Pigs and Chickens… (better title ideas welcome in the comments)

November 6th, 2007

Poultry company looks North for land, workers
Joong Ang Daily

11/7/2007

A South Korean food company said yesterday it will start building a chicken farm in North Korea later this year as part of its efforts to produce chickens using the North’s cheap labor.

Maniker Company, the nation’s second-largest chicken processing company, said it agreed with North Korean officials last month to establish the farm in Kaesong, where an inter-Korean industrial complex is located.

“Construction will start later this year and the farm will be operational early next year,” said Choi Young-sam, a spokesman for Maniker, by telephone.

North Korea will provide the site and workers for the construction, Choi said, adding the project is partly supported by the South Korean government.

The agreement was reached at a meeting in Pyongyang when two executives of Maniker visited the North in late October, the spokesman said.

Details such as how much money Maniker and the South Korean government will spend on the chicken farm have yet to be fixed, Choi said.

In the Kaesong Industrial Complex, located 70 kilometers north of Seoul, 26 South Korean companies employ about 16,000 North Korean workers who produce garments, kitchenware and a number of other goods.

North, South Korea collaborate on strategy to end food shortage
Courier News
(Via DPRK Forum)

11/6/2007

North Korea and South Korea have decided to start a jointly operated hog farm in the North’s capital to help alleviate the communist nation’s chronic food shortages, a South Korean official said Tuesday.

The agreement came as a follow-up to a wide range of accords reached by the leaders of the two Koreas last month.

The farm will run for a two-year trial period in Pyongyang and aim to breed 5,000 hogs, with the South providing the animals, feed, equipment and building materials, and the North providing the land, electricity, water and labor, South Korea’s Unification Ministry said.

Officials of the two countries negotiated the deal in talks in the North Korean border city of Kaesong on Monday and plan to meet again to map out details, such as when to open the farm, ministry spokesman Park Won-jae said in Seoul.

“The hogs are aimed at resolving the North’s food shortage problem,” Park said, adding that the animals would not be exported to South Korea or elsewhere.

North Korea suffers from chronic food shortages and has struggled to increase its grain production in recent years. The country was hit by famine in the mid-1990s that killed an estimated 2 million people.

In the second-ever inter-Korean summit in Pyongyang in early October, South Korean President Roh Moo-hyun and North Korean leader Kim Jong Il agreed on accords aimed at easing tensions and boosting cross-border economic exchange programs. The measures included the launch of cooperative farm programs.

The two Koreas are still technically at war, as their 1950-53 Korean War ended with an armistice, not a peace treaty.

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It Costs about $300 for a Visa to China

November 5th, 2007

Daily NK
Yang Jung A
11/5/2007

Forty-year old Park Sung Jin (pseudonym), a cloth merchant in Chongjin lately went to Tumun in Jilin Province, China under the pretext that he would visit his relatives there. He looked for Chinese business partners and tried to find items he can sell.

It took guts for Mr. Park to venture a trip to China. However, his efforts might turn out to be fruitless.

Mr. Park needed to get a border pass to go to China, and it costs him a great fortune. The pass allowed Mr. Park to visit his pre-determined destination only once. He paid 1 million North Korean won (approx. US$340) for the pass which he applied for in February, 2006 and received in August, 2007. If he wanted to have it within six months, he had to pay about 4,000 Yuan (approx. USD560).

Applicants for the pass also need to bribe the officials of People’s Committee and Security Agency because they are in charge of issuing visas to China. In fact, Mr. Park had to spend extra money on bribery to go to China for business.

Since it was Mr. Park’s first time to apply for the visa, he went through a relatively simple visa procedure. As for those who apply for the visa more than once, more complicated procedure is waiting. They are asked to state what they had done during their first visit to China.

If Mr. Park is issued a passport by any chance, he can go to many places for long periods of time. Unfortunately those over the age of 45 are more likely to get a passport (Mr. Park is forty). Moreover, the eligibility for the issue of a passport is much more complicated and it costs big fortune to get one. For instance, those who apply for the issue of a passport are supposed to pay $40 for application fee. However, the applicants need to spend extra money on bribes and other things, and for the most time end up spending more than $500 to get a passport.

Mr. Park is now busy visiting relatives and business partners. He is determined to make money as much as possible during his stay in China so that he can get his money’s worth upon his return home.

There are more theft incidents in Hoiryeong than ever

Lately, 45-year old An Myong Sook, a resident in Hoiryeong city, never hangs out the wash to dry outside. She tells her 15-year daughter not to forget to lock the doors when she leaves home because there are so many thieves in her neighborhood.

Since last year, the construction of apartments and roads has been underway around her area in order to commemorate the 90th birthday of Kim Jong Suk (the late mother of Kim Jong Il). For the construction, many outside workers came to her area, and some of them have broken into neighboring houses.

After having repaired the road laid behind the statue of Kim Jong Suk, the workers have started building the road between Hoiryeong and Chongjin since June. Many workers came to Hoiryeong from Rajin, Chongjin, Kilju, and Hamheung.

However, ever since the outside workers came to Hoiryeong in June, the number of households which lost their belongings or livestock has increased. The local people of Hoiryeong are increasingly complaining that the increase in rice price and theft has to with the presence of the outside workers.

Accordingly, the North Korean authorities have strengthened the punishment for theft. In the past, stealing was considered as a petty misdemeanor. Nowadays, that guilt of theft is sent to labor training facilities. The authorities confiscate all stolen items sold to the third person.

However, it is difficult to get back basic supplies such as clothes once they are stolen, and therefore every household in Hoiryeong is on the alert for theft.

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The Number of Children Who Drop out of School Increases Due to Hardships

November 5th, 2007

Daily NK
Yang Jung A
11/5/2007

In North Korea where free education is espoused, the number of students dropping out of school due to economic issues has been continuously increasing.

An North Korean aid organization, Good Friends, said in an informational material distributed on the 31st of October, said, “In Wonsan, Kangwon Province, there are a lot of children who do not even get to attend elementary school. They stop out of school due to difficulties in living and follow their parents to the market or sustain an existence from digging medicinal herbs from mountains and fields.”

In the midst of such a reality where the students’ attendance rate is increasingly falling, the source relayed that “At such a rate, voices of complaint among some officials of Kangwon Province that have said that all of Kangwon Province will become illiterate are high.”

”When actually walking around the streets or in the market of Wonsan, one can easily meet children who are selling water. It is easier to meet children in the markets than in schools.”

The source also relayed, “In a high school in Pohang District in Chongjin, North Hamkyung Province, three objects worth 2,000 won per person, among the list of notebook, writing utensils, winter vest, belt, and winter socks, are required under the pretext of classroom decorations.”

”In elementary schools in Hoiryeong, 500g of sunflower seeds per person were collected for Kim Jong Il’s birthday preparation on February 16th of next year. In other regions, elementary schools and middle schools are collecting each kind of products and upper-levels students are required to bring 20kg of scrap iron, 4 strips of rabbit leather and 1kg of white peace seed and the lower-levels 500g of scrap-iron, 500g of peace seed and 200g of castor-bean.”

It added, “Students whose family situations are difficult cannot keep up with school education. The number of students who do not go to school due to the shortage of funding are increasing.”

Further, “teachers prefer children who come from well-to-do families and give up on the children from poor families. Before, teachers would visit the homes of every student and try to persuade the families to allow the children to return to school, but nowadays, no one takes that kind of an initiative.”

The source also revealed that starting last October, street beggars have been increasing in the vicinity of the Chongjin markets.

The source stated, “Around the market area, young beggars daily fighting for the food that the restaurants have thrown away can be seen daily. During the day, they ask for alms near the market or look for things to eat in the garbage dump and in the winter, since the weather is cold and there are no places to sleep, people gather near steel mills, so they end up being completely covered with dust and dirt.”

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Signals coming from the media in North Korea

November 3rd, 2007

Joong Ang Daily
Brian Lee
11/1/2007

Newspapers indicate a desire for more outside interactions

North Korea is increasingly sending out signals through its state media indicating a desire to interact more with the outside world.

The North’s communist party newspaper Rodong Sinmun said in an editorial earlier this week that it is no longer a time for production and construction to be achieved through the workers’ bare hands alone.

“We are stressing self-sufficiency, but that does not mean we are disregarding international economic relations while striving to build our economy,” the newspaper said. “The republic has always maintained its position that it wants to have good relations, even with capitalist countries.”

The Chosun Sinbo, a pro-Pyongyang newspaper in Japan widely believed to be representing North Korea’s views, also said this week that progress in the six-party talks reflected Pyongyang’s political will to improve ties with neighboring countries.

“The nuclear test was Pyongyang’s tool to change the stalemate with Washington,” said Koh Yoo-hwan, a North Korean specialist at Dongguk University. “It got its attention and now both sides are talking. The diplomatic exchanges with other countries are a sign from the North that it can accept capitalist methods and that it is open to the outside. This is not coming just out of the blue. In the North everything is planned from the top and all these moves are done strategically. They want to connect to the outside.”

Yesterday, North Korea restored diplomatic ties with Burma after 24 years of severed ties over the North’s involvement in a bomb attack on South Korean cabinet members in 1983, The Associated Press reported.

North Korean Premier Kim Yong-il has also embarked on a rare sweep of the Asian region, visiting Vietnam last week with Malaysia, Cambodia and Laos also on his itinerary.

Washington has tried in its own way to lure the isolated North more into the open.

A visit by the New York Philharmonic to the North is being pondered while the JoongAng Sunday reported that the North’s women’s soccer team may visit the United States.

In a related development, Christopher Hill, Washington’s chief representative to the six-party talks, met with his North Korean counterpart Kim Gye-gwan in Beijing yesterday to discuss progress in the nuclear negotiations.

Hill is scheduled to arrive in Seoul today to brief officials here on the meeting, a government official said yesterday on condition of anonymity.

Foreign Minister Song Min-soon told reporters a U.S. team of nuclear experts is scheduled to enter the North today to take actual steps to disable the North’s key nuclear facilities. Pyongyang said earlier this week that such measures would start within this week.

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Direct flights for tours of N. Korea’s Mount Paekdu to start in May: report

November 3rd, 2007

Yonhap
11/3/2007

Direct flights that will allow tourists from South Korea to visit Mount Paekdu in North Korea will begin in May, Pyongyang’s official state-run news agency said Saturday.

The Korean Central News Agency (KCNA) said the deal was reached in talks between Hyundai Group chairwoman Hyun Jung-eun and representatives of the North’s National Economic Cooperation Federation.

The tours were agreed upon at the summit meeting between South Korean President Roh Moo-hyun and North Korean leader Kim Jong-il early last month. Seoul had previously provided materials to repair an airfield near the mountain.

Foreign visitors to Mount Paekdu, whose 2,744-meter peak is the highest on the Korean Peninsula, usually climb the mountain from the Chinese side, although the mountain is a popular tourist destination for foreign tourists in North Korea. Koreans traditionally consider Mount Paekdu a sacred mountain.

The KCNA report also said Hyundai will start tours of Kaesong, an ancient Korean capital, in early December.

Hyundai Asan, a affiliate of the the business group, runs the Kaesong industrial complex that is home to about 50 South Korean companies producing clothes, shoes, watches and kitchen appliances.

The inter-Korean complex 60 kilometers northeast of Seoul is hailed as the crowning achievement of the historic first-ever inter-Korean summit in 2000. It has played a key role in expanding two-way economic exchanges from just $300 million in 1999 to $1.35 billion last year.

The North Korean news agency said Hyun and Hyundai Asian president Yoon Man-joon met with Kim Jong-il.

The two senior executives are expected to return to South Korea later in the day.

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Ignoring Buffett, Fabien Pictet Eyes North Korea Fund

November 2nd, 2007

Bloomberg (via DPRK studies)
Bradley Martin
11/2/2007

Fabien Pictet & Partners Ltd., a British money manager that specializes in emerging markets, plans to establish a fund focused on joint ventures in North Korea.

Fabien Pictet has applied to North Korea’s embassy in London for permission to visit Pyongyang to explore opportunities, Chief Executive Officer Richard Yarlott said in an interview. The closely held firm initially would buy into South Korean companies doing business in the north, he said.

“It would be very difficult to put more than $50 million directly into North Korea,” said Yarlott, 47, who helps manage $750 million of bonds and equities. “But it would be very easy to put $500 million into listed South Korean companies and then later, as we see specific private equity opportunities, go with them.” He declined to give further details.

A North-South agreement on economic cooperation, signed Oct. 4, may foster cross-border projects in industries such as mining and shipbuilding. Still, that prospect isn’t enough to lure billionaire investor Warren Buffett to a northern plunge.

“Things would have to change a whole lot before we can make investments,” said Buffett, chairman and CEO of Berkshire Hathaway Inc., during a visit to South Korea last week.

Buffett, who owns shares of South Korea’s Posco, Asia’s biggest steelmaker by market value, rates the nation’s stocks as “modestly cheaper” than most around the world. The benchmark Kospi index’s price-to-earnings multiple of 15.4 for current year estimated earnings is the lowest in Asia-Pacific after Thailand.

London-based Fabien Pictet, set up in 1998, invests in countries from Brazil to the Ukraine.

It started a South Korean equity fund, Three Kingdoms Korea Fund Inc., in 2004 partly to be ready for a northern push, Yarlott said.

LG Corp., Hyundai

South Korean companies — including units of LG Corp., the country’s fourth-largest industrial group, and Hyundai Corp. — have $2 billion to invest over the northern border, he said.

Three Kingdoms Korea has had a total return of 88.5 percent from April 30, 2004, to Sept. 28 this year. South Korea’s Kospi has risen 126 percent in the same period.

Foreign investment in North Korea has been legal since 1984 and repatriation of profits since 1992. The country doesn’t permit private ownership of assets and hasn’t established a stock exchange.

South Korea’s closely held Hyundai Asan Corp., which started a northern tourism business in 1998, has been reported to be struggling to avoid or reduce operating losses.

London-based Anglo-Sino Capital Partners Ltd., which in 2005 created Chosun Development and Investment Fund to focus on direct investment in North Korea, last month doubled its investment target, citing strong interest.

“We have raised the fund from $50 million to $100 million,” Colin McAskill, chairman in London of Koryo Asia Ltd., the Chosun fund adviser, said in an interview.

The fund will concentrate on direct transactions with North Korean companies that have been active internationally and have track records as foreign currency earners, he said.

Some investors say it’s too early to call North Korea an emerging market.

“I’m 77 years old and the thought that the day would come in my time — it’s very flattering but it’s a long way off,” said Buffett, also known as the “Sage of Omaha.”

Yarlott said the country was changing. “North Korea, like China, will develop a stock market,” he said.

“At this rate, even the sage will get a look-in.”

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South Korean Dramas Are All the Rage among North Korean People

November 2nd, 2007

Daily NK
Yoon Il Geun
11/2/2007

“Foreign Films That Are Circulating at More Than One Million CDs”

Despite the North Korean authorities’ strict control, foreign films and South Korean drama Video Compact Disks (VCDs) circulating around North Korea is reportedly over 1 million copies since 2000.

Defector Choi Young Bum (pseudonym, 38), who has circulated South Korean and foreign movie VCDs among North Korean citizens said, “If one goes to a large city market, not only Pyongyang, but Pyongsung, Chongjin, Hamheung, Wonsan, and Shinuiju, hundreds or thousands kinds of movie and drama CDs can be obtained through black marketeers.”

According to Mr. Choi, foreign movie CDs inside North Korea have become significantly more mainstream.

Mr. Choi said that the largest market for the North Korean VCD business is the Pyongsung market. He said, “In Pyongsung market alone, merchants who sell South Korean dramas or foreign movie CDs while avoiding regulations, are sufficiently over 100. One person has several hundred copies at the least while another person has over 2,000 copies on the higher end. The authorities are stepping forward for inspections, but VCDs that have been circulating are at over several million copies.”

He said, “In Pyongyang, VCDs that have been circulating are more than in other regions. In early 2000, Hong Kong movies, South Korean dramas in mid-2000s, and recently, American movies that have been translated in Korea have been drawing a lot of popularity.” He relayed that the cultural difference between Pyongyang or other large cities to the provinces are sizable. The South Korean drama “Winter Sonata” became already a classical one in Pyongyang, but was still a hit in the countryside.”

He said that with the rise in popularity of South Korean dramas among North Korean people, the VCD merchants along the border region made quite a profit.

According to Mr. Choi, the prime cost from China was 150 North Korean won, but now, the asking price is over 300 won. The price of a VCD was around 900~1,000 won per copy in 2003, but it is now over 1,500 won. The price is supposed to jump twofold as the VCDs pass through each phase through Chinese merchants, the wholesaler, runner (regional circulators), and to retail trade.

He explained, “With popular action movies or dramas, they were sold at 2,000 won per copy. South Korean Series that have been consistently popular like “Autumn Sonata,” “Hourglass,” and “Glass Slippers” are wrapped in cases by sets, so the price is a bit discounted.”

Mr. Choi said that the price of a VCD player is around 30,000 won. “There were times when we sold the VCDs in cash, but we have thrown in extra as a bonus when selling used TVs from China.”

He added, “From mid-2004, DVDs started entering North Korea. Nowadays, their qualities are better than VCDs and high-capacity DVDs have been in circulation.”

Mr. Choi said that according to a change in DVD trends, North Korea’s Hana (one) Electronics Company have assembled and sold DVD players from attachments from China with the “Hana Electronics” brand. These DVDs can be purchased at North Korean stores.

”The contents of DVDs which can be produced legally in North Korea are mostly North Korean movies, films, former Soviet movies, former Chinese movies, screen accompaniment music (music videos), etc. North Korean civilians pretend like they are watching DVDs that are officially sold in North Korea while they have been watching South Korean dramas bought from the black market.”

Defector Ms. Im, who entered South Korea, said, “North Korean citizens, when someone comes to visit them while they are watching South Korean dramas with doors locked, hide the CDs while the other person goes to the door. They switch on a North Korean CD as if they were watching a North Korean movie.”

Ms. Im said, “Even the National Security agents and the Safety agents watch South Korean dramas and most people are watching them secretly. No matter how much the authorities regulate, it is difficult to control the practice. Once people are exposed to such a culture, it is not easy to stop. They are not going to stop watching them.”

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The Best Identity in North Korea Is Being Pyongyang’s “Front Road” Resident

November 1st, 2007

Daily NK
Kim Min Se
11/1/2007

Behind Pyongyang’s welcoming crowd at the time of the Vietnamese Communist Party’s Secretary General Nong Duc Manh and President Roh Moo Hyun’s visits, buildings, apartments, and residential homes could be spotted.

Residing in Pyongyang itself can be considered upper-class in North Korea. Defectors say that civilians who live apartments surrounding the city’s highways represent the highest class within North Korea.

North Korea calls roads that Kim Jong Il uses frequently or is able to use as “front roads.” The factor which is considered the most when allocating residents on these roads is preventing terrorist directed toward Kim Jong Il.

To reside in surrounding apartments of Pyongyang’s roads, potential residents have to go through a strict background search. Party members in Pyongyang, municipal party leaders, influential persons of the army and the administrative branch receive first priority. Besides this, average residents have to pass stringent background investigations.

It is difficult for even Pyongyang civilians to reside a day in these apartments. Even when visiting parents and siblings, it is not easy to stay overnight.

Ms. Kim, a defector from Pyongyang, said, “To reside in an apartment adjacent to Pyongyang’s front roads, we have to go through the National Security Agency, the Safety Agency, and Party investigative agencies. This is because all kinds of “top-ranked events” related to Kim Jong Il frequently occur on the road.

Ms. Kim said, “If a ‘top-ranked event’ is planned or is going on, the residents of nearby apartments have to undergo daily lodging inspections almost daily.”

Ms. Kim said, “A key aim of the inspections is to prevent illegal lodging of outside civilians (from zones other than Pyongyang) in these apartments. This is to prevent any outbreaks from possibly occurring at the events or when Kim Jong Il’s car passes by.”

She also said, “Even when residing in Pyongyang, people cannot freely stay at the apartments of parents or siblings near the roads. If one has to stay over, no matter the time of the night, he has to go to the Safety Agency, report to the officer in charge, register in detail information about family and kin, and get approval.”

Lee Ae Ran, a defector, said, “It is very important for Pyongyang residents to live near the “front roads.” That is a measure of the confidence North Korean authorities have in you and these residents receive better treatment than other civilians.”

Ms. Lee said, “At the ‘World Youth Student Festival,’ held in Pyongyang in `’89, all apartment residents were given a set of color TVs due to the fact that foreigners can suddenly drop by. Another time, the state provided ham only to the residents living near the ‘front roads,’ so Pyongyang residents called this region the ‘ham region’ and areas that are not near the roads ‘non-ham regions.’”

Ms. Lee was also said, “Civilians who live near the roads also suffer a lot. Daily street-cleanings are a must and people have to clear roads even in the middle of the night during winter.” When asked if cleaning snow is challenging, she was noted as saying, “If the snow is not properly cleared, the Great’s Leader’s car will be at risk on the icy roads.”

In North Korea, where Kim Jong Il’s safety is considered top priory, most Pyongyang residents were expelled to remote areas on account of their family backgrounds up until mid`70s.

Mr. Kim said, “The authorities banished residents of the capital to the rural areas regularly, just as one weeds a garden regularly.”

Ms. Lee said, “I don’t know how many people were purged to the countryside. When I tried to find a high school classmate in Pyongyang back in `92, only 16 out of 53 had remained. Most likely, over 50% were banished because of their family backgrounds.”

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Hyesan Mine, the Center of Copper Production Is Flooding!

November 1st, 2007

Daily NK
Moon Sung Hwee
11/1/2007

A source familiar with issues inside North Korea said on the 30th, “Most of the underground tunnel of Hyesan Youth Mine in Yangkang Province is now under water.” The source added, “Ever since Samsoo Hydroelectric Power Station started filling up the dam last year, the mine began to flood, and now it can not operate properly.”

Hyesan mine produces 80 percent of the country’s copper. North Korea expects that the mine could produce copper for the next forty years. Hebeisheng-Luanhe Industry in China once attempted to buy 51 percent shares of the Hyesan Youth Mine. However, this was unsuccessful due to opposition from North Korea’s second Economic Commission, which manages the military economy.

North Korea began the construction of Samsoo Hydroelectric Power Station in February of 2004, mobilizing thirty thousand troops of the so-called “Shock Brigade for the Propaganda of the Party Ideology” every year. Unfortunately, Samsoo Power Plant became the major cause of the flooding of Hyesan Mine.

If this mine is inundated with water, North Korea has to import huge amounts of copper. It was the Propaganda and Agitation Department that led the construction of Samsoo Power Plant, which generates 50,000 kilowatts of power and is now causing the flooding. It is absurd that North Korea is about to lose its principal copper mine because of Samsoo Power Plant, a facility that was primarily constructed for political purposes.

Jung You Sim (37, pseudonym), a defector from Hyesan who came to South Korea in July of this year, stated that “Hyesan Mine is almost abandoned. It takes about three years to fill up the Samsoo Dam with water. Even now, there is difficulty in pumping out the water leaked from the power plant. Once the dam is completely filled, the total volume of water will be 1,300 million cubic meters. By then, the water pressure will have made it impossible to pump out the water that has infiltrated the mine. North Korea must choose either Samsoo Power Plant or Hyesan Mine.”

Samsoo Power Plant was constructed in Jangan-ri of Hyesan, Yangkang Province; Hyesan Mine is located nearby in Masan-dong.

The construction of Samsoo Power Plant which began in February 2004 evoked a great deal of controversy from the beginning. The Guidance Department of the Party and the Ministry of Extractive Industries opposed the construction citing the high risk of flooding in the Hyesan Mine.

However, Jeong Ha Cheol, then Secretary of Propaganda and Agitation Department and Choi Choon Hwang, then vice director of the Central Committee of the Party pushed hard for the construction with the aim of boosting their political standing and succeeded in obtaining Kim Jong Il’s approval. It is almost certain that both men have been purged.

At that time, the Propaganda and Agitation Department reported that the water leakage could be prevented if the bottom of the power plant dam is pressed hard and cemented with mud about three meters deep. However, experts from France who inspected the area opposed the construction because the land itself was calcareous and unstable. The water leakage was inevitable.

First explored in the 1960s, Hyesan Mine produces 10,000 tons of copper concentrates annually. When Gapsan Dongjum Mine, explored during the Japanese colonial period, was finally depleted and closed in 1990, Hyesan Mine became the lifeline of the nation’s copper production. It flooded before in the mid 1990s but was restored shortly thereafter.

At that time, the mine flooded because the pumping device stopped operating due to the lack of electricity across the country. Although the workers at the mine did their best to pump the water, they could not stop the water flowing into the mine at a speed of 480㎥/hour. In January, 1997, Hyesan Mine flooded again, as did other mines throughout the country, and lost all mining facilities.

The workers faced insurmountable obstacles in trying to save the mine. This was because some workers at Hyesan mine had removed the copper from pumping devices and had smuggled it to China before the flood hit the country.

When the officials from the Ministry of Extractive Industries visited Hyesan Mine in 1999, they informed the local cadres that the mine’s copper production had become insufficient for the manufacture of military supplies, and as a result, copper would have to be imported from Chile.

Defectors coming from Yangkang Province said that when Kim Jong Il paid a visit to the mine in October, 1998 and received the report on the difficulties in the mine’s operation, he said, “We must save the mine at any cost. I will supply the money.” At once, the chief secretary of Yangkang Province and the Ministry of Extractive Industries took charge of restoring the mine and organized the recovery workforce.

Kim Jong Il provided the so-called “Revolutionary Fund” for the mine’s recovery. He sent $ 3.8 million in 1998 and $2.6 million in 2001, paid all in cash. In 1998 when a great number of people were starving to death, corn was available in China for $ 137 per ton. The amount of money spent on the mine’s recovery could have been used to purchase approximately 28,000 tons of corn. In those days, the local residents in Yangkang Province were made to listen to lectures about the ‘General’s Revolutionary Fund’ over and over.

Upon the order for recovery, residents in Masan 1-dong and 2-dong in Hyesan city were mobilized every weekend to dig out the dirt in the mine. By May 1, 2003, the locals had dug to a depth of 710 m. Later that year, the mine produced 1,500 tons of copper concentrates, and in 2004 it produced 3000 tons.

The local people made huge sacrifices to recover Hyesan mine, and the recovery cost about $ 7 million. However, it was all in vain. The mine is now again flooded due to the construction of Samsoo Power Plant. Hyesan defector Jung Yoon Sim said that Kim Jong Il later changed his tone when he visited Yangkang Province and heard about the recent flooding, saying “it was anticipated.”

Samsoo Power Plant can produce up to 50,000 kilowatts of power. However, about 60,000 kilowatts of power are needed to supply electricity to the apartment complexes constructed in 2003 in Samjiyun county of Yangkang Province.

After all was said and done, Kim Jong Il had mobilized 30,000 people for three and a half years and had them work 14 hours per day while providing a mere 580 grams of grain daily in an attempt to build a power plant that generates only 50,000 kilowatts. In doing so, he destroyed the nation’s leading copper production center.

President Roh praised such an incompetent and irresponsible man as “a charismatic leader who has a deep understanding about the affairs of the country and has faith in the system.”

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Hyundai Group chief, N. Korean officials discuss business projects: report

November 1st, 2007

Yonhap
11/1/2007

The chief of South Korea’s Hyundai Group met with North Korean officials in charge of inter-Korean cooperation on Thursday to discuss the group’s business projects in the North, the North’s Korean Central News Agency (KCNA) reported.

The KCNA said Hyundai Group Chairwoman Hyun Jung-eun held talks with North Korean officials, including officials from the North’s National Economic Cooperation Federation.

The two sides took notes on an industrial park in the North Korean city of Kaesong and the building of a tourist resort near Mount Paekdu, according to the KCNA. Prior to the talks, Hyun’s delegation also toured Mount Paekdu, the North’s highest mountain on the border with China, the KCNA said.

The KCNA, however, stopped short of reporting the outcome of the talks.

At Thursday’s talks, Hyun is believed to have discussed the Mount Paekdu tourism project and the second-stage development of the Kaesong industrial complex with the North.

The South Korean company said earlier that Hyun and Yoon Man-joon, head of Hyundai Asan, a Hyundai subsidiary that runs Hyundai’s business in North Korea, visited Pyongyang on Tuesday via Beijing to discuss inter-Korean projects with North Korean officials. Hyun and Yoon are to return home Saturday, according to Hyundai officials.

Hyun’s visit this week marked her second trip to North Korea in a month, as she accompanied South Korean President Roh Moo-hyun on his historic inter-Korean summit with North Korean leader Kim Jong-il from Oct. 2-4.

At the summit, Roh and Kim agreed their two countries would work together on a wide range of economic projects, even though the two states are still technically at war since the 1950-53 Korean War ended in an armistice, not a peace treaty.

After the summit, Hyun said she expects tours to Mount Paekdu to start as early as next April. At the summit, the two leaders agreed to establish direct flights from Seoul to Mount Paekdu.

Hyundai maintains close business ties to North Korea. One of its major cross-border projects is tours of scenic Mount Geumgang on the North’s east coast. More than 1 million South Koreans have visited it since 1998.

Hyundai’s business with North Korea was started by its late founder, Chung Ju-yung, in the early 1990s.

Hyun took the helm of Hyundai in 2003 after her husband, Chung Mong-hun, the Hyundai founder’s fifth son, committed suicide by jumping from a window of his high-rise office in Seoul, apparently under pressure from a lobbying scandal involving a North Korean project.

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