Vietnam Central Bank Investigates North Korean Accounts

August 21st, 2006

Daily NK
Yang Jung A
8/21/2006

Vietnam, 1 of 10 Countries with North Korean Accounts

After the U.S. financial sanctions last year, the Kim Jong Il regime has set-up accounts with 23 banks from 10 countries including Vietnam, Mongolia, Thailand and Russia. The U.S. now sends a warning to countries with financial relationships with North Korea.

On the 20th, U.S. data and analytics provider ‘Bloomberg’ published a report by Professor Lee Young Hwa of Japan’s Kansai University, stating that Vietnam has set-up at least 10 accounts with North Korea.

Furthermore, the report stated that North Korea has established accounts with other South-East Asian countries and parts of Europe.

Professor Lee said “Through counterfeit money, fake cigarettes and illegal acts, North Korea is not conducting lawful trade nor initiating proper bank accounts. This report depicts the true melancholic situation of North Korea.”

After his visitations to South Korea, Vietnam and Singapore, on July 18th-19th, U.S. Secretary for Terrorism and Financial Intelligence (TFI) Stuart Levey, informed Bloomberg’s to alert and warn countries with financial ties to North Korea.

Following the U.S. warning, Vietnam Central Bank began investigations on Vietnam’s City Bank accounts with North Korea.

In addition, on the 19th a newspaper Sankei Shimbun also reported that 23 banks of 10 countries had established financial accounts with North Korea.

The newspaper which cites news and issues on North Korea, reported that Vietnam, Mongolia and Russia were a few of the 10 countries associating with North Korea.

Further, the newspaper revealed that the U.S. is insisting that it would freeze banks in order to intervene in North Korea’s transfer of funds,

U.S. authorities say that the affect of the U.S. financial sanctions was stronger than the affect of Banco Delta Asia. As a result, it appears that North Korea began to instigate accounts with countries in South-East Asia in which it already has international relationships.

It was reported that North Korea began to use hidden personal identities to open accounts so as to avoid regulations and account freezes.

Share

Silibank offers email and remittances to DPRK

August 20th, 2006

I stole this from Wikipedia

SiliBank is a financial institution based in Shenyang, Liaoning, China, closely related to the Democratic People’s Republic of Korea (DPRK).

The name “sili” means “true profit” in both Chinese and Korean.

In 2001 the bank began offering a limited electronic mail relay service to and from North Korea where Internet access with outside is limited. Along with Chesin.com, SiliBank appears to be one of only two e-mail gates to DPRK.

SiliBank maintains dedicated servers in Pyongyang and Shenyang, between which e-mail transmissions are exchanged once every 10 minutes (when the service commenced, this was hourly).

The fee for sending an e-mail to North Korea from abroad (as of May 10, 2003) costs 10 Eurocents per kilobyte for up to 40 kilobytes, and 0.2 Eurocents for each additional kilobyte in each e-mail transmission. The minimum charge per e-mail is 1 Euro. Customers must first pre-register with SiliBank with prepayment for estimated usage over a three-month period. SiliBank only allows e-mail relay between registered users of this service.

Share

DPRK social capital vis a vis war veterans

August 20th, 2006

From the Daily NK

N.Korea Urges the Public to Help Disabled Veterans

Last Saturday, Chosun-Shinbo, bulletin of Chochongryon that pro-North Korean residents’ league in Japan introduced Mansudae Art Troupe’s members who are helping disabled veterans in an article titled ‘supporting honored (disabled) veterans is people’s duty.’

In North Korea, disabled veterans are called ‘honored veterans’ and various aid policies for them are provided.

According to the bulletin, Mansudae Art Troupe’s singer Kim Jeong Sil visits her neighbor Moon Sung Jun, a special-level honored veteran, and entertains him.

Another member of the Art Troupe Jo Choon Ok is helping Kim Eun Sik, a former female volunteer soldier during the Korean War. These benevolent activities by Troupe members are neither forced nor those of pity or for reputation but proof of communist morals, said Chosun-Shinbo.

North Korea’s state media often report honored veterans support activities in order to spread awareness for disabled veterans.

‘Honored veterans’ are classified into four levels, which are special-level, level 1, level 2 and level 3. And veteran’s pension is distributed according to the level.

Spreading awareness for honored veterans through state media

Special-level veterans are those who received serious wound and are unable to move freely by him/herself. Level-1 veterans lost their sight or hand. Level-2 and level-3 veterans are fortunate enough that they suffered only minor injuries.

Since the Korean War, North Korean government has paid much attention to the living condition of disabled veterans and built factories for the veterans, including Mangyongdae Honored Veterans Fountain Pen Factory, Sariwon H.V. Sewing Factory, Hamheung H.V. Supplies Factory.

In the eighties, many women married with honored veterans. For those who married with special-level veterans, Kim Jong Il’s personal gifts and thanks were given. Wives of honored veterans enjoy huge social benefits but, at the same time, they suffer hardship in their personal lives.

For example, most of them serve their disabled husbands as a nurse. Moreover, those who get married with impotent veteran cannot have normal sexual lives. And sometimes those problems resulted in divorce among honored veteran couples.

Since the mid-90s, the number of disabled veterans increased as the army took part in construction of major infrastructure projects. Usually at building sites, safety is neglected and engineers depend on primitive construction tools. Thus accidents are frequent and more veterans are disabled.

North Korea, suffering a disastrous economic crisis, cannot keep up its generosity for disabled veterans. So the state media introduce personal volunteers for disabled veterans and call upon the North Korean public to help the veterans.

Share

Kaesong zone employment continues growth

August 20th, 2006

Number of N. Korean Workers at Kaesong Complex Tops 8,000

The number of North Koreans working at the Kaesong Industrial Complex in North Korea has surpassed 8,000, government officials said Saturday.

The officials expected the figure to break the 10,000 mark this year.

A total of 8,266 North Korean workers are now employed by South Korean private and public firms operating at the Kaesong complex, the officials said, quoting data from the Kaesong Industrial District Management Committee, a North Korean corporation that oversees the complex.

Some 7,700 of them are employed by private firms, while the rest were hired by the two companies that support their operation _ the state-run Korea Land Corp. and Hyundai Asan, an affiliate of Hyundai Group in charge of North Korean business projects, according to the statistics.

Thirteen South Korean firms operate factories using cheap but skilled North Korean labor in the pilot zone of the Kaesong complex, which started up in June 2004.

Ten other firms are busy building factories in another pilot zone that opened last September.

Share

DPRK finds market for stamps in ROK

August 18th, 2006

Who ever would have thought that the North Koreans would find a way to make money off the Dokdo Island controversy.  Entrepreneurship is alive and well in the DPRK?

From the Korea Times:

NK Dokdo Stamp for Sale in S. Korea

A South Korean distributor began receiving orders this week for postage stamps featuring a set of South Korean islets in the East Sea printed by North Korea, in an apparent protest against Japan’s continued claim to the islets, the distributor said Friday.

The South Korean company said it is receiving orders for sets of nine stamps priced at 18,000 won ($19), through its Web site, www.dprkpost.com, until Sept. 2.

The stamps are to be imported by a Hong Kong contractor to the communist state, Ko Sun Film Video Trading Co., Ltd

Share

DPRK population statistics

August 18th, 2006

The Daily NK compared pupoluation statistics from the Population Resource Bureau.

Here are the statistics on North Korea.

Here are the statistics on South Korea.

Here is the story:

North Korea’s infant mortality reaches 21 for every 1000 due to the country’s poor medical system.

A non-profit demographic institute Population Research Bureau (PRB) reported on Thursday that, as of mid-2006, North Korea’s population is approximately 23.1 million and it is expected to increase to 25.8 million in 2025 and 26.4 million, an increase of 14% from now, in 2050.

North Korea’s birth rate is 16 per 1000 people and death rate is 7 for every thousand, and the natural population increase is 0.9%.

North Korea’s infant mortality (21 for every 1000), which is far higher than that of South Korea (5 for every 1000), implies the North’s weak health care system. The average life expectancy is 71 years, 68 for men and 73 for women. Urban population rate is 60 percent.

According to the report, this year’s world population is 6.55 billion and expected to reach 7.94 billion in 2025 and 9.24 billion, 41 percent more than now, in 2050.

Meanwhile, the primary reason for North Korean infants’ death is respiratory infection and diarrhea. And a third of total North Korean infants are suffering serious malnutrition.

Share

North Korea to accept UN food aid

August 18th, 2006

BBC
8/18/2006

The UN food agency says North Korea has agreed to accept emergency food aid in the wake of heavy flooding in July.

The decision is a reversal for Pyongyang, which said previously that it did not need international help and could manage by itself.

North Korea was hit by torrential rains and high winds last month.

Official media said the severe weather killed hundreds of people and left thousands homeless, as well as damaging large tracts of agricultural land.

The World Food Programme (WFP) said in a statement that it would supply 150 metric tons of food to feed 13,000 residents in South Phyongan province, 80km (50 miles) east of the capital.

North Korea also agreed on Thursday to send its Red Cross officials to meet counterparts in South Korea on Saturday to discuss food and reconstruction aid.

The moves come amid differing reports on the scale of the flood damage in the North.

North Korean news agency KCNA said that “hundreds” died, while a pro-Pyongyang Japan-based daily put the toll at 549.

One activist group in Seoul has suggested the number of casualties is well into the thousands, but aid officials have played this down.

North Korea is secretive about releasing details of accidents or natural disasters, making any confirmation of the extent of the flooding difficult.

But Pyongyang has cancelled a mass gymnastics display, called Arirang, which is a key source of income for the nation, to focus, it says, on recovering from the floods.

North Korea is already reliant on foreign donations to feed its people.

The WFP began working in the country in the mid 1990s, after about two million people died from famine.

Share

What is the extent of the flood damage? (Updated again)

August 17th, 2006

From the New York Times:
8/17/2006

Floods Claim Huge Toll in North Korea, Group Says
By THE ASSOCIATED PRESS

SEOUL, South Korea- A South Korean aid group said Wednesday that 54,700 people were dead or missing after huge floods in North Korea last month and that as many as 2.5 million people had been left homeless.

The figure is by far the highest toll reported from floods that hit North Korea in mid-July.

The private aid agency Good Friends, based in Seoul, said it had “many sources” inside North Korea but did not say where it had obtained the information. The toll could not be independently confirmed because North Korea tightly controls the news media and information.

The aid group’s previous reports on activities inside North Korea have been confirmed by South Korean government sources, although some of its figures have been disputed.

North Korea’s official news media have reported that “hundreds” were killed by the floods, without giving specific numbers.

The Choson Sinbo, a newspaper published in Japan by a pro-North Korean association linked to the government, said this month that the floods had killed at least 549 people and that 295 more were missing.

Officials with South Korea’s Red Cross, the South Korean Unification Ministry, North Korea’s economic cooperation office in Beijing and other agencies could not immediately be reached for comment on Wednesday.

Representatives of Good Friends refused to elaborate on their report, saying they feared their sources would face reprisals.

The group said the floods had destroyed more than 230 bridges and inundated hundreds of thousands of acres of farmland, further straining North Korea’s ability to feed its population. North Korea has relied on foreign food donations since the mid-1990’s, when famine caused by natural disasters and decades of mismanagement is believed to have killed up to two million people.

“Food prices are skyrocketing as food distribution has become nearly impossible” as a result of the floods, the aid group said.

The group also contended that North Korea, to curb possible unrest, prevented those left homeless by the floods from traveling.

A South Korean citizens’ group said last week that North Korea had requested help from South Korea to cope with the devastation from the floods.

From Yonhap:

Flood damage in N. Korea seems lesser than previously estimated:official
8/10/2006

Recent floods in impoverished North Korea resulted in a loss of large amounts of food, but the loss may not be as great as previously estimated by domestic and international relief agencies, a government official said Thursday.

The claim comes amid efforts by South Korea’s pro-unification and other civic organizations to put together large amounts of emergency relief aid for flood victims in the North.

International relief agencies working with the communist state, such as the World Food Program and the International Federation of the Red Cross and Crescent Societies, had previously estimated that some 30,000 hectares of farmland was either submerged or destroyed due to last month’s heavy rains in the North, leading to the loss of some 100,000 tons of food.

The official, speaking on condition of anonymity, said the government, too, depends on the reports, or estimates, by the international agencies to estimate damage in the North, but said a thorough analysis of the reports showed a significantly smaller loss of food than estimated.

“(The government) believes damage to 20,000 to 30,000 hectares of arable land in the North would lead to the loss of some 32,000 tons of crops,” the official said.

The official said the discrepancy comes because the international organizations assumed the worst.

“I believe the WFP’s estimate was based on an assumption that no crops would be produced from any of the affected farmland,” the official said.

“A close analysis and consultation with experts showed the North’s loss of food would come to about 30 percent of the WFP estimate,” the official added.

The new estimate, or claim, by the government is expected to affect the South’s expected decision on the size and composition of its assistance for the flood-hit North as the government continues to suspend its regular aid for the communist state.

Seoul suspended its humanitarian aid for the communist North, which includes rice and fertilizer, shortly after Pyongyang test-fired seven mid- and long-range missiles into the East Sea on July 5.

Officials at the Unification Ministry say the government is unlikely to remove or loosen its suspension of rice and fertilizer shipments to the North until the latter returns to international negotiations over its nuclear weapons program and announces resumption of its self-imposed moratorium on missile tests.

Unification Minister Lee Jong-seok, Seoul’s highest official on North Korea, held a meeting with the head of the country’s National Red Cross on Thursday to discuss a possible inclusion of food, mainly rice, in a Red Cross aid package for the North.

Ministry officials said the provision of rice, if made, would only be a one-time assistance to help relieve the suffering of flood victims and will not lead to a resumption of regular aid shipments.  

From the BBC:

North Korea flooding ‘kills 549′
8/7/2006

At least 549 people died and another 295 are still missing as a result of floods which struck North Korea last month, a pro-Pyongyang daily said.

ays of heavy rain caused flooding which North Korean media have already confirmed led to “hundreds” of deaths.

But the figures, from the Japan-based daily, are the most specific released so far on the extent of the disaster.

Last month, the UN food agency estimated that about 60,000 people had been left homeless by the flooding.

The Choson Shinbo newspaper is based in Japan and is run by a pro-North Korea association.

Over 7,000 homes were destroyed or damaged, the daily said, and almost 40,000 acres (16,000 ha) of farmland had been washed away.

“Recovery efforts are proceeding at rapid speed as relief supplies are being sent to the afflicted areas,” the daily said on its web site.

Secretive

In South Korea, opposition Grand National Party leader Kang Jae-sup urged that a fact-finding mission be sent to the North to determine the full extent of the damage there, Yonhap news agency reported.

One activists’ group has suggested that the number of dead or missing is as high as 10,000, but has not said where it obtained the information.

North Korea is secretive about releasing details of accidents or natural disasters, making any confirmation of the extent of the flooding difficult.

But Pyongyang has cancelled a mass gymnastics display, called Arirang, which is a key source of income for the nation, to focus, it says, on recovering from the floods.

North Korea has refused offers from international agencies to launch appeals on its behalf, but an official said last week that Pyongyang would accept aid from the South if it came with no strings attached.

South Korea has suspended food aid to the North because of concerns over deadlocked talks on its nuclear programme and Pyongyang’s recent missile tests.

From the Associated Press

Up to 10,000 casualties in North Korea flooding: aid group
8/2/2006

Up to 10,000 North Koreans are believed dead or missing in what Pyongyang’s official media is describing as the worst flooding in a century, a respected South Korean humanitarian group said.

“About 4,000 people are now listed as missing, and we expect the final toll of dead and missing to reach 10,000,” said the independent aid group Good Friends.

North Korea’s official media has so far admitted that hundreds of people were dead or missing after the country was battered by heavy rainfall for nearly two weeks from July 10.

Seoul-based Good Friends said the media was now terming the flooding as the worst to hit the impoverished country in a century.

Share

Swiss foreign aid to DPRK

August 17th, 2006

From Yonhap:

Swiss aid for North Korea totals US$4.2 million last year

Switzerland gave over 5.2 million Swiss francs (US$4.2 million) worth of relief aid to North Korea in 2005, a U.S. radio station reported Thursday.

The Washington-based Radio Free Asia based its report on documents from the Swiss Agency for Development and Cooperation and the State Secretariat for Economic Affairs.

Agriculture was the top priority in the Swiss aid, with about 1.7 million francs spent only on the extermination of vermin and the introduction of new breeds, the report said.

The two Swiss government agencies said the rest of the money went to non-agriculture sectors, including 900,000 francs for administrative management, 300,000 francs for social overhead capital facilities, 1.1 million francs for economic development, 700,000 francs for humanitarian aid and 500,000 francs for others, it said.

With its economy in tatters, North Korea has been relying on international handouts since the mid-1990s to help feed its 23 million people.

Share

North Korean cigarettes-big news day

August 17th, 2006

Well the notion that the DPRK has been counterfitting cigarettes to raise hard currency has had a big day in the press.  I saw stories alone.

From Yonahp:

Fake cigarettes are major source of income for N. Korea: report

North Korea is believed to earn between US$500 million and $700 million a year by making and selling fake U.S. and Japanese cigarettes, a U.S. radio station reported Wednesday, quoting a former U.S. official.

“Counterfeit tobaccos are one of the largest, probably the largest single source of income for the North Korean regime,” David Asher said in an interview with the Washington-based Radio Free Asia.

Asher, who until July 2005 had served under former Assistant Secretary of State for East Asia and Pacific Affairs James Kelly, said the North’s communist regime operates as many as 10 plants to make fake U.S. and Japanese cigarettes.

Those plants are scattered throughout North Korea, including its capital, Pyongyang, and its eastern industrial zone, Rajin, he said.

The counterfeit cigarettes, Asher said, are usually packed and sent in containers to China and then to other Asian countries for sale.

“They need to start inspecting containers more aggressively,” he told the radio station, referring to a recent decision by Japan to block the North’s massive scheme to make counterfeit cigarettes.

Tokyo has recently ordered investigation into North Korean-made fake Japanese cigarettes reportedly circulated in China, according to Japanese media reports.

The amount of North Korean-made fake U.S. and Japanese cigarettes is estimated at about 2 billion packs a year, they said.

Asher claimed in an earlier report that as much as 40 percent of North Korea’s total earnings is believed to come from illegal activities such as counterfeiting, drug trafficking and weapons smuggling.

From the Daily NK (for the Japanese perspective):

‘Fake Cigarettes’ Japan Investigation on North Korean Authorities
North Korea reels in an annual income of $80mn~$160mn through counterfeit cigarettes 
By Yang Jung A, Reporter

At the Prime Minister’s residence last August 14th, Japan’s Deputy Chief Cabinet Secretary Suzuki Seiji who heads the ‘Special Investigation Team on Japanese abductees to North Korea’ initiated an official investigation on North Korean Authorities to combat the issue of counterfeit cigarettes.

A Japanese Newspaper ‘Mainichi’ (Daily News) reported that North Korea had been shipping large scale counterfeits of Japan’s leading cigarette brand ‘Mild Seven’ throughout China and South-East Asia in order to produce greater foreign currency.

The investigation by the ‘Special Investigation Team’ will focus on cracking whether or not North Korean authorities partook in the trafficking. On release of results, explicit countermeasures will be taken by the police, financial affairs, agriculture and fisheries and other ministries.

Last July 31st, Vice Minister Suzuki said at a ‘Special Investigation Team’ meeting that “There is a high possibility that North Korea is distributing ‘counterfeit cigarettes’ to foreign countries” and that severe measures will be taken.

The Japanese government argues that the flow of illegal foreign currency made through sales from fake cigarettes needs to be stopped if not at least for the persecution occurring in North Korea, and for the past few months has been pressurizing governments to take action.

A Japanese tobacco industry announced that masses of fake Mild Seven cigarettes were known to be circulating throughout China, North Korea and districts around the boarder. However, there is not yet confirmation that fake cigarettes are circulating in Japan.

Last May, the Japanese Maritime Bureau confirmed that a foreign vessel was found to be transporting fake Japanese cigarettes made in North Korea to South Korea and Taiwan. According to an U.S. press report the amount of fake cigarettes manufactured in North Korea and smuggled out of the country reaches $80-160 mn every year.

 

Share