Business Association (EBA) in Pyongyang and DPRK Chamber of Commerce are orgaizing a booth for European business at the upcoming international trade fair in Pyongyang. European companies are invited to make use of this opportunity to introduce their business to the North Korean market.

European companies interested in taking advantage of this opportunity are invited to visit the EBA website www.eba-pyongyang.org – please click through to membership for the statutes. The membership fee of 500 Euro will include the following services for companies who would not send their own representative to the trade fair:

Poster display (maximum size DIN A2)
Distribution of flyers (maximum size DIN A4)
Feedback for Korean inquiries by e-mail: any contact request and any inquiry by a Korean company will be registered in a special format and will be supplied asap by e-mail to your company.
Photos documenting the participation of your company in the fair.

If a representative will take part, the joint European booth is of course open for him/her to be used during the fair and EBA will support and assist you actively in making contacts and business meetings with potential Korean partners. According to a special arrangement between the EBA Pyongyang and the DPRK Chamber of Commerce, the deadline for visa application has been extended for European businesses to August 20, 2007.

Learn more here

Posted in Chamber of Commerce (DPRK), European Business Association, Pyongyang International Trade Fair | Comments Closed

2nd Inter-Korean Summit and Prospects for Discussion of Economic Cooperation

Tuesday, August 14th, 2007

Institute for Far Easter Studies
NK Brief No. 07-8-14-1

The second inter-Korean summit meeting is coming up soon, scheduled to open on August 28 in Pyongyang, and interest is building regarding discussion on economic cooperation. It is true that the North is prioritizing political and military issues in order to shore up its government by normalizing relations with the United States. However, considering its serious economic woes, the ability of South Korea to offer a ‘gift package’ can significantly influence the success or failure of this summit.

It is not yet clear how economic cooperation will fit into the agenda, but Seoul and Pyongyang have been constantly discussing this issue, so some insight has been given. In particular, the ‘consumer’ North has been referring to domestic and international cooperation, and through Pyongyang’s requests, some clarity has been added to what goals could unfold during the upcoming meeting.

Energy Sector

The North Korean economy is saddled with severe shortages of electricity and fuel oil, causing production to slow and therefore stagnating consumption, putting the country into an ongoing vicious circle of economic depression. North Korea possesses facilities to produce 7.7 million kW of steam- and hydro-electric power, but in reality is incapable of operating these facilities at more than 30%.

The opinion that expansion of North Korea’s electrical infrastructure is necessary, not only for the North, but also for South Korea, is gaining strength. South Korean projects to develop North Korean mines and import its coal have been delayed due to a lack of electrical power. In the future, enterprises looking to set up in North Korea will also require a steady supply of electricity.

In what way the two Koreas will cooperate on energy is not yet known, but North Korea is sticking to its demand for light-water nuclear reactors. If construction were restarted on the reactors begun by the now-defunct Korean Peninsula Energy Development Organization (KEDO), North Korea could quickly have not only the energy production amount currently available, but an additional 2 million kW, as well.

North Korea’s power facilities are in a state of deterioration, but the number of facilities in the North are adequate for the current state of the economy, so a plan for the restoration of generation and transmission facilities, or the 2 million kW of electrical power offered by the South Korean government two years ago could be considered sufficient.

Natural Resource and Infrastructure Development

One other highly probable agenda item on inter-Korean economic cooperation will be development of natural resources. This is because a model in which North Korea’s relatively abundant underground natural resources are developed, and in which these resources being used by South Korean businesses, would create a ‘win-win’ result for both Seoul and Pyongyang.

According to a report given by the Korea Resources Corporation at a conference last year, North Korea possesses upward of forty different valuable minerals, including iron-ore. Analysis of these North Korean resources shows that a considerable amount of South Korea’s 40 trillion won (430 billion USD) worth of mineral imports per year could be brought in from North Korea instead.

As development projects in North Korea’s graphite mines are already underway, and the import of North Korean anthracite is being considered in order to meet quickly growing demand for charcoal in the South, cooperation in the natural resource sector appears to be one of the core points to inter-Korean economic cooperation.

As for North Korea’s railways, the heart of the country’s distribution infrastructure, completion of the section of track on the Kyungui Line between Kaesong Station and Moonsan Station, as well as the section of the East Sea Line between Mt. Kumgang Station and Jejin Station, means that the infrastructure for regular service between the two countries is now in place, although talks regarding the details of such regular service are not being held.

If regular service on these two lines between North and South Korea can be achieved, expensive transportation costs can be reduced, and of course, in the future, connection of the railway with continental rail networks such as the Trans-Siberian Rail and the Trans-China Rail would help to enable the Korean Peninsula to emerge as the hub of North East Asian distribution.

Furthermore, considering the fact that North Korea’s mining facilities and technology, as well as its ports, loading facilities, and other transportation infrastructure, are severely lacking, a plan linking development of natural resources to projects developing infrastructure also appears viable. It is also already known, to some extent, the nature of North Korean needs in its infrastructure sector, and if this upcoming summit closes successfully, it is expected that an inventory of these needs will become more concrete.

Vitalizing Kaesong Industrial Complex

The Kaesong Industrial Complex (KIC) is also an important undertaking. At the moment, a problem has arisen concerning the construction of a second KIC, but even if only the originally planned 26.4 million square-meter complex is built, the fact is that currently the first 3.3 million square-meter stage is complete, and considering that it employs North Korean labor, this is no easy feat. Companies moving into the KIC are asking that easy communication with South Korea and simplified import procedures be prioritized.

Posted in Dams/hydro, Electricity, Energy, Graphite, Institute for Far Eastern Studies, International trade, Iron Ore, Kaesong Industrial Complex (KIC), Mining/Minerals, Nuclear, Oil, Political economy, Railways | Comments Closed

Repairing power plants, cables viable way to help N. Korea: think tank

Monday, August 13th, 2007

Yonhap
Lee Joon-seung
8/13/2007

Repairing North Korea’s existing power generation infrastructure is an effective way to help North Korea cope with its chronic power shortage, a South Korean state-run think tank said Monday.

The Korea Energy Economic Institute (KEEI) said refurbishing North Korea’s existing infrastructure may be a more effective way to boost electric power than building new thermal generators and nuclear reactors.

Posted in Electricity, Energy, International Aid, Korea Energy Economic Institute | Comments Closed

Weekly Report on North Korea (July 30, 2007 – August 5, 2007)

Monday, August 13th, 2007

South Korean Ministry of Unification
Serial No.851 (July 30 to August 05, 2007)

Internal Affairs

According to the report by the Central Broadcasting Station on July 30, North Korea held the Election of Deputies to the Provincial (Municipality Directly under Central Authority), City (District) and County People’s Assemblies of the DPRK on July 29 and announced the result through the report by the Central Election Guidance Committee.
According to the reports by the Central Broadcasting Station from August 1 to 4, Chairman Kim Jongil inspected a sub-unit of KPA Unit 4318, the Unit 136, and the Unit 273.
The Central Broadcasting Station reported on August 2 that cooperative farms in Dahungdan-gun, Yanggang-do, are focusing on potato farming.

Inter-Korean Affairs

According to the reports by the Central Broadcasting Station and Pyongyang Broadcasting Services on August 3, the spokesperson of the Committee for the Peaceful Reunification of the Fatherland announced a statement on August 2 to criticize the U.S.-ROK joint military exercise Ulchi Focus Lens from August 20 to 31.
The Rodong Daily reported on August 4 that on the occasion of the 10th anniversary of Kim Jong-il’s work “Let Us Carry out the Great Leader Comrade Kim IL Sung’s Instructions for National Reunification,” North Korea held a Pyongyang city report session on August 3 and published a commemorative editorial on August 4 on the Rodong Daily.

Foreign Affairs

The standing committee chairman of the Supreme People’s Assembly Kim Young-nam made a formal visit to Algeria, Egypt, and Ethiopia from July 24 to 31.
North Korean delegates led by Minister of Foreign Affairs Pak Ui-chun visited the Philippines to attend the ASEAN Regional Forum from July 28 to August 2.
With the U.S. House’s adoption of the resolution on comfort women, North Korea is continuously criticizing Japan, maintaining Japan’s raising the abduction issue is causing trouble in the six party talks.
North Korean Minister of Foreign Affairs Pak Ui-chun met South Korean counterpart Song Min-soon during the ASEAN Regional Forum and reaffirmed that the abolition of the U.S. hostile policy against North Korea should be the precondition of the implementation of the second step of February 13 Agreement.

Posted in Agriculture, ASEAN, Central Broadcasting Station, Military, Ministry of foreign Affairs, Political economy, RoK Ministry of Unification, Supreme Peoples Assembly | Comments Closed

North Korean Economy Watch