Archive for the ‘DPRK organizations’ Category

The Environmental Protection Law amended — environmental certification system to be newly introduced

Thursday, September 1st, 2011

Institute for Far Eastern Studies (IFES)
2011-8-31

According to the KCNA, North Korea amended its environmental protection law on August 18, adding development of energy and environmental certification system into the revised act.

The environmental protection law is comprised of four sections and 50 articles, in which articles 38, 39, and 40 were added recently. These contain laws related to the development and usage of renewable energy resources, recycling technology, and implementation of environmental certification system. In addition, articles 44 and 48 were also supplemented in Section 4. They include plans for setting up environmental economic indicators.

According to the KCNA, “Based on this law, each agencies, companies and organizations are reducing fossil energy consumption to protect the environment and promote continuous economic growth. In its place, renewable energy resources such as solar, wind and geothermal energy are currently being explored.”

North Korea has registered eight hydroelectric plants with the UNFCCC (United Nations Framework Convention on Climate Change) to receive carbon credits which can be sold to earn hard currency. Receiving accreditation toward the CDM (Clean Development Mechanism) will allow developing countries to earn tradable carbon credits for emissions reductions from clean-energy projects.

Currently, Ryesonggang Hydropower Plant No. 3, 4, 5 and Wonsangunmin Hydropower Plant No. 1 reached the validation phase while the other four plants are at the prior consideration phase.

On July 26, the KCNA explained the environmental protection law was revised “to beautify our homeland, protect the health and wellbeing of our people, and provide culturally hygienic environment with favorable working conditions.” Accordingly, the environmental protection law passed in 1999 is now ineffective.

In recent years, North Korea seems to be paying keen attention to environmental protection issues. From May 16 to June 10, ten senior officials from the DPRK Ministry of Land and Environmental Protection and National Science and Technology Commission were invited to a training course at the Asian Institute of Technology in Thailand.

The program was implemented by the United Nations Economicand Social Commission for Asiaand the Pacific (ESCAP) as a part of the project “Promoting Regional and Economic Cooperation in Northeast Asia.” The four-week training program provided highly specialized training on integrated watershed management and reforestation.

Additional Information: You can read more about the DPRK’s CDM efforts here, here, and here.

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Taepung Investment Group outlines new Kumgang business plan

Sunday, August 28th, 2011

According to Yonhap:

North Korea unveiled Sunday its business plans to redevelop a troubled mountain resort in the isolated country, after seizing South Korean properties in the complex once considered a symbol of inter-Korean reconciliation.

The move is expected to further deepen the dispute over the resort at Mount Kumgang, with South Korea vowing to take all possible measures, including legal action with an international tribunal, against the North’s decision to “legally dispose” of Seoul-owned assets there.

The business plans were presented to Yonhap News Agency by Park Chol-su, head of Daepung International Investment Group, which serves as a window to North Korea to attract foreign capital.

Daepung invited this week a group of foreign business executives and journalists to the resort to explain the business plans. During the four-day trip beginning Sunday, the group will visit Mount Kumgang via ship after departing from the northeastern port city of Rason.

The plans call for North Korea to redevelop the resort into an international tourist and business zone by building golf courses and hosting casinos from China and Western nations.

Using a railway linking Beijing to Pyongyang and the resort, North Korea plans to attract tourists from the United States, Japan, China and Hong Kong, Park said.

The North is also seeking to run tours linking Rason and Mount Kumgang by ferry, with an eye to woo Chinese tourists.

Under the first-stage plan, the North’s state agency will build energy and electricity facilities at an area of 60 square meters in the resort and let foreign business partners develop part of the area with their own projects, Park said.

North Korea plans to collect taxes from foreign partners to operate their facilities, according to Park. The area will be open to foreigners, but remain off-limits to ordinary North Koreans.

Additional Information:

1. According to the JoongAng Ilbo, the ship that will be used to ferry travelers from Rason to Kosong (Changjon) is the Mangyongbong 92. The ship will have to use a dock built by Hyundai-Asan. Hyundai is known to have spent around 170 billion won ($157,000) on the pier and the roads linking the pier to the resort.

2. The Daily NK adds a few additional details on the investment zone.

3. A timeline of Kumgang events, from the shooting until today, can be found here.

Read the full story here:
N. Korea unveils business plans for troubled mountain resort
Yonhap
2011-8-28

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Foreign shareholding in Daedong Credit Bank sold

Sunday, August 28th, 2011

Pictured Above (Google Earth): The Taedong Credit Bank offices at the Potonggang Hotel.  See in Google Maps here.

London UK/Pyongyang DPRK, 26 August 2011
The Board of Daedong Credit Bank is pleased to announce that the foreign shareholding in Daedong Credit Bank has been sold to a Chinese based corporate entity, the “Nice Group”.

The foreign-appointed directors on the Board of Daedong Credit Bank have resigned with immediate effect, and have no further interests (financial or fiduciary) in the company.

Outgoing CEO of Daedong Credit Bank, Nigel Cowie noted:

“I am now heavily involved with a second joint venture company in the DPRK, Hana Electronics JVC. Established in 2003, this company has enjoyed solid commercial success and has recently opened its new headquarters building, together with the expansion of its business lines.

The success of both ventures has been such as to necessitate a decision to focus on one or the other, and a commercial decision had to be made.

The bank is continuing to enjoy the commercial success it has seen for the past 16 years, but ironically the decision has been made easier by the general sanctions-laden environment in which financial business here is framed these days.

As to the possibility of ever re-entering the bank, any decision we make will be based purely on commercial considerations.”

Both Hana Electronics and Phoenix Commercial Ventures bank with DCB, and will continue to do so.

About Daedong Credit Bank

Daedong Credit Bank is a joint venture retail bank based in Pyongyang. It was established in 1995 as “Peregrine Daesong Development Bank”. The Bank underwent a change of name and foreign ownership in 2000.

The wealth of experience garnered over Daedong Credit Bank’s 16 years of successful operation is unrivalled.

Daedong Credit Bank was the first, by fifteen years, foreign majority held bank in the DPRK. DCB is proud to be regarded as a flagship successful joint venture in the DPRK, and a key part of the infrastructure needed to assist the foreign-invested joint ventures, which contribute to the country’s economic development.

The bank’s principal function is to offer normal “high street” banking facilities in hard currency to foreign companies, joint ventures, international relief agencies and individuals doing legitimate business in the DPRK.

Daedong Credit Bank was the first bank in the DPRK to introduce, and vigorously implement, a comprehensive set of anti-money laundering procedures. DCB’s anti-money laundering procedure manual was introduced eight years ago, and subsequently updated based on anti-money laundering guidelines provided by the Asian Development Bank. The manual has been sent to, and accepted by, DCB’s international correspondent banks.

Daedong Credit Bank also maintains strict procedures for the detection and rejection of counterfeit bank notes; it uses regularly updated note checking machines, and has personnel with over 15 years of experience of handling notes.

Daedong Credit Bank is strongly positioned in relation to the future economic development of the DPRK, and, being the oldest established foreign invested commercial bank in the DPRK, it is the intention of the bank to capitalise on these advantages.

CONTACT INFORMATION
Daedong Credit Bank office address in Pyongyang is:
Daedong Credit Bank
Suite 401, Potonggang Hotel
Ansan-dong
Pyongchon District
Pyongyang
Democratic People’s Republic of Korea
www.daedongcreditbank.com

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Economic performance and legitimacy in the DPRK

Sunday, August 28th, 2011

Geoffrey See and Andray Abrahamian (both representatives of Choson Exchange) wrote an article in the Harvard International Review which asserts that economic successes are becoming more important to the political narratives that reinforce the DPRK leadership’s claims to legitimacy. Below is an excerpt from their article:

North Korea’s most important domestic policy statement comes each New Year, when the major newspapers publish a joint editorial. The editorial often signals where government priorities will be in the coming year. In 2010 the newspapers spoke of “Bring[ing] about a decisive change in the people’s lives by accelerating once again light industry and agriculture.” Similar themes were echoed in 2011. This is opposed to the joint editorials of the past few years, which have focused on the more traditional themes of military strength, revolution, and socialism.

Another public sign of a shift towards focusing on economic issues is the type of official visits and inspections carried out by Kim Jong Il. Following in the footsteps of his father, Kim uses these visits to signal emphasis or encouragement of specific industries, activities, and policies. According to a report by the Institute for Far Eastern Studies, the first six months of 2011 have seen Kim exceptionally busy, participating in 63 official activities. Unlike previous years, however, the number of military visitations has dropped off: only 14 visits were military related, the lowest number ever recorded. By contrast, 28 visits were economic related.

In terms of policy, North Korea has been haltingly experimenting with Special Economic Zones (SEZ) since the mid-nineties, but has recently built a bit more momentum in this area. Rason, an SEZ in the far northeast, is finally seeing some basic infrastructure upgrades that were long talked about but always delayed. Government investment bodies have started to promote the idea that Rason will be the “next Singapore,” an ambitious marketing claim to anyone who has been to Rason. With both Russia and China leasing port space, it seems more likely to be transformed into a regional transportation hub. Meanwhile, along the Chinese border in the northwest, the Hwanggumpyong SEZ recently held a groundbreaking ceremony, attended by high-ranking North Korean officials and Wang Qishan, China’s commerce minister.

Senior politicians in North Korea are increasingly judged by their ability to bring in foreign direct investments. These efforts appear to be competitive rather than coordinated. North Korean leaders associated with the National Defense Commission, the highest level policy body, have been meeting with visiting foreign investors. In 2009, the Daepung International Investment Group was re-purposed along the lines of a holding company model as a vehicle for attracting foreign direct investment l with “27 joint ventures planned and to be managed by the Group.” Daepung Group is backed by specific high-level individuals. Jon Il-Chun, reportedly the Director of Office 39, a murky international trade and finance organ, is definitely involved with the Daepung Group. Media reports also indicate that Kim Yang Gon, Director of an organization tasked with managing contacts with South Korea, the United Front Department of the Workers’ Party, is also behind the group.

In July of the same year, the Joint Venture & Investment Commission (JVIC) was established. Instead of a holding company model, JVIC is a government institution modeled as a “one-stop shop” for investors – that is, JVIC is meant to “seek out investments and assist investors in setting up operations in North Korea.” While multiple institutions claiming to hold such authority have always existed in North Korea, many of these institutions have been merged into JVIC and long-time investors have been directed to liaise with JVIC as their primary government contact. JVIC’s nominal and public head is Ri Chol, a high-ranking North Korean government official.

In August of 2010, we received credible reports that foreign investors were approached to help set up a group similar to Daepung that would be backed by another member of the National Defense Commission. Given this proposed initiative’s similarities to Daepung, the prior establishment of JVIC, and that all three groups do not appear to communicate with each other, we surmise that these various groups have a competitive relationship with the support of different patrons. Investment officials with whom our teammates have met confirm that the relationship between the agencies is “very competitive.” If this is the case, it is a signal that influential groups in Pyongyang sense that future power bases will require the ability to attract and deploy capital.

The full article is worth reading here:
Harvard International Review
Geoffrey K. See and Andray Abrahamian
August 23, 2011

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On the DPRK’s University of Natural Science

Wednesday, August 24th, 2011

Pictured above (Google Earth): The National Academy of Science and what I believe is the Natural Science Academy (University of Natural Science) on the border of Pyongyang and Phyongsong.  If any readers beleive the facility is in a different location, please let me know. See in Google Maps here.

Choi Sung writes in the Korea IT Times:

The University of Natural Science which is a North Korea’s science education university is located in Eunjunggu in Pyongyang. It used to be in Pyeongseong-si with the National Academy of Science, where the university is affiliated to, but it was moved to Pyongyang to benefit scientists as a citizen of Pyongyang. The National Academy of Science is North Korea’s best scientific research complex. Every year, Kim Il Sung University hosts a science competition in early January. The competition subjects include Mathematics, Physics, Chemistry and English and a thousand students who already passed previous competitions in local institutes participate in the final competition.

Students who win first, second and third places in this competition are eligible to enter any Natural Science university of their choice. Also twenty to thirty top students are awarded and are given a chance to sit for an exam at Kim Il Sung University, The University of Natural Science or Kim Chaek University of Technology. However, the top students gets additional points in their admission, so virtually, seats for them are already secured. North Korea’s top talents usually choose between Kim Il Sung University and the University of Natural Science, but the formal is more for the social title and the latter is more for improving science research skills.

The Best Science Educational Institution

The University of Natural Science, where North Korea’s science and technology talents receive full scholarship (including meals, clothes and even underwear) from the government, is affiliated to the National Academy of Science and is nurturing professional science researchers. The National Academy of Science is North Korea’s top scientific research complex, having the University of Natural Science as a branch.

This University was established on 27 January 1967 by Kang Young Chang, the then director of the National Academy of Science and a member of the Central Committee of the Workers’ Party of Korea, and his determination to foster bright scientists. It was rather an unexpected move in the time when the environment variation theory (Lysenkoism- a theory that believes genetic abilities can be changed depending on the circumstance) that doesn’t admit the existence of the gifted was overflowing through the society as well as it was in other socialism countries like Eastern Europe and China. However, as a result of the establishment of the university, North Korea had a significant turning point in its science and technology development.

The University of Natural Science started from Mathematics, Physics, Chemistry and Biology departments in Kim Il Sung University, and all of the professors were members of The Central Committee of the Workers’ Party of Korea. Furthermore, this university was financed by the ruling party’s finance and accounting department as its direct institution and was received special treatment until October 1985. Since then, it became a branch institution of the National Academy of Science, and has established its firm foothold as the top science educational university in North Korea up to now.

Admission Process

Generally, in North Korea, which family one comes from or what kind of social background one has is more important than academic records, however, the ruling party’s Central Committee ordered to select students solely by their academic performance or excellence since 1984. Consequentially, the university has more students who just graduated from high schools, and famous for its young graduates’ scientific achievement after their graduation.

Every university in North Korea has to receive certain percentage (twenty to thirty) of discharged soldiers (served longer than three years) or workers (employed longer than five years), however the University of Natural Science is an exception. It means the university education is focused more on academic performance than ideology, so talented young students can study in this school no matter how old they are. If a gifted student achieves early completion from a high school, he or she can enter the University of Natural Science. Most of the professors at school have Doctorate degree from this university and thirty to forty percent of them have studied in Eastern Europe and the Soviet Union.

Generally, the admission process is divided into two parts, and the first part is that the government sends the university’s professors to the high schools that are considered to be the best in each region, and give top thirty students who want to enter the University of Natural Science a pre-exam. The exam subjects are Mathematics and Physics and top five students are selected to proceed to the next part. In the second part, students take extra Mathematics and Physics exams specially set by the professors of the University of Natural Science in July to August which is the same time as the general university exams are conducted. Students who get ten out of ten in any of those extra exams are specially chosen even if their general exam scores are not as good. For the students who graduate early from high schools are only allowed to enter the University of Natural Science.

Curriculum

Six to seven hundred students a year are entered the university and they study at six departments including Mathematics, Physics, Chemistry, Electronics and Automation, Computing and Biology, and three thousand students are studying at the graduate school, and four thousand researchers and university personnel are working at the research center, and female students account for fifteen percent.

Most of the professors have degrees from this university and currently forty to fifty percent of the professors have studied in China or Eastern Europe, and almost all of them studied abroad at least from six months to a year and they are mostly teaching modern science theories. The University of Natural Science is famous for being the first university to have higher degree graduates in their twenties and the graduates are known for their excellent performance, so now they takes up the major part of North Korean research centers.

Especially, the graduates are the mainstream in the scientific recerch centers of military agencies and the special agencies. The textbooks used in classes are usually written by professors from this university and original books in English. Since 2005, major subjects have been taught in English and the university has quickly adapted revolutionary measures like South Korean style discussion classes and presentation sessions to provide world-class education system.

It takes seven years to receive bachelor’s degree, the longest school system in North Korea and the graduates get the Expert Qualification which is only given to the natural science graduates from Kim Il Sung University while the graduates from other universities are given the Engineer Qualification. Especially, the University of Natural Science requires one to one and half years to finish graduate dissertation, and students conduct research at the research center at the Nationa Academy of Science. Thus it is the only university that has academic-industrial collaboration system which resembles that of South Korea.

In general, foreign books are not allowed to read without permission in universities in North Korea, the University of Natural Science is an exception. The students in this university can read any natural science books even if that was written by authors from capitalism countries, and it is well known that its graduates have no problems in reading in three or more languages.

As for examinations, getting one F means the student will be flunk, and getting two F mean getting expelled automatically. Because there are only ten students in one class, the competition in classes is so intense that one to three students are flunked or kicked out before graduation. It is the only university in NK where actual experiments takes up thirty percent of curriculum and the exams mainly consist of essay questions. Recently, even though major science research institutions welcome its graduates, students in South Korea tend to choose different majors other than natural science because of the economic recession, and the same phenomenon is also found in North Korea.

All of the students in the university live in dormitories. They wake up at five in the morning (six in summer and winter) for stretching and jogging, after that, they line up and sing while they are going to a cafeteria. Every university in North Korea has the same system and lifestyle as those in military base, and the University of Natural Science is not an exception there. After all that, students take ninety-minute-long classes from eight in the morning.

The main text books are written by professors at the university and original English books are used as a subsidiary. Students are not allowed to read foreign books of Social Sciences without permission but they have free access to foreign science books. The library has foreign books mostly from Japan, Russia and the United States. Also, students learn English, Russian and Japanese, mostly focused on reading, and read books written in those three languages fluently.

The exams are taken at the end of semesters in August and January. If a student gets an F in one subject, he or she will be flunked, and two F means getting expelled. Generally, two to three people among fifteen students in a class get flunked and one to two people are expelled before graduation. Because there are only selected intelligent people in the school, competition could get tough.

Educational Achievements

The graduates from the University of Natural Science can have chances to work at special government agencies such as the National Defense Commission, The Central Committee, Ministry of People’s Security and Ministry of State Inspection and also work as a professor at other universities. These incentives seem to attract more students year by year. Especially, it is confirmed that the graduates play the main role to develop strategic technologies such as missiles, nuclear technology and computer hacking.

For example, it was reported in South Korean and international scientific journals that North Korea announced their success in thirty new generic engineering development including embryonic transplant, polytcocia and sex control of goats, and it is known that the graduates from the University of Natural Science are in the center of these cutting-edge scientific achievements.

Recently, a company in South Korea advertised their newly developed Finger Key, a fingerprint recognition system operated by computer, so that people with registered fingerprints can only open the door. However, North Korea already received a gold medal from 22nd International Exhibition of Inventions of Geneva with the same technology in 1994, four years ahead of South Korea. NK has also developed a medical program that can diagnose people’s health by the computer-recognized picture of their faces. All these program development projects were led by the first graduates from the computer engineering department in the University of Natural Science.

The GPS system which was the core technology in recent NK’s rocket launch was the work of software developers at the university, collaborating with China.

Read the full story here:
NK’s Top-Notch Science Education and Research Institute
Korea IT Times
Choi Sung
2011-8-24

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Pyongyang seeing more inspections

Wednesday, August 24th, 2011

According to the Daily NK:

With the border area enveloped in ‘Storm Trooper Unit’ inspections, operations against South Korean goods have been stepped up in distant Pyongyang, according to a man from the city who talked to the Daily NK in Dandong, China on Tuesday.

“Inspections by ‘Group 109’, which has been around for a while, have gradually become more intense,” the man, Kim, explained. “Worst of all, they are showing up in the middle of the night without warning to search for CDs, DVDs and recorders, and if there are any materials such as pornography or South Korean merchandise, then the offender is taken away. There are no exceptions.”

“In the past when the National Security Agency or People’s Safety Ministry came to inspect, people would pay them to let it slide, but nowadays the authorities send an agent from both of those agencies and the Defense Security Command as a team, which makes it hard to get out of it if you get caught,” he added.

A Daily NK source from Pyongyang confirmed the story, saying that as recently as July one could escape Group 109 punishment for watching South Korean or American DVDs with a bribe of $100 in central Pyongyang, or less in the surrounding areas.

Group 109 is an organization set up by the Chosun Workers’ Party to crack down on illegal media including CDs and DVDs. The group is one of a number of ‘Gruppas’, as they are locally known, currently operating in the capital, with others including Group 622, which handles juvenile delinquency, and Group 27, actually a branch of the Defense Security Command, which deals with mobile phone usage.

The various groups have been conducting their assorted inspections to weed out myriad ‘anti-socialist’ behavior for some time, but bribery has always provided an escape route, albeit while those without money or connections were made an example of. However in recent times, allegedly since successor Kim Jong Eun ordered more intense inspections and punishments, the ‘Gruppas’ have had to take their tasks more seriously.

The volume of South Korean goods trading in the market has contracted due to the recent crackdowns, but their popularity is undiminished; evasion of inspections is apparently being achieved via house calls to trusted clients. Kim says that the preference is only getting stronger for South Korean goods amongst cadres, a group which has always been safe from inspections.

“The traders go around the city knocking on people’s doors, quietly asking whether the residents would like to buy some South Korean merchandise. For this reason the nickname ‘knock-knocker’ is sometimes used to refer to them,” Kim explained.

Read the full story here:
Pyongyang Seeing Tighter Inspections
Daily NK
Lee Seok Young
2011-8-24

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PRC military exports to DPRK

Tuesday, August 23rd, 2011

The Choson Ilbo posts a video of dozens of military vehicles being shipped to the DPRK:

Left: Click image above to see video. Right: Dandong Customs House

According to the article:

Some 3,000 to 4,000 Chinese-made military trucks and jeeps entered North Korea last month, it was confirmed Monday. According to video clips obtained by the Chosun Ilbo, over 100 military trucks and jeeps made in China went to North Korea everyday last month after going through customs in Dandong.

There were eight video clips of varying lengths ranging from two minutes to 16 minutes. The footage shows Chinese-produced military vehicles standing in the 10,000 sq.m parking lot of the Dandong customs office waiting to be cleared along with other civilian cars, and two-story trailers loaded with military vehicles waiting on the side road to enter the customs office. A local source in Dandong said, “Normally, all Chinese-made vehicles going into North Korea were civilian, but in July, a massive number of military cars went to North Korea.”

A senior source in North Korea said that these cars were gifts to military officers by North Korea’s heir apparent Kim Jong-un in celebration of “Victory Day,” or the day the armistice in the Korean War was signed on July 27. “North Korean military vehicles produced in the 1970s and the 80s are too old to carry out drills, and many soldiers were dissatisfied. In order to buy the loyalty of the military and show what he can do, Kim Jong-un replaced the old vehicles thanks to the assistance of China,” the source added.

Jeeps were given to officers to be used to conduct operations, and the trucks were given to soldiers.

Analysis of the footage suggests the trucks were 6-ton trucks made by FAW Car Limited Company. North Korean leader Kim Jong-il visited the headquarters of this firm in Changchun, Jilin, during his visit to China in May. The military jeeps were manufactured by Beijing Automobile Works with engine capacity of 2,200 cc and 100 horsepower. BAW, which specializes in SUVs, trucks and military vehicles, is a subsidiary of Beijing Automotive Group, a partner of Hyundai Motor.

Dump trucks, large buses, sedans, oil trucks, agricultural machines and heavy machinery were also spotted in the video going into North Korea. In the windscreen, the name of the recipients is written. One is Korea Taesong Trading Company, a trading company under the Workers Party that manages Kim Jong-il’s slush funds. It was blacklisted by the U.S. as part of its economic sanctions against the North.

In one video clip, tourist buses pack one side of the parking lot. Another clip shows a queue of several dozens of LNG trucks. A South Korean government official commented, “North Korea depends on China for almost entire amount of fossil fuel it needs.”

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Yonhap on the DPRK’s Basic Medicine Research Center in Pyongyang

Monday, August 22nd, 2011

According to Yonhap:

Seok, 46, who defected to the South in 1998, is known for practicing North Korea’s “royal court medicine” that he learned while working at Pyongyang’s top medical research center devoted solely to caring for the health of leader Kim Jong-il.

The research institute is known in South Korea as the Kim Il-sung Longevity Research Institute after the name of the North’s late national founder and father of the current leader. Among North Koreans, it is simply called the “long life research institute,” Seok said, dressed in a white lab coat during a recent interview at his two-story clinic.

“Simply put, the long life research institute is to look after the general,” Seok said, referring to the North’s leader. “I was with the cardiovascular and anti-aging team at the institute.”

Details about the secrecy-shrouded Basic Medicine Research Center in Pyongyang are scarce, but the institute was believed to have hundreds of herbal doctors, physicians, biologists and other scientists working to make sure that the North Korean leader lives for a long time and in good health, Seok said.

Newly developed treatment methods, Seok said, were first tested on people similar to the leader in age and body type and with heart disease, an illness that killed late leader Kim Il-sung in 1994 and the current leader Kim Jong-il, now 68, is believed to be suffering from.

“These people were considered lucky because they were treated with good medicine,” Seok recalled.

Besides medical research, the longevity institute was also charged with growing high-quality organic rice, fruits and other agricultural products for the leader, even burying dogs in the farm fields as fertilizer, he said.

A top graduate from the North’s prestigious Pyongyang Medical College, Seok said he was plucked by authorities and assigned the research center regardless of his desires. Most graduates wanted to work at general hospitals where they could make more money.

“It’s not a place you can apply to work at. It’s a place you are dragged into,” Seok said with a chuckle that appears to imply a sense of relief that he is no longer in the totalitarian nation and lives a happy life in South Korea.

Read the full story here:
Oriental medicine doctor gives S. Koreans tastes of N. Korea’s ‘royal court medicine’
Yonhap
2011-8-22

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DPRK-China launch minerals – for – fertilizer program

Friday, August 19th, 2011

Pictured above (Google Earth): The Musan Mine, the DPRK’s largest.  See in Google Maps here.

According to the JoongAng Daily:

During his surprise May visit to China, North Korean leader Kim Jong-il secured free fertilizer and discounted food to help alleviate the impoverished country’s chronic food shortages.

A source in Beijing who monitors North Korea-China relations told the JoongAng Ilbo on Monday that Chinese officials agreed to provide 200,000 tons of fertilizer free of charge as well as 500,000 tons of corn at a discount in exchange for rights to North Korea’s abundant natural resources.

“When 200,000 tons of fertilizer is planted on North Korean soil, it can bring about a three-fold increase in the harvest,” the source said. “This can be the equivalent of giving 600,000 tons of food.”

The source added that China agreed to sell the 500,000 tons of corn for half of the international rate, which would be $30 per ton.

The corn, the source said, had already crossed the border into North Korea from northeastern China.

In exchange, Kim will allow China access to his country’s natural resources.

“The two parties agreed to participate in the extraction of buried rare earth minerals in Musan in Hamgyong Province,” the source said. “It’s quite a profit for China as it is thirsty for materials.”

North Korea is estimated to have around 20 million tons of rare earth minerals, which are vital in the production of high-tech goods.

The Beijing-based source said the agreement gives China the responsibility for the cost of building roads to transport the natural resources as well as lending equipment.

In exchange, North Korea will hand over 50 percent of the extracted rare earth minerals free of charge to China, with the rest to be sold to China at international market rates.

Meanwhile, other sources said that Kim also received a health checkup during his stay in China.

“When Kim Jong-il was visiting Yangzhou, he received a special examination from an oriental medicine doctor that the highest Chinese elite have gone to over the years,” a source familiar with North Korean issues said

The source added: “Kim Jong-il has never trusted China’s Western medicine. I heard from a Chinese official that Kim received an oriental medicine diagnosis by taking his pulse and that it did not involve drawing blood.”

Additional Information:

1. Here is a post linking to all the major DPRK food stories this year.

2. The media has reported on other DPRK food barter deals with Cambodia and Myanmar.

3. The role of the Musan Mine in DPRK-PRC relations has been quite interesting.  Here are previous posts on the mine.

Read the full story here:
North got fertilizer on Kim’s trip to China
JoongAng Daily
Chang Se-jeong
2011-8-19

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On the de-facto privatization of industry in the DPRK…

Wednesday, August 17th, 2011

Pictured above (Google Earth): A bus depot in Rakrang-guyok, Pyongyang.  See in Google Maps here.

According to the Daily NK:

Growth and improvement is evident in some areas of the private sector in North Korea, Ishimaru Jiro of ASIAPRESS revealed on the 16th, pointing to the growth of bigger, better private transit concerns and relatively productive coal mining operations as evidence of this trend.

In the past, trains were almost the only viable means of long-distance transportation in North Korea. Then, as private business began to grow and the railways fell into a deep malaise, vehicles such as trucks and cars belonging to military bases, state security and state enterprises were pushed into service to earn money for moving people; this, the so-called ‘servi-cha’ industry.

The servi-cha industry has long been fragmented and small scale; but now transportation companies run by rich individuals (‘donju’) which purchase several buses and hire drivers, guides and mechanics, are acting just as a transit company in a capitalist state would do.

With profit-sharing and bribery as the backbone, a large number of North Korean organs and enterprises have decided to lend their name to these individuals, fuelling the growth and development of a network of sorts.

“From the early 2000s, a high-speed bus network mostly between major cities began to emerge,” Ishimaru, revealing the latest research by ASIAPRESS internal North Korean sources, commented. “The companies are packaged as an enterprise affiliated to some state authority outwardly, but they are actually operated by individuals who pay kickbacks to that authority.”

The People’s Safety Ministry affiliated 116 Task Force Team is one such transportation company, Ishimaru says. It operates buses connecting Shinuiju, South Pyongan Province and Pyongyang. Ordinarily, the bus parks at a station or major public location, and then departs when it is full of passengers going to the next destination.

Here are previous posts on the servi-cha industry.

Read the full sotry here:
Green Shoots of Private Enterprise Growth
Daily NK
2011-8-17

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