DPRK announces “bond”…er…lottery winners

December 28th, 2008

Quoting from Yonhap:

The latest drawings for pay outs of North Korea’s government bonds have taken place in Pyongyang, the country’s state-run television broadcaster said Friday.

The (North) Korean Central TV, monitored in Seoul, reported that the latest winners of the “People’s Life Bonds” were announced this week.

From July-November 2003, the North Korean government sold 10-year bonds worth 500 (US$3.50), 1000, and 5000 North Korean won, saying it would repay lottery winners by multiplying the original payment rather than paying interest.

It was the first bond that North Korea has issued.

According to reports then, the cash-short communist regime aggressively marketed the bonds, praising buyers as “patriots” helping to funnel private money into the buildup of the national economy.

First-place winners get 50 times the face value of the bond, with second-place winners receiving 25 times, third with 10 times, fourth with five times, six with triple and seventh with double.

Drawings were reported to be held once or twice a year.

The sixth round of drawings took place in January 2008, with thirteen 5000-won bond holders declared winners, as well as eight 1000-won bond holders and 10 holders of 500-won bonds.

For this week’s event, seven winners were drawn for each denomination, the TV report said.

Here is a link to an IFES article on the last round (round six) of bond payments, which were announced in January 2008.  Round five took place in January 2006.

Read the full article here:
N. Korea holds latest lottery for gov’t bond repayment
Yonhap
12/26/2008

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DPRK to continue economic slide

December 27th, 2008

Quoting from The Nation:

“North Korea had a little boost this year, due largely to its farm, mine and electricity and gas sectors,” the Hyundai Research Institute (HRI) said in its 2009 report on the communist nation’s economy.

North Korea’s farm production increased by 7.5 per cent, from 4.01 million tonnes in 2007 to 4.31 million tonnes forecast for 2008, according to South Korea’s Rural Development Administration (RDA).

“This year, North Korea’s weather conditions have enabled modest harvest growth,” said Ha Un-Gu, a researcher at RDA.

The delivery of energy aid from the United States, China and Russia was cited by the HRI report as a boost for North Korea’s gas and electricity sectors.

In 2008, North Korean trade with China has grown at a pace strong enough to offset its shrinking trade with Thailand. “So North Korea is forecast to post a record trade volume of 3 billion US dollars in 2008,” the HRI said.

However, North Korea’s 2012 target is becoming elusive, as the country’s trade volume is forecast to slide back from its peak of 3 billion dollars in 2008.

Liquidity problems of key trading partners China and Thailand will make it hard for them to maintain their economic ties with North Korea.

North Korea’s business ties with China were forecast to undergo a particularly steep decline, the HRI said.

North Korea’s trade volume with China increased by 25 per cent to 1.19 billion dollars during the January to June period in 2008, compared to same period in 2007, according to Shin Jeong-Seung, the South Korean ambassador to China.

Download the study (PDF in Korean) here.

Read the full article here:
North Korea’s economy is forecast to resume its slide
The Nation
12/27/2008

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DPRK manufactures DVD players

December 26th, 2008

According to an anonymous qoute by a South Korean intelligence official in the Choson Ilbo:

“Especially, North Korea developed its own DVD player in 2006 with a view to developing its own IT industry, this ironically provided momentum for the spread of South Korean soap operas.”

I had assumed the DPRK imported DVD players. 

Read the full article here:
Pyongyang Bids Korean Wave to Recede
Choson Ilbo
12/26/2008

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South Korea teaching agricultural techniques in DPRK

December 25th, 2008

From the Joong Ang Daily:

Seoul and Pyongyang have held annual symposiums on agricultural science since 2000, through which South Korean scientists and officials provide agricultural technology and expertise, with a focus on potato farming, they said.

“If North Korea is able to produce and distribute seed potatoes and learn to effectively control harmful insects, it should be able to produce between 3.3 million and 4.25 million tons of potatoes annually,” Lee added.

A North Korean official attending the inter-Korean symposium said his country’s potato harvest was expected to increase from 2 million tons last year to 3 million tons in 2009.

These efforts are well-intentioned and might help in the short run, but North Korea’s climate and geography are not conducive to agricultural abundance.  The DPRK would be better off in the long run producing the goods and services in which it is competitive and trading them internationally for food. 

Read the ful article here:
North Korea is expecting 3-ton potato harvest
Joong Ang Daily
12/22/2008

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Six party talks: energy aid update

December 25th, 2008

In the last round of six party talks, the media focused on North Korea’s deteriorating relationships with Seoul and Tokyo and the DPRK’s reluctance to agree to a credible nuclear verification protocol.  When the talks failed to produce any forward momentum, it looked like energy aid was to be suspended:

After the meeting, U.S. State Department spokesman Sean McCormack said that Japan, Russia, China, the United States and South Korea had allegedly agreed that fuel would not be shipped until progress was made on specific steps to verify Pyongyang’s nuclear activities. (RIA Novosti)

Russia, however, disputes this claim—but likely for for its own economically rational reasons.  Russia has been very strategic in its relations with Pyongang—focusing on securing a stake in the Rajin Songbon port and leaning on Pyongyang to allow construction of a natural gas pipeline to South Korea.  As a result, they have refused to suspend their portion of energy aid:

Russia plans to complete fuel deliveries to North Korea as part of a denuclearization deal, the head of the Russian delegation at six-party talks on Korea’s nuclear problem said on Sunday.

“We expect that we’ll be able to supply our entire quota of 200,000 metric tons in the near future,” Russian Deputy Foreign Minister and chief North Korea negotiator Alexei Borodavkin said. (RIA Novosti)

and…

[…]Russian Deputy Foreign Minister and chief North Korea negotiator Alexei Borodavkin, who said his country will proceed with a third batch of 50,000 metric tons of fuel oil this month in accordance with previous six-party talks agreements. (UPI)

Despite ending energy assistance, the US maintains it will continue food assistance:

North Korea will receive 21,000 metric tons of U.S. food aid this month as part of an assistance agreement, the State Department said.

“Our humanitarian program will continue,” spokesman Sean McCormacktold reporters in Washington yesterday. The aid will be delivered at the end of December, he said.

The U.S. in May agreed to resume food assistance to North Korea in a deal that will see the communist state receive 500,000 metric tons during the 12 months starting in June. The U.S. has so far provided 143,000 metric tons of aid, McCormack said. (Bloomberg)

Read more here:
Russia to complete fuel supplies to North Korea – envoy
RIA Novosti
14/12/2008

Korea Gas Seeks Stakes in Australia, Oman, PNG Fields, CEO Says
Bloomberg
Shinhye Kang
12/11/2008

Russia to make N. Korea fuel shipment
UPI
12/14/2008

North Korea to Get 21,000 Tons of Food Aid From U.S. This Month
Boomberg
Kevin Cho
12/2/2008

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About the leaflets…

December 25th, 2008

As we have previously discussed, North Korean human rights groups are sending leaflets across the DMZ in balloons.  Dr. Petrov provides a link to what is written on these brochures, which can be read in Korean here.

I have aso put the flyer into a PDF which you can download here.

Here is the gist in English:

1st section: Starts off saying that FFNK intends to set the facts straight; that the people in the DPRK need to know the truth.  Key messages: the hunger and the poverty in DPRK is not due to SK or US but due to the habitual negligence and selfishness of Kim Jong il (They say “devil-like KJI”) and that the DPRK government was the puppet government of the Soviet Union, adding that a September 25, 1945 document containing the verification of this fact was released publicly in 1993.

2nd section: Titled, “The Truth about the 6.25 war (Korean reference to the Korean war),” states that it was in fact the DPRK who attacked the south.  In march 1949, Kim il Sung went to Moscow and “begged” Stalin for permission to attack the South to unify Korea under the socialist flag. After KIS’s 48th attempt, Stalin gave his consent in early February 1950 and Kim attacked on 6.25.1950. The leaflet stresses that this info has been verified by the US and Russia.

3rd section: Titled, “The Reason for the Fall of DPRK,” claims it wil be due to KIS and KJI depleting natural resources and exploiting the people as their personal banks and slaves. The leaflet claims that they disguise their greed/exploitation by pretending/lying that they are also the sons of the people and that what is good for the party is also good for the people.  A direct quote states: “While the NK people were starving, KJI dined like a king with meals prepared by his Japanese chef,”and that the DPRK is the only country in the world where laws are embodied by a man.  This section also lists many economic and social statistics that contrast the DPRK and RoK. Another direct quote: “In other words, KIS and KJI have made you a mindless drone/slave of the modern age mentally, physically and through your hunger. KJI is solely responsible for this atrocity/disaster.”

4th section: Titled, “What Kind of Human is KJI? Here’s the Truth (they use the Korean word for ‘human’ rather than ‘person’.” His birthday is actually 1941.2.16 but was changed to 1942 to coincide with the year his father came to power. His birthplace is not Mt. Baektu a hospital in the Soviet Union. When “Yura” graduated from his middle school, he announced that he was ‘issued’ a Korean name and would henceforth be called JI. His Siblings: unconfirmed older sister, younger brother “Shura,” who drowned while playing with JI in a river, younger sister kim kyung hyui. Wife: officially married to Kim Young Sook, but separated. He lived with a former movie actress Song Hae Rim, who gave him Kim Jong Nam, but when she committed adultery, he exiled her to Moscow.  She died in 2002. His next wife, Ko Young Hui, gave him 3 kids, but she died 2004.  Kim has probably lived with tens of women. The leaflet asks “are these the actions of the face of the respectable/high-minded communist country, the innocent, modest and loving leader of the people?” 

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North Korean Revolutionary Merit Competition

December 23rd, 2008

Daily NK
Lee Sung Jin
12/23/2008

North Korea, since December 3rd, has been holding a “Competition for Revolutionary Descendants” in each province, over two days. The competition is the third of its kind, following on from 1998 and 2002.

A source confirmed in a phone conversation with the Daily NK on the 21st, “In Hyesan, Yangkang Province, from December 3rd, there was a “Competition for Revolutionary Descendants.” This competition took place simultaneously in each province.”

Another source said, “There was a competition in Chongjin, North Hamkyung Province in early December and many gifts, including clothing, were given out to the participants.”

The competition was held to stabilize the volatile state of affairs, spurred by rumors of Kim Jong Il’s illness, issues of food shortages, and the distribution of flyers in North Korea, by intercepting in advance any possible unrest among the core class.

(* North Korea categorized the population into the “core class (3,915,000),” the “unstable class (3,150,000),” and the “hostile class (7,935,000)” in 1971)

The Yangkang-based source said, “The competition was held with participation from the Party Chief Secretary of the province, the key officials in the province, city and county and chairpersons of the Peoples’ Units, descendants of revolutionaries and war veterans were invited to the competition.”

He then said, “Rather than being a real competition, it was a gathering to provide meals and distribute gifts. On the morning of the third day, after a flower-basket presentation ceremony at the Kim Il Sung memorial at the Bocheonbo Combat Victory Monument, a meeting was held at the Kim Jong Suk Arts Theater.”

He further noted, “At the meeting, there was a political lecture given by the new Propaganda Secretary of the Party in the Province Kim Bong She, after the congratulatory address by the Chief Secretary of the Province. Kim closed the event with a speech urging emulation of the lofty example of the first generation of revolutionaries, who devoted everything to the General.”

According to the source, after the event wrapped up its main events on the afternoon of the 3rd, it continued until the evening on the 4th with a special performance by the Yangkang Provincial Performing Arts Troupe, a special banquet, a visit to the Yangkang Province Revolutionary Historical Site, and a ceremony for presenting gifts.

The source said, “The authorities put in a lot of preparation for the event. They even brought beer, luxury alcohol and cigarettes from Pyongyang for the competition participants. Also, there were special performances at the Yalu Restaurant, a famous restaurant in Hyesan, at the Hyesan Shopping Center restaurant, and at restaurants in various train stations.”

The source explained, “The officials went out of their way to shake hands with the competition participants and urged, ‘In such difficult times, we have to submit to the guidance of the General.”

He said, “At the competition, the issue of the Party’s active support for the children of deceased revolutionaries and needing to look after their needs was raised more than once. In particular, the provision for and subsistence of the descendants, due to difficult economic conditions, had been neglected, but the promise was made that, from now on, the Party in Yangkang Province would take an interest in and resolve the issue.”

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North Korea Releases New Paintings Of Healthy Kim Jong Il

December 21st, 2008

The Onion made me laugh with this one…

onion-kim.jpg

 Quoting from the article: 

“As anyone can see from these new murals, our Dear Leader is the very picture of health,” Foreign Ministry spokesperson Lee Myong Choi said of the 30-foot-high paintings, the artful brushstrokes of which showed the North Korean ruler confidently reading the current day’s newspaper. “Note his radiant, youthful complexion, the sheen of his jet-black hair, the glorious starburst which appears to radiate from the very center of his being. Our supreme commander will undoubtedly be with us for many centuries to come.” Lee later added that Kim was in such robust health that he was able to complete all of the new self-portraits in under an hour.

The “picture” above was taken at the Yonggwang Metro Stop near Pyongyang’s Central Train Station.  Original paintings at this location can be seen here and here. (h/t Omar)

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Inter-Korean trade falls for second straight month

December 20th, 2008

Quoting from the Korea Times:

Inter-Korean trade fell 27.7 percent in November from a year earlier to $142.72 million, according to the ministry data posted on its Web site.

“Payments to North Korea are mostly made in dollars or euro, so the weak Korean currency has been the primary reason behind the falling trade,” a ministry official was quoted as saying.

More than 80 South Korean firms produce watches, shoes, clothes and kitchenware at a joint industrial complex in the North’s border town of Gaeseong. North Korea also exports sand to the South.

In October, South and North Korea traded goods and services worth $163.06 million, down 23.2 percent from a year earlier.

Meanwhile, inter-Korean trade from January to November reached $1.69 billion, an increase of 3.7 percent from the same period in 2007.

And According to the Hankyoreh (h/t OneFreeKorea):

According to a report, seven companies have canceled their contracts to build facilities at Gaeseong complex since October. Three of the seven bought space at a site reserved for machinery and metal cooperatives in June, and were in the process of constructing or designing factories. The report was submitted to Rep. Chun Jung-bae of the main opposition Democratic Party by the division supporting the Gaeseong Industrial Complex at the Ministry of Unification.

Two companies are in situations unrelated to the breakdown in inter-Korean relations, one had a fire last summer and another is suffering from losses incurred as a result of investment in KIKO, “knock-in knock-out” currency options trading.

The remaining five companies were believed to have abandoned their plans because of the deterioration in inter-Korean relations. An official at one of the five companies, which canceled its investment contract in December, said, “Although the economic crisis was one of the reasons why we canceled the contract, the main reason was that business prospects have darkened due to strained inter-Korean ties. Other companies that moved to (the Gaeseong complex) at the same time also decided to cancel their contracts for the same reason.”

In canceling their contracts, the seven companies forfeited their initial investments, which ranged from 17 million won (US$12,500) to 70 million won each. Land at the Gaeseong Industrial Complex was sold at 45,000 won per one square meter and the companies paid 10 percent of that price as part of their deposit.

Seven other companies also canceled their contracts last year, but they did so after an on-site feasibility study was conducted and it was determined that their businesses were not financially viable. All seven companies were able to receive their deposits under a special provision on contract cancellation, which allows companies to receive their deposits if the contract is canceled within six months of when it was signed.

The companies that canceled their contracts this year were not able to take advantage of the provision because they canceled over six months after signing their contracts.

There are growing concerns that more companies may be canceling their contracts as well. The head of Company “H,” who signed a contract to build a facility at the Gaeseong complex last year, said, “Though I would lose my initial investment of several millions of won, I’m considering canceling the contract because the tensions inter-Korean relations are likely to continue for another five years.”

Read the full story here:
Inter-Korean Trade Falls for Second Straight Month
Korea Times
12/20/2008

More companies cancel contracts at Gaeseong complex
Hankyoreh
12/17/2008

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Lets Learn (North) Korean

December 20th, 2008

On my second visit to North Korea in 2005, I purchased a copy of Let’s Learn Korean (Chosonmal Baeunun Chaek, 1989) by the Pyongyang Foreign Languages Books Publishing House. 

In its pages you will find many phrases which will facilitate your visit to the DPRK:

“This camera is for my personal use” 

“Please get me a porter”

“Give me a first-class, one-way ticket to Pyongyang”

” I want to see the Tower of the Juche Idea”

“Let us drive the US imperialists out of south Korea”

“Abolish nuclear weapons”

“The new era of socialism and communism”

“The children are the reliable successors of our revolution who will brighten the future of our fatherland”

“Man must become a revolutionary before becoming a doctor”

and..

“In a nutshell, the idea of Juche means that the masters of the revolution and construction are the masses of the people and that they are also the motive force of the revolution and construction”

I have divided the book into four parts to make it easier to download (although each part is rather large):

Download: Part 1
Download: Part 2
Download: Part 3
Download: Part 4

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