Private aid to DPRK continues after nuke blast

October 11th, 2006

Yonhap:
10/11/2006

South Korean civic groups on Wednesday sent humanitarian aid shipments to North Korea despite the heightened tension over North Korea’s declared nuclear test, officials said.

A 2,864-ton ship plying the Incheon-Nampo route departed for a North Korean port with shipments of 14 containers for humanitarian aid and another 45 containers for construction and raw materials to be used at the Kaesong industrial complex just north of the inter-Korean border.

The aid shipments include 2,000 bicycles, two ambulances, blankets and boilers, they said.

Following North Korea’s announcement of its first-ever nuclear test on Monday, the South Korean government suspended a shipment of 7,500 tons of cement to the communist country.

“We hope that the provision of bicycles on humanitarian grounds will contribute to maintaining civilian inter-Korean exchanges and offering a clue to the resolution of the stained inter-Korean relationship,” a local YMCA official said. 

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An economy built on drug dealers, ivory poachers and counterfeiters

October 11th, 2006

London Times
Lloyd  Parry
10/11/2006

NORTH Korea’s economy, and the methods it uses to support a Stalinist society in the globalised 21st century, is a subject as murky, dark and dangerous as its totalitarian leadership. Many of the country’s traditional industries, such as mining, chemicals and textiles, are in ruins.
 
But the North Korean military and ruling elite have held off political collapse in the years since the end of the Cold War thanks to a web of criminal businesses backed by the power and military might of a well-armed dictatorship.

The greatest danger from Monday’s underground nuclear test may lie not in the potential for a missile attack on another country, but in the export of nuclear devices or technology, to which President Bush referred in his first remarks on the explosion.

Peter Beck, of the International Crisis Group in Seoul, said: “I’m not worried about them using one of their warheads on a neighbour because that would be suicide. But given their record of selling whatever they have — drugs, missile technology, counterfeit currency — the primary concern has to be proliferation.”

Illegal export businesses that North Korea is accused of operating include the manufacture and sale of drugs, counterfeit currency, fake brand goods such as cigarettes, the forging of tax revenue stamps and money laundering. On top of this there is the lucrative trade in weapons, principally missile parts, which is perfectly legal but deplored by the United States and its allies.

Over the years North Korea’s partners in these enterprises have ranged from Japanese yakuza, Russian drug dealers, Irish republican terrorists, bankers in Macau, ivory poachers in Africa, and the Armed Forces of Egypt, Iran, Libya, Pakistan, Syria, Vietnam and Yemen.

If the North does attempt to profit from its nuclear success it will be covert networks like these that it will employ.

North Korean official crime dates back at least to the 1970s when its diplomats based in the four Scandinavian countries were reselling tax-free alcohol and cigarettes.

Diplomatic bags were frequently abused for the purposes of smuggling drugs produced in North Korean factories, beginning with heroin and opium but diversifying in the late 1990s into crystal metamphetamine or “shabu”, the most popular drug in Japan, South Korea and South East Asia.

In 2003, Australian coastguards seized the North Korean boat Pong Su after it dropped off 150kg (330lb) of heroin at a beach in Victoria.

Even harder to pin down are the counterfeit $100 bills known to law enforcement agencies as Superdollar.

US security services have seized $50 million of the counterfeits since they began appearing 1989, of a quality so high that they are often detected only when they reach the Federal Reserve.

Sean Garland, the leader of the Official Irish Republican Army, a Marxist splinter group of the IRA, is presently fighting extradition from Ireland to face charges in the US that he purchased and distributed North Koran supernotes in Belarus, Russia and Ireland.

North Korean factories are reckoned to produce 41 billion fake cigarettes a year, for sale in China, Japan and the US.
In the past ten years at least six North Korean diplomats have been expelled from Africa for smuggling elephant tusks and rhinoceros horns.

Indentured labourers are exported to Russian logging camps and Czech factories as cheap labourers, in wretched conditions. Last year the FBI arrested 59 people at an elaborately staged fake gangster wedding, breaking a Chinese-North Korean racket which sold tens of millions of dollars of contraband every year, including forged notes, postage stamps, tax stamps for cigarettes, Viagra and AK47 assault rifles.

Most difficult to police is the North Korean arms trade — because, as big Western governments know better than most, the lucrative arms trade is not a crime. The US Government estimated that North Korea’s sales of rockets, missiles, parts and technology amounted to $560 million.

In 2002 the Spanish Navy boarded a North Korean ship carrying Scud missiles to Yemen — but had to let it go because it was operating perfectly legally.

A US Senate hearing last April concluded that income from these operations amounted to between $500 million and $1 billion a year.

“These extracurricular revenue streams allow North Korea to balk at participation in negotiations,” Tom Coburn, the chairman of the hearing, said. “Economic pressure is the civilised world’s only real leverage.”

If Kim Jong Il is ever to be forced to the negotiating table it is these sources of income that must be cut off.

“It will take a lot international co-operation, and it will take time,” says Song Young Sun, a South Korean MP and security expert. “It will not kill Kim Jong Il with a single shot. But if it works, it will slowly dry him to death.”

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North Korea: an upcoming software destination

October 10th, 2006

Paul Tija
GPI Consultancy
October 10, 2006

IN PDF: IT_in_NKorea.pdf

Surprising business opportunities in Pyongyang

Dutch companies are increasingly conducting Information Technology projects in low-cost countries. Also known as offshore sourcing, this way of working means that labor-intensive activities, such as the programming of computer software, are being done abroad. Asia is the most popular software destination, and Indian IT firms are involved in large projects for Dutch enterprises such as ANB Amro Bank, KLM, Philips or Heineken. More recently, we notice a growth in the software collaboration with China.

As a Dutch IT consultant, I am specialized in offshore software development projects, and I regularly travel to India and China. Recently, I was invited for a study tour to an Asian country which I had never visited before: North Korea. I had my doubts whether to accept this invitation. After all, when we read about North Korea, it is mostly not about its software capabilities. The current focus of the press is on its nuclear activities and it is a country where the Cold War has not even ended, so I was not sure if such a visit would be useful. And finally, such a trip to a farshore country would at least take a week.

Nevertheless, I decided to visit this country. This decision was mainly based on what I had seen in China. I had already traveled to China five times this year, and the fast growth of China as a major IT destination was very clear to me. China is now the production factory of the world, but China’s software industry has emerged to become a global player in just 5 years. Several of the largest Indian IT service providers, including TCS, Infosys, Wipro and Satyam, have established their offices in China, taking advantage of the growing popularity of this country. However, I also noticed that some Chinese companies themselves are outsourcing IT work to neighboring North Korea. And since my profession is being an offshore consultant, I have no choice but to investigate these new trends in country selection, so I accepted the invitation to visit Pyongyang, the capital of North Korea. I happened to be the first Dutch consultant to research the North Korean IT-sector ever, and the one-week tour turned out to be extremely interesting. Quite surprisingly, the country offers interesting business opportunities for European companies.

Korea Computer Center
My study tour was organized by KCC (Korea Computer Center), the largest IT-company in the country. Established in 1990, it is state-owned and has more than one thousand employees. It is headquartered in Pyongyang and has regional branches in eleven cities. My accommodation has been arranged at the KCC campus, which comprises of several office buildings. It also has iown hostel, with a swimming pool, for foreign guests. These guests are mainly Asian (during my stay, there were Chinese delegations), so I had to get used to having rice for breakfast. In the evenings, the restaurant doubled as a karaoke bar, and some of the waitresses appeared to be talented singers. The campus is located in a rather attractive green area, and the butterflies flying around were the largest I had ever seen. It also has sporting grounds, and basketball was during my one-week visit the most popular game among KCC staff. An internal competition takes place during lunch hours.

Korea Computer Center is organized in different specialized business units. Before their representatives started with presentations, I received a tour through the premises. As is the case in India and China, the programmers at KCC also work in cubicles. KCC develops various software products, of which some are especially designed for the local market. Examples are a Korean version of Linux and translation software between Korean, Japanese, Chinese and English. They also produce software for Korean character and handwriting recognition and voice recognition. Other products are made for export, and North Korean games to be used on mobile phones are already quite popular in Japan. There are also games for PC’s, Nintendo and Playstation; their computer version of Go, an Asian chess game, has won the world championship for Go games for several years. The games department has a display showing all the trophies which were won during international competitions.

For several years, KCC is active as an offshore services provider and it works for clients in China, South Korea and Japan. For these markets, North Korea is a nearshore destination, and quite a few North Korean IT-staff do speak Chinese or Japanese. KCC also has branch offices in various Chinese cities, including Beijing and Dalian. It works for both foreign software product companies and end user firms, such as banks. For these clients, different types of applications have been developed, for example in the field of finance, security or Human Resources. Europe is a relatively new market for the North Koreans, and some of their products have been showed for the first time at the large international IT-exhibition CeBIT, in 2006 in Hannover, Germany.

The level of IT-expertise was high, with attention to quality through the use of ISO9001, CMMI and Six Sigma. KCC develops embedded software for the newest generation of digital television, for multimedia-players and for PDA’s (Personal Digital Assistants). Surprisingly, it also produces the software for the mobile phones of South Korean Samsung. I was shown innovative software which could recognize music by humming a few sounds. In less than a second, the melody was recognized from a database of more than 500 songs. Also applications for home use were developed, such as accessing the Internet by using a mobile phone to adjust the air conditioning. KCC also Photo: KCC campus in Pyongyang made software to recognize faces on photographs and video films. They gave me demonstrations of video-conferencing systems, and applications for distance learning. There was a separate medical department, which made software to be used by hospitals and doctors, such as systems to check the condition of heart and blood vessels.

Supply of IT-labor In countries such as The Netherlands, the enrollment in courses in Information Technology is not popular anymore among the youth, and a shortage of software engineers is expected. This situation is different in many offshore countries, where a career in IT is very ‘cool’. Also in North Korea, large numbers of students have an interest to study IT. I visited in Pyongyang the large Kim Chaek University of Technology, where there are much more applications, than available places. Although my visit took place during the summer holiday, there were still students around at the faculty of Informatics. In order to gain experience, they were conducting projects for foreign companies. I spoke with students who were programming computer games or were developing software for PDA’s. A large pool of technically qualified workforce is now available in North Korea. Some of the staff is taking courses abroad and foreign teachers (e.g. from India) are regularly invited to teach classes in Pyongyang.

Business Process Outsourcing
Some companies in Pyongyang are involved in activities in the field of BPO (Business Process Outsourcing), an areas which includes various kinds of administrative work. Because of the available knowledge of the Japanese language, the North Koreans are offering back-office services to western companies engaged in doing business with Japan.

In order to get an understanding of this type of work, I visited Dakor, which was established 10 years ago in cooperation with a Swiss firm. This joint venture is located at the opposite side of Pyongyang, across the Taedong river. It works for European research companies, and it receives from them scanned survey forms electronically on a daily basis. It processes these papers and returns the results within 48 hours to their clients. The company is also conducting data-entry work for international organizations such as the United Nations and the International Red Cross. Their data, which is stored on paper only, is being made available for use online. Dakor is also offering additional services, such as producing 2D and 3D designs for architectural firms, and it is also programming websites.

Animation
North Korea is already famous as a production location for high quality cartoons and animation. Staff of the American Walt Disney Corporation described the country as one of the most talented centers of animation in the world. The specialized state corporation SEK Studio has more than 1500 employees, and works for several European producers of children films. New companies are being founded as well, and I visited Tin Ming Alan CG Studio. This firm was set up in early 2006, and is located in a new office building in the outskirts of Pyongyang. Its main focus is in Computer Graphics and in 2D and 3D animation it uses the latest hardware and software, including Maja. Some of the staff of Tin Ming Alan speak Chinese and the company has a marketing office in China. They are hired by Chinese advertisement companies to make the animation for TV-commercials. It also works on animation to be included in computer games.  Several employees of this young company come from other animation studios and have more than ten years of experience in this field.

The North Korean IT sector seems to be dynamic, where new firms are being established, and where business units of larger organizations are being spun-off into new ventures. I visited the Gwang Myong IT Center, which is a spin-off from Korea Computer Center. It is specialized in network software and security, and it produces anti-virus, data encryption, data recovery, and fingerprint software. This firmis internationally active as well; it has an office in China and among its clients are financial institutions in Japan.

Issues of country selection
My study tour revealed that North Korea has specific advantages. The local tariffs are lower than in India or China, thus giving western firms the option of considerable cost reductions. The commitment of North Korean IT-firms is also high, and the country is therefore also an offshore option for especially smaller or medium sized western software companies. Outsourcing work to North Korea could also be used to foster innovation (e.g. developing better products or new applications). This country can be used for research as well (from Linux to parallel processing).  Based from my interaction with Korean managers and software engineers, I do not believe that the cultural differences are larger than with China or India. My communication with them, both formal and informal, was pleasant. Communicating with North Koreans is clearly less difficult than with Japanese.

The North Korean companies have experiences with a wide range of development platforms. They work with Assembler, Cobol, C, Visual Studio .Net, Visual C/C++, Visual Basic, Java, JBuilder, Powerbuilder, Delphi, Flash, XML, Ajax, PHP, Perl, Oracle, SQL Server, MySQL, etc. They can do development work for administrative applications, but also technical software, such as embedded software or PLC’s. North Korea is very advanced in areas such as animation and games, and I have seen a range of titles, including table tennis, chess, golf, or beach volley. The design of many of their applications was modern and according to the western taste.

Over the recent years, North Korea is opening up for foreign business. This process makes offshore sourcing easier, and even investing in an own software subsidiary or joint venture can be considered. This does not mean that North Korea is potential software destination for every user of offshore services. The country is a subject of international political tensions. In addition, a number of circumstances require specific attention, such as the command of the English Language.  As is the case with China, the North Korean IT staff are able to read english bu thtey do not speak it very well.  Another issue is the relative isolation of the country, and in order to arrange an invitation, a visa is required.  The limited number of direct flights is another disadvantage; one can only travel directly from Beijing or Moscow.  If projects will require a lot of communication or knowledge transfer, it might be recommended to do some parts of the work in China, by the Chinese branches of the North Korean companies. Executing a small pilot project is the best way to investigate the opportunities in more detail.

Conclusion
North Korea has a large number of skilled IT professionals, and it has a high level of IT expertise in various areas.  The country is evolving into a nearshore software destination for a growing number of clients from Japan, China and South Korea. An interesting example of their success is the work they are doing for South Korean giant Samsung, in the field of embedded software for mobile phones.

North Korean IT-companies are now also targeting the European market, and the low tariffs and the available skills are major advantages.  Smaller and medium sized software companies can consider this country as a potential offshore destination, and should research the opportunities for collaboration or investment in more detail. Taking part in a study tour, as I have done, is an excellent way to get more insight in the actual business opportunities of a country – not only in the case of North Korea but for all nearshore and farshore destinations.

Paul Tija is the founder of GPI Consultancy, an independent Dutch Consultancy firm in the in the field of offshore IT sourcing. E-mail: [email protected]
GPI Consultancy, Postbus 26151, 3002 ED Rotterdam
Tel: +31-10-4254172 E-mail: [email protected] http://www.gpic.nl

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Biref history of US sanctions on DPRK

October 9th, 2006

From AFP:
10/9/2006

The US already has broad sanctions in place against North Korea, giving it little additional economic and trade leverage to bring to bear following Pyongyang’s defiant nuclear test explosion.

Washington imposed a near total economic embargo on North Korea at the start of the Korean War in June 1950, only beginning to ease the sanctions slightly from 1989 amid efforts to draw the reclusive Stalinist regime into the international community.

A series of measures aimed at encouraging North Korea to not develop nuclear arms culminated in a June 2000 Executive Order legalizing most transactions between US and North Korean nationals.

The order allowed many products to be sold to North Korea, though sanctions affecting trade in military, so-called dual-use and missile-related items remained in place.

But imports from the country remain under tight restrictions, managed by the Treasury Department’s Office of Foreign Assets Control, and North Korean assets frozen since 1950 remained frozen.

While restrictions on US investments in North Korea and on the travel of US citizens to North Korea were also eased under the 2000 measure, the two countries have no formal diplomatic relations and have never officially ended the Korean War.

Most forms of US economic assistance, other than purely humanitarian aid, remain prohibited and North Korea does not enjoy “Normal Trade Relations” with the United States, so allowable exports are hit by high tariffs.

The State Department acknowledges that “US economic interaction with North Korea remains minimal” and that Washington’s leverage over the reclusive regime is limited.

“There’s not a lot to grab hold of,” commented a senior State Department official about the hunt for ways to impact the North Korean economy bilaterally.

North Korea receives the bulk of its imports over the Chinese and Russian borders and relies on hefty aid from South Korea, giving those three governments far greater potential leverage in economic sanctions.

Washington did find one powerful pressure point last year when the Treasury Department slapped sanctions against a Macau-based bank, Banco Delta Asia, which US officials charged was the main conduit for bringing North Korean counterfeit dollar bills into the international system.

Washington and its allies have long contended North Korea uses counterfeiting, drug trafficking and sales of weapons to prop up its ailing economy.

The US decision to designate the Banco Delta Asia a “primary money-laundering concern” left the bank teetering and could foreshadow similar action targetting other financial transactions by the North.

Many analysts pointed to the banking sanction as possibly the main reason North Korea went ahead with its nuclear test shock at this time.

The North Koreans were “feeling under a great pressure from the United States and the sanctions that were being imposed, particularly the financial sanctions,” said David Albright, a former UN nuclear weapons inspector.

“I think this test is coming from that sense of being backed into a corner,” he said.

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Kumgang tourism hits the American media

October 8th, 2006

LA Times:
Helen Sung
10/8/2006

“WHEN I was in North Korea last year …,” I began, over dim sum one recent Sunday afternoon with a professor friend, a sophisticated Manhattanite.

“You’ve been to North Korea?” he interrupted. “Anyone can go,” I told him. “It’s a tour.”

While living in Seoul last year, I learned that a division of the South Korean mega-conglomerate Hyundai has been operating tours to Mt. Kumgang from South Korea since 1998. Considered the most beautiful mountain range on the Korean peninsula, Mt. Kumgang has been immortalized for centuries in poetry, art and song.

Before the Mt. Kumgang tour, South Koreans had been unable to travel north of the demilitarized zone — at least it was legally barred. The DMZ, established in 1953 at the end of the Korean War, sliced Korea in two, leading to the Republic of Korea in the south and the Democratic People’s Republic of Korea, or DPRK, in the north. The 2 1/2 -mile-wide DMZ sealed off the border between the two Koreas. To this day, tensions remain. Just last week, North Korea vowed to go ahead with a nuclear test, to the increasing dismay of world leaders.

But for Americans, to whom North Korea rarely, if ever, grants tourist visas (though it does to other foreigners), the tour offers one way to get inside the Communist country.

“Let’s go!” I said to a South Korean photographer friend and colleague after I learned of the tours.

“No way. It’s just a tourist trap,” he scoffed. “I heard they monitor everything, and you can’t go anywhere on your own. It’s not like you see the real North Korea or meet any regular North Koreans.”

“That’s all part of the charm of going to a totalitarian country,” I said, trying to persuade him. “Don’t you want to see what it’s all about?”

In the end, he did. Who wouldn’t want to peek inside one of the most politically isolated countries in the world?

*

Papers in order

TO go on the trip, we filled out simple registration forms and submitted copies of our passports and photographs to the tour agency. A couple of days later, our reservations were confirmed, and we submitted payment in South Korean won, equivalent to about $350 per person for the two-night, three-day trip. (For visa information, contact North Korea’s United Nations office, [212] 972-3105.)

On a wintry February morning, we assembled at a meeting point 100 miles northeast of Seoul and received identification cards that we were to wear at all times.

Mobile phones, high-powered camera lenses and South Korean magazines were among the items not allowed into North Korea. The tour included journalists (two Germans and a South Korean), the photographer I was traveling with and about 100 South Korean tourists.

Some of the tourists came to sightsee, but I suspect more came for the opportunity to set foot on northern soil.

We drove through the DMZ — the idea of it turned out to be more thrilling than the actual act — escorted by South Korean military. We passed vast dirt fields marked by occasional shrubs, trees and tunnels. Our tour guide warned us not to take any pictures.

At the military demarcation line our tour bus stopped. Two North Korean soldiers boarded. As one soldier stood guard at the front of the bus, the other strolled down the aisle, counting heads as he went. Once the soldiers left the bus, we were allowed to continue.

Whereas the south was highly industrialized and modern, the north looked like the land that time forgot. Civilians were walking, riding bicycles and pushing wheelbarrows. Other than the occasional military truck, there were no vehicles. Tattered pieces of cloth covered cracked and broken windows in abandoned-looking houses with worn roofs and crumbling tiles.

I saw the first of many carvings that marred the smooth surfaces of towering mountains in and around Mt. Kumgang. Etched in large Korean and Chinese characters, the signs touted the leadership of former Chairman Kim Il-Sung and current leader Kim Jong II.

Once at the mountain resort, we lined up to clear immigration. The North Korean official gave my American passport and Korean face a quizzical look. Maybe he had never met a Korean American.

“How safe is the tour?” I asked Young Sil Jung, a Hyundai Asan tour guide.

“It’s very safe,” she said. “It’s like South Korea.”

Indeed. It felt more like I was at a South Korean resort — maybe because I essentially was.

Hyundai Asan had developed a resort consisting of a hotel (a second has since opened), cozy wooden cabins, a hot springs spa and a rest area where frenetic South Korean pop music blared from loudspeakers in the parking lot.

There was a Family Mart (a South Korean chain of convenience stores akin to 7-Eleven). A sprawling shop sold North Korean souvenirs, the most popular being whiskey (purportedly made from snakes) and cigarettes “made in D.P.R.K.”

There was even a Hyundai duty-free shop selling Ferragamo, Chanel and Prada, among other luxury brands. At the restaurant, an all-you-can-eat buffet featured warming pans piled high with seasoned beef, shrimp, sautéed vegetables and tofu, noodles and steamed rice.

There was no hint that we were in one of the poorest, most oppressed countries in the world, and the scene in the hotel lobby, where a Filipino band sang American pop songs, bumped us into the realm of the surreal.

*

Trail ‘guides’

AS we headed out the next morning for our first day of hiking, our tour guide warned us not to take unauthorized photos, especially of North Korean guides, who were more like minders who kept close watch over us. Male and female guides monitored the trails to ensure tourists did not litter or show disrespect to the many monuments to father and son.

As I walked along Guryongyeon trail, an easy hike over gently ascending terrain, the North Korean guides chatted amiably with the South Koreans. I met a 68-year-old South Korean man, just a boy when Korea was divided, who had wanted his whole life to see the beauty of Mt. Kumgang. When I asked him how he felt, he replied, “There are no words.”

I could see what he meant. Mt. Kumgang was impressive with its great, hulking mountains and tall, craggy peaks. At Bibong Falls, South Korean ice climbers looked like ants scaling a towering waterfall that had been transformed into a wall of sheer ice.

At the bottom of the mountain, North Koreans sold roasted potatoes and fermented rice wine to the tourists for $1 each, accepting only American dollars. “They know the smell of money now,” said Ha Jung Byun, a senior manager with Hyundai Asan.

North Koreans were selling more local products at nearby Samilpo Lake. In a large, windowed room overlooking the frozen lake, women sold steamed mussels and potato pancakes, as well as North Korean calendars and cigarettes.

The next day, we hiked Manmulsang trail, known for its thousands of interesting rock formations. It’s a rigorous hike but worth it. The scope of the surrounding rugged peaks and the steep gorges and valleys were magnificent.

At the base of the trail, I met a director of the North Korean guides. He peppered me with questions about American politics and criticized the United States, saying that the “imperialist country” needed to stay out of North-South Korea relations.

I was curious how he felt about American tourists. He replied that he welcomed Americans and all foreigners to come view the beauty of Mt. Kumgang and meet North Koreans. On the way back, the Hyundai Asan guide pointed out dirt fields where the company planned to build a beach resort and golf course. Why anyone would want to go on the tour to North Korea to lie on a man-made beach or play golf was beyond me. The real merit of this tour was the sliver of Communist life I had seen on the way to the mountain resort and meeting some real North Koreans.

GETTING THERE:

From LAX, Korean Airways and Asiana offer nonstop service to Seoul. All Nippon Airways, Northwest, JAL and United offer connecting service (change of planes). Restricted round-trip fares begin at $939.

The meeting point for the tour is at a hotel called Kumgangsan Condo, about 100 miles northeast of Seoul. Round-trip charter bus service from Seoul is available to the meeting spot for $30. The bus trip takes about four hours.

TELEPHONES:

To call the South Korean numbers listed below from the U.S., dial 011 (the international dialing code) and 82 (country code for South Korea), followed by the number.

WHERE TO STAY:

JW Marriott Hotel Seoul, 19-3, Banpo-dong, Seocho-gu, Seoul; (888) 236-2427, http://www.marriott.com . An upscale, luxury hotel in central Seoul near shopping and business districts. Doubles begin at about $225.

Ibis Seoul, 893-1, Daechi-dong, Gangnam-gu, Seoul; 2-3011-8888; http://www.ambatel.com . A new hotel offering simple yet good-quality accommodations for the budget-conscious traveler. Doubles begin at $90.

BEFORE YOU GO:

To go on the Mt. Kumgang tour, visitors must register with a travel agency and provide the requisite documentation at least 10 days before the desired departure date. In Los Angeles, Smile Tour, (213) 365-2100, provides booking and other tour information. Hyundai Asan also provides information in English; call 2-3669-3691.

TOUR PRICES:

Hyundai Asan offers two-night, three-day packages starting at $290 (all prices are per person based on double occupancy), depending on the season and level of accommodations. The price includes lodging, breakfast, entrance and departure immigration fees, and hiking-related fees. Shorter trips are also available.

TO LEARN MORE:

Korea National Tourism Organization, (800) 868-7567 or (323) 634-0280, http://www.tour2korea.com .

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PRC/DPRK border post eases with iron deal

October 7th, 2006

From NK Zone:

DPRK/PRC border controls have been eased at an iron mine which a Chinese company now runs. Xinhua news agency reported that the border post at Sanhe in Jilin province was now open 12 hours a day instead of eight and a “green channel” had been introduced to reduce customs delays.

Sanhe is opposite the Hoeryong iron mine which is run by a Heilongjiang company under a deal signed in June. The report dated Oct 1 gave no further details of the agreement.

Hoeryong is about 70 km northeast of Musan, said to be North Korea’s largest iron mine, with which Tonghua Steel is planning to sign a seven billion yuan ($880 million), 50-year exploration deal. Chinese officials said last year an agreement would be signed soon but there has been no word of a deal being signed.

Michael Rank story here and the Nautilus Institute last month released two reports on Chinese-NK economic ties. Report and Presentation 1Report 2.

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ROK continues aid for flood damage recovery in DPRK

October 4th, 2006

Yonhap
10/4/2006

South Korea will continue to provide aid to help North Korea recover from flood damage despite growing tension over Pyongyang’s announcement that it plans to conduct a nuclear test, Seoul officials said Wednesday.

“It is difficult to suspend aid for Pyongyang’s flood recovery right now,” said an official at the South Korean Unification Ministry. “But the situation can change depending on the North’s moves.”

As of Wednesday, Seoul has shipped 21,585 tons of cements to Pyongyang, about one-fifth of the 100,000 tons it promised for recovery efforts.

The South also has sent 89,500 tons of rice and 3,200 tons of steel rods for the same purpose.

South Korea has cut its regular food shipments and fertilizer aid to Pyongyang since the missile tests in July, but it shipped a one-time aid package for flood damage recovery.

In a Foreign Ministry statement released Tuesday, North Korea said it would “conduct a nuclear test” in the future to bolster its war deterrent against what it called threats of U.S. aggression.

South Korea, the United States and other concerned parties warned Wednesday that North Korea will face a strong and united response by the international community if it carries out a nuclear test.

Some watchers raised concern that the cement provided to the North could be used to help with an underground nuclear test.

“How can the international community understand South Korea’s decision to send a shipment of cement to the North when it is seen as being essential for a nuclear test?” asked Rep. Rhee In-je of the People’s Central Party.

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N. Korea has eight nuclear test sites

October 4th, 2006

From Yonhap:

North Korea has eight underground tunnels where it can conduct nuclear bomb tests, a South Korean lawmaker claimed Wednesday.

A possible nuclear test site in North Korea has drawn renewed attention after the communist country said Tuesday it would implement atomic-bomb tests, citing a hostile U.S. policy and economic sanctions.

“The eight sites belong to neither military bases nor industrial facilities but there have been continuous works to build horizontal or vertical tunnels there. Their purposes have yet to be verified,” said Rep. Song Young-sun of the main opposition Grand National Party in a press release.

Song, also a member of parliament’s defense committee, said it is likely that any nuclear test by the North would be made on a gallery with horizontal tunnels, as these are cheaper and easier to prepare.

The eight sites include one in Kilju in the North’s northeastern Hamkyong Province, where South Korean media outlets have recently reported suspected activities. The other seven are scattered across the North’s western and northern provinces.     

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Mt. Paektu Tour Impossible Before June

October 3rd, 2006

Korea Times
Kim Yon-se
10/3/2006

A tour to Mt. Paektu via North Korean territory for South Koreans has become virtually impossible this year even though Hyundai Asan, the inter-Korean tourism operator, has pushed the project for more than a year.

Should Hyundai Asan reach a final agreement with the North to open tours soon, bad weather conditions on the mountain will make it impossible for tourists to travel to Mt. Paektu, located on the border of the North and China.

“Because of early snowfall and chilly weather there, ordinary tourists are not allowed to climb Mt. Paektu after September,’’ a spokeswoman of the Hyundai Group said yesterday.

Ordinary tours will be possible only between June and September, she said. “So the launch of tours will not be feasible until next May at least.’’

Since Hyundai Group Chairwoman Hyun Jeong-eun agreed with North Korean leader Kim Jong-il to develop the mountain as a tourist venue in July 2005, Hyundai Asan had to delay running pilot tours twice.

Apart from political setbacks, involving the United States’ unfavorable views toward inter-Korean businesses, the spokeswoman attributed the continuous delay to unfinished construction of a link between the mountain entrance and Mt. Paektu Airport.

Besides technical problems, Hyundai Asan, the tourism unit of Hyundai Group, have been troubled by the ongoing allegations that the North is still seeking a new South Korean partner for tours to Kaesong City and Mt. Paektu.

Furthermore, some media reports said last month that North Korea allegedly asked Lotte Tours to take on the business of Kaesong Industrial Complex operated by Hyundai Asan.

But the spokeswoman, a close aide to Hyun, said the possibility of Lotte’s obtaining of inter-Korean business rights is low. “We hold the exclusive rights legally. And we haven’t received any proposals from Lotte,’’ she said.

After Lotte Tours made it clear that it had stopped talks with North Korea on replacing Hyundai Asan to pursue inter-Korean tourism projects, last year, the company is declining to comment on the issue this year.

Chairwoman Hyun has not taken a trip to the mountain via North Korean entrance _ only a few Hyundai Asan officials have surveyed the tour route.

A Hyundai Asan official predicted beyond planned ordinary tours, South Koreans will also enjoy skiing there between April and May in a few years. 

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United Korean Olymic team by 2014

October 2nd, 2006

From Reuters:
Two Koreas to compete as one by 2014 Games
10/2/2006

North and South Korea are expected to compete as a joint team by the 2014 Winter Olympics, a top official of the South Korean city that is bidding for the games said on Monday.

The two Koreas have long tried to put together a unified team for the Olympics and have been in talks to form one for the 2008 Summer Games in Beijing, but those discussions have been marred by political and other problems.

“We are planning on having a joint team by the time of the 2014 Games,” said Bahng Jae-heung, secretary-general of the Pyeongchang bid committee.

“At this time, we are taking it for granted that there will be a joint team,” he told Reuters in the Pyeongchang mountain resort.

In September, the International Olympic Committee brought officials from the team Koreas together in Switzerland to help get their talks back on track for forming a joint team.

North Korea had suspended several cooperation projects with the South, including discussions on a joint Olympic team, in anger over Seoul’s decision to suspend regular food aid after the North defied international warnings and test-fired seven missiles in July.

Bahng said the Pyeongchang bid committee does not expect to co-host events with the North if the rustic mountain town about 200 km (120 miles) east of Seoul wins the Games because of Olympic rules and the distance to the North.

North and South Korea agreed to send a combined team to the Beijing games in November 2005, but have since failed to overcome differences about how it should be selected.

Pyongyang wants equal representation of athletes from the North and South, while Seoul says selection should be on merit to create the most competitive team possible.

South Korea has a larger population and better funded sport associations than its northern neighbour.

Still technically at war after their 1950-53 conflict ended without a peace treaty, North and South Korea first considered competing as a joint team at the 1964 Olympics in Tokyo, but years of acrimony and military tensions have prevented the idea from coming to pass.

North and South Korea have marched together at past Olympics, including this year’s Winter Games in Turin, but competed as separate teams.

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