DPRK premier courting Chinese investment

November 3rd, 2010

According to Yonhap:

North Korea’s Cabinet premier is visiting northeastern China to meet with ranking officials there and speed up joint economic projects between the communist allies, sources here said Wednesday.

Choe Yong-rim arrived in the city of Harbin in Heilongjiang Province earlier this week and visited the city of Changchun in a nearby province on Wednesday, the diplomatic sources said.

Choe, promoted by North Korean leader Kim Jong-il at a parliamentary convention in June, is seen as trying to consolidate the ties between Pyongyang and Beijing as the two countries seek to develop a joint economic bloc that draws from resources in China.

His visit comes after Kim visited the area in late August. During a summit between the North Korean leader and Chinese President Hu Jintao, the countries promised to boost their political and economic cooperation.

Choe’s trip, also reported by a local daily here, comes after 12 of the highest-ranking North Korean mayoral and provincial chiefs visited the same region in October, touring food, chemical and agricultural factories along with other major facilities.

Believed to be a key aide to North Korea’s next leader, Kim Jong-un, the premier inspected electronics and medicine companies and a agricultural research center in Harbin on Tuesday, the sources said.

Choe, 79, formerly chief of the Pyongyang department for the ruling Workers’ Party, has been noted for his rise to power in the past several months. He gave a speech at a mass rally on May 30, where as many as 100,000 North Koreans reportedly denounced South Korea and the United States for blaming Pyongyang for the sinking of a South Korean warship in March.

Read the full story here:
DPRK premier in northeastern China for economic cooperation
Yonhap
11/3/2010

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Preparations for next round of gift rations underway

November 2nd, 2010

According to the Daily NK:

North Korea’s food factories have started preparing the cookies which are provided annually to the nation’s children on Kim Jong Il’s birthday, February 16th.

One inside source from Yangkang Province reported today, “Since the 1st of this month, food factories in cities and provinces have begun preparing to produce gifts for the General’s birthday special distribution next year,” adding, “They finished looking into the provision of flour (potato, wheat, barley, soy beans and so on) at the end of October, and since the start of November they have been allocating firewood provision to each factory worker.”

Since factories in rural areas are no longer provided with fuel and electricity by Pyongyang, workers have to take personal responsibility for supplies of firewood.

He said, “Workers at Baekam Food Factory have to provide four cubic meters of firewood each,” and continued, “Food factory workers have been crazy busy since they were mobilized for gift production preparation, immediately after harvesting their private plots.”

The source said, “Workers have to go to mountain villages generally between eight and ten kilometers from cities in order to collect firewood; but while the walking is also work, making lunch is the big burden.”

In mountainous areas such as those where people go to collect firewood, a simple railroad system using pulleys and gravity called a “Ddoreurae” is set up. Especially in forested provinces such as Yangkang this system is widely used, winding around the foot of mountains all the way down into towns and cities. It is one tool which lightens the daily burden of the North Korean people.

The North Korean authorities provide kindergarten and elementary school children with a 1kg “General’s gift” of candy, biscuits, jellies and other kinds of cookies on both Kim Il Sung and Kim Jong Il’s birthdays. These gifts are produced by provincial food factories and distributed by the Education Department of provincial committees of the Party.

However, there are big differences between major cities and local provinces in terms of both the quality and quantity of gifts, because provincial factories tend to be laboring under more serious financial difficulties than those in big cities. Therefore, they face greater difficulties in obtaining materials, and moreover the corruption of local cadres is more serious, making it even harder to produce decent cookies.

The source explained, “Since children can easily find Chinese cookies in the jangmadang, the gifts made in places like Baekam are of such poor quality that children from households with a regular income won’t even look at them.”

Furthermore, the source pointed out, “It is both absurd and pathetic to think that children have to bow before a portrait of the General and say ‘Thank you, General’ in order to get a pack of cookies which are made from the labor of their parents.”

Read more about these “gifts” in previous posts here.

Read the full story here:
Special Distribution Preparations Underway
Daily NK
Kang Mi-jin
11/2/2010

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How digital technology gets the news out of North Korea

November 2nd, 2010

Martyn Williams writes in IT World:

The girl in the video looks like she’s about 12 years old. Thin, dirty and with a vacant look on her face, she tells the cameraman that she’s actually 23 and she survives by foraging for grass to sell to wealthier families for their rabbits.

The sobering footage was shot in June this year in the province of South Pyongan, North Korea, and provides a glimpse into the life of one person who lives far from the military parades and fireworks last month marking the 65th anniversary of the Workers’ Party of Korea.

It was shot on a cheap camera by a man who goes by the pseudonym Kim Dong-cheol, a North Korean with a double life. In addition to his job as a driver for a company, Kim also works as a clandestine reporter for AsiaPress, a Japanese news agency that’s taken advantage of the digital electronics revolution to get reports from inside North Korea.

AsiaPress works with six North Koreans they’ve trained as journalists. They’re given instruction in operating cameras, using PCs and how to use cell phones so they don’t attract the attention of authorities. Then, every few months, they meet with AsiaPress representatives just over the border in China to hand over their images.

“When we started training journalists in 2003 or 2004, getting cameras into North Korea was a real problem,” said Jiro Ishimaru, chief editor of the news agency, at a Tokyo news conference on Monday. “Nowadays, within North Korea you are able to have your pick of Sony, Panasonic or Samsung cameras.”

The material they produce is often startling and documents a side of the country the government doesn’t want the world to see.

In another clip also captured by Kim, a North Korean woman argues with a police man. Asked for a bribe, she screams at him and pushes him. “This cop is an idiot,” she shouts.

For most journalists, getting into North Korea is a tough task. Getting outside of the capital Pyongyang to see the lives of average people in the countryside is very difficult. Seeing the sort of poverty or disagreement with authority that Kim caught on camera is impossible.

Most of the shots are recorded surreptitiously and the small digital cameras make smuggling images easier than from older tape-based models.

“You used to have to tape video cassettes to your stomach,” he said. “But it’s very easy to hide an SD Card somewhere on your body.”

AsiaPress isn’t the only media working with reporters or informants in North Korea. Outlets including Open Radio for North Korea and Daily NK also receive reports from correspondents inside the country that add additional information, understanding and sometimes rumor to what’s happening inside the country.

The reports are typically sent via cell phones connected to a Chinese mobile network. Signals from Chinese cellular towers reach a few kilometers into North Korea and are difficult to monitor by the state’s telecom surveillance operation.

Recently, North Korean authorities have woken up to the flow of information across the border and are trying to stop it.

“The greatest headache I face is telecommunications,” Ishimaru said.

Mobile detection units patrol the border looking for signals from within North Korea and, if found, attempt to triangulate their source.

“The number of these units has been increasing, so if you spend a long time on the phone the police will come and search your house,” said Ishimaru. “People have become frightened of using the phone.”

If caught the punishment can be severe. Earlier this year a man faced a public firing squad after he was caught with a cell phone and admitted to supplying information to someone in South Korea, according to a report by Open Radio for North Korea.

The risk such reporters face leaves their agencies open to criticism that they are putting people in unnecessary danger, but Ishimaru said his reporters all want to provide a true picture of life inside North Korea to the rest of the world. He pays them between $200 and $300 per month.

The digital media revolution isn’t one way. It’s estimated that half of all young people in major cities have watched pirated South Korean TV dramas.

“Media around the world has gone digital and that’s also happened with North Korean propaganda,” said Ishimaru. “But even the wealthy and those in authority don’t want to watch propaganda films and movies about Kim Il-Sung and Kim Jong-Il. They want to watch something that’s more entertaining.”

The shows are recorded from South Korean satellite TV broadcasts in China and burned onto DVDs or Video CDs that soon make it over the border and into North Korean markets.

There are occasional crackdowns, but even the police want to watch the dramas.

“Although there are crackdowns and things are confiscated,” he said, “I don’t think there is anyway the leaders can put a stop to this.”

Read previous posts about Rimjinggang here

Read the full story here:
How digital technology gets the news out of North Korea
IT World
Martyn Williams
11/2/2010

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DPRK estimated to have 40 kilograms of plutonium

November 2nd, 2010

According to Yonhap:

North Korea is believed to have produced some 40 kilograms of plutonium, the main ingredient of an atomic bomb, and to be miniaturizing nuclear weapons to improve their mobility, South Korea’s defense minister said Tuesday.

“We believe that North Korea owns 40kg of plutonium and continues attempts to miniaturize atomic weapons,” Defense Minister Kim Tae-young told lawmakers.

Kim’s assessment on North Korea’s plutonium stockpile is about 10kg less than what the United States estimates. The U.S. believes North Korea had produced about 50kg of the weapons material, which experts say would be enough for six to eight atomic bombs.

Kim said North Korea’s ballistic missiles could be used as “useful means” to carry nuclear bombs along with its fleet of bombers.

North Korea, which conducted two nuclear tests in 2006 and 2009, has shown no signs that it owns a working nuclear bomb.

Asked about the possibility of another nuclear test by North Korea, Kim replied, “There is a possibility, but no clear signs (of a third nuclear test) have been observed yet.”

South Korean and U.S. intelligence authorities have been keeping a close watch on the movements of vehicles and personnel at the North’s previous nuclear test site, Kim said.

North Korea has also made progress in its uranium enrichment program, which could give Pyongyang a second way to develop nuclear weapons in addition to the plutonium-based program, Kim said.

“I think it’s quite possible for North Korea to build nuclear weapons through the uranium enrichment program,” the defense minister said.

North Korea officially quit six-party talks, a forum aimed at ending its nuclear development in exchange for incentives, in April last year and conducted the second nuclear test a month later.

The six-party talks, which also involve South Korea, China, the United States, Japan and Russia, were last held two years ago. Chances of their resumption have been dim after Seoul blamed Pyongyang for sinking one of its warships in March.

North Korea has been beckoning other members recently, saying that it is willing to rejoin the forum. South Korea demands that the communist neighbor shows in action its willingness to denuclearize and apologize for the ship sinking.

Read the full story here:
N. Korea estimated to have 40 kilograms of plutonium: defense minister
Yonhap
11/2/2010

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Red Cross updates 2011 DPRK aid plan

November 1st, 2010

Read the full report here (PDF)

Executive Summary
The International Federation of Red Cross and Red Crescent Societies (IFRC) is the largest humanitarian organization in the Democratic People’s Republic of Korea (DPRK) for many years, thanks to its close collaboration with the DPRK Red Cross to assist to the most vulnerable in the country. In the coming years, the DPRK Red Cross, with support from IFRC, plans to strengthen its programmes based on existing needs and available funding, with a strong emphasis on long-term development.

Despite the DPRK government’s focus on improving people’s livelihoods through investments both in industry and agriculture, the humanitarian situation is fragile, while the political situation surrounding the Korean Peninsula remain tense. Key challenges include:

• ongoing economic difficulties(food, energy, drug supply, water, etc)

• disasters (flood damage in most areas)

• initial problems following monetary Reform

• worsening north-south relations

The challenging humanitarian situation demands the full support from the DPRK Red Cross and IFRC. The DPRK Red Cross, with,support of the IFRC, will continue to support the most vulnerable groups, ensuring access to essential drugs and basic health care, to prevent malnutrition and a further deterioration in the overall health situation. The disaster management and health programmes aim to help prevent further loss of life during disasters and health emergencies, promote community resilience and understanding of the Red Cross Red Crescent Movement.

Read the full report here (PDF)

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PUST update

November 1st, 2010

Richard Stone writes in 38 North:

The curtain is rising on a bold experiment to engage North Korea’s academic community—and possibly shape the country’s future. On October 25, 2010, Pyongyang University of Science and Technology, or PUST, opened its doors to 160 elite North Korean students. By improving North Korea’s technical prowess, PUST might nudge the country’s tattered manufacturing-based economy toward an information-based economy.

“Our purpose is the globalization of North Korea through PUST. In that way, their economy can gradually develop, which will make it easier for reunification later,” says Park Chan Mo, former president of the National Research Foundation of Korea and one of four founding committee chairs of PUST. More initiatives are in store after South-North relations improve, says Oh Hae Seok, Special Adviser on Information Technology (IT) to South Korea’s President Lee Myung Bak. “The South is ready to assist the North by building an IT infrastructure and supporting IT education, as long as the North opens its door,” he says.

PUST will test North Korea’s appetite for engagement. Perhaps most discomfiting to the North is that the new university is led and bankrolled by devout Christians. The North Korean government espouses atheism and takes a dim view on South Korean evangelists, particularly for their role in an “underground railway” in northeastern China that steers defectors to safe havens. PUST leaders and professors, primarily ethnic Koreans, have promised not to proselytize.

PUST’s main mission therefore is to lead North Korea out of a scientific wilderness. The North is light-years behind industrialized nations in many areas of science and technology. It excels in a few spheres. For instance, North Korea is notorious for its skill at reverse-engineering long-range missiles and fashioning crude but workable plutonium devices. Less well known, the North has developed considerable expertise in information technology—and has staked its future on it. “North Korea has chosen IT as the core tool of its economic recovery,” says Park. But it has a poor grasp on how to translate knowledge into money. “Instead of just giving them fish, we will teach them how to catch fish,” Park says.

There are serious risks in giving North Korea a technical assist, according to PUST’s critics. Opinion in South Korea is split on PUST; many people have voiced concerns. The chief worry is that PUST students could feed information or lend newfound expertise to the North Korean military. To minimize these risks, PUST’s curricula have been vetted by government and academic nonproliferation experts.

To proponents, the new venture’s benefits far outweigh the risks. PUST has been promised academic freedom, the likes of which has been virtually unknown in North Korea, including campus-wide internet access. “We hope that PUST will open channels to the outside,” says Nakju Lett Doh, an assistant professor of electrical engineering at Korea University in Seoul and member of PUST’s academic committee.

Few people of university age or younger can imagine a world without internet. But it’s rare a North Korean of any age has tasted this forbidden fruit. The government takes infinite care to shield innocent minds from corrosive facts about the Korean War, descriptions of life in modern South Korea, and western notions of freedom of expression, among other things. Instead, the Garden of Juche offers Guang Myung, or Bright Light: an Intranet not connected to the outside world.

When I visited Pyongyang on invitation from the DPRK Academy of Sciences in July 2004, my hosts gave me a tour of the Central Information Agency for Science and Technology’s computing center and showed me the Guang Myung home page, which reminded me of Yahoo. They claimed the system has tens of millions of records, including digital tomes on agriculture and construction as well as the complete writings of Kim Il Sung.

Since then, fiber optic cables have spread Guang Myung to the far corners of the nation. “The main purpose is to disseminate scientific and technological information,” says Lee Choon Geun, chief representative of the Korea-China Science & Technology Cooperation Center in Beijing. On a visit to Pyongyang a few years ago, Lee, an expert on North Korea’s scientific community, witnessed Guang Myung in action, including a live lecture broadcast over the Intranet. At the time, he says, Kim Chaek University of Technology had around 500 Pentium 4’s and 5’s connected to the system. He estimates that nationwide, tens of thousands of computers of all types are now linked in. However, it’s not clear how effective Guang Myung is outside Pyongyang, where clunky routers funnel information to ancient machines—remember 386s and 486s? Another major woe is an unstable electricity supply that regularly fritzes electronics. Lee, who has visited North Korea 15 times, says that when he asks what scientists need most, they request laptops, whose power cord adaptors and batteries can better handle electrical fluctuations.

Indeed, it’s a formidable job to erect an IT infrastructure inside a cocoon. South Korea has lent a hand. With the government’s blessing, private organizations in the South have sent approximately 60,000 IT publications—periodicals and books—to North Korean universities, and IT professors from the South have visited the North for lecturing stints, says Oh. South Korean groups have also helped train North Korean computer scientists in Dandong, China, just across the border from North Korea. The training center had to close earlier this year due to budget cuts, says Lee.

The juche philosophy embraces self-reliant efforts to gather technical information from abroad. North Korean diplomats are one set of eyes and ears. They collect journal articles, textbooks and handbooks, surf the Web and ship any seemingly useful information to Pyongyang, where analysts evaluate it and censors clear it for posting. When sent via internet, information is routed primarily through Silibank in Shenyang in northeastern China. North Korea has also deployed abroad around 500 IT specialists in the European Union and dozens more to China—in Beijing, Dalian, Shanghai, and Shenyang—to acquire knowledge for the motherland. “Through them a lot of information goes to North Korea,” says Park.

Such activity may seem like a packrat cramming its nest with equal portions of usable materials and shiny baubles. But it has paid off in at least one area: software development. “They are developing their own algorithms,” says Doh, an expert on control system theory. Even though North Korea’s programmers are almost completely isolated from international peers, they lag only about 5 to 6 years behind the state of the art in South Korea, Doh says. “That’s not that bad.” The Korean Computing Center and Pyongyang Information Center together have around 450 specialists, and universities and academy institutes have another 1,000 more experts on computer science, says Lee. And all told there are about 1,200 specialized programmers.

The programmers have enjoyed modest commercial success. The state-owned SEK Studios in Pyongyang has done computer animation for films and cartoons for clients abroad. And software developers have produced, among other things, an award-winning computer version of the Asian board game Go. “Their software is strong,” says Park, a specialist on computer graphics and simulation. “They are very capable.”

But the resemblance to IT as we know it ends there. “In North Korea, IT is quite different from what most people think,” says Lee. Most computing efforts these days are focused on computerized numerical control, or CNC: the automation of machine tools to enable a small number of workers to produce standardized goods. “Their main focus is increasing domestic production capacity,” says Lee. North Korea’s CNC revolution is occurring two to three decades after South Korean industries adopted similar technologies. And North Korea is struggling to implement CNC largely because of its difficulties in generating sufficient energy needed to make steel—so its machinery production capacity is a fraction of what it used to be—and it lacks the means to produce sophisticated integrated circuit elements.

Antiquated technology may be the biggest handicap for North Korea’s computer jocks. North Korea “doesn’t have the capacity to make high technology,” says Kim Jong Seon, leader of the inter-Korean cooperation team at the Science and Technology Policy Institute in Seoul. North Korea is thought to have a single clean room for making semiconductors at the 111 Factory in Pyongyang. Built in the 1980s—the Stone Age of this fast-paced field—the photomask production facility is capable of etching 3 micron wide lines in silicon chips. South Korean industry works in nanometer scales. The bottom line, says Kim, is that in high technology, “they have to import everything.”

That’s a challenge, because no country—China included—openly flouts UN sanctions on high-tech exports to North Korea. Any advanced computing equipment entering the country is presumably acquired through its illicit missile trade and disappears into the military complex. North Korea’s civilian computer scientists are left fighting for the scraps. One of only five Ph.D. scientist-defectors now known to be in South Korea, computer scientist Kim Heung Kwang, fled North Korea in 2003 not for political reasons or because he was starving—rather, he hungered to use modern computers.

To help North Korea bolster its budding IT infrastructure and not aid its military, PUST will have to walk a tightrope. School officials have voluntarily cleared curricula with the U.S. government, which has weighed in on details as fine as the name of one of PUST’s first three schools. The School of Biotechnology was renamed the School of Agriculture and Life Sciences because U.S. officials were concerned that biotech studies might be equated to bioweapons studies, says Park. North Korean officials, meanwhile, forbid PUST from launching an MBA program—a degree too tightly associated with U.S. imperialism. “So we call it industrial management,” Park says. “But the contents are similar to those of an MBA.”

Besides cleansing PUST of any weapons-grade information, Park and university representatives are working with the U.S. Commerce Department to win export licenses for advanced computing equipment and scientific instruments not prohibited by dual-use restrictions. Approval is necessary for equipment consisting of 10 percent or more of U.S.-made components. “You can attach foreign-made peripheral devices and reduce U.S. components to less than 10 percent, but that’s a kind of cheating,” Park says. “We want to strictly follow the law.”

This improbable initiative in scientific engagement was a long time in the making. PUST’s chief architect is founding president Kim Chin Kyung, who in 1998 established his first venture in higher education: Yanbian University of Science and Technology in Yanji, the capital of the Yanbian Korean Autonomous Prefecture in northeastern China’s Jilin Province, just across the border from North Korea. A businessman who studied divinity in university, Kim, who goes by his English name James, was accused of being a spy on a visit to North Korea in 1998 and imprisoned there for six weeks. He stuck with YUST, however, and in 2001, North Korean education officials visiting the university stunned Kim by inviting him to establish a similar university in Pyongyang. Kim got a rapturous response when he pitched the idea to YUST’s sponsors.

Progress came in fits and starts. PUST was originally envisioned to open in 2005, but work on the initial 17 buildings of the $35 million, 100-hectare campus in southern Pyongyang’s Rakrang district was completed only last year. North Korean education officials have promised the school academic freedom and internet access. Such startling privileges will be doled out byte by byte. “In the beginning, they are allowing us to do emailing,” says Park. Full internet access is expected to come after PUST earns their keepers’ trust. “To do research, really you have to use the internet. The North Korean government realizes that. Once they know students are not using the internet for something else, it should be allowed,” Park says.

While YUST and PUST may both have ardent-Christian backers and cumbersome acronyms, the atmosphere on the two campuses will be markedly divergent. In Yanji, encounters outside the classroom are common: faculty and students even dine together in a common hall. “YUST professors and students are like one family,” says Park.

In contrast, PUST students and faculty will inhabit two entirely different worlds that only merge in the classroom. The North Korean government handpicked the inaugural class of 100 undergraduates and 60 graduate students, including 40 grads who will study IT. All will study technical English this fall, then in March a wider roster of courses will become available after key professors and equipment arrive on campus. A student leader will shepherd students to and from class to ensure that no lamb goes astray. “There will be no way to teach the gospel,” says Doh.

PUST professors expect to be impressed with the students, selected from Kim Il Sung University and Kim Chaek University of Technology. “These are the most brilliant students in North Korea,” says Doh. PUST plans to ramp up enrolment to 2,000 undergrads and 600 graduate students by 2012. To expose these young, agile minds to a wide range of ideas, PUST plans to fly in a number of visiting professors during the summer terms. They also intend to seek permission for students from other Pyongyang universities to attend the summer sessions. As trust develops, PUST hopes that some of its students will be able to participate in exchange programs and study abroad.

PUST’s success may hinge on the disposition of North Korea’s leader in waiting. Kim Jong Un was tutored privately by a “brilliant” graduate of Université Paris X who chaired the computer science department at Kim Chaek University of Technology before disappearing from public view in the early 1980s, says Kim Heung Kwang, who studied at Kim Chaek before working as a professor at Hamhung Computer College and Hamhung Communist College. After defecting and settling in Seoul, Kim founded North Korea Intellectuals Solidarity, a group of university-educated defectors that raises awareness of conditions in North Korea.

According to internal North Korean propaganda, Kim Jong Un oversees a cyberwarfare unit that launched a sophisticated denial-of-service attack on South Korean and U.S. government websites in July 2009. South Korea’s National Intelligence Service blamed the North, which has not commented publicly on the attack. Kim Jong Un’s involvement cannot be confirmed, says Kim Heung Kwang. “But Kim Jong Un is a young person with a background in information technology, so he may desire to transform North Korea from a labor-intense economy to a knowledge economy like South Korea is doing.”

Another big wildcard is North-South relations. After the sinking of the Cheonan, South Korea froze assistance to the North. In the event of a thaw, “the South wants to build a digital complex” in the Demilitarized Zone (DMZ) or in South Korea similar to the Kaesong industrial complex, says Oh. This, he says, “would be the base camp of North Korea’s IT industry development.” North Korea has reacted lukewarm to the idea: It would prefer that such a venture be based in Pyongyang, says Lee. To facilitate denuclearization and help skilled North Korean workers adapt to market economics, the Science and Technology Policy Institute in Seoul has proposed the establishment of an Inter-Korean Science and Technology Cooperation Center modeled after similar centers established in Kiev and Moscow after the Soviet breakup.

Such projects, if they were to materialize, along with well-trained graduates from PUST, may help pull North Korea’s economy up by its bootstraps. “We are trying to make them more inclined to do business, to make their country wealthier,” says Park. “It will make a big difference once they get a taste of money. That’s the way to open up North Korea.”

Additional information:
1. Here are previous posts about PUST.

2. Here are previous posts about the DPRK’s intranet system, Kwangmyong.

3. Here is a satellite image of PUST.

Read the full story here:
Pyongyang University and NK: Just Do IT!
38 North
Richard Stone
11/1/2010

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DPRK restricts private car use, rattles markets

November 1st, 2010

Institute for Far Eastern Studies (IFES)
NK Brief No. 10-11-01-1
11/1/2010

The North Korean Ministry of People’s Security (MPS) recently issued an order restricting the use of automobiles and warning that any car or truck used to earn private income would be confiscated by the State. There were a few cases of authorities cracking down on the use of private buses in the mid-2000s, but this is the first time there has been a widespread crackdown on the private use of all vehicles.

According to a report from the Daily NK, a source from North Hamgyeong Province has revealed that “on an order from the MPS, a crackdown on privately-owned cars, buses, and 1.5-2 ton small trucks began last month,” and, “all traffic police were mobilized and are checking all registrations, car-use permits, and driving licenses.” According to the source, each regional transportation authority is filing comprehensive situation reports, which show that with the exception of cars used by the elite, all illegally-used cars are being confiscated. Even cars used by military-run foreign capital organizations are subject to inspection by police.

In North Korea, the lack of electricity has led, since the mid~2000s, to the sharp drop in the use of trains and a rise in reliance on the so-called ‘service car’ as the primary method of moving people and goods around the country. This crackdown on service cars will be carried out in two phases: Phase 1 will run until the end of the year, then Phase 2 will be carried out until April 2011. The ownership and use of cars by organizations and businesses will also be investigated, while other cars will be inspected one at a time as they travel the roads. If any illegal use is discovered, the car will be impounded.

This kind of measure appears to be one aspect of North Korean authorities’ on-going battle against “anti-socialism.” Cars and other government property being put to private use is problematic, but a crackdown of this size indicates that organizations and government workers are abusing the rules on such a scale that the government can no longer tolerate their corruption. In order for these service cars to exist, authorities must break laws, forge documents, and pay bribes to get a car registered, purchase gas, and handle profits.

However, a crackdown on these cars is expected to have many side-effects. Service cars began replacing trains in 2004, but the people’s reliance on them grew so quickly that they are now the primary means of transportation throughout North Korea.

Ultimately, the North can not avoid significant aftershocks of the measure; without service cars, not only will businesses suffer production problems, those people who make their living through wholesale and retail markets will suffer, and the standard of living for people across the country will take a hit.

Previous posts on this topic cna be found here and here.

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DPRK emerges as animation producer

November 1st, 2010

According to the Korea Times:

North Korea’s information technology (IT) industry, especially in the field of computer-based animation production, is well on its way to achieve success, according to a Dutch outsourcing specialist currently conducting IT business with North Korean companies.

Speaking to an audience in Seoul for the launch of a book, “Europe-North Korea, Between Humanitarianism and Business,” Paul Tjia said France and Italy are two big users of North Korean animators.

He said that his Dutch clients also outsource animation to North Korea. European cartoon versions of classic literature such as “Arabian Nights” and “Les Miserables,” which aired on European television, were animated partly in North Korea.

The ceremony was organized by the Hanns Seidel Foundation, a German organization.

Clients of animation produced in the isolated communist regime aren’t just Europeans.

In early 2000 when the inter-Korean relations were at a peak, even a few South Korean animations were made in North Korea.

“Pororo the Little Penguin,” an animated cartoon series, was an inter-Korean project completed in 2002. Also the same year, Akom, a South Korean company, also outsourced the production of “Empress Chung” to North Korea. The animation was released in 2005.

Tjia mentioned that some of the American Walt Disney animations were created by North Koreans, purely by accident. Politically North Korea and America have a thorny relationship and the American government prohibits the private sector from doing business with North Korean companies.

“There was a time when Walt Disney outsourced their animation production to countries in Asia like Vietnam or the Philippines. But the company didn’t have complete control over exactly which country the work was created, and found out later that some was produced in North Korea,” he said, adding that this was discovered after the animations had aired on TV.

An official at the Seoul Animation Center verified some of what the Dutchman said, confirming that Walt Disney’s outsourcing to Asia was true, and that’s precisely how South Korea’s animation industry took off.

The news of a burgeoning animation industry in North Korea comes as a surprise to many who are used to hearing mainly about food scarcity, human rights violations and the regime’s nuclear ambitions.

People in the North Korean IT industry are given far more freedom than regular people in traveling abroad. They freely travel to “learn new skills,” Tjia said, showing a group photo with North Korean IT engineers in Europe.

Apart from animations, he added, North Korea is also keen on developing computer games, cell phone applications and banking systems for clients from the Middle East.

Cell phone applications, in particular, were devised even though not a single cell phone was available in Pyongyang.

“They made them to target European clients,” he said.

Yet for some the emergence of North Korea as an animation producer isn’t without alarm.

One European diplomat at the venue expressed concern over security, raising the possibility that the IT business with Europe could empower North Korea to become a cyber attacker.

North Korea already has a record of carrying out cyber attacks against South Korean websites, the most recent of which took place last July.

“They (North Koreans) say they are capable of producing computer viruses,” Tjia said, and he has seen anti-virus programs made by the North. The chief of the South’s National Intelligence Service was quoted last year as saying that North Korea had a force of 1,000 hackers who could engage in cyber warfare. He also said the North had “remarkable” cyber skills to carry out a massive attack on the South.

Read the full story here:
North Korea emerges as animation producer
Korea Times
Kim Se-jeong
11/1/2010

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Daily NK: DPRK worried about prostitution/drugs

November 1st, 2010

According to the Daily NK:

The North Korean authorities consider both prostitution and drugs to be serious problems and are actively seeking ways to combat them, according to an internal document obtained by The Daily NK.

Obtained on the 28th, the document, “Measures against Young Women Earning Money through Prostitution,” produced internally by the People’s Safety Ministry (PSM), reveals that the PSM has instructed local offices to crackdown on prostitution and drug-related crimes more vigorously.

This document was reportedly distributed to provincial committees of the Party and local PSM offices in July this year.

According to the document, “Anti-socialist phenomenon, young women and college students taking part in prostitution included, are appearing,” adding, “Strong measures to overcome this situation must be prepared.”

“At commuting times, women in large groups have been seen taking part in prostitution around bus stops or train stations,” the document states. “Law enforcement officials must not yield to these actions.”

The PSM document also focuses on drug crimes, reporting that, “The circulation and use of illegal drugs is increasing. We must establish measures to overcome drug-related activities.”

The document represents a tacit admission by the PSM that both prostitution and drug use have expanded to the point of becoming social problems in North Korea, a fact which the authorities have never admitted publicly.

As in many other countries, economic difficulties in North Korea tend to lead to an increase in the number of young women entering prostitution, because it represents one of the few ways to make ends meet. Inside North Korea sources say that the March of Tribulation led to a significant increase in prostitute numbers, and last year’s confiscatory currency redenomination is said to have had a similar effect.

As a result, sources say that regardless of the authorities’ will to crack down on prostitution and other illegal activities, it will be impossible because they are now an ingrained part of North Korean society.

Furthermore, even though public trials of persons accused of prostitution-related offences are held regularly in provincial areas, the law is unable to reach the most powerful prostitution rings because they are tacitly protected by paid-off PSM officials.

Read the full story here:
PSM Admits to Seriousness of Social Ills
Daily NK
Shin Joo Hyun
11/1/2010

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$1m won to secure job as Hyesan police officer

October 29th, 2010

According to Good Friends:

Hyesan City police officers in the Ryanggang Province are still doing well amidst North Korea’s economic chaos which has been further exacerbated by the government’s recent currency reform. Illegal trade in Hyesan, which is close to the national border, is rampant and particularly connected to the sale of drugs as well as rare metals, such as gold, silver, copper, iron, et cetera that are under tight government control. While some smuggling operations are managed by individual venders, most are large-scale enterprises. Bribery has thus become customary since sending and receiving prohibited items requires the aid of police or security officers. As a result, obtaining such positions in Hyesan has become very competitive; in particular, many Ryanggang Province officers have been applying for transfers, with bribes being exchanged in the process.

In order to become police or security officer in Hyesan a candidate must offer a bribe of at least one million won in the new currency. This may be a large sum of money; however, it’s only a matter of time before officers recoup their investment by taking in bribes from the smugglers. A smuggling or drug case that may be considered big in other regions can be resolved fairly easily if the right security officials are involved. Last September, a reputed drug trafficker who was arrested on drug related offenses was released within days after being declared innocent of charges. Although an order for intensifying drug regulations had been issued across the country, money clearly had priority.

Such corruption is encouraged by a society-wide permissiveness that doesn’t make a big deal out of anything unless it has to do with ideology issues. Simply speaking, if an incident is not “related to espionage,” then it is not a big deal. Rather, releasing culprits in exchange for money is regarded as a way of surviving during difficult times. Since corruption has become routine, neither officers nor smugglers seems to have a sense that what they are doing is wrong. The same goes for the people at large. For example, although officers are prohibited from possessing and riding personal motorbikes, those who do not own their own are often looked down upon by citizens; they believe that such officers must be slow-witted for not having one being in the position that they are. Along with the jeering is a healthy dose of envy.

If the officers take bribes from smugglers to look the other way, the wives of officers use their husbands’ status to actually join in the fray. They send articles to and receive prohibited items from China; they money they earn from such smuggling activities actually surpass the amount their husbands earn through bribes. Even if the wives are caught, the husbands step in to make the problem go away. The money a husband-wife team earns in this way surpasses the imagination of ordinary people. In Hyesan, there is a saying that only police officers have withstood the currency reform tsunami without breaking a sweat. Others say that “all the laws enacted by the government only serve to fill the bellies of the police officers.”

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