Anthracite export to China suspended temporarily

November 28th, 2011

Institute for Far Eastern Studies (IFES)
2011-11-23

North Korea has reportedly stopped coal export temporarily to manage fuel shortage during the winter season.

According to Chinese traders from Shenyang, their North Korean trade counterparts informed them that they recently received official orders from the government to stop exporting coal. Except for those orders previously received, coal from North Korea will not be leaving the country for the time being.

The export volume of coal has continuously increased this year, consequently causing a domestic shortfall in the supply of coal. In fear of power and fuel shortages for the winter season, North Korea is believed to be taking precautionary measures to preserve energy supply, especially with hydroelectric power generators not in operation.

From this year, North Korea has drastically increased coal export to China. From January to July, China has imported about 816,700 tons of North Korean anthracites, nine times more than the previous year. Anthracites made up 46.3 percent of the all the exports to China.

The amount of North Korean anthracites that entered China via Donggang Port (located in Dandong City, Liaoning Province) reached over 77.7 million USD. The city of Dandong is located across from Sinuiju. Separated by the Amnok River (Yalu River), it is the trade hub between China and the DPRK, with over 70 percent of total bilateral trade taking place in the city, as anthracite coal as the main object of trade.

With the international price of coal on the rise and operation of hydroelectric power plants in decline, dependence on thermoelectricity is growing, which explains the recent climb in China’s anthracite import.

Toughened international sanctions and halted trade with South Korea has made North Korea turn to natural resource trading with China to bring in hard currency.

In August 2009, North Korea halted coal exports when it was faced with extreme power shortage. However, coal trade was resumed the following April.

Massive amounts of coal were exported to China to earn foreign currency, but this has created serious energy shortage affecting the operations of factories and other industrial facilities.

During the field guidance visit to the February 8 Vinalon Complex, Kim Jong Il emphasized that “Raw materials must be adequately supplied to normalize the production of factories.”

However, most North Korean traders agreed that such suspension would not be prolonged for a lengthy period, since North Korea, who is heavily dependent on mined resource exports including coal and steel, cannot afford to enforce a trade embargo for long. Many expect the trade to resume by next spring.

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Naenara commends DPRK “math-letes”

November 28th, 2011

Pictured above (Google Earth): Pyongyang Middle School No. 1

According to the Nov 2011 issue of Korea Magazine (via Naenara):

The International Math Olympiad that ran in the Netherlands in July drew more than 560 students from over 100 countries and regions.

The annual Olympiad attracts worldwide attention as it is a good occasion for judging the level of education and the prospect of scientific development of each country.

All of the six students from the DPRK were highly appraised. Mun So Min, Mun Hak Myong and Hong Chung Song from Pyongyang Secondary School No.1 have won gold medals and Ri Yong Hyon and Ryu Song Chol from Pyongyang Secondary School No.1 and Kim Hyo Song from East Pyongyang Secondary School No.1 silver medals.

After a prize-giving ceremony was over, their tutor Ri Kwang Il said with pride to journalists that their successes were the fruition of the excellent educational system of the DPRK.

In the DPRK favourable conditions are provided for educating even one or two children in a remote mountainous village and isolated islet. School bus, train and ship can be seen.

Specialists, famous professors and doctors strive to find out talented children in time and train them.

Under the good educational system, the six students from the DPRK have studied to their heart’s content. Thus they gave full play to their abilities in the international contest.

They are now working harder out of desire to live up to the expectations of their motherland.

A minor translation note…recently the official North Korean media began translating “중학교” as “Secondary School” rather than “Middle School”.  Thus, Pyongyang Secondary School No. 1 is more commonly known in English as the Pyongyang Middle School No. 1.   You can see it in Google Maps here.

Back to the main point: According to the International Math Olympiad’s web page, the DPRK came in a respectable seventh place in the 2011 tournament.  Unmentioned in the Naeanra article is that the DPRK is the only team to have ever been disqualified in the tournament’s history, and it has been twice: in 2010 and 1991.

I wrote a previous post about the tournament here.

 

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Dutch stamp dealer accused of being a spy in North Korea

November 27th, 2011

By Michael Rank

A Dutch stamp dealer who was arrested in North Korea this summer has told how he was held in solitary confinement for two weeks and threatened with spending 15 years in prison for spying.

Willem Van der Bijl said in a telephone interview that he had visited North Korea about 24 times since 1998 in order to buy stamps, postal stationery and propaganda posters, and that three of his business contacts were arrested with him last August. Although he was freed after a highly unpleasant two weeks during which he was held in a two-by-three metre cell, he has no idea what has happened to his North Korean colleagues, but fears they will be severely punished.

He said he had been “intimidated” by his interrogators but not physically mistreated during his detention. “They yelled at me but did not hit me”, he said, adding that he was accused of being a spy apparently because of the large number of photographs he had taken of the North Korean countryside during trips to factories outside Pyongyang to discuss possible joint ventures.

He was released after signing a confession to his alleged crimes, and said the North Koreans confiscated his laptop and camera as well as a Kim Il Sung badge that had been given to him, but his money was returned to him. “I was happy to leave,” he said, adding that “There was nothing really wrong in what I did…All I did in North Korea was fairly correct”.

Van der Bijl, 60, photographed here with an interview in Dutch, said his North Korean colleagues were held in the same interrogation centre as he was and that he was deeply concerned that “They will have to face trial, and I will never see them again.”

Although mainly a stamp dealer with a stamp shop in Utrecht, he said he had become interested in collecting propaganda posters during his last few visits, and had a collection of thousands of posters.

He said North Korean officials seemed divided in their attitude as to whether such posters should be sold to foreigners. “The ‘doves’ say this art is popular in the west and should be sold; the ‘hawks’ do not want to export secret paintings, they are meant for the Korean people,” Van der Bijl said.

He said his hopes mounted every Tuesday and Saturday that he would be released as there are flights from Pyongyang to Beijing on those days, and as time progressed he became more worried that he would be sentenced to spending up to 15 years in jail for espionage. When he was freed he was told he could apply for a visa to visit North Korea again, but he told NKEW said he had no wish to do so as long as the current regime remains in power.

He said he had taken car journeys about 120 km outside Pyongyang nominally to visit companies to discuss joint ventures, but he was more interested in taking photographs of the impoverished countryside, and that North Korean factories were too dilapidated for there to be any serious chance of doing business with them.

Somewhat surprisingly, Van der Bijl is quoted on two official North Korean websites here and here before his arrest concerning local elections in North Korea in July. He visited a polling station during the elections and was quoted as saying, “Looking round the poll, I have been greatly impressed by the free and democratic elections and I have had a better understanding of the DPRK’s reality.

“In the DPRK every citizen is eligible to vote and to be elected. Those who have worked a lot for the people are elected as deputies. The popular election system of the DPRK is really excellent.”

He confirmed he had spoken to North Korean reporters at a Pyongyang polling station, but said all he had told them was that he had never seen elections run in such a way before, and strongly denied praising the elections as free and fair

Also surprisingly, Van der Bijl is shown wearing a Kim badge in two photographs of him on the Pyongyang Times websites. It’s rare for foreigners to be given a Kim badge and still rarer for them to be shown wearing one in the official North Korean media. Van der Bijl said he was unsure where the photos were taken. One of the websites shows Van der Bijl’s signature, copied from his passport.

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More malicious emails out there

November 27th, 2011

The attempt to break into computers of North Korea-watchers across the globe continues.  I have been documenting such cases for over a year now. See a history of these efforts here. Below I have posted the most recent efforts (three of them) that have been forwarded to me:

Here is the first malicious email:

———- Forwarded message ———-
From: KoreaSociety  <[email protected]>
To: [DELETED]
Date: Fri, 25 Nov 2011 07:24:44 +0000
Subject: Dinner Party

When you click on the “View Invite”, however, you are linking to “desk.reutersnetwork.com/FYI/Inviteviewer.hta”.  This is not a friendly link!

Here is the email header for this email:

Return-Path:
Received: from col0-omc4-s4.col0.hotmail.com (col0-omc4-s4.col0.hotmail.com [65.55.34.206])
by mtain-de02.r1000.mx.aol.com (Internet Inbound) with ESMTP id 028C83800009C
for [DELETED]; Fri, 25 Nov 2011 02:24:45 -0500 (EST)
Received: from COL110-W1 ([65.55.34.200]) by col0-omc4-s4.col0.hotmail.com with Microsoft SMTPSVC(6.0.3790.4675);
Thu, 24 Nov 2011 23:24:44 -0800
Message-ID: Content-Type: multipart/alternative;
boundary=”_ad1f38f0-b70b-449b-8fe6-1bc6b8b11d2b_”
X-Originating-IP: [121.140.196.242]
From: KoreaSociety
To: [DELETED]
Subject: Dinner Party
Date: Fri, 25 Nov 2011 07:24:44 +0000
Importance: Normal
MIME-Version: 1.0
X-OriginalArrivalTime: 25 Nov 2011 07:24:44.0745 (UTC) FILETIME=[4E0BB390:01CCAB43]
x-aol-global-disposition: G
x-aol-sid: 3039ac1d40ca4ecf42bd7ab9
X-AOL-IP: 65.55.34.206
X-AOL-SPF: domain : hotmail.co.kr SPF : pass

Here is the second malicious email:

———- Forwarded message ———-
From: Allen Gross <[email protected]>
Date: Thu, Nov 17, 2011 at 3:26 PM
Subject: FW:Great Leader,Kim Il Sung:commemorating the “Day of the Sun”
To: [DELETED]

I am forwarding the feature column : “Great Leader – Kim Il Sung”
This is written to commemorate the “Day of the Sun”.
I put a high valuation on contents of this column.
I was deeply moved at this writing.
You can read the column on the link below.

The Great Leader – Kim Il Sung, commemorating the “Day of the Sun”

I wonder what you think about this writing.
Thanks.

regards.

Here is the third malicious email (which came through as a bunch of Russian gibberish):

From: Minaji Tracker <[email protected]>
To: <[email protected]>
Date: Wed, 30 Nov 2011 07:06:29 +0000
Subject: KORUS FTA
жп╧ЦмЬ╠╠Ў╘11тб30хуоШо╒ Ўщжп╧ЗжўиЫ║Іх╚гР╩╙сО╧Ц╡╔мЬ║Ї
╠╗╣юё╛ЄРтрс╒╧Зй╧╧щё╛Їыиус╒╧З╧ЗфЛё╛ҐыЁжмБҐ╩╧ыт╠
║ґ║ґраюйиоящ║╟╨зи╚пгфзІЧ║╠║ёвРлЛё╗29хуё╘╟ЬмМё╛раюййвІ╪╣б╨з
ю╪йЩгїцШ╦ъпёяїиЗ╨мцЯжзё╛тзс╒╧ЗвєраюйЄСй╧╧щцег╟ЎыппйЎмЧ╩НІ╞ё╛©╧рИ
с╒╧ЗуЧ╦ўҐЭфзІтраюй╡их║╣╔╠ъжф╡цЄКй╘║ёйЩйўцШраюйЄСяїиЗгИпВ╪єІ╞╣ьЄЁхКс
╒╧ЗЄСй╧╧щё╛Їыиус╒╧З╧ЗфЛ╡╒тр╩╣╧щдзиХ╠╦║ёоЙо╦гИ©Жё╛нрцгюЄа╛оъжп╧З╧З╪
й╧Ц╡╔╣Гл╗вєраюй╪гуъбчюЄ╟╡║ё
жВЁжхкё╨бчюЄ╟╡ё╛ҐИиэр╩об╣╠лЛобнГраюй

ЄСяїиЗЁЕхКс

The phrase “ЄСяїиЗЁЕхКс” links to “private.neao.biz/FYI/debate.hta”

Here is the email header data:

Return-Path:
Received: from col0-omc4-s11.col0.hotmail.com (col0-omc4-s11.col0.hotmail.com [65.55.34.213])
by mtain-de01.r1000.mx.aol.com (Internet Inbound) with ESMTP id 0F6C63800008A
for ; Wed, 30 Nov 2011 02:06:30 -0500 (EST)
Received: from COL106-W22 ([65.55.34.200]) by col0-omc4-s11.col0.hotmail.com with Microsoft SMTPSVC(6.0.3790.4675);
Tue, 29 Nov 2011 23:06:29 -0800
Message-ID: Content-Type: multipart/alternative;
boundary=”_4505d9f9-d2ee-4e0b-8ee8-1d1bcae4a079_”
X-Originating-IP: [112.169.23.105]
From: Minaji Tracker
To: [DELETED]
Subject: KORUS FTA
Date: Wed, 30 Nov 2011 07:06:29 +0000
Importance: Normal
In-Reply-To: References:
,,,, MIME-Version: 1.0
X-OriginalArrivalTime: 30 Nov 2011 07:06:29.0460 (UTC) FILETIME=[95453940:01CCAF2E]
x-aol-global-disposition: G
x-aol-sid: 3039ac1d40c94ed5d5f647c6
X-AOL-IP: 65.55.34.213
X-AOL-SPF: domain : hotmail.com SPF : pass

If you see either of these emails, or variations of them, please do not click on the link.  Send them (and the email headers) to me to post so others can be on the lookout.

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Aidan Foster-Carter on what’s wrong with the DPRK economy

November 26th, 2011

Aidan Foster-Carter writes a compendium of problems facing the DPRK economy in 38 North.

Paraphrasing the ailments he cites: Socialism, militarism, royal economy, cult costs, potempkinism, leadership whims, rigidities, coordination problems, unwise leadership priorities.

Read the full story (which is full of fantastic anecdotes) below:
Whim Jong Il: North Korea’s Economic Irrationalities
38 North
Aidan Foster-Carter
2011-11-26

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North Korea ranked 3rd in the Deforestation Index

November 25th, 2011

Pictured above (via Maplecroft): Visualized data map of the 2012 Deforestation Index. Read more from Maplecroft here.

According to Arirang News:

Forests in North Korea are disappearing at an alarmingly rapid pace, according to a new report.

Maplecroft, a UK-based risk analysis firm, said Thursday that among 180 countries surveyed, North Korea had the third highest deforestation rate trailing only Nigeria and Indonesia, respectively.

The United Nations estimates that, as of the end of 2008, North Korea had lost almost one-third of its entire forest mass.

Environmental specialists blame the country’s rampant deforestation on terraced farming and indiscriminate chopping for firewood.

Maplecroft has strongly urged North Korea, Nigeria, and Indonesia to better protect their forests and start planting trees.

Deforestation is estimated to contribute up to 20 percent of world greenhouse gas emissions.

The Donga Ilbo also reported on the findings:

Maplecroft, a U.K.-based risk consulting company, announced that deforestation in North Korea was the third worst in the world after Nigeria and Indonesia. By contrast, the U.N. rated South Korea’s forestation as the only successful case after World War II. Park Jong-hwa, a professor of environmental studies at Seoul National University, said that judging from NASA`s satellite images, 13,878 square kilometers or 11.3 percent of North Korean territory comprised deforested mountains. In seasons when all of South Korea is green with foliage, the North`s land in satellite images are spotted with brown dirt land. The Korea Forest Service of South Korea estimates that reforesting North Korea will require 4.9 billion trees.

Many North Korean defectors who fled the North on boats say they felt relieved to know that they had arrived in the South upon seeing coastal mountains with dense forests. Looking northward from an observatory on Mount Odu near the Demilitarized Zone, one will see North Korean mountains all bare. The North’s deforestation is caused by wanton reclamation of land and logging due to poverty. Hungry North Korean residents dig up mountain foothills to make cultivation fields for food and even cut young trees for use as firewood in winter. Deforestation causes frequent flooding and droughts as shown by severe flood damage in North Korea.

Here are links to previous posts on this topic: Ministry of Forestry, forestry, lumber.

Here is also a great paper that was published last year on deforestation in the DPRK: Forest degradation deepens around and within protected areas in East Asia

 

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KPA Journal Vol. 2, No. 6

November 25th, 2011

Joseph Bermudez, now a Senior Analyst with DigitalGlobe’s Analysis Center and author of The Armed Forces of North Korea, has posted the latest issue of KPA Journal. You can download the PDF here.

Topics include: M-1979/1989 170mm SPGs (Part 1) and and article on the 12th Supreme People’s Assembly by Michael Madden.

 

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Koryo Tours media wrap-up

November 25th, 2011

Koryo Tours has been busy. Below are three recent media hits the organization has received:

1. Yonhap recently published a long article on Koryo Tours founder, Nick Bonner.  You can read the full article here. In the article he discusses starting Koryo as well as the numerous other projects he has launched in the DPRK.

2. Bonner’s colleague, Simon Cockerell, recently did a podcast interview with the Korea Economic Institute.  The whole interview is worth listening to here.

3. Koryo Tours just sent out an email newsletter.  You can read it here.

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DPRK makes discreet investor plea to French students

November 24th, 2011

Pictured above (Google Earth): The University of Toulouse, France. See in Google Maps here.

According to AlertNet (Reuters):

Secretive and isolated North Korea is searching for economic allies in the unlikeliest of ways: showing videos of happy North Korean tourists to young French university students in a 13th century convent.

The reclusive communist state has no official diplomatic relations with France, one of only two European Union countries to cut ties with North Korea until it abandons its nuclear weapons programme and improves its human rights record.

But just weeks after Paris decided to open a cooperation office in the North Korean capital, its ambassador to Paris-based UNESCO accepted an invitation to address students from the University of Toulouse within the gothic surroundings of the Franciscan convent’s capitular chamber.

The meeting marked Ambassador Yun Yong Il’s first public appearance in France.

“They are the future,” said Yun, when asked by Reuters why he picked Toulouse to talk. “I’m here for the students who have been waiting to hear from a North Korean official for a year.”

Tensions have gradually eased on the Korean peninsula since the sinking of a South Korean warship 20 months ago and the North’s revelation of a uranium enrichment facility that opens a second route to make an atomic programme.

North Korea and the United States have also held a series of bilateral meetings geared at restarting broader regional de-nuclearisation talks, giving the North a window of opportunity to raise its diplomatic efforts around the world.

Yun, a former political director at the Foreign Ministry, faced about 100 students.

At times, the future political science graduates looked on bemused and surprised as the four-hour presentation cut from a hazy tourism video of the 1980s showing rolling mountains, happy North Koreans on holiday and copious seafood platters to a well structured monologue about the country’s woes and potential.

“Our country is open to everybody who wants to come. You just have to ask for a visa in Paris!” said Yun, who speaks fluent French, but opted to talk in his native language and let his deputy translate into English.

Pyongyang has slowly opened its doors under strict conditions to foreign tour groups, mostly Chinese as a way of earning hard currency.

Yun, who wears a lapel pin of President Kim Jong-il on his suit, said the country’s lack of hard currency as a result of tighter sanctions has made it turn to foreign investors on the “basis of mutual respect and interests”.

“We are looking forward to multilateral and multifaceted economic co-operation with other countries,” he said.

“We are definitely opposed to monopolistic investment of a single country,” said Yun, adding that the country’s natural resources provided opportunities for investors to tap.

CHINESE MODEL, CHINA TRAP

Michel-Louis Martin, director of Toulouse University’s security and globalisation research group said the event was not just propaganda.

“They are trying to go beyond what they usually have to say about North Korea. Don’t forget in France, North Korea is not very well known,” said Martin.

The country’s desire to diversify its economy has echoes of China when it began to allow foreign investment and gave permission for entrepreneurs to start up businesses in the 1970s.

Yun’s presentation attempted to steer clear of its frictions with the United States, South Korea and even its relationship with China, focusing instead on his country’s economic problems.

But by the end he stepped up the rhetoric, firmly laying the blame for Pyongyang’s “misfortune” on the United States.

Michel Dusclaud, a researcher at the University of Toulouse who convinced Yun to speak, said it was normal for ancestral hatreds to come out. Despite this, he said, it was clear the North was beginning to accept that if it did not diversify, it would be engulfed either by its souther neighbour or China, which still has territorial claims to it.

“They have to open up for international cooperation otherwise they will be eaten up by South Korea or China,” Dusclaud said. “It’s imperative, but it’s not because they like us.”

With his speech finished, Yun was quick to shuffle out of the Gothic chapel, declining to speak to Reuters, but also telling a student who attempted to pose a question on whether North Korea’s political system could last:

“I’ll see you in Paris and then we’ll talk.”

Read the full story here:
N.Korea makes discreet investor plea to French students
AlertNet (Reuters)
John Irish
2011-11-24

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ROK to create official reunification fund

November 23rd, 2011

According to Yonhap:

South Korea will create an exclusive unification account as part of its efforts to prepare for a future merger with North Korea, Seoul’s point man on Pyongyang said Wednesday.

The government plans to set up the unification account in an inter-Korean cooperation fund that is currently worth about 1 trillion won (US$869 million).

The fund already has a separate account earmarked for inter-Korean projects, according to the Unification Ministry in Seoul, which handles North Korean affairs.

Unification Minister Yu Woo-ik made the announcement during a meeting with South Korean reporters on the last day of his three-day trip to Beijing.

The development underscored Seoul’s longstanding commitment to unifying with North Korea. The envisioned account, which needs parliamentary endorsement, is part of South Korea’s efforts to help cushion the cost of re-unification with one of the poorest countries in the world.

A state-run think tank has estimated that the initial costs for the integration of the two Koreas could range from 55 trillion won (US$47 billion) to 249 trillion won ($216 billion).

The estimate, which is projected to cover the first year of integration, was based on the assumption that the two neighbors could be unified two decades from now, according to the Korea Institute for National Unification.

Yu said the government does not have an immediate plan to levy a tax on citizens to help finance the potential unification, though he left open the possibility of collecting a tax.

South Korea has been working on details of a so-called unification tax since last year when President Lee Myung-bak floated the idea of using taxpayer money to help finance unification.

Seven out of 10 South Koreans believed that the costs of unification would outweigh its benefits, according to a recent telephone survey, in the latest sign of public concern over re-unification’s economic burden.

The National Unification Advisory Council, a presidential advisory body on unification, released the results of last week’s poll of about 1,000 people.

The Korea Herald also reported on this story.

Here are some previous posts on reunification costs:

1. KINU study looks to mineral wealth to cover unification costs

2. DPRK risk ‘biggest drag on Seoul’s credit rating’

3. OECD on Korean unification costs

4. Reunification costs

5. Working through Korean unification blues

6. 3 Million NK Refugees Expected in Crisis: BOK

Read the Yonhap story here:
S. Korea pushes to create independent unification account
Yonhap
2011-11-23

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