Archive for the ‘DPRK organizations’ Category

Worker’s Party regulations revised

Thursday, January 6th, 2011

According ot Yonhap:

In an apparent bid to facilitate its hereditary power succession, North Korea has rewritten major regulations governing its ruling party, allowing its leader-in-waiting to take full control of the state with greater ease, a government source said Thursday.

The revisions were approved at the landmark convention of the top Workers’ Party delegates in September, during which Kim Jong-un, the youngest son of leader Kim Jong-il, rose as a vice chairman of the Central Military Commission, the source said.

“The revisions paved the way for the Kims to monopolize every part of the North Korean system while making it official that the country is a dynasty,” the source said, asking not to be named because of the intelligence nature of the documents he cited.

North Korea removed a clause that made it mandatory for the party to hold a general convention every five years, the source said. Instead, the party can now elect senior members and revise its regulations just by holding a top delegates’ meeting.

“Another measure that makes it easy for Kim Jong-un to take power is to automatically appoint the party secretary as head of the Central Military Commission,” the source said, adding that the move suggests Kim Jong-un, a four-star general, may be on track to succeeding his father as party secretary.

“This allows Kim Jong-un to control both the party and the military just by rising to the top of the party, the source said.

Kim is believed to be no older than 28. His birthday is this Saturday, Jan. 8.

The Central Military Commission within the party has also been given more power, the source said, as it now “governs all defense and military programs conducted between each party convention.”

The revision signals that the commission may grow more powerful than the National Defense Commission, the highest seat of power headed by Kim Jong-il but not yet joined by Kim Jong-un, he said.

Read the full story here:
N. Korea rewrites party regulations to boost hereditary power succession: source
Yonhap
Sam Kim
1/6/2011

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The DPRK’s artificial intelligence “Go” software

Tuesday, January 4th, 2011

According to the Korea IT Times:

Eunbyul 2010 is a “Go” game, or commonly known as baduk in Korean; a software program developed by North Korea and played in North and South Korea. Winner of the third Computer Go Competition UED Cup in 2009, defeating so many outstanding programs from all over the world, Eunbyul 2010 is maintaining 3-dan at cyberoro.com and also ranks number one in sales in Japanese computer Go program market.

Go was invented by Chinese emperor Yao around 2300 BC, and has been widely played in the three countries in Far East: Korea, Japan, and China. In North Korea, the game was previously considered ‘the bourgeoisie game,’ thus a taboo; however since the 1990’s, the government has promoted Go as a traditional game that dates back to the Three States era; in addition it highlights the game as a brain exerciser that helps children develop their intelligence and old people keep their brains from aging. North Korea classifies Go – also called brain combat or brain fight in the country- as a type of martial arts just like Taekwondo or Ssireum, the Korean wrestling. North Korea’s Go was controlled by Chosun Sports Association, but under the command from Kim Jeong-il in 1990s; it was transferred to Chosun Martial Arts Federation that had better training environment, and subsequently categorized as public sport; now Taekwondo Commission is in charge of the game. Cho Daewon, 22 and MunYoungsam, 33, both amateur 7-dan, are noted as the top players in the country.

The estimated number of Go players in North Korea was around 10,000 in 1994, and is currently over 30,000. North Korean government encourages children to play Go as they believe the game has a significant effect on improving many brain activities such as concentration, observation, memory, imagination, and structure perception. Go classes are organized at kindergarten and the government tries to promote the game by holding various Go competitions for children.

Along with their passion for the game, North Korea is also regarded as one of the world’s best developer of computer Go game. Since early 1990s, the university computer development group composed of Kim Ilseong University, Kim Chek Engineering College, etc. – has developed computer Go programs. In 1995, Eunbyul Computer Technology Trade Center which is now called Korea Computer Center (KCC) focused on making software programs for Go, chess, Janggi and the like. The Go software ‘Eunbyul 2010 (see the picture above)’ – was imported into South Korea and is now available to the public consumers (here).

Eunbyul 2010 is the latest version of Eunbyul 2006, which was released in 2006 drawing attention to the industry. It integrated Monte Carlo Method into the algorithm of the original 2006 version, substantially improving the level of performance. While Eunbyul 2006 was rated level 6 according to Korea Baduk Association’s system, its 2010 counterpart attained 2-dan after the battles with random user at Cyber Oro, the internet Go match website. The user won 54 and lost 46games – 31 victories and 25 defeats in 1-dan battles and 23 victories and 21 defeats in 2-dan battles -hence, with 54 percent of winning rate. The software also won the International Computer Go Tournament held last year in Japan, sweeping all the matches and, thus, proving to be the best of its kind in the world.

There are two types of engines in Go programs. Tree search system, in theory, takes more than 361 (factorial) searches for one match because it has to create a move by move searching tool to explore every path. There is Monte Carlo method engine, which randomly selects one of the undefeated moves after proceeding hundreds of thousands of simulated battles to the end. Despite the relatively higher performance (on amateur beginner’s levels), this method was difficult to be adopted for commercial use because it required computation by either supercomputer or tens of CPUs from parallel wired computers.

4OneBiz, the sales rights holder in South Korea, signed the contract with North Korea in June 2006 before beginning the sales in the South. In September the same year, the company held an 8-day workshop in which an engineer who spent over a decade on developing Go programs at KCC and a professional5-dan Go player participated in the activities. The main objective of the workshop was to decide whether they should improve the performance of the existing Eunbyul program or develop a completely new engine from the design. Ultimately, they chose the latter.

North and South Korea agreed to develop a whole new level of Go program engine that contains tactical data, which narrows down the potential moves to only a few, so as to make the next move in a simpler way. They also aim to make a program with optimal performance that is light and fast enough to be installed in a mobile device. South Korea provides an expert-levelalgorithm design whereas North Korean developers will take charge of creating a program based on the theory and basic algorithm. This new expert-level Go engine is already completed, and its automatic evaluator and situation-determination module are currently being supplied to a popular Korean Go website. Further use is currently under negotiation. One engineer who specialized in expert-level Go engine and gave up after spending more than 10 years on developing the engine once contended that “it is beyond human capability to develop an amateur-expert level of Go engine.”

However, the recent success can be largely contributed to the thoughtful collaboration between South and North Korea: i.e., the North Korean engineers spent more than a decade focused and devoted to Go engine development, and South Korea’s also has well-known competence in Go game. The incredible synergy was all thanks to the socialist system of North Korea where the engineers could stick to the Go engine development project for nearly 20 years regardless of its profitability; and also the capitalist South fostered the best Go players with its wealth and the professional Go player system. For those reasons, North Korea could have developed Eunbyul 2010, the best artificial intelligence Go program in the world.

Read the full story here:
North Korea’s Artificial Intelligence Go Software
Korea IT Times
Choi Sung, Professor of computer science at Namseoul University
1/4/2011

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DPRK trades steel for food

Tuesday, January 4th, 2011

According to the Daily NK:

North Korean trading companies operated by several organs have been selling steel to China in exchange for food.

One Chinese trader who does business with North Korea reported to The Daily NK on Monday, “China-based North Korean workers in charge of trading with China for Cheongusan Trading Company (under the Escort Command), say that this year Chosun is expanding the volume of its steel sales with China.”

The trader said, “In November last year, the analysis table of steel quality was delivered to us, and accordingly a contract has also already been signed.” He added, “In Chosun, the company is waiting for a permit to trade from an upper organ after having loaded materials on freight trains.”

He explained further, “For the price of the steel, Chosun has asked for rice, flour, noodles and also construction materials,” adding, “Food in bulk can enter Chosun.”

He explained that since North Korea is facing a serious lack of food, cement and other construction materials due to isolation from the international community, the country is trying to barter steel for food with China, from which the North is able to import.

Another trader in China verified the story, explaining, “Recently in Dandong, workers from Kangsung General Trading Company (under the General Staff) and other companies visited China for the purpose of selling steel.”

He added, “From now on, our company is going to do only steel trade with Chosun. We have decided not to do business in other things because our experiences have shown that there is no credit there.”

He went on, “North Korean trading units may have suffered from limitations put on items by Chinese companies,” going on, “If Chosun does not make a deal with us, they will starve to death this year. Even though they emphasize independent rehabilitation, when have they ever been rehabilitated?”

North Korea’s media frequently emphasizes the glorious production of “Juche” steel at Kim Chaek Steel Mill and Gangsun Steel Mill. Indeed, the Common Editorial issued on the first day of this year stated that, “By the power of the realization of the faith and model of Kim Steel (steel from Kim Chaek Steel Mill) and Juche steel, let’s have waves of victories.”

According to KOTRA, South Korea’s trade statistics agency, from January to October, 2010, North Korea exported steel to China worth $82 million.

One potentially positive aspect to this story is the recognition by the DPRK of the benefits of comparative advantage in trade.  Rather than aiming to produce all of its own food, the DPRK can instead specialize in steel production and trade for Chinese produced food.  Through trade, China and the DPRK could both consume more steel and food than if each country practiced autarchy.  Unfortunately the DPRK’s recent history has demonstrated a callous disregard for comparative advantage and has instead focused on increasing domestic food production and aid while limiting international trade.  Lets hope to see more rational policies prevail in the future.

Read the full story here:
North Korea Bartering Steel for Food
Daily NK
Im Jeong Jin
1/3/2011

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Pyongyang 1946 and today

Sunday, January 2nd, 2011

I recently came across this map of Pyongyang printed in 1946:

Click map to see full size version

According to the map, it is “For use by War and Navy Department Agencies only.  Not for sale or distribution”.

I thought it would be fun to add the map to Google Earth so I could compare the pre-Korean War city infrastructure with what we see today.  Some interesting information emerges:

1. The Omura Silk Mill is now the Kim Jong Suk Pyongyang Silk Mill. Satellite image here.

2. The Kanegajuchi Spinning Mill is now the Pyongyang Textile Mill.  Satellite image here.

3. Fuji Iron Works is now the Pyongyang Cornstarch Factory. Satellite image here.

4. What was the Pyongyang Airport is now Taedonggang-district in East Pyongyang.

5. Much of what we call the  “Forbidden City” (Korean Workers Party Offices) were military barracks.

6. The former Pyongyang Medical College is now … the Kim Il-sung University College of Medicine. Satellite image here.

7. The Supreme People’s Assembly sits on the grounds of the former Pyongyang Women’s Prison.

8. The Namsan School was torn down and is now either the Organization and Guidance Department (according to one defector) or the Democratic Women’s Union Hall. Satellite image below:

I also might have discovered several Japanese colonial-era prisons that may very well still be prisons and/or factories. According to the map, this was the shape of the Pyonysang (Heijo) Prison:

There are a handful of buildings in the DPRK which still retain this distinctive shape (or the obvious remnants of this shape)—as well as walls and guard towers.  They are in Phyongsong, Hamhung, and Sariwon:

I have made the 1946 map available as a Google Earth download. You can obtain the KMZ file by clicking here. Please let me know if you make any interesting discoveries of your own.

By coincidence, Andrei Lankov wrote an article about the history of Pyongyang last week in the Korea Times (as I was comparing the maps). According to the article:

Pyongyang enjoyed boom in colonial era
Korea Times
Andrei Lankov
12/30/2010

This city is long gone. No, it is still on the maps, and all our readers know its name ― Pyongyang, the capital of the Democratic People’s Republic of Korea.

But the Pyongyang of the Kims’ dynasty does not have much to do with the old city, wiped out in the social turmoil of the late 1940s and inferno of the American bombing of the early 1950s.

People who nowadays inhabit the North Korean capital, are overwhelmingly newcomers, and not much physical evidence is left from the city past.

It was once a capital of Goguryeo, one of the three ancient kingdoms which fought over the domination of the Korean Peninsula in the first centuries of the Christian era. Pyongyang remained important for centuries. During the Joseon Kingdom (1392-1910) it was the second or third largest city in the entire country.

The city remained surrounded by the stone walls which by the 1890s had been in a state of disrepair for a long time (they had lost any military significance since a much earlier date, one has to admit). The majestic Taedong Gate, facing the river, was seen as a masterpiece of traditional architecture.

Throughout the colonial period, the city’s population increased from 40,000 around 1910 to 285,000 in 1940. It was roughly one third of the then size of Seoul, but this still made Pyongyang one of the largest cities in the nation.

As was the case with nearly all major cities of both the to-be North and to-be South, the railway was instrumental in Pyongyang’s growth.

Pyongyang was located straight on the Busan-Seoul-Sinuiju line, built in the early 1900s. This line became a backbone of the country’s transportation network, and old cities which were bypassed by this railway, eventually went into decline. Pyongyang was lucky to avoid such a fate.

Nowadays Pyongyang Station is located close to the center of the North Korean capital. However, in the early 1900s it was located some distance away from the old walled city, so the space between the station and walls became a new part of Pyongyang, with rectangular grid of streets and the numerous houses of the Japanese settlers who comprised about 13 percent of the city population in 1945.

The army barracks and a large military area appeared near the station as well. Meanwhile, the Koreans were left within the space once occupied by the old walled city.

The fast growth of the city made public transportation necessary, and indeed in May 1923 a tram service ― or “streetcars” as Americans would say ― was introduced, to remain in operation until the autumn of 1950 (the present-day tram system was built anew in the early 1990s, and has no continuity with the old trams of the colonial era).

Since time immemorial and until the late 1920s, Pyongyang was located on the eastern (left) bank of the Taedong River, but from the late 1920s the city crossed to the opposite bank as well.

In 1921, an airfield was built there, to be used by both the Japanese air forces and civilian planes which landed there for re-fueling on their way from Japan to China and back. This airfield, located roughly where the “embassies quarter” is now, remained in operation until the late 1950s, if not longer.

Pyongyang underwent a major industrial boom in the colonial era. Huge coal deposits were discovered around the city, so by the 1920s the mines of the Pyongyang area provided about a half of all coal produced in Korea. This economy of the era was largely an economy of coal and steel, so these mines attracted heavy industry.

The Mitsubishi Group built a large steel mill in Nampo, not far away from Pyongyang. Another major consumer of high-quality coal was the Imperial Navy ― and the ship engines of the era were very demanding when it came to the coal quality.

Pyongyang itself also had a number of smaller businesses, including textile and footwear factories. Their presence also meant a presence of powerful labor unions, so Pyongyang was a place of some of the largest strikes of the period.

For the Koreans of the colonial time, Pyongyang was a city of Christianity. Indeed, Protestants constituted up to 25-30 percent of its population.

In a time when nationwide the share of Christians did not exceed 1 percent, this was a truly remarkable figure. This implied a large missionary presence but also existence of first-class educational facilities: Protestant schools played a major role in introducing modern science and technology to Korea.

The result was strength of the nationalist movement then closely associated with Christianity. Contrary to what one might expect, prior to 1945 Pyongyang was a stronghold of the nationalist Right while the Communists position appeared much stronger in Seoul.

The city also boasted a number of museums, including a large archeological museum with the findings made during the excavations of the 1920s.

Not much is left of that city. Most of Pyongyang’s population left in 1945-53, fleeing either religious persecution by the new regime or U.S. bombing raids. These raids virtually wiped the city off the face of earth, so in the mid-50s Pyongyang was built anew without any references to the then rejected past.

A few historical monuments of ancient times have been restored (or rather built), but almost nothing has survived from the colonial era Pyongyang. Only the old Taedonggyo Bridge still crosses the river, handling a large part of very heavy Pyongyang traffic.

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DPRK elevates status of national resource development office

Tuesday, December 28th, 2010

Institute for Far Eastern Studies (IFES)
NK Brief No. 10-12-22
12/22/2010

On December 1, the North Korean Supreme People’s Assembly Standing Committee announced an order to elevate the position of the National Resource Development Office, which is overseen by the Cabinet’s Ministry of Extractive Industry, to the Ministry of National Resource Development. According to the Korea Central News Agency, this measure is aimed at increasing development and export of underground resources as international sanctions against the North further limit Pyongyang’s access to foreign capital.

The regime’s focus on increasing earnings can be seen in Kim Jong Il’s on-site guidance trips, as well. The KCNA reported on December 3 that Kim had recently visited Danchon, South Hamgyong Province, touring the Danchon Magnesia Factory, the Danchon Mining Equipment Factory, and the Danchon Port facilities. During his visit to the magnesia factory, Kim Jong Il emphasized the need for increasing the production of quality asphalt. In addition, after receiving a report on the status of implementation of CNC in the Danchon Mining Equipment Factory, he stated, “The factory needs to normalize at a high level of mass production to turn out the necessary numbers of mining and processing equipment.” Upon reviewing the Danchon Port facilities, Kim Jong Il urged staff to work towards ensuring a loud chorus of boat whistles in the port for the upcoming 100th anniversary of the birth of Kim Il Sung in 2012.

U.S. financial sanctions levied against the North have made it difficult for Pyongyang to collect export earnings from its mining efforts, one of its key earners of foreign capital. In May of last year, when sanctions were strengthened in response to North Korea’s second nuclear test, European and even Chinese banks froze money transfers to North Korea. The [North] Korea Magnesia Clinker Manufacturing Group could not collect 4.6 million USD in earnings from the export of zinc to Europe. It appears that the North has tried to compensate for these losses by increasing the export of iron ore from Musan. Exports to China passing through the Musan customs office have more than doubled, rising from 1200 to 2500 tons per day.

The mines of Musan, holding more than seven billion tons of iron ore, are the North’s primary vehicle for earning foreign capital. In 2004, China’s Tonghua Steel and Iron Group signed a contract with North Korean authorities granting the group 50-year development rights at some key North Korean mines, and is planning to invest seven billion Yuan in developing the sites. Beijing plans to use the access to North Korean mines to meet some of the expected 80 million ton shortfall of iron ore in 2010. However, there are rumors that North Korea has canceled the contract with no explanation, causing much speculation about the direction of Pyongyang’s export strategy.

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DPRK trying to crack down on defections

Friday, December 24th, 2010

According to the Daily NK:

North Korea’s National Security Agency (NSA) is trying to use smugglers to crack down on defectors, an inside source has revealed to The Daily NK.

The source from Yangkang Province told a Daily NK reporter on Tuesday, “The Yangkang provincial NSA office has ordered smugglers investigated recently to report those who cross the river for the purpose of going to South Korea.”

In many border regions, smugglers play the role of brokers in river-crossing defections. As of late November this year, the commission earned by a smuggler for facilitating a river crossing was about 4000 to 6000 Yuan per person. For 500 to 1000 Yuan, the smugglers were willing to convey goods back across the Yalu River, too.

The source said, “About two hundred people convicted of smuggling were called in by the NSA,” explaining that they were told, “If they report river crossers to the NSA, the NSA promised to guarantee their smuggling activities.”

The reason for the new policy, the source also explained, is that “while the government keeps strengthening border controls and orders punishment for river crossers, the number of defections is not decreasing, so they have formulated a new plan. It has met with modest early success; on December 16th, three people who were crossing the Yalu River from Huchang to Changbai (China) were arrested by the NSA.”

However, the source pointed out, “Since some smugglers are cooperating with the NSA now, the number of river crossers might decrease for a while, but it will come back to normal. Those smugglers who report to the NSA will lose customers, and those who don’t will have more.”

Read the full story here:
Smugglers Told to Shop Defectors
Daily NK
Kang Mi Jin
12/24/2010

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KPA Journal No. 1, Vol. 10, 11, and 12 published

Monday, December 20th, 2010

Joseph Bermudez, military analyst for Jane’s Intelligence Review and author of The Armed Forces of North Korea, has published the 10th, 11th, and 12th issues of his very fascinating KPA Journal.

You can download them all below (PDF):

KPA Journal No. 1, Vol. 10 -Articles include: “KPA Lessons Learned from Foreign Conflicts 1960-Present, Part II,” “Ri Chun Hui, the Voice of KCTV,” by Michael Madden, “Kim Jong-iI Issues Order on Promoting Military Ranks,” and “Vice Marshal Jo Myong Rok Dies,” by Michael Madden.

KPA Journal No. 1, Vol. 11 – Yonpyong Island shelling Part I

KPA Journal No. 1, Vol. 12 – Yonpyong Island shelling Part II

Mr. Bermudez also published some declassified documents which are all available here.

Previous issues of KPA Journal can be found here.

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Daedong Credit Bank Press Release

Monday, December 20th, 2010

On November 18, 2010, the US Treasury Department issued the following press release:

Treasury Designates Key Nodes of the Illicit Financing Network of North Korea’s Office 39

WASHINGTON – The U.S. Department of the Treasury today designated Korea Daesong Bank and Korea Daesong General Trading Corporation pursuant to Executive Order (E.O.) 13551 for being owned or controlled by Office 39 of the Korean Workers’ Party.  Office 39 is a secretive branch of the government of the Democratic People’s Republic of Korea (North Korea) that provides critical support to North Korean leadership in part through engaging in illicit economic activities and managing slush funds and generating revenues for the leadership. Office 39 was named in the Annex to E.O. 13551, issued by President Obama on August 30, 2010, in response to the U.S. government’s longstanding concerns regarding North Korea’s involvement in a range of illicit activities, many of which are conducted through government agencies and associated front companies. Korea Daesong Bank is involved in facilitating North Korea’s illicit financing projects, and Korea Daesong General Trading Corporation is used to facilitate foreign transactions on behalf of Office 39.

“Korea Daesong Bank and Korea Daesong General Trading Corporation are key components of Office 39′s financial network supporting North Korea’s illicit and dangerous activities,” said Under Secretary for Terrorism and Financial Intelligence Stuart Levey.  “Treasury will continue to use its authorities to target and disrupt the financial networks of entities involved in North Korean proliferation and other illicit activities.”

E.O. 13551 targets for sanctions individuals and entities facilitating North Korean trafficking in arms and related materiel; procurement of luxury goods; and engagement in certain illicit economic activities, such as money laundering, the counterfeiting of goods and currency, bulk cash smuggling and narcotics trafficking. As a result of today’s action, any assets of the designated entities that are within U.S. jurisdiction are frozen and U.S. persons are prohibited from conducting financial or commercial transactions with these entities.

You can learn more about the Treasury’s press release here.

Here is the US Treasury Department’s new North Korea resource page.

In response, the Daedong Credit Bank issued the following press release:

FOR IMMEDIATE RELEASE:

US Treasury Press Release 18th November 2010

London UK/Pyongyang DPRK, December 20th 2010

Daedong Credit Bank (DCB) has noted the press release of 18th November 2010 by the US Treasury and makes the following comments:

1.    Korea Daesong Bank (KDB) is a 30% shareholder in DCB.  DCB is not, and never has been, aware of any activity by KDB which is in breach of any of its obligations, domestic or international.  In particular, DCB is not aware of KDB having acted in breach of any sanctions.  DCB is not aware of any cause of concern about the conduct of KDB.

2.    KDB has no executive control of DCB.

3.    DCB is majority owned by overseas investors and is foreign-managed.

4.    DCB does not act and has never acted in breach of any of its domestic or international obligations.  DCB acts in a manner consistent with domestic and international law.

5.    DCB is apolitical and promotes foreign investment in the DPRK as a positive development.

The Daedong Credit Bank looks forward to playing a significant part in facilitating normal commercial relationships between the DPRK and the international business community.

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.

Daedong Credit Bank is the first, by fifteen years, foreign majority held bank in the DPRK. DCB considers itself a flagship successful joint venture in the DPRK, and a key part of the infrastructure needed to assist the foreign-invested ventures, which drive the country’s economic reforms.

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 seven 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 10 years’ of experience of handling notes. DCB have encountered and impounded the so-called ‘superdollar’ notes, proving that these notes (despite media misconceptions) are not undetectable.

The wealth of experience garnered over Daedong Credit Bank’s 15 years of successful operation is unrivaled.

Daedong Credit Bank has a significantly strong position 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
401, Potonggang Hotel
Ansan-dong
Pyongchon District
Pyongyang
Democratic People’s Republic of Korea

Phone Switchboard  +850 2 381 2228/9    ext 401
Direct line     +850 2 381 4866
Mobile          +850 193 801 8400 *
*Note, the mobile number may not be obtainable from certain countries (eg UK and Hong Kong).
Corporate Website www.daedongcreditbank.com

FOR IMMEDIATE RELEASE:

US Treasury Press Release 18th November 2010

London UK/Pyongyang DPRK, December 20th 2010

Daedong Credit Bank (DCB) has noted the press release of 18th November 2010 by the US Treasury and makes the following comments:

1. Korea Daesong Bank (KDB) is a 30% shareholder in DCB. DCB is not, and never has been, aware of any activity by KDB which is in breach of any of its obligations, domestic or international. In particular, DCB is not aware of KDB having acted in breach of any sanctions. DCB is not aware of any cause of concern about the conduct of KDB.

2. KDB has no executive control of DCB.

3. DCB is majority owned by overseas investors and is foreign-managed.

4. DCB does not act and has never acted in breach of any of its domestic or international obligations. DCB acts in a manner consistent with domestic and international law.

5. DCB is apolitical and promotes foreign investment in the DPRK as a positive development.

The Daedong Credit Bank looks forward to playing a significant part in facilitating normal commercial relationships between the DPRK and the international business community.

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.

Daedong Credit Bank is the first, by fifteen years, foreign majority held bank in the DPRK. DCB considers itself a flagship successful joint venture in the DPRK, and a key part of the infrastructure needed to assist the foreign-invested ventures, which drive the country’s economic reforms.

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 seven 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 10 years’ of experience of handling notes. DCB have encountered and impounded the so-called ‘superdollar’ notes, proving that these notes (despite media misconceptions) are not undetectable.

The wealth of experience garnered over Daedong Credit Bank’s 15 years of successful operation is unrivalled.

Daedong Credit Bank has a significantly strong position 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
401, Potonggang Hotel
Ansan-dong
Pyongchon District
Pyongyang
Democratic People’s Republic of Korea

Phone

Switchboard +850 2 381 2228/9 ext 401
Direct line
+850 2 381 4866
Mobile
+850 193 801 8400 *
*Note, the mobile number may not be obtainable from certain countries (eg UK and Hong Kong).

Corporate Website www.daedongcreditbank.com

#004

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Daily NK reports agricultural increase in DPRK

Sunday, December 19th, 2010

According to the Daily NK:

Even though some of North Korea’s farmland including much around Shinuiju was flooded this year, in other provinces food production has been greater than in previous years, according to sources.

One source from South Pyongyang Province told The Daily NK yesterday, “There have been heavy rains and rivers overflowing in some places this year, but the rice crop is better than last year’s. It seems to be thanks to imported fertilizer from China.”

The Food and Agriculture Organization (FAO) and World Food Program (WFP) also reported last month that North Korea’s grains yields had increased by 3 percent over last year, to 4.48 million tons in total.

The source explained, “In April and May this year fertilizer came just in time, so it helped with the farming. Since the situation in that period decides the number of ears of grain, if you don’t provide fertilizer production can be halved.”

Another source from Yangkang Province agreed, saying, “This year in the jangmadang in Hyesan, 50 kilos of fertilizer was selling for 220 Yuan. The price was quite expensive, but people used it even on their private fields because it was so beneficial for production.”

However, the source said angrily, “Even though farming was better than last year, the year’s distribution for farmers was a mere 30kg of rice and 50kg of corn, 20kg of rice and 30kg of corn short of last year’s distribution. So farmers complained about it but the only answer was ‘more food should go to the military’. They were lost for words.”

The source said, “The authorities keep reiterating that thanks to the Youth Captain we will live better in the future, but then give us less distribution; who would believe this? Does this not mean that the Youth Captain will also try only to feed the military?”

He added, “In the end, the vicious circle where farmers on collective farms steal rice from the farm continues. Farm cadres have already siphoned off what they want, and then farmers also do that in groups.”

The source explained, “Due to the lack of electricity and frequent machinery failures, the threshing is still going on now. Military trucks are always waiting by the threshing location, and as soon as it is done, the rice goes to military bases.”

Furthermore, he added, “Rice provided for the military is also stolen by high officials, so normal soldiers are provided only with corn.”

Previous stories about the DPRK’s food and agricultural production can be found here and here.

Stories about the UN World Food Program and FAO can be found here and here.

Read the full story here:
Higher Yields and Lower Distribution
Daily NK
Shin Joo Hyun and Kang Mi Jin
12/17/2010

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Yangkang (Ryanggang) Province gets new 10th corps

Friday, December 17th, 2010

Pictured above: Chun-dong (춘동) in Hyesan (2005) via Google Earth

According to the Daily NK:

North Korea has created a new military body, the 10th Corps of the Chosun People’s Army, charged with security and order in Yangkang Province.

An inside source reported to The Daily NK on the 15th, “The foundation of the Yangkang Province 10th Corps was ratified in September in the name of the National Defense Commission Chairman,” and added, “Accordingly, the construction of the Corps Headquarters has been completed in the Chundong area of Hyesan.”

Hitherto, the 10th District Command of the Local Reserve Forces, a civilian reserve force, provided local protection in Yangkang Province. Its military strength was obviously inferior to that of North Hamkyung Province, which it neighbors. North Hamkyung Province has been guarded by the 9th Corps stationed in Chongjin on the east coast since it was created in 1995.

Even though the specific details of the makeup of the new 10th Corps have not emerged, it seems to consist of the 42nd Brigade (No. 1551 Base) stationed at Samsoo and the 43rd Sniper Brigade (No. 682 Base) at Gapsan, and brigades of the Local Reserve Forces in Pungsan and Wunheung. Additionally, and importantly, officers from the 9th Corps have been transferred to fill higher positions.

The source explained, “The number of enlisted soldiers increased during spring recruitment, but the number of officers was still inadequate, so the corps was formed with officers transferred from the 9th Corps. However, housing for military officers has not been completed yet, so there are still many living apart from their families.”

The Daily NK reported exclusively in September 2009 that the National Defense Commission was planning to reinforce the 10th District Command with 10,000 additional soldiers.

The source explained the possible background to the founding the 10th Corps, saying, “In fact, the value of military strength in Yangkang Province has dropped more than people think. Considering the fact that major strategic facilities such as Samjiyeon Airport, Samjiyeon Missile Base, Baekam Radar Base and Huchang Missile Base are all here, Local Reserve Forces are not sufficient to cover provincial defense.”

He added, “There is significance in the foundation of the 10th Corps, in that defense of a strategic position has been reinforced, and moreover may have the effect of coping with possible Chinese military moves which actually could occur,” and went on, “It might also have been a measure reflecting the concern which Pyongyang has had since its first nuclear test, whereby, ‘We don’t know when China will betray us.’”

Now, the North Korean military consists of nine official corps: the 1st Corps stationed in Hoiyang, Kangwon Province, 2nd in Pyongsan, North Hwanghae Province, 4th in Haeju, South Hwanghae Province and 5th in Pyeonggang, Kangwon Province, which cover the DMZ and the front line; and the 3rd Corps in Nampo, 7th in Hamheung, South Hamkyung Province, 8th Corps in Youngju, North Pyongan Province, 9th in Chongjin, North Hamkyung Province and the newly created 10th in Hyesan, Yangkang Province, which are in charge of rear defense.

As previously noted, the 6th Corps has not existed since shortly after an attempted coup in North Hamkyung Province in 1995.

Each corps consists generally of one or two combat brigades, three or four mechanized brigades and several battalions.

Besides these, there are special corps disguised as “training centers” in order to draw a veil over the reality, which is that in practice their military power is much greater than that of the general corps. While the first obligation of the general corps is local defense, these training centers are designed to push into the South.

Among the best known of these “training centers” are No. 425 Training Center stationed in Jungju, South Pyongan Province, No. 806 in Muncheon, Kangwon Province, No. 815 in Seoheung, North Hwanghae Province, No. 820 in Sariwon, North Hwanghae Province and No. 620 in Shinkye, North Hwanghae Province.

Additionally, there is the “Artillery Bureau” which conducts artillery attacks, “Education Bureau” designed to penetrate the rear of enemy lines, and “No. 91 Training Center”, Pyongyang Defense Command, which is charged with defending the capital.

Read the full story here:
Yangkang Province Gets New 10th Corps
Daily NK
Im Jeong-jin
12/16/2010

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