Archive for the ‘Agriculture’ Category

« Older Entries
Newer Entries »

Privileged Pyongyang Citizens No Longer Enjoy Privileges in the Market.

Monday, October 22nd, 2007

Daily NK
Lee Sung Jin
10/22/2007
(Click on image for original size)

dprkmarketprices.jpgAccording to DailyNK’s research on prices in North Korea conducted in late September, the prices in Pyongyang are similar to the prices in other parts of the country. The finding shows that Jangmadang (markets) economy has been going through integration and similar distribution process across North Korea.

In the past, domestic commodities were sold cheap, and foreign products were sold expensive in Pyongyang.

DailyNK has been conducting quarterly research on prices in the central such as Pyongan Province and Hamkyung Province and northern areas.

This time the research result shows that the price of rice in a Jangmadang in Pyongyang is 1,350 won/kg, which is similar to the price of rice in Sinuiju, 1,400won/kg. In North Korea, the rice price serves as a gauge for price trends.

In Pyongyang, the exchange rate is about 330 thousands won to 100 dollars, which is the same as the exchange rate in other places. The most famous imported cigarettes, Cat (Craven A) is sold at the same cost of 1,500 won in Pyongyang and other areas.

Subsidiary food is more expensive in Pyongyang. The price of cabbage is 400 won/kg, 50 won/kg higher than cabbage price in Sinuiju. The price of pork ranges from 3,500 to 4,000/kg, 500~1,000 won/kg higher than the pork price in other areas.

The prices of seafood such as brown and green seaweed, and dried Pollack are cheaper in Pyongyang. Seafood caught in Kangwon Province and neighboring areas is transported to markets in Pyongyang in refrigerator car. Since the demand is high, seafood is sold in great quantities, and the price remains low in general.

Movie ticket prices range from 200 to 400 won. Telephone service is charged five won per minute. Overall, the price range for each commodity is high, and many different kinds of goods are available in Jangmadang.

Imported items from China such as socks, sports shoes, or underwear are expensive being sold at a cost of 1,000 won in Pyongyang. That is because there are extra shipping rates and labor costs imposed on Chinese goods transported to Pyongyang. On the contrary, in Sinuiju, imported goods from China are circulated on the market right away.

Often, retail prices are higher in Pyongyang because of high levels of consumption among Pyongyang citizens. However, cigarettes or liquor produced in Pyongyang, or clothes from South Korea circulated to other areas via Pyongyang are sold cheap in Pyongyang.

However, in these days the differences in regional price levels have almost disappeared.

A defector from Pyongyang, Ahn Chul Min (a pseudonym) who came to South Korea in 2006 said, “Prior to 2002, there were individuals who hung around from place to place and made money on price differences. But nowadays, the retail prices are almost uniform across the country because people just use a telephone and find out where to get items they want at what prices.

“Since there is no big difference in retail prices, retailers are not doing well in business,” Ahn added, “Instead, individuals driving a truck and selling goods wholesale are making good money.”

Ahn said, “Not everyone who lives in Pyongyang is well-to-do. Despite of their locations whether in Pyongyang or Chongjin, all markets have goods from South Korea and China. The poor people even if they live in Pyongyang should buy cheap and low quality of products from China. In contrast, those who live in Chongjin and have money can buy goods from South Korea anytime.”


Market Prices Consistent Throughout DPRK
Institute for Far Eastern Studies (IFES)
NK Brief No. 07-10-25-1
10/25/2007

The results of a survey conducted by Daily NK on the price of goods in Pyongyang at the end of September show that prices in the capital were similar to those in rural areas. This is an indication that markets throughout the country are integrated, and evidence that goods can be circulated from region to region.

In the past, the price of domestic goods in Pyongyang was relatively cheep, while imported goods were sold at high prices. During that time, Daily NK carried out local price surveys in central regions such as Pyongan and Hamkyung provinces, as well as in northern areas. According to this latest survey in Pyongyang, the cost of one Kg of rice, the standard measure of the cost of goods in North Korea, was 1,350 won, similar to the 1,400 won price in Sinuiju, and the 1,250 won cost in Hyeryung. An exchange rate of 3,300 won per USD is also in line with rural exchange rates, as is the 1,500 won price tag on a pack of Craven A cigarettes, the most favored imported cigarette in North Korea.

Non-essential food goods are more expensive in Pyongyang than in outlying areas, with one Kg of lettuce selling for 400 won, 50 won more than in Sinuiju. Also, pork in the capital runs between 3,500 and 4,000 won per Kg, which is 500 to 1,000 won more than it would cost elsewhere in the country.

On the other hand, seaweed, dried Pollack, and other marine products are cheaper in Pyongyang than elsewhere. Ocean harvests from Kangwon and neighboring provinces are brought to Pyongyang markets by way of refrigerated trucks. Because of high demand, a variety of goods get delivered, yet overall, prices are held fairly low.

Overall, the price range on a particular ware was very wide, indicating that there was a variety of products available in the markets. The survey found that goods such as undergarments, socks, sneakers imported from China were selling for the high cost of 1,000 won each. In Sinuiju and other northern areas, goods from China are brought directly to markets, but by the time these same goods reach Pyongyang, additional labor and transportation costs force prices up. Pyongyang residents typically have more money to spend than those in rural areas, also leading vendors to raise prices on some goods, however cigarettes and alcohol produced in Pyongyang and distributed to rural areas, as well as South Korean goods which reach DPRK markets by way of Pyongyang, are slightly less expensive in the capital.

Recently, regional price differences have nearly disappeared. Prior to 2002, some traders earned their living traveling from region to region exploiting price differences. However, now with one simple phone call, North Koreans can find out where and for what price goods are being sold, leading the majority of retail prices to be similar throughout the country.

Share

Posted in 2002 Economic reforms, Agriculture, Black markets, Economic reform, Film, Finance, Fiscal & monetary policy, General markets (FMR: Farmers Market), Light Industry, Manufacturing, Price liberalization, Telephones, Uncategorized | Comments Closed

S. Korea provides 4 tln won worth of rice, fertilizer to N. Korea

Friday, October 19th, 2007

Yonhap
10/19/2007

South Korea has spent nearly 4 trillion won (US$4.36 billion) over the last six years to provide rice and fertilizer to North Korea, the Ministry of Agriculture and Forestry said Friday.

In a report forwarded to lawmakers for this year’s parliamentary audit, the ministry said Seoul spent 3.33 trillion won to send 2.2 million tons of rice to Pyongyang from 2002 to August of this year.

It said 400,000 tons of rice were shipped every year from 2002 to 2004, while 500,000 tons were shipped in 2005. Numbers dropped to 100,000 tons last year after Pyongyang fired off rockets and exploded a nuclear device.

This year, 400,000 tons have been sent to make up for poor harvest in the North.

Of the total, 2.1 million tons of rice were sent as low interest, long-term loans to be paid back in 20 years after a grace period of 10 years.

The ministry said 620 billion won were spent to send about 2 million tons of fertilizer to the North in the cited period.

Opposition lawmakers claimed the government had diverted 2.18 trillion won from the country’s grain management special account to provide North Korea with agricultural support.

“The grain account is aimed at helping local farmers. but the government is using it to supplement the inter-Korean cooperation fund,” said Rep. Hong Moon-pyo of the conservative Grand National Party.

He said that because it will take some time to recover the money, any shortcomings in the grain fund will have to come from the regular account and that will create a burden for taxpayers.

The government asked lawmakers to approve 909.6 billion won for next year’s inter-Korean cooperation fund. This year, the fund amounts to 870.4 billion won.

The money will be used to send 500,000 tons of rice and 400,000 tons of fertilizer to North Korea.

Share

Posted in Agriculture, Agriculture statistics, Foreign aid statistics, International Aid | Comments Closed

Expert says North facing more famines

Friday, October 19th, 2007

Joong Ang Daily (via AFP)
10/19/2007

If floods and bad weather aggravate already chronic food shortages, North Korea may face new famines next year, a leading expert in Seoul warned yesterday.

Floods and storms, followed by outbreaks of blight and insect-related damage, deprived the impoverished nation of about 10 percent of its fall harvest this year, said Kwon Tae-Jin, research director of the Korea Rural Economic Institute.

“North Korea is likely to face very serious food shortages next year, and barring very generous help from abroad, we may see something like the 1995-98 famine,” Kwon told AFP.

That famine reportedly killed hundreds of thousands of people.

Kwon said North Korea needs at least 5.3 million tons of food to feed its 23 million people from now until next year’s harvest. But its own food production is expected to come to only 3.9 million ton, leaving a shortfall of 1.4 million.

South Korea is the North’s biggest aid provider, supplying it with 400,000 tons of food every year. Seoul is expected to increase this aid to 500,000 tons next year.

North Korea imports about 200,000 to 300,000 tons of food every year, but must rely on outside help to plug the remaining gap, Kwon said.

Paul Risley, Asia spokesman for the World Food Programme in Bangkok, said some food aid was sent directly to the North, including from China. Nonetheless, there is a significant gap between the amount of food available and the amount actually required, Risley told AFP, citing UN figures.

“This is a very serious concern, and it’s quite clear from the most recent estimate of food commodities that are available … that the DPRK [North Korea] will once again this year face a very significant gap between the amount of cereal, such as corn and rice, available and the amount of food required for its population,” he said.

He said the World Food Programme provides a “relatively small amount of food assistance” to millions of the most vulnerable, including several hundred thousand victims of August floods.

North Korea was already reliant on international aid to help make up a food shortfall of 1 million tons ― 20 percent of its needs ― even before the August rains.

Share

Posted in Agriculture, Arduous March, Foreign aid statistics | Comments Closed

Market Prices Are Skyrocketing in North Korea

Friday, October 19th, 2007

Daily NK
Lee Sung Jin
10/19/2007

Prices.jpgA study reveals that market prices have skyrocketed in North Korea since the massive flood disaster in August.

According to the study conducted by DailyNK in late September this year, the rice price in the northern part of North Korea increased by 500 North Korean won on average between early July and September. In the market in Sinuiju of North Pyongan Province, the rice price rose from 980 Won/kg to 1,400 Won/kg.

The price of imported rice from China also went up to 1,250 won/kg. The rice from South Korea was sold at 1,450/kg. In Gwaksan of North Pyongan Province, the domestic rice was sold at 1,370/kg, the rice from China at 1,500/kg, the rice from South Korea at 1,300/kg.

In Hoiryeong of North Hamkyung Province, the price of domestic rice was 900 won/kg in July but rose to 1,250 won/kg. In Kilju of North Hamkyung Province, the domestic rice was sold at 1,200 won/kg. This shows that the rice price in North Hamkyung Province did not increase as highly as the price in Sinuiju of North Pyungan Province. In Hoiryeong, the price of rice has been rising steadily from 820 won/kg in March.

The rice in Hoiryeong is cheaper than in Sinuiju because demand for corn is relatively high and food distribution is partly being operated in Hoiryeong.

Between July and late September, the price of wheat also rose from 900 won to 1,200 won, and the price of noodles from 1,000 won to 1,600 won. However, the price of whole corn, the staple food for the low-income families remained stable for the same period.

It was believed that the surge in food prices resulted from the massive flood damage which stroke North Korea in early and middle August. When vast areas of land in South Pyongan and Hwanghae Province, the major granary of North Korea, were submerged during the flood, it was expected that domestic crop production would decrease.

After the food crisis in 1990s, the demand for rice increases in every fall during which rice price is low and people tend to purchase in advance one-year supply for food. In this fall, however, the price of rice greatly rose because the shortage of food was anticipated.

Meanwhile, the surge in rice price illustrates that overseas food aid was not distributed to the people of North Korean. The illicit sale of rice originally distributed to the party cadres or People’s Army has not been fully activated in the market. In addition, the rise in rice price was triggered by the fact that the number of wholesalers stocking up rice in advance increased with the news that there would be a shortage of food.

In early August, the price of rice once surged to a high of 1,950 won/kg in the market in Sinuiju. Thereupon, there was a rumor going around that the rise in rice price resulted from the state’s ban on rice sale and had nothing to do with the flood. Anyhow, the rice price has been on the decrease since then, and in September it had remained at around 1,500 won/kg.

As opposed to the rise in rice price, the price of corn, the main diet for the low-income families remained stable. This means the possibility of massive starvation in North Korea is low this year. Moreover, that the corn price remained moderate when rice price went up by 500 won reflects that the economic situation of middle class has been stabilized over the years.

Along with the rise in food prices, the prices of industrial products or others have been soaring sharply. The price of pork increased from 2,300 won/kg to 3,000 won/kg, and the price of frozen Pollack from 3,500/fish to 4,800/fish

The prices of brown seaweed or fruit juice went up to around 2,000 won each. The price of the popular imported cigarettes, Cat, rose by 200 won being sold at a cost of 1,500 won.

As winter is coming soon, the heating fuel price increased. Brown coal was sold at a cost of 1,300 won for 20 kg, gasoline at a cost of 3,000 won/liter

The exchange rate also increased from one dollar to 3,100 won to one dollar to 3,300 won.

Share

Posted in Agriculture, Economic reform, General markets (FMR: Farmers Market), Price liberalization, Public Distribiution System (PDS) | 1 Comment »

North Korea Farming Region Destroyed, So the Cost of Rice Increases

Wednesday, October 17th, 2007

Daily NK
Han Young Jin
10/17/2007

Due to the flood damage which heavily affected the central region of North Korea last August, the next year’s price of rice has been putting an increasing burden among civilians.

Min Nam Su (pseudonym), a North Korean trader who has come to Dandong, China, said on the 15th, “In Hwanghae and South Pyongan Province this year, farming has been affected for the flood damage, so the price of rice has been showing signs of an increase. Currently in the Jangmadang (markets) in Shinuiju, 15kg of rice costs 25,000 North Korean won (KRW8,000, USD8.7).

“The farmlands in Hwanghae and South Pyongan have been completely submerged, so we were only able to look to farming in North Pyongan Province. It is obvious that they will be taken up for provisions for the People’s Army, so people who have money are already busy buying and hoarding rice.”

A majority of urban civilians are directly purchasing rice from the jangmadang, with the exception of Hwanghae and Pyongyang, after the breakdown of the provision system in North Korea. If the price of rice skyrockets, the livelihood of North Korean citizens will be directly affected.

It is possible that the rice aid from South Korea or international society, which will be distributed from the end of this month, may stabilize the price of rice.

Good Friends, beginning early this month, relayed through its newsletter, “Only when the rice aid comes in quickly will the overall price of rice decrease, no matter whose hands it falls into. It is difficult to buy a kg of rice for 1,700~1,900 won.”

Rice aid to North Korea flows in through Pyongyang, Nampo, or through Chongjin Harbor. The rice, after it goes to the People’s Army or large-city political employees, travels down a path of smuggling into the jangmadang. NGOs for North Korea estimate that the actual amount of rice allocated to civilians is around 30% of all the aided rice.

The North Korean authorities recently gave an instruction to factories and offices to guarantee six-months worth of food provisions to laborers, but the factories are reportedly in a difficult situation due to the rice shortage.

Mr. Min said, “From now on, 15kg of rice is supposed to hike up to 50,000 North Korean won (approx. USD17.4). In places like Yongcheon plain and Jungju plain, some farming has been well done, so the armies are mobilized and will do harvest. This year in particular, there will probably be a lot of thieves in farmlands.”

He said further, “The price of rice is supposed to have risen even more in Kaecheon, Suncheon, and Pyongsung in South Pyongan Province than in Shinuiju. There have been news that people are even coming from the Hwanghae region, which is a famous farming province, to North Pyongan to buy rice.”

Mr. Min said, “In early August, when the initial flood damage occurred, a kilogram of rice rose to 1,960 (approx. USD0.7) in the Shinuiju and in the second week of August, remained stable at 1,500 won (approx. USD0.52). It seems like the price of rice will continue to rise. But, the situation would change when the support is distributed to the civilians, but who expects that?”

Share

Posted in 2002 Economic reforms, Agriculture, Economic reform, General markets (FMR: Farmers Market), Good Friends, Price liberalization, Private property | Comments Closed

North Korea on Google Earth

Saturday, October 6th, 2007

Version 5: Download it here (on Google Earth) 

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

Additions to the latest version of “North Korea Uncovered” include updates to new Google Earth overlays of Sinchon, UNESCO sites, Railroads, canals, and the DMZ, in addition to Kim Jong Suk college of eduation (Hyesan), a huge expansion of the electricity grid (with a little help from Martyn Williams) plus a few more parks, antiaircraft sites, dams, mines, canals, etc.

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

I hope this map will increase interest in North Korea. There is still plenty more to learn, and I look forward to receiving your additions to this project.

Share

Posted in 1990s Famine, Advertising, Agriculture, Architecture, Arduous March, Art, Automobiles, Aviation, Banking, Civil society, Coal, Communications, Computing/IT, Cosmetics, Dams/hydro, DPRK organizations, Economic reform, Education, Electricity, Energy, Environmental protection, Film, Finance, Fiscal & monetary policy, Football (soccer), Foreign direct investment, Forestry, Gambling, Gasoline, General markets (FMR: Farmers Market), Golf, Google Earth, Health care, Hoteling, Hwanggumphyong and Wihwado Economic Zones (Sinuiju), Illicit activities, Juche, Kaesong Industrial Complex (KIC), Labor conditions/wages, Leisure, Library, Light Industry, Manufacturing, Mass games, Military, Mining/Minerals, Mt. Kumgang Tourist Special Zone, Music, Nuclear, Political economy, Pyongyang International Trade Fair, Pyongyang Metro, Radio, Railways, Rason Economic and Trade Zone (Rajin-Sonbong), Real estate, Religion, Restaurants, Sea shipping, Special Economic Zones (Established before 2013), Television, Tourism, Transportation, Water, Worker's Party | 2 Comments »

North Korean-China trade hotter than kimchi

Saturday, October 6th, 2007

Asia Times
Ting-I Tsai
10/6/2007

Business in Changbai county of Jilin province in northeast China is booming. The area, which faces North Korea’s Hyesan City across the Yalu River, has seen its exports rise 28.5% year-on-year in the first eight months of this year, the beneficiary of logjams created by China’s brisk trade with North Korea further downstream to Dandong – the busiest border city in northeast China bordering North Korea’s Shinuiju across the Yalu River.

As ice is melting between North Korea and the United States, more and more Chinese businessmen have been rushing to the border with the secretive communist country, looking to cash in on its trade and investment potential.

“Traffic across the river has been so busy,” said Han Lihsin, who founded a China-Korea trade website to promote business with China’s reclusive neighbor in April last year. “It is not only trucks from China that have to line up to go through customs, North Koreans have also sent their own trucks to pick up goods.”

According to statistics from Chinese Customs, bilateral trade between North Korea and China reached US$1.7 billion in 2006, a 7.58% increase over the previous year. It has grown another 16.7% in the first eight months of this year to $1.25 billion. Chinese investment in North Korea, meanwhile, had reached $38 million by the end of 2006.

China’s main exports include agricultural products, consumer electronics, textiles and fuel, but North Korean traders are taking advantage of the Internet to diversify their purchases. On China’s business promotion websites, buyers claiming to be from North Korea are asking for items as varied as wine coolers, necklaces, leather suitcases, soybean oil, pencil cases and “plastic containers for aromas or perfume”.

Whether North Koreans now have more money and are able to consume more remains a hotly debated issue among Chinese traders. But they agree that North Korean customers are now more sensitive to product quality and brands. “It’s not just about being cheap anymore. Products are required to be affordable with guaranteed quality,” said Tang Fuyou, manager of Dandong-based Tigereye62.com.

To overcome North Korean customers’ resistance to Chinese products, Tang says suppliers now market products with brand names and descriptions printed in English on the packaging. Small “Made in China” markings are placed in unobtrusive spots. “That way, goods can be sold for good prices,” he said, adding that South Korean and Japanese products are still too expensive for North Koreans.

Used televisions, washing machines, refrigerators and air conditioners are at the top of North Korean shopping lists. Hoping to ride the wave of this new demand for big-ticket household goods, China’s leading home appliance exporter Haier has reportedly been operating across the border since January of this year.

Traders aren’t the only ones looking to profit from North Korea. Burdened by soaring labor costs and high land prices, Chinese businessmen are finding this virgin territory to be a potential paradise.

Xu You, chairman of the Changbai-based China-North Korea investment association, suggested that his joint-venture wood factory pays 10 yuan (US$1.3) per month to its North Korean workers. Trader Wang Wei, whose Hsienhe pharmaceutical manufacturing company is planning to build a new factory in North Korea’s Nanpo, suggested that monthly salaries there average about 50 yuan.

Ambitious North Korean officials might not appreciate the intricacies of capitalist operations, but they have skillfully extended their networks for soliciting investment by touting the country’s advantages of cheap land and labor. North Korean websites based in China are advertising a broad range of investment opportunities, including in the areas of energy, restaurants and hotels, agriculture, mining, manufacturing and general infrastructure.

Among the approximately 100 projects circulating on these websites, hotels and electricity generation seem to be particular targets. One calls for a $30-45 million investment in Pyongyang’s yet finished tallest building, the Ryugyong Hotel, while another requires a $50-60 million investment for the Taedong-gang Hotel. Stakes in expansions of fuel-fired power plants are being offered for $100-200 million, and, hoping to take advantage of green energy, projects to develop wind and solar power also appear but minus a price tag.

As for manufacturing, projects to make elevators, freezers, electronic watches, shoes, sewing machines and even disposable diapers all require foreign investments in the form of machines, technology and raw materials.

At the urging of North Korean officials, investors Xu and Wang are now involved in pitching investments south of the Yalu to other Chinese prospects. According to Wang, Pearl River delta-based Chinese businessmen have expressed the most interest in relocating their factories, with 30 to 50 investment projects currently under negotiation.

Among those still concerned about the high uncertainty of operating in North Korea, some have chosen to set up an office in Pyongyang and bide their time until a timely opportunity emerges.

Aware of the growing significance of the bilateral commercial relationship, China’s central government and three provinces near the North Korean border – Liaoning, Jilin and Heilongjiang – have all made efforts to boost bilateral cooperation.

In March 2005, Chinese Premier Wen Jiabao signed an investment-protection agreement with his North Korean counterpart, and the two nations inked five bilateral economic cooperation agreements between 2002 and 2005. During North Korean leader Kim Jong-il’s visit to China in January 2006, Wen introduced new economic-cooperation guidelines.

In July of this year, Chinese Foreign Minister Yang Jiechi noted during his three-day visit to Pyongyang that economic cooperation was an important part of China’s relations with the North, and said China would continue to promote cooperation by following the previous agreements and guidelines.

Provincial governments, meanwhile, have been promoting cross-border trade by attending and holding trade shows and building new trade zones. Jilin’s Hunchun, Jian and Tumen are the cities along the North Korean border most aggressively pursuing free-trade zones that would allow visa-free access and offer duty-free facilities.

North Korea introduced economic reforms in 2002, but with embargoes imposed by the United States and Japan and Pyongyang’s economic conservatism, the reforms have accomplished little and the economy continues to struggle. In an acknowledgement of those problems, Dear Leader Kim Jong-il in January of reportedly vowed to make 2007 North Korea’s economic development year.

Tang, the Chinese businessman operating in Dandong, noted that his company is about to be appointed by North Korea’s trade authority to assist the operations of some 200 North Korean companies in China. He believes, however, that patience is required when dealing with the communist, reclusive nation.

“Even when North Korea and the US normalize their relationship, more time will be needed for economic reform,” he said, “Chaos would follow if the system is transformed too quickly.”

Share

Posted in Agriculture, China, Communications, Energy, Foreign direct investment, International trade, Internet, Trade Statistics | Comments Closed

‘Joint fishing zone’ skirts limit-line issue

Friday, October 5th, 2007

Joong Ang Daily
Ser Myo-ja and Chung Ki-hwan
10/5/2007
The Northern Limit Line remains in place, but vessels from both North and South Korea will be allowed to cross the “special peace and cooperation zone” in the Yellow Sea, according to yesterday’s agreement.

The deal for a joint fishing zone along the maritime border between the two Koreas angered South Korean fisherman and conservatives.

“We oppose the plan,” said Kim Jae-sik, a 46-year-old fisherman representing Yeonpyeong Island in the Yellow Sea near the border. “We will lose our fishing sources when large ships from the two Koreas flock to the area.”

The joint fishing zone is intended to avoid accidental military clashes, the two leaders said. The top defense officials from the two countries will meet in Pyongyang next month to discuss military measures, including safety guarantees inside the zone.

The inter-Korean deal also agreed to open a direct maritime route in the Yellow Sea to allow travel by Korean civilian vessels. The North’s Haeju Harbor will open for that purpose. The deal did not mention the limit line.

South Korean conservatives said they are concerned that the South has yielded to the North’s longtime challenge to the de facto maritime border.

Grand National Party Chairman Kang Jae-sup said, “I am concerned that the plan for establishing a joint fishing zone and the peace waters is a shortcut to incapacitating the Northern Limit Line.”

The Korea Veterans Association also issued a statement in opposition. “The North has initiated two sea battles so far to disable the line,” the association said. “Without a national consensus, no agreement should be made at the defense ministers’ talks next month regarding NLL.”

North Korea has never agreed to the limit line, which was established by a a United Nations commander in 1953. In 1999, the two Koreas’ navies clashed in a battle after the North crossed the line. Another sea skirmish took place in 2002 with the loss of six South Korean soldiers.

Experts also expressed concern that the military border was pushed aside in the name of economic cooperation. “Building the peace zone in the Yellow Sea and allowing the North’s civilian vessels to directly travel in the western waters on the Haeju route have provided an opening for the North to nullify the Northern Limit Line,” said Yoo Ho-yeol, a North Korean studies professor at Korea University.

Ahn Byung-min, a North Korea expert at the Korea Transport Institute, pointed to the economic gains for the direct sea route. “Inter-Korean maritime shipments have had to detour until now, but the direct route will save a lot of time and logistics costs,” Ahn said. “In terms of the economy, it is a very constructive agreement.”

Fishermen at the northern-most Baeknyong Island worried their movements will still be restricted while North Koreans freely come down to catch fish. “Since the 1970s, the North Koreans frequently violated the border and operated in the southern area,” said Choi Jong-nam, a Baeknyong fisherman. “What if things do not change for us?”

Share

Posted in Agriculture, Inter-Korean summit, Military, Political economy, Sea shipping | Comments Closed

US Geological Survey 2006 Minerals Yearbook

Wednesday, September 26th, 2007

Summary: For the next 4 to 5 years, the North Korean mining sector is likely to continue to be dominated by the production of coal, iron ore, limestone, magnesite, and zinc. Because of growing demand for minerals by China and the Republic of Korea, their investment in North Korea’s mining sector is expected to increase and to extend beyond their current investments in apatite, coal, copper, and iron ore into other minerals, such as gold, magnesite, molybdenum, nickel, and zinc. North Korea’s real GDP is expected to grow at between 1% and 2% during the next 2 years.

Other highlights:

  • North Korea ranked third in production of magnesiate in the world.  Its value-added product–magnesia clinker, which is used as a refractory metal–was marketed world wide. 
  • According to Corporate social Responsibility Asia (CSR Asia), North Kroea ranked virtually last in environmental sustainability in the world, despite the country’s enactment of major laws for environmental protection, such as the Land Law of 1977, the Environmental Protection Law of 1986, the Forrestry Law in 1982, and the Law on Protection of Useful Animals in 1998.
  • On the basis of North Korea’s industrial structure in 2004 (the last year in which data is available), the mining sector accounted for about 8.7% of North Korea’s gross domestic product.
  • Recoverable coal reserves in North Korea were estimated to total about 8 billion metric tons in 2006.  Coal production reportedly dropped to about 23 Mt/yr in 2006 from 37.5 Mt/yr in 1985 mainly because of outdated mining equipment and technology.

Download the full version here: USGS.pdf

Share

Posted in Agriculture, Coal, Copper, Economic reform, Energy, Environmental protection, Foreign direct investment, Gold, Graphite, Iron Ore, Mining/Minerals, Sand, South Korea | Comments Closed

North Korea says Typhoon Wipha destroyed 107,910 hectares of crop field

Monday, September 24th, 2007

Yonhap
9/24/2007

Heavy rains caused by last week’s typhoon have destroyed some 107,910 hectares of crop field in North Korea, the country’s state media reported Monday.

Many parts of southwestern North Korea, including its capital Pyongyang, were flooded, leaving at least 14,000 homes and 8,000 buildings submerged or damaged from rains spawned by Typhoon Wipha, the North’s official Korean Central News Agency (KCNA) said. However, it didn’t report on possible human casualties.

Last month, North Korea was hit by its heaviest rainfall in 40 years, leaving some 600 people dead or missing and about 100,000 people homeless.

“Many parts of road destroyed in August were repaired in a short time, but some 90 bridges and roads were buried or destroyed again by heavy rains last week,” KCNA said.

In the southwestern part of North Korea such as South Hwanghae, North Hwanghae, South Pyongan provinces and Pyongyang, the total rain from Sept. 18-21 averaged between 250 millimeters and 470 millimeters, KCNA reported.

The floods in August damaged some 200,000 hectares of farmland in North Korea, according to KCNA report on Aug. 26.

Share

Posted in Agriculture, Transportation | Comments Closed

« Older Entries
Newer Entries »